Pasir Ris 8 Prices Hit $2,000 psf
6 rounds of price increase in single day after developer sells 85% of the units on launch day
Today is the 11th of August, two weeks after Pasir Ris Eight Prices Hit $2,000 psf. I’m doing a follow-up video to look at what happened to the market.
📌 Pasir Ris 8 New Launch
On the 25th of July, Pasir Ris 8, an integrated development was launched. In total, about 85% of units were snapped up at the price of up to $2000 per square foot. This created a bit of Hoo-Ha or commotion among all the buyers because $2,000 per square foot was shocking news to a lot of people.
Let us take a look at what happened after the launch.
On the 28th of July, Business Times reported that the Pasir Ris 8 units were sold at $2000 per square foot. This emboldened other developers to raise their prices.
The newspaper reported that the top reasons for the strong demand for Pasir Ris 8 include:
- Low-interest rate,
- Decreasing pipeline supply,
- The fear of missing out (FOMO), and
- The concern of new cooling measures.
To me, these are four valid reasons and the fear of missing out is one of the key factors that drove the prices up.
These are quotes from the article:
Property agents urged buyers to make haste before developers raise price by 1 to 5%.Fiona Lam
This video was done on the 11th of August, about two weeks after Pasir Ris 8 launch. Now that the market has cooled down and everyone’s more calm, I have three key observations to make and to share with you.
📌 Observation #1: The average PSF of Pasir Ris 8
The average price for Pasir Ris 8 was less than $1,600 per square foot. This is not the $2,000 per square foot as initially thought. According to the Pasir Ris 8 developer, the price achieved ranged from $1,400 to $2,000 per square foot. The average price was just under $1,600 per square foot.
I think during the commotion, a lot of people mistook that the average price achieved was $2,000 per square foot. Why? this is likely due to the infamous two bedder.
The price started at about $1,400 per square foot. There were six rounds of price increases. So what happened to this so-called infamous two bedder?
There were a lot of messages circulating among agents and buyers that there is this two-bedroom unit being sold at more than $2000 per square foot. This infamous two bedder is located on the ninth floor and the indicative price for this unit was about $1.145 million at about 9 am.
Due to various reasons, this was unsold until 10:30 pm.
It was finally sold at a price of $1.5m, at about $2,100 per square foot.
Because of the hype and a lot of commotion, I think a lot of buyers mistook that the two bedrooms at a Pasir Ris 8 were on average, sold at $2,000 per square foot. That’s is wrong impression.
📌 Observation #2 – Rising Construction Costs
During this period, I think most of the developers took this opportunity to raise the prices by 1 to 5%. That’s quite a fair price increase because of the future expectation of rising construction costs, as well as the labour costs.
📌 Observation #3 – More Demand for OCR
In this post-COVID time, I wish to ask the question: is Core Central Region (CCR) still King? CCR is a term used by the URA to divide Singapore into three major divisions.
I read this article from Stack Homes. It mentioned that URA has been quite aggressive in decentralization for decades. Regional centres and commercial hubs are starting to appear in OCR.
For example, the Punggol Digital District, which is still a work in progress, Paya Lebar Quarters, and also the Tampines Hub.
In this post COVID era, Work-from-home trends as well as home-based learning, are going to be a major part of our future. With the convenience of online delivery, as well as apps to get a Grab, I think living in the east side or the OCR area like Pasir Ris is alright to me, unlike 20 to 30 years back.
In fact, the beach near Pasir Ris Eight is actually a plus point to my family.
More than half of the transactions are in OCR. Outside the prime district, prices increased by 1 to 3% in other projects. In contrast, some projects in the central district or the CCR actually saw prices reduced to match demand.
I believe with more convenience and amenities, OCR will continue to attract more buyers to consider living in that area because of the more affordable price points.
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