Hi everyone, 2H2021 is looking to be a really exciting 6 months.
In this article I will talk about 10 launches to look out for in this coming period.
For each new condo, this is what I’ll look at
- The location
- Nearby Condos and Pricing
- Break Even Price
- 1 Good, and 1 Not so Good about it
Note that for most of these projects, there hasn’t been much information released yet, so I’m basing my comments from already known facts.
Mostly with an investment lens.
If it’s for own stay, keep my comments in mind, but if you really fall in love with the product, then let your heart take the lead
Let’s dive right in to the first condo that’s launching for sales this weekend!
<WATCH IT INSTEAD>
Pasir Ris 8
There is a cluster of private developments mostly on the Southwest of Pasir Ris 8 but if you talk about condos within reasonable walking distance to the MRT (<500m), there’s only 2.
Coco Palms and Eastvale.
Looking at their transactions over the last 6 months, Eastvale is very much cheaper.
Comparatively, Coco Palms is the most recent project to complete in Pasir Ris, and prices average about $1,252 psf, with a high of $1,402 psf.
Estimated breakeven for Pasir Ris 8 is $1,232 psf ppr.
The project is launching this weekend (24th July), and guide prices have been released.
For a 99-year lease which starts only from Jul 2021, prices start from as low as $14xx psf for the larger units.
1 Good about Pasir Ris 8: Integrated Project. Unbeatable convenience for years to come.
1 Not so Good about Pasir Ris 8: Major Transformation, Cross Island Line, still almost a decade away.
The Watergardens at Canberra
As the first private development to launch at Canberra since the MRT commenced operations in late 2019, The Watergardens in set to test new PSF highs for condos in the area.
The condos around are mostly Executive Condos, with the most recent, still under MOP The Brownstone seeing early sales averaging $1,000 psf.
Private condo Eight Courtyards have transacted at a high of $1,202 psf.
The estimated breakeven for Watergardens at Canberra is $1,224 psf ppr.
Guide prices show an estimated starting psf of $1,3xx psf, a low profit margin for the developer.
1 Good about Watergardens at Canberra: Other available new options are Ecs, Provence and Parc Canberra (last unit). If you don’t qualify for an EC, or want something with a quicker exit option, The Watergardens at Canberra ticks those boxes.
1 Not so Good about Watergardens at Canberra: Right beside is another project to be launched next, The Commodore. How the developers decide to launch following The Watergarden’s launch, can really have an influence on the investment potential of the site.
The first Core Central Region (CCR) project having the preview now (since delayed), Klimt Cairnhill, with a planned shining gold façade, positions itself as a boutique luxury project.
At these areas you’ll see a higher number of condominium projects.
Befitting its CCR location, prices of the nearby developments are high.
At no.1 is the recent Eden, where the entire building was purchased by a single buyer.
Estimated Breakeven for Klimt Cairnhill is $3,315 psf ppr.
1 Good about Klimt Cairnhill: As if ‘looking Gold’ wasn’t enough, add to that Freehold status and a location in prime District 9, Klimt Cairnhill has luxurious appeal that I can’t say applies to every development.
1 Not so Good about Klimt Cairnhill: Price. With the entry of a 2bedroom unit at close to 3m, it’s definitely not a project for the masses.
Parc Greenwich (Executive Condo)
The only Executive Condo launch in 2H2021!
Although it looks ‘ulu’, you’ll be surprised to know that demand is decent in the area, with little existing condo projects catering to the demand.
This is reflected by nearby condo The Topiary.
Since reaching its 5-year Minimum Occupation Period (MOP) earlier this year, the project has had more than 80 units changing hands.
Very decent indeed.
Greenwich V, a shopping mall run by Far East, is right opposite.
And there are numerous childcare options in the vicinity. Maybe Parc Greenwich isn’t that ‘ulu’ after all.
The project has an estimated breakeven price of $998 psf ppr.
Like other EC launches this year, I would expect it to sell at about $1,100 psf.
1 Good about Parc Greenwich: Being an Executive Condo = Lowest entry into Private Property Ownership. It is always popular with buyers as long as they fulfil 2 criteria, 1) Can accept the locations, 2) Are eligible.
1 Not so Good about Parc Greenwich: You really need to be ok with the location as only Bus links nearby and beside a large developing Industrial Area (Noise Pollution).
This is an interesting project sitting on an odd shaped small land (around 50,000 sqft) bordering the busy Bartley Viaduct.
There were a number of condo completions in that area over the last 5 to 6 years, leading to pricing growth.
The most recent, Botanique at Bartley, transacting at around $1,600 psf.
