In 2021, investors and homebuyers were both riding the wave of groundbreaking transactions to nab the hottest properties. As a result of the cooling measures introduced in December 2021, the number of new launches this year may be less than expected.
Here are all the new properties you can look forward to, whether you’re waiting for the market to settle or investing right away.
Last year was fantastic for the property market, marked by many record-breaking transactions and new highs. They included a tripling of HDB flats sold with million-dollar price tags compared with 2020, a 10.6 per cent surge in private homes prices, and a 13.3 per cent increase in landed property prices.
Has 2022 been dampened by cooling measures?
A hot market requires cooling measures to ensure affordability. As a result, some might find themselves hesitant to buy a property, which is undoubtedly one of the most significant investments in one’s lifetime.
These measures are likely to dampen the market a tad and cause some unease for both developers and buyers. Even so, developers launch new projects, banking on who will continue to make purchases rather than those adopting wait-and-see tactics.
Approximately, there will be 40 new launches this year, with nearly half of them located in the Outside Central Region (OCR). Now, let’s take a look at these new launches, their locations and districts, and their estimated launch dates.
New launches in the first half of 2022
Belgravia Ace attracts overwhelming interest
Over 90 per cent of the Belgravia Ace strata landed housing units were snapped up immediately after its launch on Jan 22.
The developer received over 200 cheques as a show of interest for the 107-unit project, which illustrates an extremely high demand despite the implementation of cooling measures.
According to the table above, 26 new launches (excluding Belgravia Ace) are coming our way in the first half of 2022.
Some landed projects are only offering units in the double digits (exclusive freehold properties), so those who don’t want to miss out should check out upcoming condos in Northumberland Road or North Gaia, which have 407 and 640 units, respectively.
And here are the remaining 14 new launches expected this year.
New launches in the second half of 2022
So, what does the list tell us?
There is a Healthy Mix of Housing Types
There will be a good mix of executive condos, condominium apartments, mixed-use developments, and landed housing. Many of these new launches will be situated in Districts 5, 9, 14 and 15, where many popular 2021 projects are located, such as Midtown Bay, Midtown Modern, and Meyer House.
If you are looking to purchase a condominium, you need to pay attention to the releases in the second half of this year. Although the prices haven’t been released yet, you can estimate the selling price by examining the developers’ costs and comparing them with the prices of nearby properties.
Project launches will be smaller than those in 2021
There won’t be any developments with more than 1,000 units, like last year’s mega development Normanton Park, which offered 1,862 units.
Of course, sales could slow down due to the cooling measures. Despite this, it wouldn’t be prudent to expect a significant price drop anytime soon due to the continuous demand for housing; an example would be the aforementioned Belgravia Ace.
While such measures might not have an effect on the wealthy, as they can still own multiple homes as long as they are willing to fork out the high transaction costs, property investments for the rest of us have become less attractive as price increases start to lull and transaction costs rise.
On the flip side, this can help combat wealth inequality, especially with the government increasing the supply of housing units. As a result, prices will be more affordable and investing will be less appealing, reinforcing the logic that (government-built) homes are meant to be lived-in instead of bought for investment purposes.
Needless to say, it is imperative to consider all available factors prior to making a purchase.