Back in 2016 when South Beach Residences TOP and launched its preview, the hyped up Luxury Condominium halted sales and preferred a vacant period to selling off to the hype. Citing reasons, “Sometime in 2014, CDL, South Beach Residences’ developer, turned down an offer of $26 million for one of its penthouses citing imperfect timing to launch the project. It did not wish to sell any unit until market conditions were suitable.”
This quarter of 2018, CDL reannounced plans to put South Beach Residences back to the market, suggesting that the market is right and primed for real estate. This could potentially mean the property outlook is strong for the next few years and while prices are rising, it is a great opportunity to spring into the first wave of purchases before prices skyrocket due to market speculation.
What is South Beach Residences all about?
South Beach is the epitome of the definition of an integrated development. Situated right in the heart of the most happening and busiest district of Singapore, the development will consist of 5 Star Hotel, upscale Grade A Offices, Luxury Retail, Ballrooms, Business Centres and restaurants. South Beach Residences gives the opportunity to own an ultra-luxury residential unit in this mega-development. Jointly developed by City Developments Limited and IOI Group, South Beach is located next to the Esplanade MRT and City Hall MRT and within Downtown.
The Condo itself includes about 500,000 sq feet of office space, 190 apartments, a 654-room hotel, about 37,000 sq ft of retail space and a 29,000 sq ft private club. You can guess why it attracted an excited crowd especially investors from around the region. Everyone wants to get a foot into this prime condominium since its becoming of an integrated resort-like development like the previously acclaimed Marina Bay Sands.
Property boom in 2018
Previously mentioned, we expect the real estate market to go nuts in 2018. This is in line with what we observe thus far: More and more new condo launches with up to 6,000 residential units up for grabs in Singapore. “This year, 18 private residential projects with an estimated 6,000 units were launched for sale, says Ong Teck Hui, JLL national director of research. He foresees about 20 projects being launched next year, yielding 8,000 to 9,000 units. Ong’s forecast for new home sales in 2018 is 11,000 to 12,000 units.” Up from 11,000 projected sales in 2017, this is roughly an 8.3% increase in projected sales. In fact, there has been a 38% increase in sales as we moved from April to May. No wonder South Beach Residences has always been ready for this moment – they wanted prospect buyers who are able to an ultra-luxury development like this!
What makes South Beach Residences so attractive?
Being an all-integrated mega development (the 29,000 sqft private club makes it crazy alone!), here are the main reasons why South Beach Residences is so attractive:
To quote from the developer:
“Fine craftsmanship. Thoughtful finishing. South Beach Residences caters to the most discerning. Each unit is furnished with quality appliances and fittings from leading international brands such as Miele, Duravit and Keuco, infusing every unit with a sense of modernity and timelessness. Exquisitely designed, these homes set the benchmark for urban luxury.”
Since South Beach Residences is developed beside the CBD, the site itself is fantastic. Get views of the sea, Singapore CBD skyline and the Marina Bay reservoir area all under 1 roof with a good bird’s eye view of the city landscape. Furthermore, the condo is rich in heritage too – The south-west face will open onto the War Memorial Park which houses the Civilian War Memorial monument. This is one of Singapore’s most famous heritage landmarks (completed and unveiled in 1967). It is highly unlikely this site will ever be redeveloped anywhere in the near future. Beyond that is the Padang and Esplanade Park which are open greenery space. This will probably be where the prime stacks will be facing as this frontage offers the best-unbridled view of the CBD skyline and the Marina Bay area.
A Luxury Development alongside Positive Real Estate Outlook
In Mathematics, you learn that two positives create a greater output. And here’s the situation developing for South Beach Residences. On one hand, a highly reputable development with incredible amenities, prime location, and one of the best views in the city. On the other hand, a property outlook that looks like it’s ready to charge into a bullish movement anytime. Which is why we think that South Beach Residences is set to boom for 2018.
In case you were wondering, the unit sizes are atypical of Singapore housing – they are fairly huge (Of course with a greater price to pay):
How the surrounding area – South Beach Avenue – makes the development even better
Enough about the Condo, let us take a quick dive into what makes the area so special.
South Beach Residences is located right at 38 Beach Road, surrounding South Beach Avenue. South Beach Avenue spans 32,000 sqft located within the basement, street level and conservation heritage buildings, South Beach Avenue has attracted many crowds from the Civic District. With direct connections to Esplanade MRT station and City Hall MRT interchange, many can now seamlessly enjoy convenient access to dining establishments and drinking experiences in South Beach Avenues’ expansive and generous spaces and exquisite.
For the foodie, South Beach Singapore is home to 16 dining and lifestyle concepts, including more than 10 restaurants, cafes and drinking places. You’ll never get to miss a day without a drink or two (Or a good night out!)
So be ready to enjoy your lifestyle when you finally decide to be a resident of South Beach Residences!
