Your search results

Will New Launch Condos See a Drop in Prices Soon?

Posted by Jayson Ang on July 12, 2024

| All, Buying Tips, Opinion, Selling Tips

| 0

TLDR

The real estate market in Singapore is experiencing a trend of lackluster bids for prime properties in various locations.

Recent bids for land parcels near Springleaf MRT station and on Zion Road have fallen below predicted price ranges.

Factors contributing to this trend include cooling measures, rising construction costs, financing challenges, and global uncertainties.

Developers’ reluctance to participate in high-profile locations like River Valley and Marina Bay reflects a retreat in the market.

The Core Central Region (CCR) is particularly affected by these challenges.

To revitalize the CCR, suggestions include extending ABSD deadlines for developers to attract local buyers and reignite interest.

The release of land parcels in River Valley may not attract competitive bids due to low developer interest.

The shift towards creating well-rounded communities in prime areas like Orchard contrasts with the slow adaptation of the CCR.

Exploring mixed-use projects could accelerate the transformation of areas like River Valley.

Individual considerations are crucial when deciding whether to buy, sell, or wait in the current real estate market.

It is becoming increasingly evident that the rejected bid for Marina Gardens Crescent was not an isolated incident but rather a recurring trend. The solitary offer made for the coveted location was deemed too low and was swiftly dismissed, but it seems this was just the beginning. Now, we are witnessing similar lackluster bids for properties in River Valley and Upper Thomson.

GuocoLand and Hong Leong were the sole contenders for a prime plot of land near Springleaf MRT station, along Upper Thomson Road, with a bid of $779.6 million (equivalent to $904.60 psf). This was a far cry from the predicted $1,000 to $1,100 psf. One can’t help but wonder if the underwhelming sales figures of other condos like Lentoria, which only managed to sell 19% of units during its launch, played a role in this low offer. It’s not surprising considering GuocoLand’s already dominant presence in the area.

Similarly, CDL and Mitsui Fudosan were the only bidders for a massive land parcel on Zion Road, with a bid of $1.1 billion (capable of housing around 1,000 residential units). This equates to approximately $1,202 psf, below the estimated $1,300 to $1,700 psf.

These scanty bids, coupled with the reluctance of developers to participate in high-profile locations like River Valley and Marina Bay, reveal a clear retreat in the market. The recent cooling measures, particularly the raised ABSD of 60% for foreigners, has significantly impacted the prime region properties which heavily rely on this demographic.

Of course, there are other contributing factors such as rising construction costs (Singapore has been ranked the fourth most expensive country for construction since last year), financing challenges due to the higher interest rates, and global uncertainties. However, the CCR (Core Central Region) seems to be bearing the brunt of it all, compounded by the cooling measures.

Moreover, the upcoming land parcels at River Valley Green and the newly implemented GFA harmonisation rules may have also played a role in the lackluster bids.

Interestingly, this weak demand is in stark contrast to the 2017 bidding war for the Jiak Kim Street GLS site (now known as Riviere), which saw a whopping 9 bidders and a record high of $1,733 psf ppr. However, the not-so-impressive performance of Riviere may have acted as a deterrent, as the developers had to resort to price discounts in 2020 and the final average price of $2,819 psf was far from their initial expectations. After all, the original launch prices were hovering around $3,000 psf.

Why Are These Land Parcels Being Released Now? Unveiling the Timing Mystery

While the Government’s decision to put up land parcels in River Valley may have a sound rationale, it’s unlikely to attract competitive bids. In fact, it seems like a wasted opportunity, especially when developers have shown little interest. Even if the land prices were lower, it’s doubtful that the average Singaporean would even consider purchasing property in these upscale districts.

This move comes at a time when prime areas like Orchard are striving to revitalize themselves. The trend now is towards creating more well-rounded communities, with a mix of event spaces and play areas, rather than sticking to outdated notions such as “Orchard is only for shopping” or “City Hall is solely for banks.”

Interestingly, the CCR (Core Central Region) has been the slowest to adapt to this rebalancing, unlike its counterparts in the OCR (Outside Central Region) like Jurong, or in the RCR (Rest of Central Region) such as Beach Road and Paya Lebar.

If developers were to construct more mixed-use projects (and let’s not forget Marina, which was a white site, as explained here), it could greatly accelerate the transformation of the CCR. After all, River Valley could certainly benefit from more character than just being known as “that place with fancy mansions.”

Perhaps, considering the nature of CCR properties, which often have a high price tag and take longer to sell, we could explore other concessions for developers. This could include extending the usual five-year ABSD (Additional Buyer’s Stamp Duty) time limit, not necessarily by reducing land prices, but by providing a longer deadline. This would allow more time for local buyers to emerge and potentially reignite developer interest, with the added benefit of lower risks. Of course, this is a suggestion solely for the CCR.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Buying Tips Opinion

Increased Seller’s Stamp Duty (SSD) Rates in Singapore: Implications for Buyers and Sellers

Jayson Ang – May 18, 2026 –

TLDR From July 4, 2025, Singapore reinstates Seller’s Stamp Duty (SSD) rates to 2017 levels, with rates of 16%, 12%,...

