Upcoming New Condo Launch in 2022 That Will Likely See A High Demand For Amongst Buyers [Updated]
Updated: Dec 16, 2022
As we are entering into the new year 2022, we are also entering into new price norms where PSF prices will be hitting above $2000 even in the Outside Central Region (OCR) for upcoming new condo launches.
With land scarcity and an increasing population in Singapore being a real issue, property prices can only go higher with every year’s Government Land Sales.
But regardless of the increasing prices, there are still buyers that prefer a newly constructed condo over a resale condo either for short term capital appreciation or for the fact that you can pay your instalments progressively.
Saving on renovation costs and not have to pay maintenance fees or property taxes whilst it is building are also other reasons that buyers prefer a new condo launch over a resale condo.
Without further ado, let’s take a look at the upcoming new condo launch in 2022 that we think will likely see a high demand for by home buyers and investors, and their estimated launch price from the indicative Government Land Sales (GLS) bid prices.
New Condo Launch 2022 in Outside Central Region (OCR)
1. Lentor Central New Condo Launch - Lentor Modern
Source: URA
Lentor Central (Lentor Modern) was awarded by the Urban Redevelopment Authority (URA) to GLL D Pte Ltd, a subsidiary of GuocoLand on the 29th of July 2021 after the land tender closed with nine bids.
This upcoming new condo launch named Lentor Modern will be located next to Lentor MRT station on the Thomson-East Coast Line (TEL) and will become a new condo launch development with commercial space on the 1st storey.
GuocoLand’s vision for Lentor Central (Lentor Modern) is a 25 storeys new condo launch that will be slated to launch in 2022 with a total of over 600 residential units. Commercial space on the 1st storey will likely include F&B, retail spaces, a supermarket and more than 10,000 sqft of childcare facilities.
Lentor Central (Lentor Modern) New Condo Launch Estimated Launch Price
Source: Edgeprop
With Guocoland being the top bidder for Lentor Central plot, buying the land at $784.1 million, the expected breakeven psf price for the developer for Lentor Modern is approximately $1933 psf after adding in all the costs including construction, financing, legal and marketing costs etc.
Therefore, if we price in a developer’s profit margin of:
Est breakeven psf + 10% = $2126 psf
Est breakeven psf + 15% = $2222 psf
Est breakeven psf + 25% = $2416 psf
Minimally, you will be expecting a launch price of at least $2100 to $2300 psf based on these figures.
More details will only be released in 2022 and we are only able to estimate the launch prices currently. But do drop us a message if you would like us to analyze the entry prices for you or to update you of the preview launch date.
Our Take on Lentor Central New Condo Launch - Lentor Modern
Should the launch price be kept reasonable at below 20% of developer profit margins, this new condo launch development in Lentor Central (Lentor Modern) in 2022 will definitely see a high demand due to the following reasons:
Firstly, the developer and its reputation. Guocoland has been very prominent in their branding in the recent years with numerous news coverage, awards bagging and a very clear established direction of their real estate business in the future to come which is to focus on value creation through innovation and development of future-relevant products.
Their previous flagship new condo launches such as Wallich Residences, Guoco Midtown & Midtown Modern have also been recognised for being at the top of their class, winning the title of Best Condo Development in Asia and Best Mixed-use development in Asia. Guocoland was also conferred the winner at the Asia Property Awards in 2020 as Asia’s Best Developer.
We definitely have no doubt about the quality of their condo developments and that home buyers will be excited for their presence in the Outside Central Region (OCR) given their proven track record in the luxury market in the Core Central Region (CCR) in the last few years.
Secondly, there is clearly a low amount of inventory left in the new Condo Launch market with most new Condo Launches 80% to 90% sold out in the past few years. With that said, Lentor Central (Lentor Modern) is one of the biggest new condo launch developments in 2022 already.
Thirdly, there will be no more mega developments of more than 1000 units (e.g Riverfront Residences, Affinity at Serangoon, The Florence Residences) in the OCR region in 2022.
Lentor Central (Lentor Modern) being able to launch over 600 units is considered one of the larger developments in 2022 already. We will be seeing a lot of boutique developments (under 200 units) launched in 2022 except for the ones that we are covering in this article.
Therefore, the limited supply will definitely see high competition amongst HDB upgraders from either Yishun, Yio Chu Kang or Ang Mo Kio towns.
Fourthly, the location of this land plot is highly desirable given that Lentor Central (Lentor Modern) is right at the doorstep of Lentor MRT station and within close proximity to Yio Chu Kang MRT.
Lentor Central (Lentor Modern) will also be a mixed residential development with childcare facilities, F&B, retail and a supermarket which will be highly convenient and suitable for home buyers, fitting the profile of what singles, and HDB upgraders and their families will need in their daily lifestyles.
The Lentor Central (Lentor Modern) environment is also serene and peaceful given that most of the residential developments in that area are landed properties.
Staying in the North also means close proximity to various nature parks such as Lower Peirce Reservoir, Ang Mo Kio Bishan Park, Thomson Nature Park and MacRitchie.
A variety of food and entertainment options there also include restaurants at Seletar Aerospace (Wheeler’s Estate, YOUNGS), Upper Thomson, Thomson Plaza, AMK Hub. All these factors will contribute to the livability of this upcoming new Condo Launch at Lentor Central.
Popular schools in that area also include CHIJ St Nicholas Girls’ School, Anderson Primary and Secondary School, Mayflower Primary School, Presbyterian High School and Yio Chu Kang Secondary School.
