The Continuum, an 816-unit freehold project on Thiam Siew Avenue, sold 225 units in May 2023 at a median price of S$2,720 per square foot. This is the first freehold project in Canada East with over 200,000 square feet of land after a nearly 20-year absence since Haig Court.
Developed on two parcels of land, The Continuum will be a landmark project in Canada East, with an iconic bridge linking the two sites. The quality of the facilities, freehold, proximity to good schools and the Paya Lebar sub-regional centre are other reasons that will attract buyers to the project.
The Reserve Residences sold 523 units in May at a median sf price of $2,461, making it the best-selling project in 2023 and the rest of the RCR. This is the second highest monthly sales in terms of number of units after Xin Yue House (Normanton Park) in January 2021. This is the first and only Integrated Transportation Hub (ITH) development in Bukit Timah. Usually there is only 1 ITH in a district. ITHs are preferred by buyers for their convenience and rarity as well as their capital appreciation and rentability. For many, the fear of missing out on a good project is the deciding factor that drives a purchase, as long as they have enough cash on hand and an approved bank mortgage.
Almost 99% of the buyers in both projects are Singaporeans and permanent residents. The Continuum and The Reserve Residences sold only 3 and 5 units respectively to foreigners.
Together, these two projects accounted for 72.1% of sales in May 2023. Developers sold a total of 1,038 units in May 2023, up 17 percent sequentially but down 23.4 percent year-over-year. Sales in the Core Central Region (CCR) declined 26.9 percent in May compared to April 2023. This may be partly due to the cooling measures introduced on April 27.
The percentage of foreigners purchasing in May declined significantly. This is partly due to the recent cooling measures, which doubled the Additional Buyer's Stamp Duty (ABSD) for foreigners to 60%. However, there is a transitional provision allowing for the previous 30% Additional Buyer's Stamp Duty (ABSD) to remain in place until the right to buy is exercised on or before May 17, 2023. The full effect of the cooling measures will be seen in June. Hopeden expects future purchases by foreigners to be around 1%, with the largest number of nationalities likely to be American, as their nationals enjoy the same tax treatment as Singaporeans.
With no new launches in June due to school holidays, coupled with the lack of launches and the low number of unsold units on the market, sales in June could be similar to the 200 to 400 units sold per month in the last 3 months of 2022.
Upcoming launches in July include Altura (executive condominium), Grand Dunman, Lentor Hills Residences, Mattar Residences, Orchard Sophia, Pinetree Hill, The Lakegarden Residences and The Myst.
Bukit Batok has not implemented condominiums (EC) for 22 years. In addition, the implementation of condominiums (EC) also provides upfront relief on the Additional Buyer's Stamp Duty (ABSD), so Altura may be of strong interest to first-time buyers and HDB upgraders.
Grand Dunman will be the first and only major project in 2023 and District 15. The Kota MRT station is a 2-minute walk away.
Strong sales at Lentor Modern indicate buyer interest in the private residential area of Lentor, and Lentor Hill Residences should be well received.
Mattar Residences is a freehold development within walking distance to the Mattar MRT station. Buyers looking for a ready-to-move-in new home will be attracted to Mattar Residences as it will be granted the right to exercise residency in July 2023.
Orchard Sophia is a private permanent residential development located on Sophia Road in District 9. The Dhoby Ghaut MRT exchange station is within walking distance.
Pinetree Hill is a unique residential development set in the coveted Mount Sinai, with 88% of the site area dedicated to landscaping. In addition, there has been no new development in the area since 2009 and pent-up demand will drive sales of Pinetree Hill.
The Lakegarden Residences will be the first private residential project to be launched next to Jurong Lake, a rare residential development that will pique buyers' interest.
Lush greenery creates private and exclusive living and residential services for residents, which will surprise buyers of The Myst. Just a short 5 minute walk from the Kesu MRT station.
Recent rate reductions on fixed rate home loans may indicate lower rates in the future. Projects completed in the next 1 to 2 years may generate more interest as buyers may have the option to switch to a fixed rate loan when the project is completed. This may slightly boost the real estate market.
It is estimated that developers will sell more than 2,000 units in the second quarter of 2023 and more than 3,000 units in the first half of 2023. As more projects are launched, the market is expected to sell around 8,000 units, with prices rising by as much as 5% in 2023.
Huttons Asia Huttons Asia Group is a Singaporean real estate agency with over 5,100 consultants; covering Australia, Cambodia, Indonesia, Malaysia, Thailand, Vietnam and the UK. Services include residential, commercial, retail and industrial project marketing, resale and leasing, overseas project marketing, group sales and over 90 residential projects for buyers to choose from.
