We have our regular contributor CK here who writes and provides good insight into the industry he has expertise on.
I am learning a lot just by exchanging emails and chatting with him so it’s another pleasure of mine for him to provide his thoughts on the recent development ongoing with our property rush.
One of the most significant development in the local real estate market in recent memory is the fully sold out of EC at Hougang, Hundred Palms in seven hours in 22 July 2017. See first blog post here
on the quick sales cycle and high return on equity the developer is likely to enjoy till the project obtain TOP.
The local property market has not seen a fully sold out (or almost fully sold out EC) since Lake Life EC in Jurong back in October 2014. The high demand (yes there are many disappointment buyers who never get a unit) was attributed to it being the first EC in Hougang, near a good school (1km from Rosyth School). Interestingly, a Straits Times article mentioned most of the buyers are concentrated in the nearby housing estate of Hougang, Serangoon, Sengkang and Punggol. The “supply” of potential upgraders is likely to be very high given the large number of flats that will reach the five year minimum occupancy period in Punggol/Seng Kang. This could bode well to private properties and more so for EC for it is the most natural route of upgrade for most Singaporeans.
The above event signal the key factor in driving real estate prices such as demand/supply, demographics and government policies.
To add twist to the development on the seven hour sale were sale of 2 land plots within the vicinity the very next week.
The sale of flour is more expensive than the sale of bread. Interesting times indeed.
Quickly, you can see that developers like Guocoland is holding on to their prized assets in launching the next phase of their Martin Modern now that the property seems to be picking up. This is way in stark contrast to last year when developers are throwing everything at a discount. Seems like we have a market back on its way up again.
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