It was a weekend of sales and more sales for the real estate sector. Buyers were flocking to a number of show flats and new launches, snapping up units all around. The 3.1% increase in private home prices is giving the industry hope for a prosperous year.
Industry analysts have since revised their forecast to a 7% to 15% increase in property prices this year. Their original estimate was a 3% to 8% increase.
Strong demand for new homes
Developers and property agents were busy last weekend fielding enquiries and sealing deals at The Verandah Residences, Park Place Residences, and The Tapestry.
Smaller units at The Verandah Residences sold well. At the 170-unit condominium which sits at the junction of Pasir Panjang and Sout Buona Vista roads, 76% of the apartments have been sold. The developer, Oxley Holdings, carried out balloting for their one- and two-bedder units. They have since sold out of their one bedroom, one bedroom with study, two bedroom and two bedroom premium units. Prices here averaged at $1,815 psf.
According to the developer, most buyers were home seekers and investors, including overseas buyers. Majority or 85% of the buyers were Singaporeans while foreigners and Singapore permanent residents made up the rest.
Property analysts hopeful for a fruitful year in real estate
With the increased prices of collective sales and land sales, many have been wondering if developers will be able to sell off their units at higher prices. But if the weekend is anything to go by, this may not be an issue.
Property analysts are expecting a strong year for the housing market. The positive response from buyers may also boost developers’ confidence in bidding higher for land plots. At Lendlease’s Park Place Residences, for example, prices of one- to three-bedders range from $900,000 to $2.2 million. Yet about 84% of the 429-unit development which is part of the Paya Lebar Quarter (PLQ) has been sold.
At City Development’s The Tapestry, 75% of the 450 units launched thus far have already been snapped up at an average price of $1,310 psf. The residential development has a total of 861 units.