Mandarin Top 5

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds

Jayson Ang – May 21, 2023 –

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds 1. The first step in remitting money to Singapore...

All Opinion Selling Tips

Reduced Lease Durations for HDB Flats: What Potential Savings Could Your Property Offer?

Jayson Ang – July 17, 2025 –

TLDR Shorter lease HDB flats are typically about 22–25% cheaper than their 99-year counterparts, based on both resale and BTO...

Mandarin Top 5

How To Avoid Top 5 Common Investment Pitfalls When Investing In Singapore Property

Jayson Ang – July 24, 2024 –

When investing in Singapore's property market, it is crucial to be aware of the common pitfalls that can lead to...

All Buying Tips Opinion Selling Tips

The Rise of New Launch 2-Bedroom Condos: Why Homebuyers are Prioritizing Them Over Resale Options in 2025

Jayson Ang – May 27, 2026 –

TLDR Two-bedroom condominiums are shifting from primarily rental investments to popular family homes, especially among small families and HDB upgraders,...

Mandarin Top 5

Is Singapore’s Property Market on the Verge of a Crash? Understanding the 5 Factors at Play

Jayson Ang – March 31, 2024 –

The Singapore property market has long been an attractive option for both local and international investors. However, as with any...

All Blog Posts Buying Tips

6 Must-Know Factors to Consider When Purchasing a Resale HDB in 2023

Jayson Ang – February 5, 2023 –

TLDR When buying a resale flat in Singapore, make sure to walk around the neighborhood to assess actual distances, check...

All Buying Tips Opinion Selling Tips

Are Resale HDBs Really Unaffordable In 2025?

Jayson Ang – September 28, 2025 –

TLDR Singapore’s housing debate is fueled by headlines about million-dollar flats, but most resale 4-room flats in over 10 estates...

All Blog Posts Buying Tips

Beware of These 7 Deceptive Tricks In Showflat Condo Sales

Jayson Ang – May 14, 2023 –

TLDR When navigating the complexities of the real estate market, it's crucial to be wary of hidden marketing tricks when...

All Buying Tips Reports Selling Tips

Breaking the New Launch Conflict: Leasehold or Freehold?

Jayson Ang – October 9, 2025 –

TLDR Freehold properties in Singapore offer indefinite ownership but come with a 15–25% premium over 99-year leasehold units. Despite common...

All Buying Tips Opinion

6 Unexpected Property Warning Signs That Can Be Negative for Some, But Beneficial for Others

Jayson Ang – February 29, 2024 –

TLDR When considering property preferences, what may appear as a disadvantage to some buyers could be a unique opportunity for...

All Buying Tips

44 Exciting New Condo Launches in 2024 Starting at $1,402!

Jayson Ang – June 4, 2024 –

Alright, let's talk about 2024. We're not expecting the same kind of shortages we've seen after COVID-19. Some folks are...

Mandarin Top 5

The Top 5 Renovation Tips For Increasing The Value Of Your Singapore Property Investment

Jayson Ang – July 28, 2024 –

When it comes to increasing the value of your Singapore property investment, strategic renovations can make a significant difference. Here...

All Buying Tips Opinion

What Is An Affordable Home In Singapore?

Jayson Ang – August 18, 2025 –

TLDR Affordable housing in Singapore is about more than just having a roof over your head—it’s about survival and opportunity....

Mandarin Top 5

Top 5 Shopping Malls in Singapore for Luxury Shopping

Jayson Ang – March 5, 2024 –

Singapore, a bustling city-state known for its stunning architecture and diverse culture, is also a paradise for luxury shopping enthusiasts....

Mandarin Top 5

Top 5 Tips: Gain an Edge in the Singapore Property Market: Steps to Boost Your Investment Returns

Jayson Ang – May 11, 2025 –

The Singapore property market has always been a hotbed for investors looking to make substantial returns on their investments. As...

Mandarin Top 5

Top 5 : Most Profitable Neighborhoods To Invest In For Singapore Property Investment 2025

Jayson Ang – December 29, 2024 –

As the global economy continues to recover, the real estate market in Singapore remains a promising investment opportunity for savvy...

All Buying Tips

Why It’s Not Financially Sensible to Pay Off Your HDB Flat Home Loan in Advance

Jayson Ang – April 29, 2024 –

TLDR When deciding whether to repay your HDB flat loan early, consider the limitations of not being able to obtain...

All Buying Tips Opinion Selling Tips

Timing the Market: Lessons from Singapore’s Property Price Fluctuations

Jayson Ang – December 18, 2025 –

TLDR Singapore’s property market has seen price declines during major crises such as the 1985-1989 pre-recession, 1996-1998 Asian Financial Crisis,...