Recently, new condominium launches have had a significant take-up rate as demand for new condos rises greatly. For example, the take-up for the Lentor Central Residences to launch this month was 93%. So far, 3,268 sale caveats for new condo units have been lodged this year, which is a huge jump over previous years.
Preference for New Condominiums
There are several reasons behind the rise in demand for new condos. Firstly, buyers find new units more appealing as they are typically cheaper and have fewer maintenance issues. As the new and resale condo price gap has narrowed, new condos have become more appealing. In 2023, the peak average price difference was $908 psf but it now stands at $697 psf, which spurred buying interest for new launches.
In addition, the payment scheme for the new condo means smaller mortgage payments until the when it TOPs. On the other hand, resale properties will require you to disburse your full loan amount.
Stellar Sales Performance of Recent Launches
Many more new condos have recently launched with strong sales performances. The Orie, situated near the Braddell MRT Station, saw sales of 86% during its launch weekend, which has since improved. Likewise, desiring demand helped Elta and PARKTOWN Residence achieve take-up rates of 65.3% and 88.1%, respectively. Since there are not many new units coming out over the years, it is quite likely.
Market Dynamics and Buyer Behaviour
The new condo sales this year predominantly took place in the Outside Central Region (OCR), with many buyers opting for more affordable choices within well-situated areas. Many buyers do not want to miss out on key property and are willing to pay top dollar. That is quite evident from the massive crowds at recent launches.
As HDB resale prices rise, this has opened up new condo buyers with larger budgets as HDB upgraders. HDB resale flats have risen by an average of 47.8 per cent since 2020, causing more million-dollar transactions.
Financing and Developer Confidence
The ability of buyers to finance their property purchases has also improved due to falling interest rates, with the three-month compounded Singapore Overnight Rate Average (SORA) now below 3%. Given the encouraging sales performance, together with the financial climate at large, developers’ confidence has risen reflected in the intense bidding for GLS.
Conclusion
The latest surge in demand for new condos has been aided by their attractiveness, financing options and rising prices of HDB flats. With the evolving market, the upcoming launches in prime locations, likely to sustain interest, thus an ideal time for you to invest.
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