First mass market residential site triggered for launch in a year

According to The Business Times, the tender for a 99-year leasehold residential site at Chestnut Avenue in the government's reserve list has been triggered for launch with a developer undertaking the minimum bid price of S$62m or S$120.8 psf ppr. Market expects the top bid in the S$136-S$200 psf ppr range. This will be the first launch of a residential site by the government in a year.

The triggering of the bid for the mass market site is supportive of the favourable demand supply dynamics in this segment and we expect strong response from other developers as well. It is reflective of the growing developer confidence in the sustainability of the recovery in the property market as they seek for means to replenish their mass market inventory. A strong response could further trigger the launch of other sites in the mass and mid-tier segments.

According to the Business times, City Developments is understood to have sold between 50-60 units at the 85-unit FH Volari @ Balmoral condo at Balmoral road (as shown above) at an ASP of S$2,000 psf since its launch on Friday.

Separately, Far East and Frasers Centrepoint have sold 120 units of 99-year leasehold 437-unit Waterfront Key at an ASP of S$735 psf which is around 5-8% higher than the adjascent Waterfront Waves project. The brisk sales at these projects would boost the July sales volumes.

There has been a steady increase in the number of transactions above S$1,500psf since the beginning of this year. We view the rising volumes for the high/luxury end transactions positively that would further boost the homebuying sentiment as it is a firmer indication of the return of buyer confidence to the market.

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