Singapore condos in city fringe areas now commanding premium prices
206 new condos were sold for over S$2,500 psf from January to April this year
Singapore witnessed more condos sold for S$2,500 to S$3,000 psf in city fringes. According to an OrangeTee report, prices of some city fringe condos have already surpassed that of luxury condos.
Despite the impact of the Omicron variant and property cooling measures, OrangeTee data reveal that the median price of new city fringe condos excluding executive condominiums (EC) rose steeply by 8.7 per cent from S$1,814 psf in 2020 to S$1,972 psf in 2021. In the first four months of this year, median prices increased further to S$2,086 psf.
Here’s more from OrangeTee:
Prices are moving briskly due to a spike in pricier transactions. In 2021, as many as 2,568 new condos in the city fringe or rest of central region (RCR) were transacted above S$2,000 psf. Of this number, 844 units were sold for more than S$2,500 psf to S$3,000 psf, jumping from 21 units in 2018 and 358 units in 2019. 165 units were transacted above S$3,000 psf last year.
In the first 4 months of this year, 206 new condominiums were sold for more than S$2,500 psf. 20 new condos were transacted above S$3,000 psf at Rivière, CanningHill Piers, and Sky Everton.
New price benchmark may be forming - 5 years ago, 93.3 per cent (3,142 of 3,369 units) of the new condos in RCR were transacted between S$1,000 psf to S$2,000 psf. Price bands have since shifted upwards. 80.9 per cent (4,283 of 5,295 units) of new condos were sold for at least S$1,500 psf to S2,500 psf last year. Pricier transactions above S$2,500 psf ballooned to 19.1 per cent (1,009 units) in 2021 from 0.4 per cent (14 units) in 2017.
More city fringe condos were sold at similar price levels asluxury condos – As prices continue to rise, some premium city fringe condos were sold around the same price level as condos in the core central region (CCR). From January 2021 to April 2022, 543 new condos in RCR were sold above S$2,800 psf.
During that period, 963 new condos and 311 resale condos in CCR were sold at the same price level. The price overlap indicates that some buyers were willing to pay top-dollar for selected city fringe condos, similar to luxury condos, for their unique attributes, distinctive designs and unrivalled locations.