Still Pushing Ahead — Singapore’s Red Hot Residential Property Market
The Reef @King’s Dock and CanningHill Piers will be two key luxury waterfront projects touted to lure potential investors in the coming years.
Despite the upward revisions in ABSD rates, foreign investors remain unfazed. Singapore’s residential property market is still red hot. The facts are there. While the government revised the ABSD rates for foreign buyers and residential investors to cool the red-hot home market, their buying appetite still remains largely unaffected. Based on a market snapshot by Knight Frank Q1 2021, 6,375 units were transacted; Total non-landed transactions in the CCR (Core Central Region) dipped 4.2 per cent q-o-q in Q4 2021 as resale transactions declined. Overall, 5,563 units were transacted in 2021, 84.9 per cent higher than in 2020.
URA flash estimates reported a marked growth in non-landed private residential home prices (exclusive Executive Condominiums) where it breached double digits in 2021 at 9.9 per cent, a new high since 2010 when prices rose 14 per cent.
The RCR (Rest of Central Region) trumped the other residential segments in terms of price growth and primary sale volume. The non-landed RCR price index spiked by 7.3 per cent q-o-q in Q4 2021, contributing to an astounding 16.9 per cent increase in 2021. All thanks to new sales in the RCR segment, these launches were successful and desired by buyers. In fact, a total of 5,292 RCR units transacted in the primary market in 2021, 32.1 per cent more than in 2020. This was also almost 10.0 per cent more than the OCR and more than double the CCR.
By far, integrated developments remained highly prized and commanded price premiums. Particularly, CanningHill Piers sold 582 units at an average of S$2,937 psf, the highest average unit price among RCR projects in the last five years. This project comprises a two-storey retail podium.
Looking at OCR (Outside Central Region), home prices increased by a significant 5.4 per cent in Q4 2021 compared to the 2.9 per cent growth over the first three quarters of the year. Here, 947 new sale units transacted during the quarter, a 36.8 per cent Q-o-Q (quarter-on-quarter) decline.
Experts point out the lack of inventory to continue, underpinning demand with 17,140 unsold units in the market as of Q3 2021, down from about 24,300 at the end of 2020. Homeowners looking to upgrade and right-size, are generally unfazed by the spike in ABSD revisions and will comprise the majority of buyers in 2022.
Furthermore, property experts point out that Singapore’s safe-haven status and the current absence of wealth tax will still be a compelling push for foreign buyers to invest in properties here even with ABSD rates going north.
Overall private residential prices are projected to increase around 1 to 3 per cent in 2022 considering the cooling measures and interest rate hikes. New sale volume could reach around 8,000 to 9,000 units with lesser launches in the pipeline.
Designed by the renowned Bjarke Ingels Group, CanningHill Piers has a distinctive architectural narrative situated in the vibrant Clarke Quay lifestyle enclave. The Danish architecture firm will feature a striking facade artistically draped in an iconic geometric lattice that brings together the entire integrated development through this sculptural form. The 48-storey residential tower will offer riverside views and will be the tallest residential development along the Singapore River. Also, another 24-storey residential tower will provide views of Fort Canning Hill. The two monolithic structures are connected by a scenic sky bridge on level 24 where future homeowners can admire vistas of the city, river, and verdant hills. Residents will get easy access via a direct link to Fort Canning MRT station and a short walk to Clark Quay MRT station.
Consisting of work-live-play elements, this CapitalLand and CDL joint development will offer some amazing amenities. These include CanningHill Club at level 24 featuring multiple swimming pools, a yoga deck, a meditation room, two gyms, Flexi Lounge as well as cosy Flexi Pods. In addition, there will be a co-working space called Flexi Lounge which is equipped with charging points, cosy booth seats and tables.
Residential units come in a wide range of configurations from 409 sq ft for a one-bedroom unit, 1,313, sq ft for a three-bedroom premium to 2,788 sq ft for a five-bedroom premium. All apartments come kitted up in renowned Italian Ernestomeda kitchen system, plus premium integrated household appliances from Miele and De Dietrich, and premium bathroom fittings from Gessi and Laufen.
Scheduled for completion by 2024, CanningHill Piers will be an integrated development that includes CanningHill Square with F&B and retail options, a 475-room hotel operated under the Moxy brand by Marriott International, not forgetting, a 192-unit serviced residence with a hotel licence operated under the Somerset brand which is managed by The Ascott Limited.
The Reef at King’s Dock
As Singapore’s first condominium with a floating deck, The Reef at King’s Dock will offer homebuyers a chance to own a pad that offers a unique waterfront living lifestyle. The development is a joint venture between Mapletree and Keppel Land and will be the fourth residential plot in the 32-hectare Harbourfront redevelopment.
The King’s Dock naming is derived from the second-largest dock in the world after Liverpool’s Gladstone Dock when it opened in 1913. Together with three other docks ensconced in the same precinct, Singapore witnessed a boom in trading activities. Homebuyers love the aesthetic of urban and natural elements in the thematic design. Overall, it’s hard to find a lifestyle resort home with the sea and marina at your doorstep. Best of all, the floating deck is the first in Singapore.
But the carrot for homebuyers is the price of one-bedroom units starting below S$1 million. This drove strong sales; in fact, as of 30 January 2022, 90 per cent of the units were sold in a single day, that’s 280 out of the 300 units released. The two-bedroom units are priced from S$1.5 million. Units offering views of the sea or King’s Dock were highly sought-after.
The luxury condominium development offers 429 units which sit on 284,266 sq ft of 99-year leasehold land situated at Harbourfront Avenue. It is close to Singapore’s largest mall – VivoCity.
The Reef at King’s Dock is poised to add lustre to the Greater Southern Waterfront which is part of Singapore’s latest transformation plan covering an area of 2,000 hectares. That’s six times the size of Marina Bay and will stretch across 30km of the southern coastline.
The architect behind the project is KCAP has done up many European waterfront projects in countries such as Denmark, Switzerland, Spain, and Germany. KCAP was also the masterplan designer for the 360-hectare Jurong Lake District. The Reef at King’s Dock is designed to be an “urban village” and will offer 10 blocks within the development. These blocks will be of varying heights from four to 10 storeys. The interplay of heights allows the architect to maximise the views of most units. Units that do not have sea views will enjoy lush garden views. Some units on the north-western side will have views of scenic Mount Faber. But the key feature of this project is the 180m-long floating deck where an Olympic-length swimming pool, a splash pool for kids, and a rejuvenation pool will be located. Kids will get to enjoy and appreciate marine life via the Marine Viewing Hammock. These luxury homes will come with plenty of features such as smart home security, intercom system air-conditioning, and motorised screens while kitchens will be fitted with gadgets from Miele while bathrooms are decked out by Dornbracht and Geberit.
In addition, there will be energy-efficient air-conditioning systems, LED lighting, rainwater harvesting, and auto-irrigation, to name a few. Homeowners will love the integrated aluminium mesh sunscreens on the balconies of each home. The mesh is permeable – allowing light and wind to enter but it can keep the heat out.
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