Current and Future Trends in Singapore’s New Launch Condo
An increasing number of mega projects are rolled out in Singapore with attractive and reasonable prices.
The unit make-up of condos are changing, with a trend towards two bedroom units.
Prices have largely stabilised in the private property market, so you can use prices in the past few months as a benchmark for new launches.
Many of my readers and viewers have been asking me about the current and future trends affecting Singapore’s new launch condos. When I discuss issues relating to trends, I don’t simply refer to upgoing or downgoing trends, but rather talk about more informative, real-time aspects.
Increasing number of mega projects
Firstly, there are a lot of mega projects coming up in Singapore. These mega projects host over two thousand units with very attractive and reasonable prices that are just a little higher than those in executive condos. These prices are normal, considering that there is a lot of supply from developers with each project hosting over two thousand units. When the developer requires more time to sell, they become more receptive to market sentiments and more sensitive to price changes. Mega projects offer a good chance for buyers to secure an appreciating asset and do away with their depreciating assets.
At the same time, it is important to bear in mind that while the lowest prices are advertised as from S$1100 psf onwards, this only reflects the prices of four to five bedroom units at lower levels. One bedroom units will be more expensive than four to five bedroom units. A more realistic price will be S$1200 - S$1300 spf for units in these mega projects.
Relatively lower maintenance fee for mega projects
The maintenance fee in mega projects is relatively low. For two to three bedroom units, the maintenance fee is typically around S$200 - 300. On the other hand, the maintenance fee in high-end condos could extend up to S$3000 - 4000
Changing unit make-up
The percentage of two bedroom and three bedroom units has changed. In many of the condos launched in 2017 - 2018, the percentage of three and four bedroom units added up to roughly 70%. Recently, however, there is an increasing weightage towards two bedroom units at around 40 - 50% of total units. In fact, the percentage of two bedroom units could even outweigh the percentage of one and three bedroom units.
This is likely because people are marrying later in Singapore and are planning for smaller families. With condo prices increasing, developers are planning to keep the quantum low by building more two bedroom units for young couples and single-child families.
Also, two bedroom units are often separated to two categories - normal and premium. Normal units are around 500 to 600 sqf with only one toilet while premium units are around 680 to 750 sqf.
From my perspective, it seems that two bedrooms are a better deal since it is more affordable and reasonable for young couples and single-child families to invest in. In the long-run, the lower price will also attract tenants in the rental market since many tenants do not require three bedrooms.
Prices have stabilised
While there are a lot of mega projects, there are also a lot of smaller upcoming projects. These smaller projects typically have less aggressive marketing and are situated in areas like Sengkang, Punggol and Hougang. The prices are going at around S$1300 - 1400 psf. Nearer to the city and at the East Coast area, prices are higher at around S$2000 psf. However, considering amenities like MRT, these properties could still be a good buy.
From a wider perspective, prices are at a standstill - neither too high nor going down. Prices released in the last few months set the benchmark for prices in the next few months. If you are looking to invest in a private property or intend to buy a new launch, you can compare their prices with the benchmark set in the last few months to determine if you are getting a good buy.