Bartley Vue’s estimated breakeven is $1,525 psf ppr and early indications are that developer is looking to price around $1,850 psf.
1 Good about Bartley Vue: Probably the most competitively priced city-fringe (RCR region) condo available among this list.
1 Not so Good about Bartley Vue: Personal experience with clients staying in this area is a lack of amenities in the vicinity.
The only integrated project along the Singapore River.
Jointly developed by heavy weight developers CDL and Capitaland, this has to be the most anticipated launch of 2H2021.
Canninghill Piers is location in District 6, where there are only 3 condos.
In fact, the last launch there was close to 10 years ago: Eden Residences Capitol.
Most of the nearby projects are instead westward around the Robertson Quay/River Valley area of District 9, with the youngest also around 9 years old.
Breakeven for Canninghill Piers is less clear-cut as it came about from a trio of transactions among the joint developers CDL and Capitaland.
I have the below information from a relevant news article if you want to try and work it out.
1 Good about Canninghill Piers: LOCATION, Location, location. With Greenery, City, River views and being directly connected to a park and MRT station… plus located in at 1 of the most central, most happening areas of Singapore… Find another project that has that?
1 Not so Good Good about Canninghill Piers: Crowded place, may be rowdy especially with the nightlife activities especially on weekend / holiday season.
Liv @ MB
Heading over to the East! Liv @ MB is the enbloc of the former Katong Towers.
Much like the CCR region of Klimt Cairnhill, the East zone (District 15), is populated by many developments.
A good mix of boutique and resort-style projects to cater to different needs.
The nearby condos within 500m are all Freehold, 17 in total.
Below are the higher priced ones.
Breakeven for the project is estimated at $1,889 psf ppr.
For this project I’ll mention the ‘Not so Good’ point first. You’ll see why.
1 Not so Good about Liv@MB: 99-year leasehold in an area where all other condos around are Freehold.
1 Good about Liv@MB: A previous project in the East with similar attributes had a strong performance in terms of investment returns despite also being leasehold. Seaside Residences. Can history repeat itself?
With a name like that, everyone would have high expectations. Does Perfect Ten get full marks?
You’ll notice a trend.
At the more ‘expensive’ zones like the core central region and the East Coast, there are more private property, and also more freehold sites.
The same applies here at Perfect Ten.
Estimated breakeven is $2,568 psf ppr.
1 Good about Perfect Ten: Besides being a close walk out to Bukit Timah Road, the area is famous for its primary schools. Perfect Ten is within 1km to Singapore Chinese Girls’ School (SCGS) and Anglo Chinese School (Primary)
1 Not so Good about Prefect Ten: Poor track record of buyer response to new condos in the area. Nearby new launches Sloane / Hyde / Juniper Hills do not have strong sales, with each having sold less than 30% of all units despite already being on market for a while.
Back to the East for a Far East project!
Our biggest nonpublic home-grown private developer has an upcoming project on this list.
An interesting tidbit: they’ve actually owned it since they bought Amber Glades via en bloc in early 2011!
They’ve been using it for rental since and probably think it’s a good time to finally launch it after about 10 years.
Like Liv @ MB, there are many are developments nearby, and prices also quite similar.
These 2 projects are both in the same district 15 region after all.
1 Good about Amber Sea: Being a land that was bought 10 years back, the acquisition cost was $1,066 psf ppr. To put it in context, the existing launches of Amber Park and Coastline Residences were acquired by the respective developers at >$1,500 psf ppr. Will Amber Sea be potentially the most competitively priced Freehold project in the area?
1 Not so Good about Amber Sea: Small Land. At <4,000sqm, it is an Apartment status. These types of projects tend to be less appealing due to their lack of facilities. Would be interesting to see what Far East comes up with.
Did I say 10 condos?
The last on this list is actually a landed project!
Belgravia Ace is the next addition in a fast-growing locale with many recent ‘sell out’ landed projects like Nim Collection, Belgravia Villas & Luxus Hills.
Being a landed property, it’s hard to compare prices as there are differences between every house.
Breakeven is also low as the developer Tong Eng Group likely has owned the land since some time back.
So straight to the Good and Bad!
1 Good about Belgravia Ace: Being new supply of landed housing. There’s much pent-up demand with little supply in this sector, so hopefully this will give fresh options to buyers and help ease the imbalance in the market.
1 Not so Good about Belgravia Ace: It’s a Strata landed. While recently demand has picked up for this property class, it is still niche and may not suit the taste of most buyers who may still prefer traditional landed property.
So that’s a wrap of my pick of the 10 New Launches to look out for in 2H2021.
Thank you for reading till the end of my article and I hope you have gained value from it.
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Stay safe everyone, and all the best!