By EdgeProp Team / EdgeProp Singapore | October 5, 2020 8:03 PM SGT
SINGAPORE (EDGEPROP) – Since the sales gallery of Hyll on Holland opened for preview and simultaneous soft launch on Oct 2, four out of 60 units released, have been sold. The 319-unit, freehold condominium, located on Holland Road, has exclusively two- and three-bedroom units. All four units sold are said to be the two-bedroom classic units of 657 sq ft. Two-bedroom units are priced from $1.5 million for the smallest suite of 570 sq ft.
Two-bedroom units make up 231 out of the 319 units (72%) and range in size from 570 to 721 sq ft, while three-bedroom units of 936 sq ft make up 44 units. The remaining 44 units are three-bedroom-plus-study units of 1,055 sq ft. All the units are designed to be efficient, with a dumbbell layout.
The sales have so far translated to over 1% of the total number of units in the project. However, the sales figures are not exhaustive as there are some buyers who are in the process of securing financing for their purchase, according to an industry source. “The project didn’t have the benefit of a one- or two-week preview runway ahead of its launch,” he says. This was in contrast to Penrose, which was launched a week ago, where 341 out of a total of 566 units (60.3%) in the development were sold a fortnight after the project previewed on Sept 12. However, Penrose is located in the city fringe neighbourhood of Sims Drive.
Christine Sun, head of research and consultancy at OrangeTee & Tie, attributes the lower sales to the increased supply of new homes in the Core Central Region or CCR, which encompasses the traditional prime districts of 9, 10 and 11, the Downtown Core planning area and Sentosa Cove. The increase has been particularly significant in prime Districts 9 and 10, given the en bloc sales fever in 2017 and 1H2018.
“There has been a number of new projects launched successively, and the pool of home buyers has been reduced over the past year,” says Sun. Moreover, the price range of new projects in the CCR is around $2,600 to $3,000 psf, she estimates.
“Given the higher price quantum, the number of wealthy buyers is lower than upgraders for mass market or city fringe homes,” she points out. “The number of foreign buyers has also been greatly reduced because of travel restrictions.”
In 1Q2020, a total of 12 projects with 3,786 units were launched, according to PropNex data. Six of the 12 projects with a total of 1,747 units were in the Core Central Region (CCR), representing 46% of total units launched. They included the 376-unit, freehold The Avenir (redevelopment of the former Pacific Mansion) in District 9, and the 638-unit, freehold Leedon Green (redevelopment of the former Tulip Garden) in District 10. Both were launched in January.
Another seven projects were launched in 2Q2020 and 3Q2020, namely the 378-unit Kopar at Newton, the 633-unit Forett at Bukit Timah, Verdale at Jalan Jurong Kechil, the 51-unit Noma on Guillemard Road, the 570-unit Penrose at Sims Drive and the 58-unit Myra at Meyappa Chettiar Road. Including Hyll on Holland, the number of projects launched over the past two quarters is eight, with a total of 2,294 units.
This brings the total number of projects launched to 20 this year, with a total of 6,080 units. Eight of the 20 are located in the CCR, with a combined total of 2,444 units, translating to 40.2% of the units launched to date.
“The biggest challenge is the huge number of developments in the CCR that were launched this year, and that are equally competitive in terms of pricing,” notes Ismail Gafoor, CEO of PropNex. “Generally, developers of projects in the CCR have to contend with buyers having more choices. As Hyll on Holland is a freehold project, and in a prime location, it is priced at a slight premium to 99-year leasehold projects in the same area.”
However, the residential market is generally expected to perform better next year when more travel restrictions are lifted and the economy picks up as Singapore eases into Phase Three of reopening post-circuit breaker, says OrangeTee & Tie’s Sun.
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