OrangeTee & Tie’s chief executive Steven Tan suggested that some buyers may turn to real estate assets as an inflation hedge, while others may want to lock in interest rates before they rise further.
Tan also noted that inventory in the OCR is very low, which means buyers who are keen on new launches have limited choice. “If affordability is a concern, they still have to go for OCR. Many people may not be eligible for executive condominiums.”
OrangeTee & Tie’s Tan also expects a chain effect, observing that the price gap between the 3 regions has been narrowing. An OrangeTee report noted that upcoming launches in the RCR could start from S$2,200 psf. The report highlighted that many new city fringe condos at Queenstown, Potong Pasir and Eunos were launched at an average price of around S$1,800 psf, prior to the pandemic.