Artist Impression - Sky Habitat

An Artist Impression of the Sky Habitat

We read with great interest, recently, about the prices fetched by Sky Habitat, the latest Capitaland development in the heart of Bishan. Even after factoring in discounts by the developer, per-square-foot prices still came in at around SG$1,500. For a non-Core-Central-Region (CCR) development, it is certainly quite an eyebrow raiser. Just over the launch weekend, 70% of the available 180 units were taken up, so it isn’t just an isolated blip on the radar either.

No doubt, the various perks do play a part in pushing up the price and exclusivity of this project. In addition to the iconic architecture, it boasts amazing features such as a 38th-floor swimming pool, huge balconies and awesome views. It also has proximity to schools, MRT and other amenities. Throw in a marketing blitz worth millions of dollars, and it’s no wonder there’s so much hype for this project.

But then, we also read another piece of news about Cavanagh Garden, a prime piece of real estate in the CCR. This freehold property is located just off Orchard Road, adjacent to the Istana. At it’s height, this property had an en-bloc asking price of SG$650 million. Now, it is being offered at a SG$190 million discount. But even at SG$460 million, it is believed no developers will bite. This is because properties in the CCR are believed to be less viable now.

So what exactly is happening here? On the one hand, we have prime property in a prestigous region deemed by developers as unviable and not worth a steep en-bloc discount. One the other hand, developers are jacking up prices in suburban areas to record (and some would say ridiculous) highs.

There is no doubt that many people in Singapore are still willing to spend tons of cash on property, but whether it’s due to true liquidity or due to the low interest rate remains to be seen. What is questionable is whether they are really thinking things through before signing on the line. We have a feeling that there will be much wailing and gnashing of teeth in the future. And quite a bit of it may come from up north.

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  One Response to “Something Strange, In Your Neighbourhood…”

  1.  

    Great post with lots of ipmrtonat stuff.

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