Homebuyers are snapping up units at projects launched In 2015 And Earlier
Developers got a sizeable boost from selling apartments released in 2015 and earlier.
Hong Leong sold 1,140 units last year for a total value of about $1.45 billion. Earlier projects, such as Commonwealth Towers in Commonwealth Avenue and Coco Palms in Pasir Ris, which were both launched in 2014, accounted for 715 of the units sold.
The average price per square foot of the units sold at Bellewaters last year was $786, which is within the $750 to $820 psf range announced at the launch.
There were several reasons for the demand in existing projects.
There was a “spillover” effect from successful new launches in the area. A case in point is The Santorini. With the successful launch in September of The Alps Residences in Tampines, some of the sales spilled over to the nearby Santorini.
Demand for private homes last year was driven by the total quantum in terms of price, as well as upcoming areas with potential like Bidadari and Jurong Regional Centre.
Developers benefited from Government’s plan to develop the Jurong Lake District as a second central business district.
Sim Lian, another top-selling developer last year,said it had sold 1,003 units at its two executive condominium projects – Wandervale in Choa Chu Kang and Treasure Crest in Anchorvale Crescent.
A Hong Leong spokesman said this year’s outlook is expected to be challenging owing to the uncertain interest rate environment, slowing economy and property cooling measures.
However, she added that the moderation of residential-home supply through the Government Land Sales programme will hopefully help developers sell more unsold units.