Foreign Developers Are More Optimistic Of Singapore Market
Singapore property market have picked up activity as buyers and developers are both active.
Buyers are buying into projects:
March 2016 saw buyers taking up almost 300 of 524 units at Wandervale Executive Condominium (EC) by Sim Lian Holdings. This sales was done within the first month of its launch. By July 2016, 75% of homes had been sold at Wandervale in Choa Chu Kang.
Another EC launched by Sim Lian, Treasure Crest at Anchorvale Crescent, saw nearly 72% or 362 of 504 homes of tremendous sales over the weekend of 16 Jul / 17 Jul 2016. Most of the buyers for this new launch live in the North-East district coming mainly from Sengkang, Hougang and Punggol.
Demand for EC will be highly dependent on price and location as the buyers are majority first-timers with a smaller number of HDB upgraders.
In the weekend of 26 Jun / 27 Jun 2016, new condo launch GEM Residences moved about 50% of its homes albeit with a high price and a location not too near the MRT.
23 Jul 2016, new launch Lake Grande at Lakeside MRT topped the chart this year with 87% or 436 units sold out of 500 units released. The Singapore government is pouring resources into transforming Jurong. Strong potential is seen here as Jurong Lake District has become the 2nd regional centre and the largest commercial hub outside the city centre. During 2016 Budget Talk, the Jurong Innovation District coming up at NTU, Bulim and Tengah is one hot topic discussed. And with plans for Jurong Lake District as the test bed for Smart Nation, buyers are convinced that this area is a hot button for real estate investment.
Who says private condo sales is dropping? There are still buyers out there who are waiting to get their dream home even though the Singapore property market is weak now and rental is soft.
Developers are shoring up their land banks:
It looks like foreign developers are definite about putting their mark in the Singapore property scene. In May 2016, China developer Qingjian Realty bought into an en-bloc deal of the Shunfu Ville huge land parcel at $638 milion. It is the first large en-bloc acquisition deal in 9 years. This could mean that private residential market confidence is high beyond 2018/2019.
Two weeks after the en-bloc deal was sealed, Qingjian made another successful bid for a mixed-use site in Bukit Batok at a cost of $301 million.
In May 2016, another property purchase made headlines. Macau casino tycoon Stanley Ho purchased a bungalow at 9 Cuscaden Road, a 25,741 sqft freehold site under Shun Tak Holdings, a company established by Stanley Ho himself. This signals the tycoon’s maiden foray into the Singapore property market. The purchase price was a whopping $145 million, the highest sum ever paid for a landed house. The per square foot per plot ratio (psf ppr) works out to approximately $2,145 for redevelopment into a hotel, including development charges as this plot is zoned for hotel use.
Are We Missing Out On What Foreign Developers Have Noticed?
For sure, foreign developers love Singapore’s economic and social stability. Are our local developers too pessimistic of our property market?
Singapore is top is several areas and that includes being placed among the best in Asia for doing business, one of the most liveable place in the world and also a financial hub in this region. So is there something that foreigners see in the Singapore property market that locals are missing out on?