New primary market projects have been a constant draw to buyers attracted by the excitement of owning a new home. -tabla!
Fri, Mar 02, 2012
IN SINGAPORE'S residential property market, new primary market projects have been a constant draw to buyers attracted by the excitement of owning a new home that comes with the latest fixtures and fittings.
However, the newest and the latest often come at a price which some buyers find hard to accept, especially at current market highs. Units in new projects also tend to be smaller so those looking for bigger floor areas may not find them suitable.
Some buyers also prefer to renovate the unit according to their needs and tastes, rather than the standard offering in new developments.
Due to these reasons, a good number of buyers turn to the secondary market for, possibly, a better deal and also in meeting their needs.
With units in new projects, even 99-year leaseholds, commanding a premium, there are other options with bigger floor areas and freehold title but in older developments. The following are some examples.
In Seletar Hills, Greenwich is a new retail-cum-residential project with a 99-year leasehold tenure. The residential component is still being built and 1,227 sq ft units in the development have been selling for about $1.6 million ($1,300 psf). Further inside the estate is Nim Gardens, an older freehold condominium which had 1,830 sq ft units selling for $1.36 to $1.48 million ($740 to $800 psf). Nearby Mimosa Park is also in the price range of Nim Gardens, offering unit sizes of 1,755 sq ft upwards.
Foresque Residences, a new 99-year leasehold condominium being built in the Upper Bukit Timah area, has sold 1,270 sq ft units for $1.43 to $1.55 million ($1,130 to 1,220 psf). In nearby Cashew Heights Condominium, an older 999-year leasehold development, there have been sales of 1,647 sq ft units at between $1.4 and $1.5 million ($850 to $900 psf).
So for roughly the same price, one gets a 30 per cent larger unit in the latter. A buyer may be also find similar opportunities in Hazel Park Condominium, an adjacent 999-year development.
In the Upper Changi Road North area, Hedges Park Condominium is a new 99-year leasehold project under development. In this project, 1,345 sq ft units have been sold for about $1.1 million ($820 psf).
At about that price, a buyer will be able to consider units of 1,700 sq ft in nearby Ballota Park Condominium, an older freehold project. Units of similar floor area and price range can also be found in Carissa Park Condominium, another freehold development in the vicinity.
Thomson Grand is a new 99-year leasehold condominium being developed in the Thomson Road area. Units of 1,044 sq ft have been sold for about $1.6 million ($1,500 psf). In this price range are 1,593 sq ft units in Flame Tree Park, an older freehold development nearby.
In the Alexandra area and near Redhill MRT station, Ascentia Sky, a new 99-year leasehold condominium, is being built. Units with a floor area of 1,776 sq ft in this project have fetched $2.7 million ($1,540 psf).
For about the same price, buyers may find units of 2,100 sq ft in Clydesview at nearby Jervois Lane. Alternatively, units of 1,776 sq ft to 1,830 sq ft in the Anchorage have transacted for around $2 million ($1,100 psf), about 25 per cent cheaper than Ascentia Sky.
Both Clydesview and Anchorage are older condominiums with freehold titles but not close to an MRT station, unlike Ascentia Sky.
In general, secondary market units which are comparable to new ones on the primary market are 20 to 25 per cent cheaper but the buyer would probably have to go through the hassle of renovating the unit and fork out some money for that.
In 2011, more than half the transactions in the residential property market were in the secondary market. This shows that a large number of buyers still find their needs being met in the secondary market.
After all, the entire stock of available properties on the secondary market far exceeds the units available for sale on the primary market and a buyer may find wider choices if he includes secondary market options in his house hunt.
This article was contributed by Credo Real Estate. Karamjit Singh is the managing director of the company.