Business

Returning interest set to boost condo sales

Four condominiums expected to be launched by April

Last month's tepid new private home sales tally that spelt a soft end to an otherwise bright year could soon be a distant memory.

In a lively start to the new year, the new private home market is expected to welcome as many as four project launches by April.

One stand-out is the highly-anticipated Park Place Residences at Paya Lebar Quarter - part of a $3.2 billion mega mixed-use project by Lendlease and the Abu Dhabi Investment Authority.

The other three upcoming condo launches are Grandeur Park Residences in Tanah Merah, Clement Canopy in Clementi and Seaside Residences in Siglap.

New home sales typically get a lift when a major project debuts on the market.

Last month, developers sold just 367 new units - the lowest in 10 months - on the back of a paltry 90 new units launched.

Despite that, the number of new private homes sold last year hit 7,972 units, up by about 7 per cent from the 7,440 shifted in 2015.

Consultancy Knight Frank expects the sales volume to be around 8,000 to 9,000 units this year amid "gradually returning interest".

This upturn in market sentiment, market analysts said, bodes well for new home sales.

"With more people believing that the market is now close to the bottom of the down cycle, interest in the new launches will likely be sustained," said Cushman & Wakefield research director Christine Li.

Property agents said Singland Homes and UOL Group's Clement Canopy could be the first, launching perhaps by late next month.

One-bedroom units - popular with investors of late - will, however, be conspicuously absent at the 505-unit condo development.

It will feature two- to four-bedroom apartments ranging from 635 sq ft to more than 1,500 sq ft.

The Straits Times understands that the two-bedders will likely account for more than a third of the total number of apartments.

HIGH-PROFILE

The highest-profile project is probably the 429-unit Park Place Residences - Lendlease's first residential development here.

The project, expected to hit the market in March or April, will also feature three office towers and a retail mall with 200 stores.

"(Such projects) are expected to attract good demand, looking at the take-up rates of previous launches such as North Park Residences (77 per cent sold) and The Poiz Residences (80 per cent sold)," noted Mr Wong Xian Yang, head of research and consultancy at OrangeTee.

Park Place Residences offers a mix of one- to three-bedroom apartments.

Market sources said the indicative price for a one-bedder starts from about $780,000.

Responding to a query from The Straits Times, Lendlease said about a quarter of the units are one-bedders.

Another project vying for buyers' attention in March will be the 720-unit Grandeur Park Residences in Bedok South Ave 3 by CEL Development, a unit of Chip Eng Seng Corporation.

The condo project near Tanah Merah MRT station will likely include a childcare centre and two shop units, which are for sale.

In April, Frasers Centrepoint Singapore will roll out the 843-unit Seaside Residences in Siglap, featuring four 27-storey blocks offering one- to five-bedroom apartments and penthouses.

The development, near East Coast Park and the future Siglap MRT station, could be priced at between $1,550 and $1,650 per square foot, according to analysts.

Market watchers expect home buyers to remain selective and price sensitive, opting for projects that are well-located and competitively priced.

"They will only transact when they perceive a good deal... However, a rapid rise in interest rates would impact market sentiment, which may cause demand to retreat," Mr Wong added.

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