RESIDENTIAL PROPERTY | Krisana Gallezo-Estaura, Singapore

Slew of new condo launches in 2013

Guess which new condo is the largest this year.

A list provided by the SLP International Property Consultants show that 30 new condominiums are launching this year housing a total of 5,474 units.

Among the new condo launches, D'Nest in Pasir Ris is the largest with 912 units. The property, joint developed by City Developments, Hong Realty, and Hong Leong Holdings sold off more than 350 of the 650 units released for sale on its preview date last March 15.

Units at D'Nest were sold at an average price of $990 psf.

According tp SLP International Property Consultants executive director, the developers’ response to the recent property curbs will partly depend on the location of their new residential launches.

He notes that if the property project is facing competition from other projects in that vicinity, the developer may have to price their projects competitively.

"Some developers would also want to launch their projects before their competitors so as to have a first mover’s advantage in that location. In addition, some developers of projects that are likely to attract more Singaporean buyers are responding to the recent property cooling measures will be giving price discounts that are close to the 7% ABSD," he said.

Investment-wise, Mak thinks that the combined weight of all the property curbs will make the average property investors more price-sensitive.

"Some property investors will also retreat from the market as the ABSD has increased the cost of property investment and reduced the potential returns. But with interest rates expected to remain at the current low levels for the next 2 years and there is no foreseeable economic crisis in the horizon, real estate demand is projected to remain healthy this year," he explained.

Mak believes that the cooling measures introduced on 11 January 2013 may not be the last round. The Singapore government, he said could intervene in the real estate market again in 2013.

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