5 unpopular, slow-selling new launch condos in 2021: What's going wrong?

Despite the uptick in the property market, not all condos are doing well. Sometimes it’s due to oversaturation, like in Holland V , while other times it may be issues like unpopular unit layouts.

That said, not everyone looks for the same features in every unit; and some bargain hunters keep an eye out for less popular developments. Here are some of the main ones right now:

1. 19 Nassim

Only two units have been sold. Recent transactions indicates prices of $3,351 psf and $3,401 psf respectively.

Location: 19 Nassim Hill (District 10)

Developer: Keppel Land

Lease: 99-years

TOP: 2024

Take-up rate: 2 of 101 units sold

What’s happening here?

Location is definitely not the issue. In fact, 19 Nassim is just 270 metres, or an eight-minute walk, to Napier MRT station (the station will be completed this year). This condo is barely a four-minute drive to Orchard. We’d stick to the higher floors though, as that same proximity also means road noise.

This condo is only 650 metres away from Cuscaden Reserve (described below).

The last two transactions were a 1,324 sq. ft. unit at $4,502,840, and a 570 sq. ft. unit at $1,911,870. District 10 buyers are not what you might call price sensitive, as these are luxury properties. But even then, 19 Nassim seems steep, especially given its leasehold status.

Note that surrounding properties – such as St. Martin Residences and Tanglin Residences – are all freehold. These also average $1,973 psf, and $2,260 psf respectively.

As such, these pose strong resale alternatives. Freehold is also more or less an expectation in the Orchard / Tanglin area, so psychologically it may be an uphill challenge for 19 Nassim. To be fair, The Loft is right behind it and can be considered a direct comparison as it too is a 99-year leasehold property with recent transactions going for around $1,808 psf.

We also don’t think 19 Nassim works well as a family condo, given there are no schools nearby; and there’s a sense of urban density, this close to Orchard. Also, oddly for a luxury condo, it doesn’t have a tennis court – but perhaps that is more of a consequence of its smaller land size than anything else.

3 bedroom price comparisons

Truth be told, it’s tough to make proper comparisons in this area as there aren’t a lot of surrounding developments. Density is low as well, so you don’t have as much data to really compare with.

So based on transactions in the last 6 months, here are the resale 3 bedroom comparisons for 19 Nassim. As you can see, while it is the smallest in terms of size, it still comes in at the highest price – both psf and quantum wise.

So despite the fact that you do get a newer more plush development, 19 Nassim is smaller, is leasehold, and has the highest overall price.

Layout comparisons

Perhaps the problem for 19 Nassim is really its unit sizes compared to the surrounding resale competitors are just not big enough. Buyers that have the deeper pockets required for this area are usually more about the size and liveability of the home. So the price and size differences here may not quite be attractive enough at this current standpoint.

To illustrate further, here’s a comparison of equivalent 3 bedroom layouts from the surrounding developments.

3 bedder layout analysis

19 Nassim 1,324sqft	St Martin Residences 1,680 sqft
Pros: -Private lift hence the high quantum. -Walk-in-wardrobe in master room. -Squarish layout. -Master room able to fit in a king-size bed. -Enclosed kitchen Cons: -Narrow living/dining area. -No service yard. -Extremely long walkway entrance at the back of the unit. -Long A/C ledge.	Pros: -Spacious living and bedrooms. -Extra family area can be converted to another bedroom or study nook. -Enclosed kitchen. -Service yard for laundry. -Toilets come with ventilation windows. -Separate living and dining area. Cons: -Long bedroom walkway. -Main door opens up to the living area.
Tanglin Residences 1,398sqft	The Loft 1,432sqft
Pros: -Squarish and efficient layout. -Unit comes with a household shelter for storage. -Service yard for laundry. -Enclosed kitchen -Main door is tucked nicely. -Master room able to fit in king size bed. Cons: -Bay window in the bedroom and common toilet taking up space. -No balcony for those that like outdoor space.	Pros: -Squarish and efficient layout. -Service yard for laundry. Enclosed kitchen -A/C ledge located at the back of the unit. -Rooms able to fit in king-size bed. Cons: -Main door open up to the living/dining area directly.

