More Supply is coming TOP, will the Property Price drop?

Published on 1 Dec 2022

Do you remember before COVid there was quite a number of the mega projects with more than 1,000 units launched right?

Such as Stirling Residences, Riverfront Residences, Parc Esta, Affiinity at Serangoon, Florence Residences, Jadescape, Treasure at Tampines, Normanton Park, Avenue South Residence…

That will bring thousands and thousands of supply flood into the market by 2023.

So, the key question is, will this cause oversupply and the property price to drop?

Source: URA

In my opinion, yes indeed there are a handful of mega projects going to TOP next year.

In fact, some sellers that rushing to sell, they already started the Subsale this year.

Here is my recent video about the mega condo TOP 2023. Feel free to watch! 🙂

For those selling before the TOP, most likely they are motivated sellers.

Therefore, some buyers might be able to get the price cheaper for now as compared to the price when it TOP next year.

Because those sellers will not be so “ganjiong(rushing) to sell when they can rent out the unit during this hot housing rental market.

Hot Singapore Rental Market

One Door Closes Another Opens?

However, there is always opportunity around.

I think there will be great opportunity ahead if you wish to target a resale condo that is near to the TOP project.

Why is that so?

Opportunity is always around

New Launch Supply will Help or Harm the Resale Condo Nearby?

Take for example the project near Queenstown MRT.

We have Commonwealth Towers TOP in 2017, Queenspeak TOP in 2020 and Stirling Residences just TOP in 2022.

New Condo Queenstown MRT

As you can see from the map, both Commonwealth Towers and Queens Peak are just side by side.

In March 2020, Queens Peak obtained TOP.  So, is this a good thing happen to Commonwealth Towers owners?

Imagine if you are one of the owners at Commonwealth Towers.  Is it a good news or bad news to you?

I am sure there are some agents told you that, if you buy a new launch condo that is surrounded by some empty lands, you are most likely going to be “Huat Kueh” (making a lot of profit)!

According to some agents, the reason is because the empty land price nearby will be higher and the developer will also sell much higher price than what you can buy now.  That’s why the future new launch nearby will push up your condo price.

However, my study shows that is not always the case!

Queens Peak vs Commonwealth Towers

It really subject to many different factors.

The new launch supply in the future can help to push your price higher but also can be your strong competitor and bring down your price!

Here are my examples.  I break it into 1-Bedder and 3-Bedder.

Why? Let’s take a look at the unit mix of Queens Peak.

Queens Peak unit mix

There are 256 units of 1-Bedder and 261 units of 3-Bedder at Queens Peak.

They are much higher than any other unit types.

Next, let see how the high supply in 1-Bedder coming from Queens Peak will affect the price of 1-Bedder Commonwealth Towers?

Commonwealth Tower 1 Bedroom Profit

Before Queens Peak obtained TOP, the profit of 1-Bedder at Commonwealth Towers are more than $100,000.

But, as soon as Queens Peak obtains TOP, the impact is big and the profit drops significantly!

And this is the case study for 1-Bedder.

How about 3-Bedder since there are even more supply?

Commonwealth Tower 3 Bedroom Profit

But, the result shows a contradiction. The high supply in 3-Bedder at Queens Peak did not bring down the price at Commonwealth Towers.

Instead, the profit went up even much more and the 3-Bedder owners at Commonwealth Towers all become “Huat Kueh” now!

The key question again, why is that so?

What is the Biggest Factor?

After my research, I find out that is actually due to the layout!

1-Bedder layout are almost similar between both projects, that’s why new supply would create competition and bring the price down.

Queens Peak vs Commonwealth Towers

After my research, I find out that is actually due to the layout!

1-Bedder layout are almost similar style between both projects, that’s why new supply would create competition and bring the price down.

Now, let’s look at their 3-bedder.

Queens Peak vs Commonwealth Towers

For their 3-Bedder, you can spot the differences.

Queens Peak despite having a bigger size, but it comes with some wasted space especially at the balcony and foyer.

Two of the bedrooms could not fit in a Queen-size bed.

Whereas the 3-bedder at Commonwealth Towers, although the overall size is slightly smaller, but it totally make good use of layout efficiency!

Comes with all good bedroom size and also enclosed kitchen!

I think if you are the buyer, after viewing the 3-bedder units in both Queens Peak and Commonwealth Towers, you would prefer Commonwealth Towers!

What have you learn?

So in this case, you should buy the 3-bedroom at Commonwealth Towers even before Queens Peak TOP, knowing that there is no better layout in the upcoming supply. Even before the price jump at Commonwealth Towers!

That’s when research is very important. In a way, it helps you to “predict” the future.

Based on what I shared just now, you will be able to see if you should get in and buy now or just wait?

What’s gonna happen when there are more mega projects going to TOP next year?

Now, Stirling Residences just TOP, how will this affect QueensPeak and Commonwealth Towers pricing? Will it up or down?

