At debut, CDL's Norwood Grand sells 84% of its apartments for an average of S$2,067 per square foot

Pent-up demand may be the cause of the strong take-up, and commentators also note the area's appeal.

October 20, 2024

CONDOsingapore.com

Over the course of its opening weekend, the residential development Norwood Grand in Woodlands sold 292 apartments, or 84% of its 348 units, at an average selling price of S$2,067 per square foot (psf).

According to a statement released by project developer City Developments Limited (CDL) on Sunday, October 20, 99.7% of purchasers were Singaporeans or permanent residents.

According to CDL, this was the most successful private residential project launch to yet in 2024. Only four-bedroom premium plus study flats remain after all unit kinds were sold.

A one-bedroom plus study (about 495 square feet) cost S$988,000, a two-bedroom deluxe (624 square feet) cost S$1.24 million, a three-bedroom deluxe (883 square feet) cost S$1.7 million, and a four-bedroom deluxe plus study (1,173 square feet) cost S$2.24 million.

According to Mark Yip, CEO of Huttons Asia, Norwood Grand is also the best-selling project since J'den, which came out in November 2023.

"The majority of these units have prices of S$2 million and less, which is a sweet spot for buyers," he said. "The unit prices are competitive and difficult to beat."

PropNex CEO Ismail Gafoor concurred. An estimated 60% of the transacted units at Norwood Grand are priced below S$1.8 million, meaning that the transacted price quantum meets the pricing sweet spot for many purchasers.

He said that while the condominium's price is "untested" given the area's long-standing dearth of new private residential developments, purchasers were "generally receptive."

He said, "Norwood Grand has established a new benchmark launch price in Woodlands."

Robust uptake

Observers of the market noted that this was Woodlands' first private housing development since 2012. Given that purchasers have been waiting 12 years for the introduction of a new private residential project in the neighbourhood, the high demand for Norwood Grand may be the result of pent-up demand.

With 72,000 HDB apartments, Woodlands is the fourth-largest HDB estate, meaning there is a sizable pool of prospective HDB upgraders, according to Nicholas Mak, chief research officer of real estate technology platform Mogul.sg.

"Quite a good proportion of the buyers" represented by ERA, one of the joint marketing agents for Norwood Grand, were HDB upgraders in their 30s and early 40s purchasing a house for owner occupancy, according to Marcus Chu, CEO of ERA Singapore.

"This group's sweet spot pricing is up to about S$2.5 million," he said.

"There were no other government land sales sites that were sold or available for sale in Woodlands," he added that point.

"There might not be any new private residential project launches over there for a while after this project," he said.

Additionally, observers noted the area's beauty. The Singapore Sports School is close to the new project at Champions Way. The Thomson-East Coast Line's Woodlands South MRT station is five minutes' walk away, while Woodlands MRT station and Woodlands Bus Interchange are close by.

According to Yip of Huttons, "many buyers saw the potential in the Johor-Singapore Special Economic Zone, the RTS link, the upcoming Woodlands Regional Centre, and Woodlands North Coast."

Chu of ERA emphasised that the town is being revitalised as part of the government's Remaking Our Heartland initiative and is set to become the Republic's North region's major economic centre.

Being one of Singapore's four regional centres, he stated: "Astute homebuyers are excited about the growth story and upside potential as (Woodlands) gradually transforms into a dynamic commercial hub with new and upgraded infrastructure and excellent connectivity to the city and Johor Bahru via various transport nodes."

A more positive attitude

The CEO of ERA Singapore also said that the US Federal Reserve's September rate decrease of 50 basis points, which was larger than anticipated, has resulted in a boost in market confidence and a rise in house shopping, with more hopeful and forward-thinking investors and purchasers.

Mak of Mogul.sg pointed out that Norwood Grand's average price is much more than Woodlands' resale condominium pricing. He anticipates that the strong sales of this project will positively impact the resale values of other nearby private residential properties.

"Some buyers may look into the resale condominium market if they were unable to buy the units they (wanted) at Norwood Grand," he said.

Additionally, additional developers will be inspired to start their residential projects in the next months by the overwhelming success of Norwood Grand's opening. Some may even move the project start dates ahead.

Gafoor said that since the next releases are either mid-sized or bigger projects, purchasers would have more options in addition to the better sentiment.

Additionally, one Sophia unit was launched.

During the same weekend, One Sophia's strata office apartments were also introduced, and 30% of them were occupied.

The old Peace Centre and Peace Mansion are now part of the mixed-use development, which is a joint venture between SingHaiyi and Ultra Infinity. It includes homes, workplaces, and a store.

23 of the 79 apartments that were made available for purchase over the weekend sold for between S$3,121 and S$3,493 per square foot, for a total of S$102.5 million, or an average of S$3,330 per square foot.