Gem Residences sales were a mere 15 during the weekend launch after its successful VIP preview where 300 units were snapped at $1,426 psf average price. Despite Gem Residences sales slowing down, other city fringe projects with prices below $1500 psf are being well received. However, Queenstown and Bukit Merah have a potential oversupply, which may give the City fringe a two-tier market.
Gem Residences is experiencing a slowdown in take-up rate because of other similarly well-located developments. Just a week before, Cheung Kong Holdings launched Stars of Kovan. The project is a walking distance from Kovan MRT station. About 66 of its units have been taken up at an average price of $ 1,403.
Projects launched earlier are also seeking attention from buyers. The city-fringe projects with attractive prices have seen a steady demand despite the competition.
At the Poiz Residences, MCC Land sold 34 units at an average price of $1,389 psf in May. The development is next to Potong Pasir MRT station. The sales are based on caveats recorded by May 30, which has transactions up to third week of May.
Botanique at Bartley followed closely with 32 units selling at an average price of $1,298 psf in the first three weeks of May. Sixty percent of the transactions were for the 2 bedroom units. The development is 300m from Bartley MRT.
Located a walking distance from Aljunied MRT, Sims Urban Oasis had 23 of its units sold at $1,431 psf average price by Guocoland. Half of the sales were for 1-bedroom units.
Sturdee Residences had 22 units sold in May at $1,629 psf. This adds up to 148 units sold of the 305 available or almost 50% since its launch last month. The last property to be launched in the area was City Square Residences, and that was 11 years ago.
Keppel Land in Tiong Bahru released new units in April at Highline Residences. It sold 24 units in May at an average price of $1,765 psf.
Queenstown and Bukit Merah are having an oversupply.
More than 1400 units are unsold in Bukit Merah while Queenstown has 570 units. Principal Garden has the highest sales this year due to its competitive prices. It sold an average of 12 units a month with 15 units being sold in May at $1,637 psf average price.
Two projects could be launching in the area in 2H2016. These are HY Realty development located on Dundee road near Queenstown MRT and Tang Group mixed use project near Redhill MRT.
Fewer options exist for city fringe projects with prices below $ 1500 based on the prevailing prices. One option is Shunfu Village; which was sold at $747 psf ppr almost similar to that of Gem Residences. Its earliest launch is 2Q2017. Another option is Lorong Lew Lain land near Serangoon MRT, although its outside the city fringe. Its land price was $710 psf ppr.