Lastly, beside the Lentor Central (Lentor Modern) land plot, there have been another 3 more neighbouring land plots being put up for sale as per URA’s schedule of confirmed list sites for sale, - 2nd Lentor Central, Lentor Hills Road (Parcel A) and Lentor Hills Road (Parcel B), and Lentor Gardens on the schedule of reserve list sites.
Source: URA
These sites were being put up for sale for the first half of 2022 Government Land Sales (GLS) programme after the government announced cooling measures and decided to provide more supply in the private housing market to bolster prices in the upcoming years.
Therefore, buying into the first Lentor Central (Lentor Modern) site would be an ideal first-mover advantage move given that subsequent land prices will likely be more expensive than the previous ones.
And so, if the 2nd Lentor Central, Lentor Hills and Lentor Gardens are going to be launched at higher prices than the first Lentor Central, then this will likely help in the first Lentor Central’s (Lentor Modern) potential for capital appreciation (it is also the site that is the closest to the MRT).
If you would like first-hand updates of the project, floor plans or to be kept in the loop of the preview launch date for Lentor Central (Lentor Modern) New Condo Launch in 2022, do drop us a message and we will keep you updated of the latest news.
2. Ang Mo Kio Avenue 1 New Condo Launch - Amo Residence
Source: URA
Ang Mo Kio Avenue 1 (Amo Residence) was also a hot favourite, attracting 15 bids altogether from developers and the top bid emerged victorious at $381.38 million being awarded to United Venture Development, a joint venture between UOL Group, Singapore Land Group and Kheng Leong.
The Ang Mo Kio Avenue 1 (Amo Residence) site is located close to Mayflower MRT on the Thomson-East Coast Line (TEL), and we will likely be seeing a 24 to 25 storeys high development of more than 370 units, said the developers.
Ang Mo Kio Avenue 1 (Amo Residence) New Condo Launch Estimated Launch Price
Source: Edgeprop
With UOL winning this land plot out of 15 bidders, and buying the land at $381.38 million, the expected breakeven psf price for the developer is approximately $1822 psf after adding in all the costs including construction, financing, legal and marketing costs etc.
Therefore, if we price in a developer’s profit margin of:
Est breakeven psf + 10% = $2004 psf
Est breakeven psf + 15% = $2095 psf
Est breakeven psf + 25% = $2186 psf
We would actually be looking at a launch price of between $2000 psf to $2200 psf for Ang Mo Kio Avenue 1 (Amo Residence) when this new condo launch is being launched in 2022.
More details will only be released in 2022 and we are only able to estimate the launch prices currently. But do drop us a message if you would like for us to analyze the entry prices for you or to update you of the preview launch date.
Our Take on Ang Mo Kio Avenue 1 (Amo Residence) New Condo Launch
Ang Mo Kio has always been a highly sought-after area to live in given its location and evidently from previous BTO flats in Ang Mo Kio constantly being oversubscribed. And given that there will only be 370 units available for this Ang Mo Kio Avenue 1 (Amo Residence) launch, there isn’t really much supply to begin with. Therefore, this will definitely see high demand as well.
Firstly, the developer itself is a well acclaimed name with numerous highly sought-after new Condo Launch developments in 2021 including Avenue South Residences and Clavon.
UOL’s recent launch at The Watergardens at Canberra sold 60% of units at launch in the Outside Central Region (OCR) also saw fantastic response and demand from the ground.
Secondly, the proximity to the upcoming Mayflower MRT station along the Thomson-East Coast Line. The distance between this Ang Mo Kio Avenue 1 (Amo Residence) land plot and the MRT station is within 400m, which translates to only about 4 to 6 mins walk away.
Mayflower MRT is also only 1 stop away from Bright Hill MRT Interchange which links us to Ang Mo Kio MRT, Hougang MRT and even Pasir Ris MRT within just a few stops away.
Thirdly, this Ang Mo Kio Avenue 1 (Amo Residence) New Condo Launch is adjacent to the BTO flats Kebun Baru Court and Kebun Baru Edge. Kebun Baru Edge is a BTO project launched in August 2020 and will TOP in 2025 with a total of 380 units consisting of only 4 room and 5 room flats. Ang Mo Kio Avenue 1 (Amo Residence) new condo launch being launched in 2022 will likely see TOP in 2026 or 2027.
Therefore, there will be demand from the HDB upgraders from these BTO flats who will likely be looking to upgrade in an area where they are familiar with, which also presents an opportunity for the buyers of Ang Mo Kio Avenue 1 (Amo Residence) new Condo Launch to exit from.
Fourthly, Ang Mo Kio Avenue 1 (Amo Residence) new Condo Launch also sees similar traits with Lentor Central (Lentor Modern) in terms of liveability such as close proximity to various nature parks such as Lower Peirce Reservoir, Ang Mo Kio Bishan Park, Thomson Nature Park and MacRitchie.
Schools such as CHIJ St Nicholas Girls’ School and Ai Tong School are also within 1km radius, which makes Ang Mo Kio Avenue 1 (Amo Residence) a highly attractive site. Mayflower Secondary, Peirce Secondary School are also within walking distance, offering families a plethora of schools to choose from.
The Ang Mo Kio Avenue 1 (Amo Residence) site is also located beside the landed estate Shangri-La Park and quite a distance away from the main road along Ang Mo Kio Avenue 1. Therefore, those who like peace and privacy will definitely like this development as well.
If you would like first-hand updates of the project, floor plans or to be kept in the loop of the preview launch date for Ang Mo Kio Avenue 1 (Amo Residence), drop us a message and we will keep you updated of the latest news.
3. Tanah Merah Kechil Link New Condo Launch - Sceneca Residence
