Introduction
Two major residential developments were launched for sale to the public this weekend. The
1,193-unit Parktown Residence located at Tampines Avenue 11 and the 501-unit Elta at
Clementi Avenue 1 were launched this weekend. Both developments are 99-year leasehold
properties.
Over 87% of the 1,193 dwelling units in Parktown Residence and more than 65% of the 501
units in Elta were sold in the past two days. The strong sales at these two new launches
come hot on the heels of the robust sales at the launch of another 99-year leasehold
condominium, The Orie, where 86% of the 777 units were sold during its launch weekend in
January 2025.
Stock market price growth fuel investment demand in real estate
Since last November, the private residential primary market has been heating up. Almost all
the new major private residential projects in the city fringe and suburban areas launched in
the past four months had enjoyed sales of more than 50% of all the units in each
development during their launch weekend.
The robust demand is partly fuelled by optimism among investors as reflected by the 10.5%
growth in the Straits Times Index from 1 November 2025 to 21 February. Some investors
who had profited from the stock market are putting their financial gains into the property
market. Others may view that the buoyant stock market is an early indicator for further
growth in housing prices, leading to an increase in investment appetite for real estate.
The strong homebuying demand at recent launches are increasingly driven by investors.
Many of the units sold at Parktown Residence are 1- and 2-bedroom units, which are the
most common types of housing units purchased by property investors, rather than owner-
occupants.
Fear of Missing Out
Another factor pushing some buyers to plough their money into the new residential
properties is greed and the fear of missing out (FOMO) that is partly propagated by real
estate agents. Some buyers believe that if they do not invest in private housing now, they
could miss the opportunity to do so if property prices continue to increase or if the
government were to introduce another round of property cooling measure.
Self-fulfilling prophecy
This is an election year in Singapore. The government is aware that housing affordability and
the rising cost of living are key election issues for the voters and it is ready to implement
measures to address these matters.
In the past several months, despite property developers launching each new private
residential project at prices that are higher than earlier residential developments in the same
location, buyers are still feverishly snapping up the units. The strong sales of more
expensive residential properties would push up the overall housing prices islandwide and
lower housing affordability. Hence, the government would eventually be forced to intervene
in the real estate market, resulting in a self-fulfilling prophecy.
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