Prices of mass market property launches could hit record high as developers face cost constraints

ELEVATED costs and limited inventory could result in new benchmark prices in the private residential market this year, with the average price of some suburban project launches seen trending close to, or crossing, the S$2,000 per square foot (psf) mark.

Land, construction and materials costs have risen while the number of unsold units have dwindled, especially in the Outside Central Region (OCR) or suburbs. Rising interest rates will also translate to higher financing costs for developers.

Wong Siew Ying, head of research and content at PropNex Realty, said: “We do anticipate suburban condo launches to see new benchmark prices, given the elevated land cost which is a big component of selling price.”