This D21 New Launch Sold 60+ Units Since The Start of Circuit Breaker – What’s Moving The Market?
Daintree Residence has pulled in a sale count of over 60 units since the two-month circuit breaker period began. This is an interesting feat, considering that throughout the two years since its launch, the development sold only 100 units.
There were no “massive” discounts, no promotions, no loud fanfare. Yet 60 buyers suddenly decided to place their cheques and sign on the dotted lines.
What caused this?
Hidden Potential?
To begin with, Daintree Residence has always had a good selling proposition.
Firstly, it will benefit from rejuvenation plans for Beauty World. This includes a major transport hub and new mega mixed-development, and the already operational Downtown MRT line. If you aren’t yet familiar with property prices and the implication “rejuvenation plans” have on it, this is a big one.
Secondly, the project in itself rightly plays on the theme of “nature all around”, featuring some of the most intricate interior landscaping with resort-like facilities. This makes it one of the most charming low-rise projects in terms of its ‘home-within-a-forest’ feel.
Thirdly, Daintree’s location has traditionally been well sought after by families wanting to move out of the HDB heartlands into private residential enclaves…all the more, given the long list of popular schools spanning the length down Bukit Timah.
Many good points, so why then have buyers taken so long to bite?
Forgotten in a Sea of Options?
Let’s not forget that there have been close to 100 new launches in Singapore over the past two years.
Unless a project has a very strong pull factor (such as…selling 50% below market value!! – not going to happen), it’s going to sink into being just one-on-a-list-of-many-to-choose-from.
While much attention has been drawn over the past two years to blockbuster launches in more exciting areas such as The Stirling Residences, Jadescape, Amber Park, buyers could have overlooked many of low profile District 21’s offerings.
Perhaps the impending launch of Forett At Bukit Timah may have brought some interest back to District 21.
In anticipation of Forett At Bukit Timah’s end-July launch, social media has seen an explosion of ads placed by real estate salespeople hoping to net buyers for that project.
When a prospective buyer clicks on an ad for Forett At Bukit Timah, it tells Facebook/Google that he is ‘interested’ in similar offerings. As a result, ads for Daintree Residence could also end up being shown to these prospective buyers.
This could have helped draw more attention, or even turned buyers over to the otherwise forgotten Daintree Residence.
At $1600psf for Daintree Residence versus (estimated) $2100psf and above for Forett At Bukit Timah, Daintree easily becomes the better deal (aside from the Freehold vs. Leasehold factor… which may not really matter as much today – read our Editorial on this topic here).
Whether or not this is true or plain speculation, it does not deny the fact that online marketing plays a very important role in our choices today.
(Ok, this isn’t a course in Online Marketing we get it!)
Other New Launches That Sold Well During the Circuit Breaker
Another factor that could play a role in Daintree’s sudden sales volume boost could ironically be Singapore’s Circuit Breaker itself.
Hands up if you’ve spent that two months confined at home picking up a new skill or study!
Yep, while you were spending hours working on building that herculean body, there certainly were people spending that same number of hours studying the property market and the options available – more so than they would have ever been able to during normal times.
That could well explain why 486 buyers in the month of May 2020 alone were willing to purchase a new home while sitting…at home.
Other new launches that sold a remarkable number of units during the Circuit Breaker include Kopar At Newton (which, by the way was launched at the start of the circuit breaker), Parc Clematis and Treasure at Tampines.
It helped that many developers turned to tools like online 360* viewings and offering discounts to keep buyers interested and connected.
Surely even the lesser talked about projects like Daintree Residence would have benefitted from this.
The New Normal
As Singapore continues on in ‘Phase 2’ and heads towards what many call the ‘new normal’, the key question now is whether this sales volume will continue or taper off.
Analysts have pointed out to the sudden ‘surge’ in New Home Sales in June 2020 as nothing more than the result of pent-up demand built over the circuit breaker period unleashing itself. There seems to be truth in that, as word on the ground is that condo showrooms have gone “back to normal” in terms of interest level now that we are a few weeks into Phase 2. We will certainly get a better gauge when this quarter is up and we have the official “New Home Sales” figures from URA.
For Daintree Residence, things are looking a little more positive.
On a cost perspective, its land acquisition cost is one of the lowest in the area in recent times at $939psf ppr. This means that the developer, Setia, will have more room to adjust their pricing to match demand and competition to keep sales moving.
It also means that other upcoming launches in the area (such as Verdale – to be built on land acquired through a Government Land Sales tender for $1002psf ppr) will likely be priced higher, turning District 21 buyers back to Daintree as the more attractive investment.
Are you someone who has purchased a property during the Circuit Breaker period without any physical viewing? Share with us your thoughts on your purchase!
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