According to analysts interviewed, the limited supply of small condominium projects is expected to continue to attract buyers as prices are expected to rise by 3 to 5% next year.
Smaller condominium projects in Singapore generally have no more than 100 units and no more than five floors, and most are freehold or 999-year leases.
A number of small condominium projects have been launched this year, with Hill House, which debuted last month, selling 16.67% or 12 units in its first weekend of operation at an average price of S$2,980 per square foot.
The 72-unit project in Lembah Bali is being developed by developer Macly Group in conjunction with Roxy Pacific Holdings Group and Lim Boon Heng Holdings.
Kovan Jewel, which was also launched in November, has so far sold 4 units at prices ranging from S$2,063 (about RM6,807.90) to S$2,200 (about RM7,260). It has a total of 34 units under freehold and the developer is Sunlink Real Estate.
In an interview, ERA's Head of Industrial Research and Consultancy, Mak Chun Wing, pointed out that buyers of smaller condominium projects can enjoy more privacy as fewer units are launched and there are fewer neighbors.
He revealed that smaller projects in Singapore's core Central District and other established areas in the Central District are generally freehold or long-term leases, which is a major selling point to attract buyers. Moreover, the success rate of collective sale schemes for smaller projects is usually higher because there are fewer owners.
Real estate analyst Wong Gah Sing said in an interview that smaller condominium projects are generally well received and typically sell at least about 50 percent of their units on average three months after launch, mainly because of, among other things, the higher exclusivity of smaller condominium projects.
"Singles, expatriates and couples like to have a more peaceful living environment. Older people who have sold their landed homes or large older condominiums in hand will also consider buying these types of condominiums as their children move out after they get married and start a family."
Wong Gah Seng noted that while most boutique condominium projects do not have many amenities, the overall maintenance cost and cumulative fund per unit is high, ranging between S$200 (about RM660) to S$250 (about RM825). The maintenance cost depends on the facilities provided by the condominium, the size of the condominium and the number of residents.
Assuming the Singapore government does not launch another round of property cooling measures next year, he expects condominium prices in smaller projects to rise by 3 to 5 percent next year.
