The Usual Place Podcast

$2,120 psf for a private condo in Tengah – what’s driving the rise in new condo prices?

Affordable suburban condominium is starting to feel more expensive.

Natasha Ann Zachariah

Never mind that it’s way out west – Tengah’s first private condominium development sold out almost all its units at its launch weekend at the end of April.

At an average price of $2,120 per sq ft and a location that’s under the outside central region classification, the affordable suburban condominium is starting to feel expensive.

Two-bedroom units, sized from 624 sq ft, started at $1.11 million, while three-bedroom units, sized from 797 sq ft, were priced from $1.59 million.

Despite our complaints about high property prices and the uncertain global outlook, these sales show that Singaporeans are still willing to fork out serious money for new, unsubsidised private residential properties.

Is this the new normal buyers have to get used to?

In this episode of The Usual Place, I speak with veteran property analyst Nicholas Mak, who is also chief research officer at Mogul.sg, and Ms Chuin Ting Weber, chief executive officer and chief investment officer at financial advisory firm MoneyOwl.

We chat with them about these key questions: Who are the buyers driving the sales of these properties, and what’s driving these record new launch condo prices?

Highlights (click/tap above):

1:20 What’s driving up condo prices?

4:55 FOMO in buyers driven by agents

7:25 HDB upgraders not main condo buyers

9:56 Who’s renting if everyone’s buying?

15:28 The myth of constantly rising prices

19:28 Making compromises to make mortgage

31:40 Good debt and what you can afford

37:22 Parents digging into retirement funds for kids

48:00 Why isn’t the government stepping in more?

51:36 The similarities between healthcare and property

Read Natasha’s articles: https://str.sg/iSXm