{"id":68426,"date":"2023-08-21T17:23:02","date_gmt":"2023-08-21T09:23:02","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=68426"},"modified":"2023-08-21T17:23:02","modified_gmt":"2023-08-21T09:23:02","slug":"new-launch-condo-jul-aug-2023","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/new-launch-condo-jul-aug-2023\/","title":{"rendered":"Analysis: Potential capital appreciation and profitability of new launches in Jul-Aug 2023"},"content":{"rendered":"
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In July and August 2023, there were eight <\/span>new private residential launches<\/span><\/a> and one <\/span>executive condominium (EC)<\/span><\/a>.\u00a0<\/span><\/p>\n

On several weekends in both months, we saw the launch of two or three projects simultaneously. Most recently, on the weekend of 12-13 August, <\/span>Orchard Sophia<\/span><\/a>, <\/span>TMW Maxwell<\/span><\/a>, and <\/span>The Arden<\/span><\/a> commenced their sales bookings.\u00a0<\/span><\/p>\n

According to analysts, the last time there was an influx of new launch units was in November 2018 and the first half of 2021.\u00a0<\/span><\/p>\n

Ismail Gafoor, CEO of PropNex, refers to this as \u201cchoice paralysis\u201d as \u201cbuyers are spoilt for choice in today\u2019s market, with more than 2,500 units (excluding ECs) still unsold from recently launched projects since April.\u201d\u00a0<\/span><\/p>\n

ERA\u2019s CEO, Marcus Chu, also notes that \u201chomebuyers are making their rounds to consider various options before returning to pick up a unit in the project of their choice.\u201d<\/span><\/p>\n

Based on Huttons\u2019 private residential market report in Q2 of 2023, there may be up to 21 new launches with a projected 6,969 units in the second half of the year.<\/span><\/p>\n

With many new launch options, you might wonder which new launch you should purchase.\u00a0<\/span><\/p>\n

Here\u2019s a look at the potential capital appreciation of new launches and the profitability of similar condos around them.<\/span><\/p>\n

New launches in July and August 2023\u00a0<\/strong><\/h2>\n\n\n\n\n\n\n\n\n\n\n\n\n
Project<\/b><\/td>\nDistrict<\/b><\/td>\nRegion<\/b><\/td>\nAverage psf price (S$)<\/b><\/td>\nNo. of units<\/b><\/td>\n% of units sold (as of 13 Aug 2023)<\/b><\/td>\nTOP<\/b><\/td>\nTenure<\/b><\/td>\n<\/tr>\n
Lentor Hills Residences<\/span><\/a><\/td>\n26<\/span><\/td>\nOCR<\/span><\/td>\n2,099<\/span><\/td>\n598<\/span><\/td>\n55.9%<\/span><\/td>\n2028<\/span><\/td>\n99-year<\/span><\/td>\n<\/tr>\n
The Myst<\/span><\/a><\/td>\n23<\/span><\/td>\nOCR<\/span><\/td>\n2,069<\/span><\/td>\n408<\/span><\/td>\n31.1%<\/span><\/td>\n2029<\/span><\/td>\n99-year<\/span><\/td>\n<\/tr>\n
Pinetree Hill<\/span><\/a><\/td>\n21<\/span><\/td>\nRCR<\/span><\/td>\n2,367<\/span><\/td>\n520<\/span><\/td>\n28.8%<\/span><\/td>\n2027<\/span><\/td>\n99-year<\/span><\/td>\n<\/tr>\n
Grand Dunman<\/span><\/a><\/td>\n15<\/span><\/td>\nRCR<\/span><\/td>\n2,534<\/span><\/td>\n1,008<\/span><\/td>\n54.5%<\/span><\/td>\n2028<\/span><\/td>\n99-year<\/span><\/td>\n<\/tr>\n
The LakeGarden Residences<\/span><\/a><\/td>\n22<\/span><\/td>\nOCR<\/span><\/td>\n2,120<\/span><\/td>\n306<\/span><\/td>\n23.2%<\/span><\/td>\n2027<\/span><\/td>\n99-year<\/span><\/td>\n<\/tr>\n
Altura EC<\/span><\/a><\/td>\n23<\/span><\/td>\nOCR<\/span><\/td>\n1,433<\/span><\/td>\n360<\/span><\/td>\n61%<\/span><\/td>\n2027<\/span><\/td>\n99-year<\/span><\/td>\n<\/tr>\n
Orchard Sophia<\/span><\/a><\/td>\n9<\/span><\/td>\nCCR<\/span><\/td>\n2,800<\/span><\/td>\n78<\/span><\/td>\n23%<\/span><\/td>\n2027<\/span><\/td>\nFreehold<\/span><\/td>\n<\/tr>\n
TMW Maxwell<\/span><\/a><\/td>\n2<\/span><\/td>\nRCR<\/span><\/td>\n3,310<\/span><\/td>\n324<\/span><\/td>\n2.2%<\/span><\/td>\n2028<\/span><\/td>\n99-year<\/span><\/td>\n<\/tr>\n
The Arden<\/span><\/a><\/td>\n23<\/span><\/td>\nOCR<\/span><\/td>\n1,750<\/span><\/td>\n105<\/span><\/td>\n22.9%<\/span><\/td>\n2027<\/span><\/td>\n99-year<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Data source: URA, Realis, 99.co<\/span><\/p>\n

In July and August this year, there were five new launches in the OCR (including Altura EC), three in the RCR and one in the CCR.\u00a0<\/span><\/p>\n

Except for District 23, which has three launches (including an EC), the other projects are across different regions in Singapore. Even though there are two private condo launches in District 23, The Myst and The Arden, they are of different sizes and price points.\u00a0<\/span><\/p>\n

*For the rest of the article, we\u2019ll only compare the private residential launches and not include Altura, as it is an EC and targets a different demographic.\u00a0<\/span><\/i><\/p>\n

Capital appreciation analysis of new launches in July and August 2023\u00a0<\/strong><\/h2>\n

In this segment, we\u2019ll examine the <\/span>new launch condos<\/span><\/a> in the OCR and RCR regions as they form the bulk of new projects.\u00a0<\/span><\/p>\n

We\u2019ll analyse the capital appreciation and look at the profitability of existing developments around these developments.\u00a0<\/span><\/p>\n

\"new<\/a><\/p>\n

Based on 99.co\u2019s Researcher data, resale transactions near <\/span>The Arden<\/span><\/a> had the highest capital appreciation rate of 99.4% over the past 10 years, followed by <\/span>The Myst<\/span><\/a>, with an appreciation rate of 44.6%.\u00a0<\/span><\/p>\n

Resale transactions near <\/span>The LakeGarden Residences<\/span><\/a> had a capital appreciation of 36.2% over the past 10 years, followed by resale transactions near <\/span>Grand Dunman<\/span><\/a> at 35.5%, resale transactions near <\/span>Pinetree Hill<\/span><\/a> at 28.5% and resale transactions near <\/span>Lentor Hills Residences<\/span><\/a> at 22.5% (not pictured in the graph above).\u00a0<\/span><\/p>\n

\"price<\/a><\/p>\n

Over the past five years, resale transactions near The Arden had the highest capital appreciation of 34.08%, followed by resale transactions near The Myst at 30.65% and resale transactions near Grand Dunman at 27.78%.\u00a0<\/span><\/p>\n

In terms of volume, projects near Grand Dunman had the highest number of resale transactions, followed by projects near The Myst and projects near The LakeGarden Residences.<\/span><\/p>\n