When CapitaLand and City Development (CDL) teamed up to develop the 3.7 hectares residential site next to BuangKok MRT station in 2018, it promised to be a match made in heaven. Indeed, there was tremendous market hype as the two developers are the big boys in the real estate sector. The last time the two titans combined forces was in 2007 for the Botannia project in West Coast. Thus, it is not surprising that Sengkang Grand Residences became the best-selling integrated project in 2019.
But what raised plenty of eyebrows was the strong response shown during the launch day of Sengkang Grand Residences. 216 of the 280 units had been sold at an average price of $1,700 per square feet (psf). Prices for the integrated project start from $798,000 for a one-bedroom plus study unit, $998,000 for a two-bedroom, $1.498 million for a three-bedroom, and $2.1 million for a four-bedroom premium plus flexi. With such selling prices for Sengkang Grand Residences, one could be forgiven for thinking that it is a seller’s market now. But is it really so?
The selling prices of Sengkang Grand Residences are certainly mind-blowing. After all, the block-buster performance came against the backdrop of a slowing economy in Singapore. With retrenchments so rampant in Singapore, market sentiments had been extremely cautious for the past two years. But what made the launch performance of Sengkang Grand Residences standout was that 93% of the buyers are Singaporeans.
In my view, I suspect the strong buying support from Singapore buyers for Sengkang Grand Residences could come from a group of buyers – the en bloc beneficiaries. The period of 2016 – 2018 saw a slew of en bloc sales taking place in Singapore. Loaded with million-dollar windfalls, these group of people will need to look for replacement …Read more