Amid frenzied buying at new home launches, developers may be signalling a peak

OVER Sep 16 and 17, GuocoLand sold 508 units, or 84 per cent, of 99-year leasehold Lentor Modern’s 605 homes, at prices ranging from S$1,856 to S$2,538 per square foot (psf). Lentor Modern’s success follows strong take-up at recent launches of leasehold condominium developments in the Outside Central Region (OCR).

About 75 per cent or 118 of 158 homes at Sky Eden@Bedok were sold at an average price of around S$2,100 psf at the project’s launch on Sep 7. AMO Residence in Ang Mo Kio sold 366 of its 372 units in July at a median price of S$2,110 psf.

Given this strong demand for suburban condos, developers should be clamouring for land. Surely there is good business to be done by building homes; but in order to do that, developers need to secure sites.