{"id":8818,"date":"2017-01-16T01:37:50","date_gmt":"2017-01-15T17:37:50","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=8818"},"modified":"2022-07-01T04:05:46","modified_gmt":"2022-06-30T20:05:46","slug":"3-reasons-new-condos-better-others","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/3-reasons-new-condos-better-others\/","title":{"rendered":"3 reasons why some new condos sell better than others"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><figure id=\"attachment_8819\" aria-describedby=\"caption-attachment-8819\" style=\"width: 800px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-8819\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/01\/new-condos-lake-grande.jpg\" alt=\"Lake grande was one of the new condos that saw brisk sales activity the week of its launch\" width=\"800\" height=\"466\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/01\/new-condos-lake-grande.jpg 1100w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/01\/new-condos-lake-grande-940x548.jpg 940w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-8819\" class=\"wp-caption-text\">Lake grande was one of the new condos that saw brisk sales activity the week of its launch<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">2016 was an interesting time for property, with some new condos in Singapore doing dramatically well, while others lag behind. While developments such as <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/lakeville\"><span style=\"font-weight: 400;\">Lakeville<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/the-alps-residences\"><span style=\"font-weight: 400;\">The Alps Residences<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/the-poiz-residences\"><span style=\"font-weight: 400;\">The Poiz Residences<\/span><\/a><span style=\"font-weight: 400;\"> were quick to sell, others such as <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/the-wisteria\"><span style=\"font-weight: 400;\">Wisteria<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/sturdee-residences\"><span style=\"font-weight: 400;\">Sturdee Residences<\/span><\/a><span style=\"font-weight: 400;\"> took a while longer to pick up. Here\u2019s why we think there were big discrepancies: <\/span><\/p>\n<h3><b>Reason 1: Accessibility is still king<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A most common trend among the fast selling new condos, such as <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/lake-grande\"><span style=\"font-weight: 400;\">Lake Grande<\/span><\/a><span style=\"font-weight: 400;\">, was accessibility. Lake Grande sold 436 of its 500 released units on its weekend launch (87 percent), at an average price of $1,386 per square foot. This is outstanding for a new condo in the Outside of Central Region (OCR) condo during a weak market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although it is not centrally located, we note that Lake Grande is within five minutes of Lakeside MRT station. <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/queens-peak\"><span style=\"font-weight: 400;\">Queens Peak<\/span><\/a><span style=\"font-weight: 400;\">, another good launch, is practically across the road from the Queenstown MRT station. Queens Peak sold 250 of 736 units at launch (around 34 percent), which again is quite good given the market situation (we are well past the days when at least 50 percent is an expectation). <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The only exception to this trend was<\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/alps-residences\/\"><span style=\"font-weight: 400;\"> The Alps Residences<\/span><\/a><span style=\"font-weight: 400;\">, which despite being quite out of the way (Tampines Ave 10), defied that drawback to become a top selling development.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By contrast, new condos like <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/parc-riviera\"><span style=\"font-weight: 400;\">Parc Riviera<\/span><\/a><span style=\"font-weight: 400;\">, took a little longer to get off the ground. It only moved 100 of its 752 available units at launch (although it was still, ultimately, one of the bestselling projects for 2016). We had expected Parc Riviera to take off almost immediately, given its novel one-tier pricing: all the units between the 2<\/span><span style=\"font-weight: 400;\">nd<\/span><span style=\"font-weight: 400;\"> to 15<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> floor <\/span><a href=\"http:\/\/www.straitstimes.com\/business\/property\/one-tier-prices-for-early-buyers-of-parc-riviera\"><span style=\"font-weight: 400;\">had the same price range<\/span><\/a><span style=\"font-weight: 400;\">. Averaging $1,085 per square foot for a four-bedroom unit, we thought this was (and is) quite a steal. By contrast, top seller Lake Grande averages about $1,250 per square foot for a similar sized unit. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nonetheless, <\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/queens-peak-parc-riviera\/\"><span style=\"font-weight: 400;\">Parc Riviera<\/span><\/a><span style=\"font-weight: 400;\"> was more sluggish at launch, and the obvious cause would be the lack of a nearby MRT station. There might be one in future, and the project does include a free shuttle bus service to nearby stations; but even with a great price this caused buyers to hesitate.<\/span><\/p>\n<h3><b>Reason 2: Innovation does pay off<\/b><\/h3>\n<p><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/gem-residences\"><span style=\"font-weight: 400;\">Gem Residences<\/span><\/a><span style=\"font-weight: 400;\"> sold 300 of its 578 units at the VIP launch, before seeing slower sales during the actual weekend launch (only 15 more units). Nonetheless, selling around 55 percent of units during launch is exceptional in the current market. