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In The News Press Release
by OrangeTee & Tie Pte Ltd.

Comments on the prices of new leasehold condos in suburbs set to rise

New Project Launches

Singapore, 04 Jul 2022

The cost of brand-new 99-year leasehold condominiums in the suburbs, a market supported by HDB upgraders, is going to increase. The 605-unit mixed development Lentor Modern and the 372-unit AMO Residence in Ang Mo Kio Avenue 1 are two upcoming large projects in the suburbs that are likely to launch at a median price of around $2,000 per sq ft, which is a price level more frequently seen in the prime and city fringe condo markets, according to analysts.

They cited increasing building prices and competitive bids for plots at Government Land Sales in the suburbs. The price per square foot per plot ratio (psf ppr) for the Ang Mo Kio Avenue 1 site for the AMO Residence was $381.4 million, while the price per psf ppr for the Lentor Central site was $784.1 million.


"Based on the land price, the break-even cost is around $1,900 psf to $2,000 psf. Therefore, developers will need to sell above $2,000 psf to cover their costs," said Ms Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics.

The median price of new, single-family houses in city perimeter areas for the second quarter is $2,262 psf, according to URA Realis statistics as of June 29.

The suburbs had the most year-over-year growth in first-quarter rentals for condominiums and apartments, up 13.1%. The city perimeter and the prime area both had year-over-year increases of 12.4% and 10.8%, respectively, after this.


A median unit price of between $1,900 and $2,100 psf for new suburban launches would translate to $1.68 million to $2.28 million for units ranging between 800 sq ft and 1,200 sq ft, Ms Sun said.



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