You probably would have heard by now that property purchase in the Singapore market is booming with a big jump in home sales in March 2021. It was so hot that the Singapore government had hinted strongly that cooling measures are around the corner should this persist.
Purchases of new private apartments doubled to 1296 in March 2021 compared to 645 units in March 2020 Singapore according to data from Urban Redevelopment Authority.
With the increase in sales, it is hardly surprising that many are exploring their options to ride this wave. New Property Launches are selling out like hotcakes. While there are still hesitant folks who had waited since ABSD was introduced in December 2011, the property landscape had changed significantly since then. In fact, despite the cooling measures over the years, property prices had to remain resilient on the uptrend.
Here are 5 things you need to know about new property launches
1 New Units are getting smaller.
A decade ago, you could still find 2 bedroom units at about 1000 square feet. Today, 1000 square feet can only get you a 3 bedroom unit... if you are lucky. Some developers had even shrunk a 3 bedroom to below 1000 square feet, making it similar in size to a 4-Room HDB.
2 Quantum and not psf matters
A decade ago, most would baulk at the idea of paying 2000 psf for a condo outside of the Central Core Region (District 9,10,11, 1,2,4,6,7). Nowadays, 2000psf appears to be the norm even for new launches Outside Central Region (OCR).
In fact, if you shop around, you probably would have noticed that developers are more focused on total quantum (the price you pay) than psf.
As a ballpark figure, this is what you can expect to pay for new launches at OCR
1 Bedroom - 800K
2 Bedroom -1.1m
3 Bedroom - 1.4 m
4 Bedroom- 2 m upwards
Size would be as follow
1 Bedroom - 500sq ft
2 Bedroom - 650sq ft
3 Bedroom - 900sq ft
4 Bedroom- 1200sq ft
3 Virtual tours are possible
Given the Covid19 situation, virtual tours are now possible in some developments. This would help those who want to make a decision as it is possible to view units of different developments at the comfort of your own.
At Private Home Collection, we are able to arrange such viewings for you. Drop us a message or call us at here.
4 Pre Launch or VVIP will get you the best price
If you are looking for the biggest capital appreciation and buffer, the best time to get a unit id during pre-launch or VVIP session. During this period, the developer would tend to price the unit lower to attract buyers and volume. Buying at this stage would usually mean you have a buffer in prices. Sometimes, when the development is in demand, the average price may even rise as much as 10-15 % for units that are released at a later date.
5 You might need to ballot to get the unit you want
Lastly, when you are ready to make the purchase for a new launch, there will be times when balloting may be needed.
Balloting will determine the queue number you get to select a unit. The common practice to get a ballot number would be to issue a cheque to the developer for the option. When it reaches this stage, all you could do is cross your fingers and hope for a low ballot number so you can get your desired unit. It is best to consider a few units or consider stacks. That way, you would give yourself more chances to secure a home in your dream development.
Once you are ready to make a new purchase, feel free to browse our website for new launches. Alternatively, make an appointment here and we will be happy to assist with your home hunting!
Always glad to be of service.
