Get into CCR before big price adjustments

When clients are looking for a property to buy into, what are the two most important factors they should be looking at to determine if it’s a good project to enter?

Safe entry price & Price gap

Let’s make use of Cairnhill 16 as a case study to determine these two key factors.

Taking a look at 99-year leasehold properties, the benchmark pricing for properties in the OCR and RCR starts from $2,1XX psf and $2,4XX psf respectively. As for CCR properties, its average price for a 99-year leasehold is already $2,8xx psf. It is already evident that Cairnhill 16 as a freehold property at an entry price of $2,6XX is relatively safe to enter.

Determining a safe entry price

Figure 1

As you can see from Figure 1, Cairnhill 16 entry price is lower than the average price of new sales in the CCR and the price gap is actually closer to RCR. This is another reason why Cairnhill 16 is a safe project to enter. The higher increase in prices of homes in the OCR and RCR has resulted in the narrowing of the price gap between RCR and CCR properties. 

Price gap between RCR & CCR narrowing

Figure 2

From Figure 2, we can see that the average price of a new home sale in the RCR and CCR has been narrowing throughout the years. In particular 4Q 2022, where the average price of a new home sale in RCR is $2,659 which is around the entry price of Cairnhill 16 at $2,6XX psf. Can you imagine a freehold CCR project selling at the average price of an RCR home? 

Figure 3

Lastly, we take a look at Figure 3, the transactions of freehold new launches in the CCR, which ranges from $2,777 to $3,161, doesn’t it make Cairnhill 16 a very safe project to enter?

This year will be a very exciting year for CCR as the price is seen as attractive as compared to RCR now.