SPK Trivia Quiz 1: Name 3 similar observations at the recent launches of The Tapestry, The Verandah Residences and Park Place Residences
- All 3 projects are selling at significant premiums to the nearby comparable projects or their earlier phase pricing
- All 3 projects achieved take-up rates of around 70% of launched units during the FIRST weekend of launch
- The best-selling units of all 3 projects are the smaller 1-bedder and 2-bedder units
Did you manage to get the answers to the question?
Next, you must be thinking what kind of insights we can derive from these 3 observations. My simplistic way of reading the observations would be:
- Premium Pricing + Strong Take-up => Buyers are more receptive towards or accept the reality of rising prices in the property market and they are back in the market
- Premium Pricing + Strong Take-up => This provides justification for the developers that had paid ‘forward’ prices for collective sale sites. Could potentially boost the optimism (or ego) of the developers and lead to more aggressive land buying activities
- Strong Take-up + Demand for small units => Affordability remains the key driver of demand. Small units tend to be bought for investment purposes and money on the sidelines are flowing back to the investment properties
Recent observations from the new launches are in line with the consensus view of a strong recovery in the Singapore residential property market.
How would you interpret the information from the recent launches?