This year, 27 new projects were launched, which is equivalent to the 26 new projects set to launch in 2020. Estimates reveal that developers sold around thirty percent more newly constructed residences this year than the previous year, according to Lee Sze Teck, senior director of research for Huttons Asia.
There will be a total of 5,389 units split among 41 new private residential buildings beginning construction in 2022. According to the number of units, 22% are in the Core Central Region (also known as the CCR), 37% are in the Rest of the Central Region (also known as the RCR), and 41% are in the Outside Central Region (also known as the OCR) (OCR).
According to Lee, a lack of new supply may dampen sales of newly built homes in the following year. “Despite the fact that more releases have occurred than in 2021, the total number of units currently available is only 5,389.” Developers may postpone the launch of new projects until after the new cooling measures go into effect on December 16, or they may release fewer units to the market. As a result, the sales volume for the following year will be affected.
The stratum landed housing project Belgravia Ace, which will consist of 107 individual units, is expected to be the first new launch of 2022.
Any prospective additional launches in 2022 will almost certainly be much less in magnitude than any launches this year. According to Tricia Song, CBRE’s head of research for Southeast Asia, there will be no giant projects with more than 1,000 units in the future year, as Normanton Park did this year. The Outside Central Region (OCR) has a higher share of new projects, with the majority of these projects being developments on government land sale (GLS) sites that will be auctioned in the later half of 2020 and the first half of 2021.
Belgravia Ace, a strata landed housing project built by Fairview Developments in collaboration with Tong Eng Brothers and Yeap Holdings, is set to commence building in 2022. The 107-unit complex, which will contain 104 semi-detached and three terraced residences, will be previewed on January 8. The official launch is set for January 22, exactly two weeks after the preview. The Belgravia Ace development, located off Ang Mo Kio Avenue 5, is the third and last stratum landed property in the Belgravia Drive region.
According to Ismail Gafoor, CEO of PropNex Realty, the 105-unit Qingjian Realty project The Arden at Phoenix Road, which is located off Choa Chu Kang Road, is expected to open in Feburary
Sing Holdings is developing the 640-unit executive condominium North Gaia on Yishun Avenue 9, which is slated to open sometime between the end of February and the beginning of March 2022.
North Gaia, a 640-unit executive condo (EC) development by Sing Holdings on Yishun Avenue 9, is set to open somewhere between the end of February and the beginning of March. Another EC project, the 628-unit Tengah Garden Walk project, which will be developed by a joint venture between City Developments Ltd (CDL) and MCL Land, is expected to open in the second half of 2022.
Tenet Executive Condominium, located in Singapore’s District 18, is a luxury garden concept building with an anticipated 610 residential units.
Tampines North is ideal for folks who enjoy being outside because there are numerous thrilling outdoor activities in the surrounding region. Residents at Tenet EC @ Tampines don’t lose out on anything when it comes to indoor and outdoor recreation facilities.
East Coast Park and Bedok Reservoir Park are both conveniently accessible by automobile from Tenet EC, much to the delight of people who prefer water activities.
Be on the lookout for Bukit Sembawang’s 298-unit Liv@MB (redevelopment of the former Katong Park Towers) at Mountbatten Road, MCC Land’s new mixed-use development with 265 residential units at Tanah Merah Kechil next to the Tanah Merah MRT Station, and CDL’s new mixed-use project at Tanah Merah Kechil next to the Tanah Merah MRT Station (redevelopment of Fuji Xerox Towers).
According to Ong Teck Hui, senior director of research and consultancy at JLL Singapore, the mixed-use complex proposed by Malaysian firm IOI Properties at Marina View would be one of the key projects that will grab attention if it is unveiled in the coming year. Marina View is a massive development with roughly 905 residential units. He mentions that it is expected to attract purchasers due to its CBD location in Marina Bay and proximity to the Shenton Way MRT Station.
Another project being worked on by a joint venture between Guocoland and TID Residential, Guocoland’s sister firm, is Lentor Hills Residences, an development on Lentor Hills Road. “Lentor Hills Residences is set to be the most major development in the Lentor,” says Ong. “Buyers may expect next to Lentor Modern a beautiful mixed development with around 600 residential apartments, facilities, and easy access to the neighboring MRT MRT Station.” The Lentor Hills Residences showflat will be completed by the first quarter of 2023. If you want to learn more about Lentor Hills Residences pricing, click the link!
The reconstruction of the former Flynn Park apartment in Pasir Panjang is another prospective new launch to keep an eye on. The land will be transformed into a brand new condominium complex with 800 units. This land has been widely considered as the largest residential development site acquired since the new housing market laws went into force in July of 2018.
Despite the fact that unsold inventories reached an all-time low of around 15,000 units at the end of November, collective sale activity grew in the fourth quarter of 2021. The majority of the properties sold, according to Song of CBRE, were modest to medium-sized residential sites. In 2017, and the first half of 2018, greater collective sale sites were sold. Because of the additional buyer’s stamp tax or ABSD of 25% (plus 5% non-remittable ABSD) levied in July 2018 if all units were not sold within five years, developers were cautious to commit to large projects. This was the case due to the ABSD.
“So far, the majority of developers are having little, if any, difficulty fulfilling the five-year ABSD schedule for current projects,” adds Lee of Huttons. Despite the fact that the most recent set of cooling measures is projected to reduce price growth, the majority of developers are under no pressure to lower prices.
Hoi Hup and Sunway Development’s joint venture may begin reconstruction of the Flynn Park condominium complex as early as the following year.
The pace of collective sales is anticipated to decline.
According to Ong Teck Hui, senior director of research and consultation at JLL Singapore, collective sales in Singapore totaled only $127.3 million the prior year. This year saw a considerable surge in business transactions, with 11 aggregate sales sites selling for a total of $2.67 billion.
“This is still a significant decrease from the preceding cycle, when residential collective sales totaled $8.1 billion in 2017 and $10 billion in 2018.” So far in 2021, 540 residential units have been sold through collective sales across all projects offered. She detects a relatively low level of demand in the residential market as a result of the displacements produced by collective sales.
Given the recent 10% rise in ABSD for property developers purchasing private residential lands to 35%, collective sales are anticipated to slow. This is because it is possible that all of the residential units will not be sold within five years. “This is taxing on developers,” Lee of Huttons adds, “and en bloc hopefuls will have to modify their price expectations in order to maximize their prospects of a successful en bloc.”
COMMUNAL SALES IN THE YEAR 2021
The government increased the quantity of land available for sale under the Government Land Sales (GLS) program by 40.9% in the first half of 2022, in addition to hiking the ABSD and tightening the total debt servicing ratio (TDSR). This is the most significant percentage gain since the second quarter of 2016, according to Lee. The supply of private residential units on the Confirmed List is expected to reach 2,290 (excluding ECs), the highest since the first half of 2018. (1H2018).
Tanah Merah Kechil site
The new mixed-use development in Tanah Merah Kechil, which was purchased by MCC Land and will be built into a new mixed-use development with a total of 265 residential units, is set to open somewhere in the middle of the next year’s ‘Wealth tax.’
The ABSD rise, according to Lee, can be understood as a type of wealth tax intended at restricting the entrance of “hot money” into the real estate market.
The TDSR drop from 60% to 55%, according to Lee, is a “pre-emptive action” aimed to encourage financial prudence in the event of an unforeseen spike in interest rates. Singaporeans’ purchasing power, in particular, has skyrocketed in 2021.
According to Lee, there will be an initial “knee-jerk reaction” as everyone tries to understand and evaluate its impact, as with all techniques of temperature regulation.