D19 NEW LAUNCHES IN 2021 AND BEYOND

Great news we are still in a Buyer Market for 2021 with 22 New Launches this year in Singapore. Should you be waiting beyond 2021 and beyond before going for your next property move? Will there be even more launches and lower price properties? 

2021 22 Upcoming Launches.png

Not all Districts will be having New Launches in 2021 and beyond. District 19 particularly will only have 2 Condominiums and 1 Executive Condominium in 2021 with a total of 665 units only. There's no other upcoming launches beyond 2021 at the moment. 

SUPPLY VS DEMAND

Graph 1

DECREASE SUPPLY VS CONSTANT DEMAND

With no new supply coming into the market, the current District 19 supply will dwindle over the constant Demand.

Based on the simple economics graph (Graph 1) shows that the Supply decreases thus causing an increase in Price and a decrease in Quantity.

Should we waiting till the Price to increase or when there's enough Supply for us to make our selection?

DECREASE SUPPLY VS INCREASE DEMAND

What happens if there's a increase in Demand with the dwindling of Supply?

The economics graph (Graph 2) shows a decrease in Supply and an increase in Demand resulting in an obvious increase in Price. But it is hard to determine how the Quantity has changed.

Similar to the Constant Demand, Price will set to increase, should we be waiting?

Graph  2

Supply v Demand 3.jpg

Graph 3

DECREASE SUPPLY VS DECREASE DEMAND

What happens if there's a decrease in Demand with the dwindling of Supply?

 

Both the Supply and Demand are decreased in the economics graph (Graph 3) thus decreasing the Quantity but leaving it hard to determine if the Price has changed.

 

Price will likely remain flat with slight deviation during the period.

In summary, with the decrease in Supply regardless of the Demand, Price will either remain flat or increase.

 

Is it TOO LATE to proceed now?

D19 NEW LAUNCH BALANCE STOCK

With no New Launches coming up in 2020 and beyond, let's look at the balance stocks in District 19 at the current moment.

Do take note that Only 2 Projects have slightly above 25% of stocks available while the rest left less than 10%.

There is still opportunity to ride on the Developers' pricing strategy for potential capital gain.

D19 Balance Stock 1.png

The Florence Residences still have choice units for selection.

Take advantage of the Supply now before it dwindles and Price Increases.

D19 NEW LAUNCH PRICE COMPARISON

The Florence Residences is one of the most affordable New Launches in terms of price per square foot (psf) and quantum among projects in District 19.

With the low entry price, it would have a better potential growth and lower risk as compared to the other higher priced projects in the district.

D19 Balance Pricing 1.png

When you decide to sell your unit in The Florence Residences?

What would be the risk as compared to the other New Launches that had bought higher than you?

D19 NEW LAUNCH IN 2021

BARTLEY VUE (99 years Leasehold)

ESTIMATE LAUNCH PRICE (20% PROFIT) WOULD BE $1,694 PSF

Wee Hur Holdings won the land at $885 psf ppr

Land Area: 50,231 sqft

Sales Price: $93.39 million

Land Rate: $885 psf ppr

Plot Ratio: 2.1

Potential Units: 115

FORMER KOVAN LODGE (Freehold)

ESTIMATE LAUNCH PRICE (20% PROFIT) WOULD BE $2,053 PSF

Soon Lian Realty won the land at $1,134 psf ppr

Land Area: 27,088 sqft

Sales Price: $43 million

Land Rate: $1,134 psf ppr

Plot Ratio: 1.4

Potential Units: 50

PARC GREENWICH (99 years Leasehold)

Executive Condominium

ESTIMATE LAUNCH PRICE (20% PROFIT) WOULD BE $1,219 PSF

Fraser Property won the land at $555 psf ppr

Land Area: 184,386 sqft

Sales Price: $286.54 million

Land Rate: $555 psf ppr

Plot Ratio: 2.8

Potential Units: 500

WOULD IT BE BETTER TO BUY THE EXISTING LAUNCHES WITH A REASONABLY

LOWER QUANTUM OR PSF?