Condo Prices Fell, Why Developers Bid Aggressively
Condo Prices Fell… So Why Are Developers Still Bidding Aggressively?
March new launch prices averaged around $2,851 psf.
Then suddenly in April?
The number dropped to about $2210 psf.
So… is Singapore property finally cooling?
Not exactly.
Because in March,
buyers were snapping up projects like:
- River Modern at above $3200 psf
- Pinery Residences around $2547 psf
But in April?
Almost 88% of all sales came from OCR projects like Tengah and Bayshore.
And OCR homes naturally have lower psf.
So prices didn’t suddenly “crash”.
The LOCATION mix changed.
The market didn’t fall.
The market rotated.
And despite all the cooling measures…
Developers are STILL expected to bid aggressively for new GLS land.
- Berlayer could hit $1500 psf ppr
- Upper Changi could cross $1300 psf ppr
Think about this:
If developers think prices are going down…
why would they pay RECORD land prices?
That’s because developers are still bullish on:
- long-term demand
- transformation areas
- and future launch prices
Now add the NEW EC rules:
- 10-year MOP
- no more Deferred Payment Scheme
This could push more buyers toward:
- private resale
- and existing ECs under the old rules
So the real market direction may not be:
“prices dropping”
But instead:
Higher land costs.
Higher future launch prices.
And stronger competition for good projects.
Comment “GLS” if you want my breakdown on which upcoming sites developers are most bullish on.
#sgcondo #newlaunchcondo #condoinvesting #sgrealtor #jonathankong
From my experience tracking Singapore's real estate market, it's clear that the recent dip in condo prices doesn't tell the whole story. While the average psf price dropped from about $2,851 in March to $2,210 in April, this was largely due to a shift in buyer preference towards Outside Central Region (OCR) projects like Tengah and Bayshore, which typically have lower psf rates. What truly stands out is the sustained aggressive bidding by developers for GLS lands despite these perceived price drops. This suggests confidence in long-term demand and transformation growth areas. Developers are willing to pay record prices—for example, Berlayer reaching $1500 psf ppr and Upper Changi potentially surpassing $1300 psf ppr—because they anticipate robust future launch prices and strong competition for prime projects. Additionally, the new EC rules, including a 10-year Minimum Occupation Period (MOP) and the elimination of Deferred Payment Schemes, have shifted buyer behavior. There's a noticeable push towards private resale markets and existing ECs under older, more flexible rules. These changes might temporarily cool some segments but ultimately increase demand elsewhere, reinforcing developers’ bullish outlook. In essence, the market isn't cooling but rotating, with location dynamics and regulatory changes driving a complex landscape. For buyers and investors, understanding this rotation and developers’ strategies can reveal opportunities in emerging areas poised for growth, despite headline price fluctuations.