2. Cuscaden Reserve

Recent transactions indicates a median price of $3,622 psf, a lowest price of $3,351 psf, and a highest price of $3,644 psf.

Location: 8 Cuscaden Road (District 10)

Developer: Cuscaden Homes Pte. Ltd.

Lease: 99-years

TOP: 2022

Take-up rate: 7 of 192 units sold

What’s happening here?

Cuscaden Reserve and 19 Nassim are only 650 metres apart, and like 19 Nassim it’s a leasehold condo. As such, the two properties share the same general problems. That said, Cuscaden Reserve is slightly closer to the upcoming Napier MRT than 19 Nassim; it’s only 220 metres away.

Cuscaden Reserve is also practically next to Tanglin Mall, whereas 19 Nassim is a bit more of a walk (350 metres).

As with 19 Nassim, Cuscaden Reserve has a price that strikes buyers as high, for a leasehold condo. The most recent transaction on 13th July 2020, for instance, was for an 818 sq. ft. unit at $2,741,000. The lowest quantum we could spot was for a 700 sq. ft. unit sold in 2019, and even this reached $2,328,000.

We’re surprised that, just like 19 Nassim, this luxury condo lacks a tennis court.

3 bedroom price comparisons

Project	Tenure	Size	PSF	Price
Cuscaden Reserve	99 yrs	1,163	$3,644	$4.236 million
3 Orchard By-the-Park	Freehold	1,776	$3,451	$6.04 million
Cuscaden Residences	Freehold	1,442	$2,314	$3.28 million

Cuscaden Reserve sits in the middle in terms of its offering here. While you can consider it to be a high-end product, buyers would probably still consider 3 Orchard By-the-Park as a more upscale development – due to the smaller number of units (more exclusive), and bigger unit sizes too.

Like 19 Nassim, buyers in this neck of the woods are usually more concerned about space and liveability, so a smaller unit size, higher price, and its leasehold status may just not be as appealing.

3 bedroom layout analysis

Units in Cuscaden Reserve are big, for a present-day new launch. The absolute smallest units (1+1) are already 700 sq. ft., while two-bedders range between 807 to 818 sq. ft.

Cuscaden Reserve 1,152qft	Cuscaden Residences 1,442sqft
Pros: -Private lift -Walk-in master wardrobe Cons: -No yard area. -Kitchen, living, and dining sharing space may not be ideal. -Long walkway entrance A/C ledge is too big.	Pros: -Private lift -Bigger than average unit size. -Spacious living and dining area. -Unit comes with a yard. -There is a junior master bedroom. -Walk-in wardrobe. -Double vanity at the master toilet. Cons: -Long walkway entrance. -No balcony. -Irregular window walls.
3 Orchard By the Park 1,776sqft
Pros: -Private lift -Dry & wet kitchen. -Unit comes with a yard. -Walk in wardrobe for master room. -Household shelter for storage space. Cons: -Long bedroom walkway. -Balcony is too big.

3. Hyll on Holland

Recent prices indicates a median price of $2.458 psf, a lowest price of $2,440 psf, and a highest price of $2,475 psf.

Location: Holland Road (District 10)

Developer: Far East Consortium and KOH Brothers Group

Lease: Freehold

TOP: 2025

Take-up rate: 8 of 319 units sold

What’s happening here?

Hyll on Holland, like many other new Holland V condos, is likely struggling due to oversupply in the area. We cover this in more detail in a previous article.

In its showdown with One Holland Residences, Van Holland, Leedon Green, and numerous other Holland V condos, buyers will notice one thing about Hyll on Holland: one-half of the condo faces Holland Road Flyover, which may leave buyers worried about noise.

In addition, it’s further from the Holland Village MRT station (and hence the heart of Holland V) than some competing launches, such as Van Holland and One Holland Residences. It’s around 750 metres, or about an 11-minute walk. It also lacks “across-the-road” amenities, and the immediate surroundings are quite sparse (and we notice Hyll on Holland lacks its own tennis court, which doesn’t help).

You’ll notice that units are now priced to move, with the recent discount (it has definitely moved the needle, recent reports show that more than 85 units were old because of the promotion). Still, most are wary of the intense competition in Holland V, and some even expect prices to drop further.

