How much hotter can the Singapore property market get?
Few days back, CDL put in a top bid of S$583 psf ppr for an Executive Condominium site at Sumang Walk in Punggol.
It was not just CDL’s tender price that set a new record price for an EC land. In fact, all the 17 bids were above the previous record price paid for the Lake Life EC site in 2013.
According to industry experts, breakeven selling price for the Sumang Walk site is likely to be around S$1,000 psf to S$1,100 psf. Hence, CDL is likely to launch this EC at around S$1,300 psf, which would be as much as a what a private condominium in the area fetches today.
The recently launched Parc Botannia was only selling at an average of S$1,280 psf and Sing Holdings acquired the land at only S$517 psf ppr less than 2 years ago. Do bear in mind that Parc Botannia is a private condominium and not EC.
For the upcoming EC launch – Rivercove Residences, the developer Hoi Hup paid only S$355 psf ppr for the site. With an indicative price of S$800 psf to S$900 psf, Rivercove Residences do look like a good bargain now, if the Sumang Walk EC is going to be launched at S$1,300 psf.
Now, how would the buyers react to this news? Are buyers going to rush in and buy now in anticipation of an expected rise in property prices?
The upcoming new launches will give us the answer.