Singapore Condos In City Fringe Areas Now Commanding Premium Prices
On Singapore’s outskirt areas, condominiums were sold for S$2,500 to S$3,000 per square foot, surpassing the prices of luxury condos, according to a report by OrangeTee.
Despite the impact of the Omicron variant and property cooling measures, OrangeTee data indicates that the median price of new city fringe condos excluding executive condominiums (EC) will increase by 8.7 percent from S$1,814 per square foot in 2020 to S$1,972 per square foot in 2021. In the first four months of this year, the median price per square foot jumped to S$2,086.
Here is additional information from OrangeTee:
A surge in higher-priced transactions has caused a rapid rise in prices. In 2021, as many as 2,568 new condominiums in the city edge or rest of the central region (RCR) were sold for more than S$2,000 per square foot (psf). 844 units were sold between S$2,500 psf and S$3,000 psf, an increase from 21 units in 2018 and 358 units in 2019. Last year, 165 flats were sold for above S$3,000 per square foot.
During the first four months of this year, 206 new condominiums sold for over S$2,500 per square foot. Twenty new condominiums sold for more than S$3,000 per square foot at Rivière, CanningHill Piers, and Sky Everton.
Five years ago, 93.3% (3,142 of 3,369 units) of the new condominiums in RCR were sold for between S$1,000 psf and S$2,000 psf, and the price ranges have since increased. Last year, 80.9% (4,283 out of 5,295) of new condominiums were sold for at least S$1,500 psf to S2,500 psf. In 2021, the proportion of purchases exceeding S$2,500 per square foot increased to 19.1% (1,009 units) from 0.4% (14 units) in 2017.
As prices continue to grow, more city edge condos were sold at same price levels as luxury condos in the core central region (CCR). From January 2021 to April 2022, more than S$2,800 per square foot was paid for 543 new condominiums in RCR.
During this time frame, 963 new condominiums and 311 resale condos were sold at the same price level in CCR. The price difference implies that some buyers were willing to pay a premium for certain city-fringe condos, comparable to luxury condos, due to their unique characteristics, unusual designs, and unrivalled locations.
Credit: Real Estate Asia