Fernvale Project Responsible for the Increase in New Private Homes Sales
Sales of new private homes have escalated last month due to the new launch condo. It is speculated though that numbers in sales are likely to slow down in the coming months.
There were 1,694 units of new private homes that developers were able to sell in July. This number is four time higher than the 375 units of private homes sold in June. These figures were actually the highest private home sale that have been posted since June of 2013 (there were 1,806 units of new private homes sold that time).
According to Mr. Desmond Sim, the CBRE research head for South-east Asia and Singapore, the Highpark Residences has taken advantage of ‘quantum play”, this is when small-sized units of private homes have made it possible for the prices of individual units to be palatable.
Most of the private units that were sold did not reach the million dollar mark, and around 15 percent are actually even lower that $500,000.
So far, the unit that was sold at the cheapest price was a 388 square feet, sixth-floor unit, which was sold last month for $373,450.
At the Highpark Residences, two-bedroom units are about 570 square feet to 732 square feet. The three-bedroom units, on the other hand, are about 872 square feet to 990 square feet.
Ken Low, an owner of an advertising company acquired a deluxe two-bedroom unit as an investment. He got it for about $650,000. According to Low, the Fernvale Projects like Highpark Residences, FloraView and Rivertrees Residences has a very attractive price range and it ties in perfectly with the plans for the future Seletar regional centre.
Aside from the HighPark Residences project, other projects also sold quite well. These include: Botanique at Bartley and they were able to sell 63 units at $1,282 per square feet of median price; City Gate and they were able to sell 26 units at $1,813 per square feet of median price, and the Riverbank@Fernvale and they were able to sell 25 units at $959 per square feet of median price – this is actually lower than the $1,000 per square feet of median prices that were seen in the previous months.
According to Mr Eugene Lim, the key executive officer of ERA Realty key executive, while the prices have been selectively tweaked, the relative increased in sales are mainly due to the marketing efforts in attempts to clear stock – for example, with star-buy unit and promotion periods.
Mohd Ismail, chief executive of PropNex Realty said that some unit buyers might have returned to the real estate market after the school holidays in June. Some may have also decided to do their private home buying so that they can effectively avoid having to buy during Hungry Ghost month, which actually started last Friday.
Mr Sim (of CBRE) said that, not including the sales from Fernvale project, High Park Residences, there were about 425 developer sales from the projects that were perviously launched – in line with the underlying demand that was witnessed in the previous month, which is around 300 to 500.
Additionally, Mr Sim also mentioned that most people are expecting that the new private homes sales market are going to be a bit quieter in the coming months, which is how the market usually goes after a surprising escalation in unit sales. It is also expected though, for the EC (executive condominium) market to stay active, particularly once it has been confirmed by the government that there will be an upward revision on executive condominium buyers’ income ceiling.