FRASERS Property's latest executive condominium (EC) project may offer another test of demand for outside of central region (OCR) properties.
The pricing attention comes as in July, the launch weekend of Pasir Ris 8 condominium saw six rounds of price increases in a single day.
While 85 per cent of the 487 units at the 99-year leasehold integrated development were sold at an average price of nearly S$1,600 per square foot (psf) as at the launch weekend last month, the prices for units ranged from S$1,400 psf to S$2,000 psf.A S$2,000 psf price is usually associated with projects in prime locations.
On Sept 11, Frasers will be launching Parc Greenwich at Fernvale Lane. The 99-year leasehold property that spans 184,385 square feet (sq ft) is in District 28, and is a 10-minute walk from Fernvale Light Rapid Transit (LRT) station.
Jointly developed with CSC Land Group, Parc Greenwich comprises nine residential towers of 14 storeys each, a public park, and a low-rise landed enclave.
Its 496 units comprise two- to five-bedroom apartments, with a starting price of S$895,000 for two-bedroom units. Ranging from 786 sq ft (for a two-bedroom unit) to 1,679 sq ft (five-bedroom penthouse), each unit type also has a penthouse option.
Frasers told The Business Times (BT) that prices go up to a starting price of S$1.055 million for a three-bedroom unit, and S$1.375 million for four-bedroom units.
Prices of five-bedroom units start from S$1.695 million.
The EC is due to achieve its Temporary Occupation Permit in 2024, Frasers said.
Lee Nai Jia, deputy director of The Institute of Real Estate and Urban Studies (IREUS) at the National University of Singapore, told BT that sales of Pasir Ris 8 showed that the demand for OCR homes and its buyers' budgets are "higher than initial expectations".
"The hot Housing Development Board (HDB) resale market likely encouraged more upgraders into the market, given the attractive prices that can be fetched," he said. "Additionally, the increasing prices of new sales may trigger purchase decisions."
"I think strong demand will persist until the construction sector is able to resolve its manpower issues and help divert demand away from the HDB resale market," Dr Lee added.
Lee Sze Teck, senior director and head of research at Huttons, said Parc Greenwich is the first EC launch in District 28 in eight years and the only EC launch in the third quarter of 2021.
Among all the districts where ECs are built, Districts 20 and 28 have the lowest supply of ECs, he said.
He noted that unsold EC units, which are a public-private housing hybrid, have been trending down since Q1 2020; demand for the asset class has been "stable".
Frasers currently has showflats and virtual tours for Parc Greenwich's three-bedroom-with-study and four-bedroom apartments. Its e-applications began on Thursday and will end on Sept 6.
Over the weekend, the core central region (CCR) saw the launch of ultra-luxury condominium Klimt Cairnhill by Low Keng Huat.
The 39-storey freehold development holds 138 units, comprising two- to four-bedroom apartments and a pair of six-bedroom penthouses.
Their sizes range from 829 sq ft to 5,920 sq ft, with a starting price of S$2.9 million or S$3,532 psf.
NUS's Dr Lee said: "There is keen interest in the CCR properties, but the mismatch tends to be greater, especially for the larger units. Prospective buyers are willing to splurge on the properties they want, but the right ones may not be in the current market."
"Hence, the search for higher quantum units in the CCR tends to take longer, and the demand tends to show up slower."
"I expect the demand for CCR to pick up significantly when the borders are reopened," he said.