SINGAPORE: A condominium project that sold nearly all its units on the first day of launch suggests that rising mortgage rates have not dampened pent-up demand for properties in Singapore, analysts said.
Local home upgraders are still drawn to attractively priced private properties in good locations, they added. Others may be seeking a safe investment haven amid rising inflation and economic uncertainties.
AMO Residence, a joint private residential project between developers UOL Group, Singapore Land Group and Kheng Leong Company, sold more than 98 per cent of its 372 units in a single day on Saturday (Jul 23). This means that only seven units were left unsold.
The take-up rate exceeds recent major launches, such as Piccadilly Grand in Farrer Park and Liv @ MB in the Mountbatten area, which each moved close to 80 per cent of units.
“AMO Residence probably smashed all the sale records on its way to the best-selling private residential project in 2022,” said Huttons Asia’s senior director of research Lee Sze Teck.
THE PULL FACTORS
Industry experts said AMO Residence – the first major new launch in the Outside Central Region (OCR) this year – had several “compelling” attributes in the eyes of buyers.
One of which is its location in the mature estate of Ang Mo Kio and its proximity to MRT stations, amenities and schools. This is attractive to a wide variety of local buyers, especially families with school-going kids, according to Professor Sing Tien Foo from the National University of Singapore (NUS).
Other launches like Piccadilly Grand are located closer to the city centre, which may appeal more to investors, he added.
Colliers Singapore’s director and head of research Catherine He agreed that AMO Residence likely attracted local home upgraders, particularly those who already live in the area.
“The strong demand is likely to originate from upgraders in the vicinity on the back of buoyant private (and) public resale prices. These buyers just have to top up a portion of the buying price on top of their proceeds,” she told CNA.
Price is another factor, with most of the two-bedroom and bigger units priced below the “psychological barrier” of S$2,000 per square foot (psf), Ms He added.
The 99-year leasehold development offers two- to five-bedroom units between 614 sq ft and 1,475 sq ft, and three penthouses between 2,293 sq ft and 2,497 sq ft. Prices start from S$1,890 psf.
Taken together, these helped AMO Residence to stand out in a market which currently has a record low number of new homes, experts said.