Condos launched in 2015 and before have seen their units snapped up by buyers.
It was found out that developers who recorded high sales in 2016 received a boost from sales of apartments launched in 2015 and before. These developers include MCC Land, Hong Leong Group, Qingjian, and MCL Land.
Hong Leong recorded 1,140 sales in 2016 valued at approximately $1.45 billion. Of the sold units, 715 were in Coco Palms and Commonwealth Towers located in Pasir Ris and Commonwealth Avenue respectively.
Qingjian, a Chinese developer recorded sales of 768 units in 2016, 466 of which were from Bellewaters and Bellewoods that were launched in 2014. According to a Qingjian spokesperson, Bellewaters units were sold at an average price of $786 psf within the launch rate of $750 to $820 psf.
According to analysts, various reasons account for the existing projects popularity.
Dr. Lee Nai Jia, Research head Edmund Tie attributed the popularity to the spillover effect from the new launches. “A good example is The Santorini where the successful launch of The Alps Residences spilled over to it,” added Lee.
(An artist impression of The Alps Residences)
Santorini has 597 units whose launch was in March 2014. MCC Land managing director Mr. Tan Zhiyong said that 106 units were sold in Santorini last year in comparison to 32 sold in 2015. In total, MCC Land recorded sales of 745 in 2016 with The Alps Residences having 360 units sold, The Poiz Residences getting 277 sales and the remaining going to TRE Residences and Santorini.
On the other hand, MCL Land’s sales were attributed to the plan by the government to develop a second CBD in Jurong Lake District. The developer sold 1,010 units in 2016 an increase from the 594 sold in 2015.
The rise was attributed to the sales in Lake Grande where 553 units out of the 710 units were sold.
“This year is expected to be challenging due to the slow economy, an environment of uncertain interest rate and property cooling measures. However, the moderation of supply of residential home via Government Land Sales is likely to help developers move more of the unsold units,” said Hong Leong spokesperson.