Launch Day Success: Arcady and Hillhaven Condominiums Each Surpass 50 Units Sold.
In the heart of Singapore, the year 2024 heralded the unveiling of two new condominiums, The Arcady and Hillhaven, marking the first property launches of the year. This event came on the heels of a challenging period for the private home sales market, which saw its lowest annual sales since 2008.
The Arcady at Boon Keng: A Freehold Marvel
The Arcady, nestled in the city fringe at Boon Keng, witnessed the sale of approximately 30% of its units on the launch day, January 20. This freehold project, comprising 172 units, saw 51 homes being snapped up, with prices commencing from under $2,400 per square foot (psf). The one-bedroom and two-bedroom configurations emerged as the favorites among the buyers, as reported by Ismail Gafoor, the chief executive of PropNex Realty.
The Arcady at Boon Keng 172 units
Hillhaven at Hillview Rise: Suburban Splendor
Concurrently, the suburban condominium Hillhaven, located at Hillview Rise, celebrated the sale of about 33% of its launched units. Far East Organization, in collaboration with Sekisui House, announced that 59 of the 179 units released were sold, with starting prices at $1,903 psf. The two-bedroom and three-bedroom units were particularly sought after, contributing to the sale of roughly 17% of the total 341 units available. The demographic of the buyers was predominantly Singaporeans and permanent residents, with a significant portion, about 70%, aged between 31 and 50 years.
Hillhaven at Hillview Rise
Market Sentiments and Prospects
Despite the initial slow uptake, the sales figures were deemed encouraging by industry experts. Ismail Gafoor of PropNex noted that while the market was recovering from the year-end slowdown, the buying sentiment remained robust. Buyers appeared to be exercising caution, taking time to evaluate the market and their options, indicative of a price-conscious and selective approach to property purchases.
The previous year, 2023, had recorded a dip in new private home sales, excluding executive condominiums, with only 6,452 units sold—the lowest since the 4,264 transactions in 2008. This downturn was attributed to developers' reluctance to launch new projects, a reaction to a series of market cooling measures and a general weakening of buyer confidence.
However, optimism for a market rebound was expressed, with expectations of increased activity post the Chinese New Year festivities in February. Marcus Chu, chief executive of ERA Singapore, highlighted the strategic advantage of The Arcady at Boon Keng, being the first among 11 freehold projects slated for launch in 2024. He pointed out that freehold units are estimated to constitute a mere 11% of the 11,000 new private homes anticipated to be launched that year.
District 12: A Freehold Hotspot
The Arcady holds the distinction of being the first freehold project in District 12 since the launch and subsequent sell-out of the 162-unit Verticus in 2020. The district has seen a significant appreciation in freehold property prices, with a 29.3% increase over four years, and a more than 40% surge in rents from 2020 to 2023. These figures underscore the burgeoning demand for homes in the city fringe, including the sought-after Geylang Condos.
Hillhaven's Competitive Edge
Hillhaven's pricing strategy was also a topic of discussion, with its attractive price point when compared to the average of $2,150 psf for new 99-year leasehold suburban projects sold in 2023. This competitive pricing is expected to appeal to a broader range of potential buyers.
A Year of Choices for Home Buyers
Nicholas Mak, chief research officer at Mogul.sg, commented on the cautious mood of buyers during the initial launches but projected a year rich in options, with over 30 residential projects potentially entering the market. He suggested that the influx of new launches would likely temper developers' pricing strategies, leading to a moderated pace of price growth in 2024, ultimately benefiting home buyers.
Conclusion
As Singapore steps into 2024, the real estate landscape is poised for transformation with the introduction of new condominiums like Arcady and Hillhaven. With a mix of freehold charm and suburban allure, these developments are set to shape the future of residential living in the city-state. The market, while starting on a cautious note, holds promise for revival and growth, offering a beacon of hope for both developers and home buyers alike.
Updated the Geylang New Condo latest news and kindly follow our website to not miss any attractive information!
