The Reef is an exciting new development that is highly anticipated by everyone.  Given its unique proposition, one thing to expect for The Reef Price is that it will be very attractive amongst the new launches in 2021 and also against older developments.  Despite the year-long Covid-19 crisis, the property market in Singapore has not slowed down at all.  In fact, right after Circuit Breaker, the number of transactions jumped up due to the pent up demand.  Another important factor that may have motivated buyers to commit is the record low-interest rates for home loans which translates to substantial savings in interest expenses. 

URA Market Summary

Property Market Breakthroughs in 2020

Based on the latest press release by URA on 22 January 2021, Singapore’s private property price index in Q4 2020 has increased by 2.1% compared to Q3 2020. Many have expected private property prices to decline due to the economic slowdown.  However, despite the disruption caused by the pandemic, prices of private property have increased by 2.2% in 2020 compared to 2.7% in 2019.  Building upon the positive confidence from investors and homebuyers for the Singapore property market,  there is clearly a lot of support for The Reef Price.

URA Property Price Index

According to data from URA, prices of non-landed properties jumped and increased by 3% in 4th Quarter 2020, compared with the 0.1% growth in Q3 2020.  For the entire year of 2020, prices of non-landed properties grew by 2.5% and overshot the growth rate of 1.9% in 2019. 

It is inconceivable that the property market is performing better in 2020, a year which is plagued by great uncertainty and turmoil.  And developers are not slowing down their pace of launching new projects and setting prices to reflect the present market sentiments and positive momentum.  As such, we can expect Keppel Land and Mapletree to ride on the present upswing momentum to set The Reef Price.

Q4 2020: Growth in Private Home Prices 

On a regional basis, despite the uncertainty in the economic outlook, the prices for Q4 2020 in the Core Central Region (CCR) has increased by 3.2% while the price index for the Rest of Central Region (RCR) and Outside Central Region grew by 4.4% and 1.8% respectively.  The overall price index for 2020 has improved from 2019 across the 3 regions and it is truly a remarkable feat given the impact of the pandemic.  This is one key factor that will lend support to The Reef Price.

From this trend, we can conclude that the Singapore property market has shown great resiliency weathering through the crisis, unlike many other sectors.  This is attributable to the multiple government regulations upon the property sector.  Firstly, property speculation is greatly hampered with the penalty of seller stamp duty should buyers decide to sell within 3 years of property acquisition. 

Secondly, buyers who wish to own more than 1 residential property are liable to incur additional buyer stamp duty.  Thirdly, requirements such as Total Debt Servicing Ratio (TDSR) and restrictions on a home loan are mechanisms to which homeowners have the means to meet mortgage obligations.  As such, all these rules help to reduce the incidence of distressed home sales which can cause property prices to spiral downwards and cause buyers to lose confidence in the market such as the experience when SARS hit Singapore. 

Attractive Pricing For Waterfront Home

Completed in 2004, the 969 unit Caribbean at Keppel Bay by Keppel Land was launched at below $1000 per square foot.  Today, the average resale selling price for the development is around $1433 per square foot based on data from Edgeprop. 

For a homeowner who had bought a unit during the development’s launch, he would be enjoying an average capital gain of approximately 43%.  Thus one of the key benefits of buying the development at launch time is the opportunity to secure an attractive entry price such as The Reef Price. 

Based on the latest data from Edgeprop, the average resale prices for Corals at Keppel Bay have reached $2,097 per square feet and this has helped to set a new benchmark for homes at Keppel Bay.  With the surrounding development transaction at this level of pricing, The Reef Price would be very attractive to home buyers as it is a newer development compared to Corals which was completed in 2016.  

In addition, based on Edgeprop, the average resale prices in Central Business District such as Marina One Residences is around $2,374 per square feet and V On Shenton is $2,259 per square foot.  Compared to the Central Business District, The Reef is located along the waterfront and surrounded by nature parks, attractions, and amenities such as VivoCity mega shopping mall.  From a home owner’s perspective, The Reef price would be very appealing given it is only a 5-minutes drive from the Central Business District and conveniently located close to amenities, schools, and recreational venues.

Attractive Rental Yields

For investors who are looking for rental income, The Reef presents an exciting proposition with its unique location along the southern waterfront. 

URA Rental Index

With access to a ready tenant pool from the Central Business District and Marina Bay Financial District, the developments at Keppel Bay have been enjoying a strong rental yield above 3% which is similar to developments in the Central Business District. 

As such, investors can anticipate The Reef Price will have the prospect to deliver a similar level of rental yield performance. 

Maximize Your Investment

One of the appeals for The Reef Price is the affordable quantum for compact units such as the 1-bedroom and 2-bedroom units.  Targeting investors, 26.6% of the total units are 1-bedroom configurations with floor areas ranging from 484 to 592 square feet while 45.5% of the units are compact 2-bedroom units with floor areas from 678 to 764 square feet. 

These units are priced affordably to enable investors to maximize their investment and enjoy an attractive rental yield.  With only 114 1-bedroom units at The Reef, do not miss the chance to enjoy a great investment opportunity in 2021!

The Reef Price Snippet


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