Sales of future new launches likely to experience ‘some friction’

Two of the recently launched developments had a take-up rate of 23%.

A real estate expert believes sales of future new launches will experience “some friction” following the muted sales of Orchard Sophia, TMW Maxwell, and The Arden, which were all launched during the weekend.

PropNex CEO Ismail Gafoor said, “A wider availability of options for buyers, particularly if there are ample unsold supply in the vicinity,” will drive friction in the sales of future developments.

“With ample options, it lessens the urgency to snap up units right away during the launch weekend. Furthermore, the take-up rates have been generally trending at the 27% to 50% plus range recently. Prospective buyers may also perceive that there are still desirable units available and again are not rushing in to buy,” Gafoor said.

Gafoor added the sales performance of the three developments was muted likely due to “choice paralysis” setting in.

“Buyers are spoiled for choice in today’s market, with more than 2,500 units, excluding executive condominiums, still unsold from recently launched projects since April. Faced with so many options, understandably, buyers will need more time to come to a decision,” the PropNex CEO said.

“Nonetheless, it is good to have options. We think prospective buyers will circle back to the projects they feel would offer them the best value. Following this weekend’s launches, there will be no new projects put up for sale until after the Hungry Ghost month. This will give prospective buyers some time to mull over what is available on the market, given the spate of new projects being launched in recent months,” Gafoor added.

Orchard Sophia vs TMW Maxwell vs The Arden

Compared to TMW Maxwell, Orchard Sophia and The Arden are smaller developments.

Orchard Sophia, the smallest of the three, sold 18 of its 78 units, translating to a take-up rate of around 23%.

The Arden in Phoenix Road also achieved a take-up rate of about 23%, selling 24 of its 105 units on launch day.

Mixed-use development TMW Maxwell, meanwhile, had a lower take-up rate of nearly 9%, selling seven of the 80 units it released for sale.

Of the seven units sold, four were studio units, two were one-bedders, and another is a two-bedroom unit.

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