These are the kind of property analysis that I can do for my clients.

I will do the project analysis of certain area, to see when the best timing is to buy or sell for a certain project.

Plan For Yourself is very Important!

It’s not just about selling at the record breaking price, but you may also end up buying high as well in this seller’s market.

I suggest we have a short meet up first where I can share with you based on your case and what is the best scenario moving forward and based on the market now what are the projects best suit you!

Register for Non-Obligatory Discussion:

    Name:

    Phone No:

    Email:

    Stephen Chong
    Stephen Chong
    Lim Ming Hwee
    Lim Ming Hwee
    2022-02-26
    Stephen is a very good agent who goes beyond his way to ensure that his clients are happy. He is very patient and helpful, and will always give good advice.
    Joseph Sze
    Joseph Sze
    2021-12-24
    Stephen is a professional & responsible person who has provided good quality customer services to our recent Condo housing purchase & related matters. I found he has put in great efforts and gone for extre miles to assist us in the whole process and related purchase issues. Excellent work, Stephen!👍🏼👍🏼👍🏼
    SZ Lim
    SZ Lim
    2021-07-20
    Was going thru Stephen's video when I noticed he had a google review panel up. Going to copy paste my review on his FB page from 2019. I still stand by my review. Stephen was very professional throughout our engagement process. I first engaged Stephen as his effort could be seen thru the videos he made. The videos were informative, detailed, yet easy to understand from a beginners point of view. Could also see the improvement of his videos as time passes, and that speaks volumes about one's character on his eagerness to improve and share. During my engagement with him, Stephen was very professional. Since I was very new in the scene, I required alot of guidance and honesty. Stephen was very upfront with me on many items and did not try to hide any facts from me. As a first time buyer, both good and bad prospects were laid out after his detailed analysis on my current financial condition and also on the projects we went to see. Comparing to other agents who will just blab anything that benefits their sales point, Stephen was straightforward and truthful on the issue. I have met quite a few agents but would highly recommend Stephen to people who are looking for properties, be it looking for a place to stay, or looking for a property to invest.
    YingYu Tan
    YingYu Tan
    2021-07-11
    Stephen handled both my HDB sale and new condo purchase. The whole process was fuss-free and smooth. What impressed me was his willingness to go the extra mile for his client, from analyzing every detail and being there for me and my wife every step of the selling/buying process.
    陳若芸
    陳若芸
    2021-07-04
    Cannot believers Mr Stephen posting my rental unit less than 10 mins ? Yes, can't believed it ? but please believed it. 1st day open ..more then 8 enquiry. Mr Stephen was very professional, patient and knowledgeable, he shares all the information i needed, excellent service 💪💪 Rent out my unit within 2 days highly recommended ..BINGO
    Jade Bai
    Jade Bai
    2021-06-30
    We came across Stephen YouTube video and appreciated the tips he is providing. We decided to engage Stephen when we were house hunting. Most people may feel that you can DIY resale hdb buying process. Personally we feel its money well spent engaging Stephen. The whole buying process is swift. Stephen is very prompt in his reply. He did alot of detailed analysis and recommend us the units we can explore. He is very detailed anf meticulous. This process saved alot of time. He also gave us helpful advice on the units we viewed. No hard selling or rush you into hasty decisions 😊
    Adrian Tay
    Adrian Tay
    2021-06-30
    Knowledgeable and professional, Stephen is not the typical agent you will meet. Ever so patient, he will help provide his genuine feedback and never pushy unlike most sales agents. Fortunate to have Stephen walk with me in my property investment journey. Will recommend Stephen to anyone who is looking for a trustworthy agent to walk the mile with.
    michael tan
    michael tan
    2021-06-29
    Very patient and give good advise. I bought ec under him and he sold my hdb.
    CY Goh
    CY Goh
    2021-06-05
    I believe every property investors or home buyers have encounters with numerous property agents. However, how many of you ever met someone with passion and enthusiasm to sit down and analyze each property based on your criteria (budget, requirements like location, size, etc)? Having watched Stephen's videos in YouTube, decided to ping him and the rest is unspoken of. Not only did he helped to narrow down our search, he also analyzed which project has higher prospect and which unit (level, facing, etc) fits our living habits. No complaints, except for not knowing Stephen earlier. Good job Stephen, thank you.
    Esther Cheh
    Esther Cheh
    2021-04-30
    Stephen was the agent assisting us in the purchase of our condo and now to market them for rental. He is extremely helpful, open, transparent and reliable throughout the entire time. He went above and beyond to help us set things up while we are not in Singapore.He is also very professional and knowledgeable about the property market in general. I am confident to leave our condo in his care to find us a good tenant and to manage them in future.
    How to Choose a Good Unit for Your Condo

    Download Free e-Book for
    How to Choose a Good Unit for Your Condo?