The real estate market is in a state of constant evolution, and 2023 is set to bring new and exciting developments in the world of condominiums. As the demand for modern, convenient living spaces increases, developers are launching an array of new condominium projects to meet these needs. A key factor for buyers to consider when purchasing a condominium is whether to choose a freehold or a leasehold option.
In this article, we will examine the most notable new condominium launches of 2023, focusing on their freehold and leasehold options. We will explore the benefits and drawbacks of each, helping buyers to make an informed decision that suits their needs and budget. Whether you are a first-time homebuyer or a seasoned property investor, understanding the differences between freehold and leasehold condominiums is essential in navigating the complex world of real estate.
Stay informed and make the best investment decision for your future with this comprehensive analysis of the latest condominium launches in 2023.
2023 New Launches in a Nutshell
New launch condominiums have been a rather hot market segment in 2022, catching property headlines every now and then with great performance on the launch weekend of several condominiums. In this category, we include the launches of executive condominiums (ECs), freehold and leasehold condominiums and apartments.
In 2022, the estimated average transacted psf of new sale condominium units was $2,141 psf. This year, we estimate the average transacted psf to increase to $2,251 psf, which represents an increase of 5.1% from the previous year’s average. This is based on the land sales prices and standard business expenses for properties that have been scheduled for launch in 2023.
The past year saw a total of 8,298 new launch condo units sold. Note that 2022 actually had a 43% decline in the volume of transactions when compared to 2021. This might be due to the different number of new launch projects that were introduced over the years. In 2023, we have an estimated total of 11,356 new launch condo units that might be added over the course of the year.
Assuming the same amount of transaction volume as 2022, we will see new launch condos maintain a 73% take-up rate on average. Given that the market might slow down in 2023 due to macro headwinds, a 10% decline in transaction volume will see new launch condos hit around a 66% take-up rate in 2023.
Upcoming Leasehold New Launches in 2023
Our list of upcoming leasehold new launch condominiums in 2023 consists of 21 projects in total. There might be slightly more being introduced to the market over the course of the year but this is the number we have on hand at the moment. A majority of these projects (13) will be found in the Outside Central Region (OCR) at a more palatable psf range for the Singaporean mass market. There will be around 4 projects in the Rest of Central Region (RCR) and 4 projects in the Core Central Region (CCR).
We estimate a total of 4,479 new launch units being introduced to the OCR at a rough average psf of $1,971 psf. The leasehold OCR is typically the largest category by number of units and caters to the mass market of HDB upgraders. The RCR will see 1,795 new launch units being added at an average psf of $2,294, with in-demand city fringe areas that will be up for grabs in 2023. The city fringe area has been performing exceptionally well in the post-pandemic era and we might see that market enthusiasm persists in 2023.
The CCR will have around 1,450 new launch units being introduced in 2023. This is close to the number of units in the RCR region and we might finally see some action in the CCR area for new launches in 2023. We do not have many price estimates for CCR projects, so the average psf of $2,585 should be taken with a spoon of salt.
Note that the information, including the number of units and prices, are merely estimates and are not indicative of the actual details of the projects. These details can be subject to change without notice. The estimated average psf is rounded off to the nearest 5.
Overall, the leasehold new launches in 2023 look to be an exciting pool of projects. Market participants may be most interested in the OCR new launches for the leasehold segment as the mass market buyers are looking for a palatable quantum and price for their new home. Affordability is the talk of the town at the moment, and the pricing of OCR new launches is going to be attractive relative to other new launch options on the market.
Upcoming Freehold New Launches in 2023
Our list of upcoming freehold new launch condominiums in 2023 consists of 25 projects in total, which is 4 more projects than the leasehold category. Due to the relatively higher number of freehold projects being launched, we expect an overall higher average psf in the new launch segment with slightly lower overall volume.
Do note that some of the projects on this list are anticipated launches but some launches might be postponed if market conditions are adverse. A majority of these projects (15) will be found in the RCR, which is the strongest performing region for freehold properties. There will be around 2 projects in the OCR and 8 projects in the CCR. The estimated ballpark average psf for freehold new launches in 2023 is around $2,569 psf. This number could very well be higher if the new launch is located in the city centre, so readers need to exercise some discretion based on the location of the project.
For the OCR freehold new launches, much of the information is preliminary so we do not have a good estimate of the number of units and the estimated average psf of the projects. In the RCR, we have a rough addition of 2,808 freehold units at an estimated average psf of $2,532 psf. On the other hand, we have a rough number of 808 units being added to the CCR at an estimated average psf of $2,700 psf. Do note that for CCR projects, it is also common to observe numbers greater than $3,000 psf.
Comparing this to the leasehold list, there are more projects that are in the earlier stages of development. Hence, the price and unit estimates in this section might not be as accurate as the list of leasehold projects. This makes sense because the developers have a more flexible timeline working with freehold land plots as opposed to leasehold ones. Thus, there is a possibility that some of the projects on this list will get their launches postponed to the coming years.
Closing Thoughts
In conclusion, 2023 is poised to be a dynamic year for the real estate market in Singapore, with an array of new and exciting condominium developments set to launch. This article has provided a comprehensive overview of some of the most notable new condominium launches in 2023, offering a well-informed perspective on the newest projects in the industry.
Whether you are a prospective homeowner, an experienced real estate investor, or simply seeking information about the latest developments in the market, we encourage you to stay informed and ahead of the curve. To that end, we invite you to join our upcoming webinars and download our quarterly report to stay informed on the latest trends and updates in the real estate market in Singapore.
Our webinars and reports provide expert insights and practical advice, making them essential resources for anyone looking to make a smart investment in the real estate market in 2023. So don’t miss out on this opportunity to stay informed and make the most of your investment. Take action today and sign up for our upcoming webinars and download our quarterly report to stay ahead of the curve in the ever-evolving world of real estate in Singapore.
