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Property Herald: Homebuyers Gravitate towards Attractively Priced Freehold Condo Launch

Nicholas Mak

Summary

 

(1) Kassia, a new freehold condominium at Flora Drive, near Changi Airport, is launch on the weekend of 20 July 2024. The take-up rate of Kassia in its first weekend of sales is the highest compared to other residential launches in the past three months, which ranges from 1% to 30% of the total number of units in each respective project.

 

(2) The healthy sales at Kassia illustrate that homebuyers are price sensitive and would gravitate towards residential launches which buyers perceived to offer value for money, especially for a freehold property. It is increasingly difficult to find a new freehold residential project with more than 250 housing units and full condominium facilities.

 

(3) The mediocre take-up rate of other recent residential launches has caused some developers to hold back their launches and wait for a more opportune time to launch their projects. The strong take-up rate of the launch of Kassia could be the starter gun to herald the crescendo of project launches for the rest of this year

 

Introduction

 

The 276-unit freehold condominium “Kassia” is launched for sale in the weekend of 20 July. The 8-storey tall condominium is developed by a consortium consisting of Hong Leong Holdings, City Developments Ltd and TID Pte Ltd. It is located at Flora Drive in District 17, not far from Changi Airport.

 

Sales of Kassia in the first weekend

 

The developers of Kassia sold 144 units or about 52% of the 276 units during the first weekend of the launch.

 

The take-up rate of Kassia in its first weekend of sales is the highest compared to other residential launches in the past three months, which ranges from 1% to 30% of the total number of units in each respective project.


Homebuyers Gravitate towards Attractively Priced Freehold Condo Launch
Homebuyers Gravitate towards Attractively Priced Freehold Condo Launch

Source of map: Mogul.sg

 

The best-selling units in Kassia are the 1- and 2-bedroom units, which hold wider appeal among buyers because these unit types cater to both singles, couples, young families with a single child, retirees and investors.

 

Attractive pricing for freehold a new condo project

A key factor of the success of this launch is the comparatively attractive prices, which range between $1,821 and $2,177 psf. This is the typical price range of new 99-year leasehold condominiums located outside the Central Region.

 

The healthy sales at Kassia illustrate that homebuyers are price sensitive and would gravitate towards residential launches which buyers perceived to offer value for money, especially for a freehold property.

 

Increasingly difficult to find new freehold condominium launches

 

It is increasingly difficult for buyers to find a newly launched freehold residential project with more than 250 units and full condominium recreational facilities. The total number of units in all the private residential properties launched year-to-date is about 3,000, which only 19.4% are freehold.

 

Some property buyers prefer freehold properties as such properties are deemed to be better store of wealth. This is because the value of the freehold land does not depreciate over time. Therefore, when a new freehold condominium is priced at the same level as most new suburban 99-year leasehold condominiums, the former would attract more buyers.

 

A starter gun for the residential primary market

 

The private residential primary market sales in the first half of this year has been lacklustre. Based on current information, property developers only sold 1,916 private housing units in in this January to June period, which is the lowest number of private homes sold in a half-yearly period in the past 29 years.

 

There are about 20 new residential projects waiting to be launched in the coming six to nine months. The mediocre take-up rates of other recent residential launches have caused some developers to hold back their launches and wait for a more opportune time to release their projects.

 

The strong take-up rate of the launch of Kassia could be the starter gun to herald the crescendo of project launches for the rest of this year, which would provide the stimulate needed to boost the sales in the residential primary market.

1 kommentar


newlaunchsales1
16 okt. 2024

This article highlights a crucial trend in the property market! As a homebuyer, I find it encouraging that affordable freehold condos are gaining popularity. The flexibility and long-term value they offer make them an attractive investment. Excited to see how this influences future developments and pricing strategies!

Gilla
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