CDL’s Norwood Grand sells 84% of units at average of S$2,067 psf at launch
Strong take-up could be due to pent-up demand; observers also point to attractiveness of area
WOODLANDS residential project Norwood Grand sold 292 units, or 84 per cent of its 348 units, over its launch weekend, at an average selling price of S$2,067 per square foot (psf).
Almost all homebuyers, at 99.7 per cent, were Singaporeans or permanent residents, project developer City Developments Limited (CDL) said on Sunday (Oct 20).
This was the best-performing private residential project launch so far in 2024, CDL said. All unit types were sold, with only four-bedroom premium plus study units remaining.
The units were priced from S$988,000 for a one-bedder plus study (about 495 sq ft in size), S$1.24 million for a two-bedder (624 sq ft), S$1.7 million for a three-bedder deluxe (883 sq ft), and S$2.24 million for a four-bedder deluxe plus study (1,173 sq ft).
Norwood Grand is also the best-selling project since November 2023’s J’den, said Mark Yip, CEO of Huttons Asia.
“Most of these units are priced S$2 million and below, a sweet-spot price for buyers,” he said. “The prices for the units are competitive and hard to beat.”
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Ismail Gafoor, CEO of PropNex, agreed. “The transacted price quantum fits the pricing sweet spot for many buyers – an estimated 60 per cent of the transacted units at Norwood Grand are priced below S$1.8 million.”
Considering the lack of new private residential projects for some time in the locale, the condominium’s pricing is “untested”, he added, but buyers were “generally receptive”.
“Norwood Grand has set a new benchmark launch price in Woodlands,” he said.
Strong take-up
Market watchers pointed out that this was the first private residential project in Woodlands since 2012. The strong take-up for Norwood Grand could be due to pent-up demand, with buyers waiting 12 years for a new private residential project launch in the area.
Nicholas Mak, chief research officer at real estate technology platform Mogul.sg, noted that Woodlands is the fourth-biggest Housing and Development Board (HDB) estate, with 72,000 HDB flats – and therefore a large pool of potential HDB upgraders.
ERA Singapore CEO Marcus Chu said that “quite a good proportion of the buyers” served by ERA, one of the joint marketing agents for Norwood Grand, were HDB upgraders in their 30s and early 40s buying a home for owner occupation.
“The sweet-spot pricing for this group is up to about S$2.5 million,” he added.
He also highlighted that “there were no other government land sales sites that were sold or available for sale in Woodlands”.
He added: “After this project, there may not be any new private residential project launches over there for some time.”
Observers also pointed to the attractiveness of the area. The new project is located at Champions Way, near the Singapore Sports School. It is a five-minute walk away from Woodlands South MRT station on the Thomson-East Coast Line, and near Woodlands MRT station and Woodlands Bus Interchange.
“Many buyers saw the potential in the upcoming Woodlands Regional Centre, Woodlands North Coast, RTS link and the Johor-Singapore Special Economic Zone,” said Huttons’ Yip.
ERA’s Chu highlighted that the town is being rejuvenated under the government’s Remaking Our Heartland programme, and is poised to be the largest economic hub in the Republic’s North region.
He said: “As (Woodlands is) one of Singapore’s four regional centres, astute homebuyers are excited about the growth story and upside potential as (it) progressively transforms into a dynamic commercial hub with new and upgraded infrastructure, and excellent connectivity to the city and Johor Bahru via various transport nodes.”
Improved sentiment
The ERA Singapore CEO also observed that the US Federal Reserve’s 50-basis-point rate cut in September – higher than expected – has translated to improved market confidence and increased house-hunting, with more optimistic and forward-looking homebuyers and investors.
Mogul.sg’s Mak noted that the average price of Norwood Grand is significantly higher than that of the resale condominium prices in Woodlands. He expects this project’s robust sales to have a positive spillover effect on the resale prices of other private residential properties in the area.
“Some of the buyers who could not purchase the units that they (wanted) at Norwood Grand may explore the resale condominium market,” he said.
“Furthermore, the resounding success of the launch of Norwood Grand will encourage more developers to launch their residential projects in the coming months. Some may even bring forward the project launch dates.”
Gafoor said that in addition to the improved sentiment, buyers will have more units to choose from, as the upcoming launches are either mid-sized or larger developments.
One Sophia units also launched
Strata office units of One Sophia were also launched over the same weekend, with 30 per cent of them taken up.
The mixed-use development, a joint venture by SingHaiyi and Ultra Infinity, is located on the site of the former Peace Centre and Peace Mansion. It comprises offices, residences and a retail space.
Over the weekend, 23 of the 79 units released were sold between S$3,121 psf and S$3,493 psf, totalling S$102.5 million, or an average of S$3,330 psf.
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