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This development was effectively a cross between a hotel and a home, and is noted for having an on-demand, 24-hour concierge service operated from London. So yes, residents can call and book dinner at a restaurant in Paris, or even get hold of limited edition video game sets (we know at least one resident who tried and succeeded).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also use your EZ-Link card as a condo access card at Gem Residences; this is not new in many parts of the world (like Hong Kong), but it is still a novelty in Singapore.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Gem Residences aside, note that one of our other successful new condos to launch in 2016, Lake Grande, is a smart home. Residents can control basic functions, such as the air-conditioner and door locks, via the use of their smartphone.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cynics and long-in-the-tooth investors will roll their eyes, and tell you these things are gimmicks. And while it\u2019s true these novelties don\u2019t take precedence over the fundamentals (location and price), they provide that extra edge when launched in a crowd of mostly similar looking new condos.<\/span><\/p>\n<h3><b>Reason 3: Executive Condos still lead the charge<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If we look at some of the top launches of 2016, the most obvious pattern is the number of Executive Condominiums (ECs). <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/treasure-crest\"><span style=\"font-weight: 400;\">Treasure Crest<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/sol-acres\"><span style=\"font-weight: 400;\">Sol Acres<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/the-terrace\"><span style=\"font-weight: 400;\">The Terrace<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/wandervale\"><span style=\"font-weight: 400;\">Wandervale<\/span><\/a><span style=\"font-weight: 400;\">\u2026the list goes on. The pattern was already highlighted in <\/span><a href=\"http:\/\/www.businesstimes.com.sg\/hub\/property-2016\/ecs-still-popular-among-the-sandwiched-class\"><span style=\"font-weight: 400;\">The Business Times<\/span><\/a><span style=\"font-weight: 400;\">, in October of last year. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the most fundamental level, ECs win because they are private properties that can be bought with government subsidies. They are HDB properties for only 10 years, after which they are fully privatised. They are also full suite condominiums built by private developers, but are generally more affordable than their non-EC counterparts. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The furore intensified in 2015, when an old argument \u2013 that ECs would \u201cnever\u201d sell for the same price as a \u201creal\u201d condo \u2013 proved increasingly false. The price gap between the two, in terms of resale, had <\/span><a href=\"http:\/\/business.asiaone.com\/news\/price-gap-closing-between-ecs-and-private-condos\"><span style=\"font-weight: 400;\">fallen from over 12 percent to as little as three percent<\/span><\/a><span style=\"font-weight: 400;\"> in some areas, such as district 20. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">We predict that this will also be the pattern in 2017. ECs win by being both affordable, <\/span><i><span style=\"font-weight: 400;\">and <\/span><\/i><span style=\"font-weight: 400;\">a good investment.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>2016 was an interesting time for property, with some new condos in Singapore doing dramatically well, while others lag behind.<\/p>\n","protected":false},"author":21,"featured_media":54601,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53601,53602,53589,57131],"tags":[],"persona":[],"class_list":{"2":"type-post","11":"entry","12":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>3 reasons why some new condos sell better than others<\/title>\n<meta name=\"description\" content=\"2016 was an interesting time for property, with some new condos in Singapore doing dramatically well, while others lag behind.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.99.co\/singapore\/insider\/3-reasons-new-condos-better-others\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 reasons why some new condos sell better than others\" \/>\n<meta property=\"og:description\" content=\"2016 was an interesting time for property, with some new condos in Singapore doing dramatically well, while others lag behind.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.99.co\/singapore\/insider\/3-reasons-new-condos-better-others\/\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/99dotco\/\" \/>\n<meta property=\"article:published_time\" content=\"2017-01-15T17:37:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-30T20:05:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/07\/new-condos-lake-grande.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1100\" \/>\n\t<meta property=\"og:image:height\" content=\"641\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ryan Ong\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@99dotco\" \/>\n<meta name=\"twitter:site\" content=\"@99dotco\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ryan Ong\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/3-reasons-new-condos-better-others\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/3-reasons-new-condos-better-others\/\"},\"author\":{\"name\":\"Ryan Ong\",\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/#\/schema\/person\/4ad00425f4de904205396b4c8b79f2a4\"},\"headline\":\"3 reasons why some new condos sell better than others\",\"datePublished\":\"2017-01-15T17:37:50+00:00\",\"dateModified\":\"2022-06-30T20:05:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/3-reasons-new-condos-better-others\/\"},\"wordCount\":792,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/3-reasons-new-condos-better-others\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/07\/new-condos-lake-grande.jpg\",\"articleSection\":[\"Condo\",\"Condo Stories &amp; 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