Cdls Norwood Grand Achieves 84 Sales Average Price 2067 Psf
City Developments Ltd (CDL) has seen a flurry of buyers at the sales gallery of Norwood Grand over the past two weekends, as Singapore-listed property developer sees promising sales at their latest project in Woodlands. As of 6pm on Sunday, October 20th, 292 out of 348 units, or 84%, at Norwood Grand in Woodlands had been sold at an average price of $2,067 per square foot (psf). This has set a new benchmark price for the Woodlands area.
The majority of these buyers (99.7%) were Singaporeans and Permanent Residents (PRs) from China, India, and Malaysia. CDL’s release has highlighted that the strong demand for Norwood Grand reflects the potential growth and transformation of the area into a thriving economic hub. The group CEO of CDL, Sherman Kwek, has stated that the project has been highly sought after, and the company is confident that it will continue to attract buyers who value convenience and connectivity.
Units at Norwood Grand were priced from $988,000 for a one-bedroom plus study (495 sq ft), $1.238 million for a two-bedroom (624 sq ft), $1.698 million for a three-bedroom deluxe (883 sq ft), and $2.238 million for a four-bedroom deluxe plus study (1,173 sq ft). All of the one-, two-, three-, and four-bedroom deluxe units have been sold. Currently, there are only 56 units remaining, all of which are four-bedroom premium units with study. These are the largest units in the development.
The developer has priced the project at an affordable price point when compared to other projects launched in the Outside Central Region (OCR) over the past two years, which have been in the range of $2,100 psf, according to Ismail Gafoor, the CEO of PropNex. Mark Yip, the CEO of Huttons, has also stated that most units at Norwood Grand have been priced at the “sweet spot” of $2 million or under. He has also mentioned that the prices are very competitive and difficult to beat.
Achieving a remarkable 84% sales during its launch weekend, Norwood Grand has earned itself the title of “best-selling project in 2024”, according to Yip from Huttons. It is also considered to be a top-performing project since the 368-unit J’den in Jurong East Central, which had sold 88% of its units in November 2023.
In terms of the number of units sold on the first weekend of launch, the 533-unit Lentor Mansion continues to hold the title this year, with 400 out of 533 units, or 75%, being sold during its launch in May.
Apart from the pricing strategy, there is also a pent-up demand as there has been no new private condominium launched in Woodlands, a neighborhood in the northern region of Singapore, since Parc Rosewood in 2012, as mentioned by Gafoor from PropNex. He has also stated that many buyers are people who grew up in Woodlands, have family living in the area, and are looking for a new home in an area where they are familiar.
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Norwood Grand is situated within a four-minute walk to Woodlands South MRT Station, which is just one stop from the Woodlands integrated transport hub. It is also the closest condominium to an MRT station in Woodlands, adds Gafoor from PropNex.
Many buyers have recognized the potential of the upcoming Woodlands Regional Centre, the 70-hectare Woodlands North Coast, an upcoming waterfront mixed-use business and lifestyle precinct, as well as the Johor Bahru-Singapore Rapid Transit System (RTS) Link and the Johor-Singapore Special Economic Zone, as mentioned by Yip from Huttons.
Based on ERA Singapore CEO Marcus Chu’s observation, a significant portion of buyers were between the ages of 30 to early 40s, who were homeowners living in HDB flats looking to upgrade to a private condominium for their own stay. He has attributed the higher proportion of HDB upgraders to about 4,200 HDB flats in Woodlands reaching their Minimum Occupation Period (MOP) since 2021.
The HDB resale price index has continued its trend of consecutive quarterly rises in 3Q2024. In Woodlands, four-room HDB flats have been sold for over $700,000 in 3Q2024 while five-room flats have been sold for almost $800,000 during the same period.
The higher-than-expected 50-basis-point interest rate cut by the US Federal Reserve in September has contributed to improved market confidence, and consequently, an increase in the number of house hunters, observes Chu from ERA Singapore. He has stated that homebuyers are generally more optimistic and forward-looking at present.
Developers are now capitalizing on this improved market sentiment as a result of the interest rate cut to launch their projects in the coming weeks, notes Gafoor from PropNex. He has stated that over the past year, buyers have lacked a sense of urgency, especially when it came to the sales of new launches, which have been around 20% to 30%. He has also mentioned that as interest rates have decreased, and with further cuts expected next year, borrowing capacity has improved slightly. This has resulted in encouraging homebuyers to return to the market.
Gafoor is now anticipating an improved sales performance in upcoming residential project launches. He has also mentioned that given the ongoing global economic uncertainty, any project that manages to achieve over 50% sales on launch day is considered a remarkable success.
Towards the end of the year, he also foresees a surge of new project launches, as developers aim to take advantage of the limited time they have before the year-end school holidays begin in mid-November. Some of the upcoming previews to look out for include the 366-unit Union Square Residences (a redevelopment of the former Central Mall and Central Square), the 552-unit Nava Grove at Pine Grove, and the 504-unit executive condo Novo Place at Plantation Close.