New city-fringe condo prices climbing closer to those in central region

by Albert02

New city-fringe condo prices climbing closer to those in central region

New city-fringe condo prices climbing closer to those in central region. According to a recent Huttons Asia survey, the median price per square foot (psf) difference between new, non-landed residences in the Core Central Region (CCR) and those in the Rest of Central Region (RCR) was 14.9% in August, down from 25.07% in April.

Homes in the Central Region are often more expensive than those in the RCR and elsewhere (OCR). According to Lee Sze Teck, senior director of research at Huttons, the median price psf differential between CCR and RCR new non-landed residences has been around 42.7 percent over the last ten years.

The median price paid for a new non-landed home in the RCR has surpassed that in the CCR as the RCR’s psf price has risen since June. In August, buyers in the RCR paid S$2.47 million for a new non-landed home, 10.8 percent more than those in the CCR. Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, has also noticed a narrowing price disparity.

According to a May study, a new benchmark price in the RCR may be emerging, with more condos being sold at rates comparable to luxury units. Five years ago, for example, 93.3 percent of new condos in the RCR were sold for between S$1,000 and S$2,000 per square foot. Prices have since risen; last year, 80.9 percent of new condos sold for between S$1,500 and S$2,500 psf. Transactions of more than S$2,500 per square foot increased to 19.1 percent in 2021, up from 0.4 percent in 2017.

“The price rise was mostly led by condominiums in RCR, where the median price increased by 24.1% over the last eight months, from S$1,964 psf in January to S$2,437 psf in August,” she explained. According to Sun, some RCR values are approaching S$3,000 per square foot, which is the price level for luxury properties near the Downtown Core. Canninghill Piers, Rivière, and Sky Everton are examples of similar concepts. Other factors that may lead to higher RCR values include the condo being part of an integrated complex, having magnificent views, or being built by top developers known for high-quality finishing, according to her.

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