2 bedroom price comparisons

Project	Tenure	Size	PSF	Price
Hyll on Holland	Freehold	721	$2,458	$1.76 million
Viz at Holland	Freehold	861	$1,669	$1.37 million
Parvis	Freehold	990	$1,940	$1.91 million

We’ve gone into detail on this, so if you’d like to read more you can do so here .

2 bedroom layout analysis

Most units use a dumbbell layout, to eliminate the need for corridors and walkways. While this is the trend today, it’s up to you whether this is a positive; some buyers prefer more traditional layouts.

Hyll On Holland 700 sqft	Parvis 990 sqft
Pros: -Dumbbell unit type, efficient and squarish. -Toilet & kitchen ventilation windows -A/C ledge tucked at the back of unit. Cons: -Common toilet opens up to living area. -Small room size	Pros: -Private lift -Enclosed kitchen -Household shelter for storage purposes -Separate living & Dining area. Cons: -Bay windows taking up space.
Holland Residences 957 sqft	Viz At Holland 818sqft
Pros: Household shelter for storage purposes. Spacious bedrooms. A/C ledge tucked at the back of the unit. Cons: Bay windows taking up space	Pros: -Household shelter for storage purposes. -No wasted walkway space. -Double-sided wardrobe. Cons: -Bay windows taking up space. -The common toilet seems to be placed in a weird area Small kitchen cabinet space.

ALSO READ: Analysing unprofitable condominiums: 6 reasons why The Tennery has performed badly

4. Jervois Prive

Location: Jervois Road (District 10)

Developer: Midas Land Ltd.

Lease: Freehold

TOP: 2023

Number of units: 43

What’s happening here?

Jervois Road is saturated with boutique, luxury developments. Note that Jervois Prive is just 600 metres from 38 Jervois, which in June 2020 had to fire sale units to meet ABSD deadlines. Along with resale options like Jervois Regency and One Jervois (also freehold and boutique), this stretch may have too many developments of the same nature.

Although Redhill MRT is just 600 metres away, the route there is not direct; so you’ll be walking about 14 minutes. In fact, Jervois Prive is located very deep in the housing enclave here, and lacks immediate amenities (although buyers who want exclusivity may find this a plus).

Boutique developments cater to a niche group of buyers. You’ll get a lot of privacy, but at the cost of limited facilities and higher maintenance fees. It isn’t for everyone, so sales tend to be slower.

Jervois Prive is close (900 metres) to Jervois Treasures below.

3 bedroom price comparisons

Project	Tenure	Size	PSF	Price
Jervois Prive	Freehold	1,109	$2,896	$3.212 million
Jervois Regency	Freehold	1,270	$1,533	$1.88 million
Mon Jervois	99 yrs	2,235	$1,570	$3.069 million
One Jervois	Freehold	1,292	$1,841	$2.33 million

It’s a common thread here: The final quantum is higher than the surrounding developments, so as a result, it could be harder to move buyers to act. Those that end up purchasing must really want a spanking new development, as the resale comparables are often bigger and cheaper.

3 bedroom layout analysis

A lot of the units have an East-West facing, which catches the sun. This can heat up the units fast in the afternoon, and is generally not preferred by residents.

Jervois Treasure 1,130 sqft	Jervois Regency 1,270sqft
Pros: -Squarish layout. -Enclosed kitchen. -Good size utility room with a ventilation window. -Both toilets come with ventilation windows. -Unit comes with a service yard. Cons: -Long bedroom walkway. -Small bedrooms. -Kitchen and toilet come with ventilation windows. -A/C ledge too big and located at the front.	Pros: -Separate living and dining area. -Unit comes with a service yard. -Household shelter for storage purpose. Cons: -Planter taking up space -Main door opens up to the living area. -Common toilet door opens up to dining area.
Mon Jervois 1,389sqft	One Jervois, 1,292sqft
Pros: -Wet & Dry kitchen. -Walk-in wardrobe. -A/C ledge tucked at bag of unit. Cons: -Long walkway entrance. -Balcony area is too big.	Pros: -Enclosed kitchen. -Squarish layout. -Household shelter for storage purposes. -Unit comes with service yard. -Both toilets come with ventilation windows. -Spacious room size. -A/C ledge tucked at the back of the unit. Cons: -Bay windows & planter taking up space.