Residential outlook for 2018
Most residence consultants are expecting new-home sales to ring in at about 11,000 models for 2017. This is a 38% improve from the seven,972 models registered in 2016, suggests Tricia Tune, Colliers International head of research for Singapore.
This year, eighteen non-public residential projects with an approximated six,000 models had been launched for sale, states Ong Teck Hui, JLL countrywide director of analysis. He foresees about 20 assignments being released subsequent calendar year, yielding eight,000 to 9,000 models. Ong’s forecast for new residence product sales in 2018 is 11,000 to 12,000 units.
Colliers’ Tune forecasts that new-home sales in 2018 will strike 12,600 models. “We assume new-property product sales to continue being healthy next 12 months amid the more good financial outlook, growing marketplace confidence and pent-up desire,” she says. Given the spate of collective product sales since 2016, Music expects a “bumper crop of new launches” in late 2018 to 2019.
Having into account the two collective sale web sites and land offered through community tenders, such as tasks waiting on the sidelines this sort of as the New Futura, South Beach front Residences and 8 St Thomas, Song estimates there will be twenty five new personal household venture launches next yr, yielding a total of 15,000 to sixteen,000 new models. Her assumption is that only collective revenue transacted before August 2017 will be in time for launch in 2018 (see tables).
Resales to exceed new-residence product sales
The two Colliers and JLL have related projections for resale quantity: 13,000 to 13,five hundred units in 2017, a jump of 55% to 71% in comparison with the selection of 7,901 to eight,406 units in 2016. Resales contain developers’ sale of stability units in accomplished initiatives these kinds of as Amber Skye, Gramercy Park, Leedon Home and Marine Blue.
“The assignments released a few a long time in the past will reward, as the unsold inventory is very likely to be compressed even more,” notes Desmond Sim, head of research for CBRE Singapore and Southeast Asia.
In a typical yr, the transaction quantity of new residence sales tends to be on a par with that of resales, observes Alan Cheong, head of research for Savills Singapore. The truth that resales far exceed new property sales in 2017 is a reflection of a dearth of new launches as a end result of a moderation in the supply of new web sites under the federal government land income (GLS) programme in current many years, he says.
The government releases websites for community tender every 6 months through the GLS programme, offering sites for sale on the two the Confirmed and Reserve Lists. From 2H2010 to 2H2013, the government unveiled 23 to 30 web sites with the prospective to yield 14,000 to 14,three hundred housing models. From 2H2015 to 2H2017, the amount of new sites released via the GLS programme was diminished to 12 to fifteen, with the potential to produce 7,420 to 8,one hundred twenty five models (see charts). The tapering of offer was in response to the slowdown in housing desire, owing to the seven rounds of residence cooling steps and the affect of the overall financial debt servicing ratio (TDSR) financial loan framework.
“Developers that purchased web sites from 1H2010 to 2H2013 have previously introduced and marketed their projects and acquired their income proceeds,” states Savills’ Cheong. With the emergence of new builders and the less variety of sites introduced beneath the GLS programme, Cheong notes that there has been intense bidding for land internet sites and, since much less GLS websites were launched, some builders turned to collective sale sites as an alternative. This was observed in 2016.
‘Bank of mum and dad’
Even as rates of land are being pushed up, the real test will arrive when developers start the tasks off-plan, says Cheong. With demand from customers primarily fuelled by domestic buyers, and the TDSR and other home cooling actions nonetheless in location, young individuals will be dependent on “the financial institution of mum and dad” to fund their new-residence buys, he reckons. “But how deep are the reserves of that lender? That remains to be witnessed.”
Income momentum is most likely to create up in the first a few quarters of 2018, Cheong adds. “If the new sale rates are deemed to be higher, demand will spill above to the resale marketplace. He consequently foresees resale transactions as soon as yet again overtaking new-house sales in 2018.
This calendar year, general sentiment in the residential industry has enhanced. “Some homebuyers have entered the market out of dread of lacking out, although other individuals want to lock in fascination charges before they rise more,” notes CBRE’s Sim. The new units that have moved have been these priced moderately at $2 million, which is still “the sweet spot”, he provides.
Costs projected to increase 8% to 10%
Sim forecasts an eight% to ten% rise up coming 12 months on a psf basis. He sees greater land rates starting up to arrive into engage in next 12 months as builders consider to hold the bulk of units in their new projects at the sweet spot, which indicates scaled-down units and higher cost psf.
Tempering the marketplace, the Ministry of National Improvement famous in its release on Dec 13 that, although need for sites by residence developers is even now powerful and property transactions have picked up, “there is a massive likely source of close to twenty,000 units from awarded en bloc sale and GLS websites that have not nevertheless been granted planning acceptance, on prime of the [roughly] 18,000 unsold units that already have arranging approval”. In addition, far more than thirty,000 non-public housing units stay vacant, according to MND.
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Also see: https://en.wikipedia.org/wiki/Real_estate
Hi, my name is Elvis and I review real estates. Here's my blog and I hope you enjoy it.