{"id":59513,"date":"2022-09-22T13:42:40","date_gmt":"2022-09-22T05:42:40","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=59513"},"modified":"2022-09-23T13:29:38","modified_gmt":"2022-09-23T05:29:38","slug":"ocr-new-launch-2000-psf","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/ocr-new-launch-2000-psf\/","title":{"rendered":"How did OCR new launches go beyond S$2,000 psf?"},"content":{"rendered":"
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Last weekend, a\u00a0<\/span>new launch<\/span><\/a> condominium in the OCR, <\/span>Lentor Modern<\/span><\/a>, sold 84% of its units during its launch. This translated to 508 out 605 units which is more than the number of units sold in any new launch this year.\u00a0<\/span><\/p>\n

This isn\u2019t surprising as Lentor Modern is the first and only integrated development in the Lentor neighbourhood and it\u2019s by GuocoLand, an experienced developer. (We\u2019ve covered more about Lentor Modern\u2019s offerings in <\/span>our review<\/span><\/a>.)\u00a0<\/span><\/p>\n

According to GuocoLand, the prices of units sold ranged from S$1,856 psf to S$2,538 psf. This comes after other OCR new launches had average prices surpass S$2,000 psf. <\/span>AMO Residence<\/span><\/a> had an average of S$2,113 psf while <\/span>Sky Eden@Bedok<\/span><\/a> had an average of S$2,111 psf.\u00a0<\/span><\/p>\n

As these projects performed well, it seems that buyers have accepted the norm that new launch prices in the OCR are S$2,000 psf or over.\u00a0<\/span><\/p>\n

We\u2019ll be analysing how OCR new launch prices reached over S$2,000 and comparing the prices of condos in different OCR districts.\u00a0<\/span><\/p>\n

Narrowing price gap between new and sub-sale transactions in CCR, RCR and OCR<\/h2>\n

Across Singapore, average prices of new and sub-sale transactions in the <\/span>CCR<\/span><\/a>, <\/span>RCR<\/span><\/a> and <\/span>OCR<\/span><\/a> have narrowed over the past 15 years.\u00a0<\/span><\/p>\n

\"prices<\/a>
Average psf prices of new and sub-sales in the OCR, 2007-2022<\/figcaption><\/figure>\n

Based on the price chart above, average psf prices of new and sub-sales in the OCR have appreciated more substantially as compared to the RCR and CCR, since 2007. Average prices in the OCR have increased by 137.55% as compared to 85.29% in the RCR and 17.27% in the CCR.\u00a0<\/span><\/p>\n

According to Lee Sze Teck, Senior Director of Research at Huttons Asia, \u201cthe median price gap between CCR and RCR homes has narrowed to 14.9% from the 10-year average of 42.7%.\u201d Lee also says that the price gap, \u201cstarted narrowing in April 2022 to 25.7%. The gap further closed in August to 14.9%\u201d.\u00a0<\/span><\/p>\n

Similarly, the average prices of OCR new launches are also catching up to RCR new launches.\u00a0<\/span><\/p>\n