5. The Lilium

There has been one transaction to date:

Date	Unit Size	Price PSF	Price
June 19, 2021	1,087 sq. ft.	$1,800	$1,965,600

Location: How Sun Road (District 19)

Developer: Singhaiyi Huajiang Amber Pte. Ltd.

Lease: Freehold

TOP: 2021

Number of units: 80

Take-up rate: 1 of 80 units sold

What’s happening here?

The Lilium has a lot of large units, with even the smallest two-bedders reaching 699 sq. ft. This pushes up the overall quantum, as you can see from the asking prices above. Keep in mind that District 19 is in the OCR, and fringe-region buyers just aren’t used to seeing these prices; even if The Lilium is a freehold property.

The Lilium does have a good advantage, in being located close to Bartley MRT station (350 metres, or a nine-minute walk). It’s also close to the much-vaunted Maris Stella High School, at just 570 metres away (13 minutes walk). St. Gabriel’s Secondary is about a similar distance. Coupled with the large unit sizes, it may be okay for some families.

There’s a lack of immediate amenities but this is somewhat mitigated by having an MRT station nearby. Also, NEX megamall is a seven-minute drive, so it may still be considered convenient by some.

We might see a pick-up in sales soon, as the TOP date is planned for this year. If a Deferred Payment Scheme is available, this could draw more buyers. Being able to move in, or rent out right away, is also a big plus in this Covid-19 environment.

2 bedroom price comparisons

Project	Tenure	Size	PSF	Price
The Lilium	Freehold	699	$2,197	$1.535 million
Rosalia Park	Freehold	1,152	$958	$1.118 million
Kensington Square	Freehold	732	$1,597	$1.1 million

As mentioned above, the prices at Lilium are at a higher overall quantum than nearby developments, so it may be tough for buyers to see a value buy here. Although it must be said, Rosalia Park is getting on in age, having been completed in 1995 – so it may not be the best comparison to use here.

Kensington Square would be a better one, as it was completed recently in 2017. Despite that, The Lilium is still quite significantly higher priced. At these price points, buyers are definitely more price sensitive so it could explain the poor sales so far.

2 bedroom layout analysis

Overall, the layouts are quite good, with spacious and squarish units. However, there are some long walkways leading to bedrooms, and some may not like the big balconies eating into the living space.

The Lilium 699 sqft	Rosalia Park 1,119
Pros: -Squarish & Efficient layout. -Walk-in Wardrobe in master room. (Rare in 2 bedder) -Semi-enclosed kitchen. Cons: -Long entrance walkway. -A/C ledge at front side of unit.	Pros: -Squarish & spacious bedrooms. -Enclosed kitchen. -Unit comes with a service yard. -Storeroom for storage. -Toilet comes with a ventilation window. Cons: -The main door opens up to the living/dining area (Privacy) -Common toilet opens up to living/dining area. -No corridor space.
Bayou Residence 786 sqft	Kensington Square 614 sqft
Pros: -Semi-enclosed kitchen. -Unit comes with household shelter, great for storage purposes. Cons: -Pretty hard to place TV console/ sofa since there are not many walls to place it against. -Bay window in bedroom & toilet taking up sqft. -Common toilet opens up to living area.	Pros: -Unit comes with household shelter, great for storage purposes. Cons: -The unit is on the smaller side. -Double balcony means sqft wasted. -Small open concept kitchen. -Both bedrooms are pretty tight.

Still, one person’s floor is another person’s ceiling, right?

Sometimes, less popular condos can represent a compelling option for home buyers. The factors that weigh down their price may not matter to your lifestyle.

Condos like Jervois Prive, for instance, may be perfect for some buyers precisely because it’s not next to a mall or noisy train station. So don’t be too quick to dismiss these just because sales are a bit slower.

Ultimately though, it’s clear as day to see that price points are a massive, massive factor in how well a new launch performs. As in the case of new launches like Hyll on Holland or RV Altitude, a price reduction definitely was able to significantly move units.

Depending on how the market moves, and whether the Covid-19 situation seriously improves, some of these may look to relaunch at more competitive prices in order to get sales going.

ALSO READ: 13 condos with the most unprofitable transactions (By region)

This article was first published in Stackedhomes.