Insiders should join the back instead of the front of the queue at new condo launches

Insiders should join the back instead of the front of the queue at new condo launches

Support building a ‘we first’ society by giving third parties a fairer shake to secure choice units

Leslie Yee
The Business Times

Sep 15, 2025

https://www.businesstimes.com.sg/opi...condo-launches

Is it a case of “trade tariffs and tariffs-related economic uncertainty be damned”? Prices of Certificate of Entitlement for passenger cars, which confer the right to own a car here, are at elevated levels, while there has been frenzied buying at some recent new condominium launches.

After saving assiduously, pulling together a budget of around S$2 million and studying the housing market, you visit a swanky show flat and find your dream home. Hold on, you may need to get lucky to secure that 650 square feet (sq ft) unit in a prime district or 900 sq ft suburban home that you are eyeing.

Recently, several major new condo launches saw strong take-up, leaving many people unable to secure units in popular stacks and floors.

In mid-August, GuocoLand and Hong Leong Holdings’ Upper Thomson area project, Springleaf Residence, achieved a 92 per cent take-up rate over its launch weekend, selling 870 out of 941 units at an average of S$2,175 per square foot (psf).

Earlier in August, Wing Tai Holdings’ River Green in the River Valley area in District 9 saw 460 units, or 88 per cent of its 524 homes, sold at an average price of S$3,130 psf at its launch weekend.

https://i.imgur.com/1JiAQ46.png

Perhaps, low mortgage rates are driving the buying frenzy. The three-month compounded Singapore overnight rate average or Sora of 1.52 per cent per annum on value date of Sep 12 is down by around 150 basis points compared with the start of the year and about 200 basis points versus a year ago.

Connected party transactions

The new condo buying euphoria may not be misplaced, as “smart money” – namely family members of senior property sector figures – have been buying at recent new launches.

Jeanette Liam, daughter of Liam Wee Sin, group chief executive of UOL Group, was granted an option on Jul 18 to buy a 700 sq ft two-bedroom premium 10th floor unit at UpperHouse at Orchard Boulevard at S$2.231 million or about S$3,187 psf.

Jointly developed by UOL and its subsidiary Singapore Land Group, UpperHouse, which was launched for sale on Jul 19, sold 162 units or 54 per cent of its 301 units at an average price of S$3,350 psf during its launch.

Meanwhile, Wing Tai announced in August that it gave options to Kelvin Cheng and Carol Cheng – both of whom are trustees holding on behalf of beneficiaries – to buy two units each at River Green.

The said 657 sq ft units located on the fifth to eighth floors were priced at between S$1.963 million and S$2 million each, translating into an average price of about S$3,014 psf. Kelvin Cheng and Carol Cheng are the children of Cheng Wai Keung, who is the managing director and chairman as well as a substantial shareholder of Wing Tai.

In Jeanette Liam’s case, Liam Wee Sin, who sits on UOL’s board of directors, abstained from voting on all board resolutions to approve the proposed sale. UOL said the proposed sale is on terms no more favourable than those available to unrelated purchasers during the same sale phase.

At Wing Tai, Cheng Wai Keung and his fellow board directors Edmund Cheng and Cheng Man Tak – who are family members – similarly abstained from voting on the transactions involving Kelvin Cheng and Carol Cheng.

In the above cases, the respective board of directors of UOL and Wing Tai are satisfied that the terms of the transactions do not prejudice the interests of the companies and their minority shareholders.

Certainly, there are numerous precedents of family members of directors of property groups buying units at condo projects which said groups are developing, including by trusts where minors are the beneficiaries.

Possibly, connected persons of developers buying units at condo projects that said developers are building at fair and reasonable terms affirm the attributes of the projects in question.

Ranking last

Nonetheless, I think connected parties of developers should generally refrain from buying units in projects that said developers are building. Perhaps, such parties should only buy units say six months after a condo project’s launch. In short, move connected parties from typically being at the front of the queue at new launches to the back.

Take the options granted to the Cheng siblings to buy condo units in their respective capacities as trustees. Possibly, other buyers could have easily been found for these relatively low floor River Green units at the same price and terms.

As Singapore matures, property developers should do more to build social cohesion and an inclusive “we first” society. This can mean creating developments that are accessible to the elderly and the disabled or that add value to the community at large.

In allocating scarce units in condo projects, supporting inclusiveness and fairness should mean letting parties unrelated to the developer always rank first in choosing units to buy on fair and reasonable terms.

After all, let’s avoid having a playing field – whether for allocating places in sought-after primary schools or units in popular new condo projects among others – that favours insiders.

Various new condo launches are being lined up after the end of the Hungry Ghost Festival. Individuals who missed out on securing units at recent new launches will be anxiously watching if strong new condo sales momentum persists through the rest of this year.

May both listed and unlisted developers here champion the building of a “we first” society, and help alleviate the anxieties of potential new home buyers by placing connected parties at the back of the queue at new launches.

The writer owns shares in UOL, Wing Tai and Singapore Land