The dry spell is over; the private housing market is out of the rut and back in flourishing business. This, according to the Private Residential Property Index of Singapore’s Urban Redevelopment Authority, has been welcome news for buyers interested in core city centre condos for some time now.
The tiny and immeasurably powerful Asian nation, in the past year, has reportedly seen prices in its non-landed private residential property rise 0.1% from the 2nd quarter to the third.
This is encouraging news for a potential buyer. Here’s why:
Buyer for Core City Centre Condos in the City
The easy math suggests a considerable shortage of land will result in high bids which in turn will affect prices later on. There has been a strong uptick in en bloc buys and the recent transaction prices clearly speak for themselves to make a strong case for core city centre condos:
· Development Sloane Court recently had a ppr (per plot ratio) with a transaction price of S$1,616 (US$1,186)
· Cuscaden Road – S$1,826 (US$1,340) ppr
· Cairnhill Mansion – asking price for en bloc purchase is S$2,101 (US$1,541) per square foot (psf)
· Kim Road (GLS) – S$1,250 (US$917) psf with subsequent sale price in the region of S$2,400-2,500 (US$1,760 – US$1,834) psf with an eventual minimum 99 year lease at S$689,353,000 (US$505,712,995)
Running out of freehold property at Core City Centre
The core central region is presently battling a thinning out of freehold properties. Take District 9 for example; core city centre condo freehold purchases will see the leasehold price gap (presently in the 15%-20% area) to increase thus leaving enough room for promise. Freehold condos tend to be more preferred for core city centre condos due to the pricing.
Running out of TOP projects
A TOP, or Temporary Occupation Permit, project in the Southeast Asian nation will be met with a lack of oxygen. Currently, there are fewer and fewer TOP projects available in District 9. Choices are narrowing down for core city centre condos but it makes for a good deal in the present price conditions.
District 9 makes for an attractive purchase for a handful of reasons. TG Development and its luxury apartments of 529-6672 square feet, for example, accepts 30% down payment with 2 years to cover the remaining price.
Core City Centre Condos Great World City
These core city centre condos provide irreplaceable features:
· Easy MRT and local bus transportation
· Great schools
· Class-leading restaurants and bars to die for
Expect luxury property prices to start from S$1,783,000 (US$1,307,867).
6388 properties were sold in the first half of 2017. As for core city centre condos, sales have been increasing in recent times and this, more than anything, should tell buyers it is a healthy and prosperous time to get into the property business.
Urban Redevelopment Authority reports:
· 729 unit sales in Q1 of 2017
· 1171 in Q2
· 1470 in Q3
List Sotheby’s International Realty reports:
· Sales have been increasing each year since 2014 for home priced above S$5 million (US$3.6 million)
· Lot of overseas buyer activity with 50% comprising of Chinese, Malaysian and Indonesian nationals
Not many times would buyers find themselves in a beneficial position such as the present climate. Core city centre condos are on the rise and in these get it while it’s still here conditions, one would be remiss not to capitalize on it.