Provence Residence sells 53% of total units at launch

MCC Group announced that 220 units out of the total of 413 at Provence Residence executive condominium (EC) were taken up for its launch from May 13 to May 15. (See: Discover insightful data of any Singapore condominium with our condo directory)
E-applications for the 413-unit, French-style, EC had begun on April 24 and ended on May 10. Balloting was conducted on May 12, while bookings began on May 13, Hari Raya Puasa, which was a public holiday.

Of the units sold, about 82% are three-bedroom units, while three-bedroom (premium) and four-bedroom units made up 11% and 7% of the take-up rate respectively. The average selling price of the units was $1,142 psf.

“Several homebuyers have feedback to us that they are drawn to the modern French design theme of the project,” comments Tan Zhiyong, CEO of MCC Group in Singapore in a statement. “In recent years, homes have evolved to become a habitat, workspace as well as getaway all rolled into one. The French design touches will provide future dwellers an escapade within the home boundaries should they require one.”
Having crossed the 50% mark, Provence Residence has turned out “a very credible performance”, says Ismail Gafoor, CEO of PropNex. “People recognise that ECs is a Singaporean privilege and first-time buyers enjoy a housing grant too. That’s why demand is strong,” he adds.

Provence Residence: Widening price gap

Another reason for the strong sales at Provence Residence is the widening price gap between new ECs, which are hovering around $1,100 psf today, and brand new, fast-selling suburban condos in the Outside Central Region (OCR), Gafoor points out. “There’s very little unsold stock of new mass market condominiums compared to two to three years earlier, and it’s not possible to find something in the $1,100 psf price range,” he adds.

Located at Canberra Crescent in Sembawang, Provence Residence is adjacent to Parc Canberra, which was launched in February last year, and sold 64% of its units at its launch. The average selling price achieved then was $1,085 psf. Parc Canberra is 98% sold with only nine units still available, based on caveats lodged with URA Realis. Average price across all units sold has now inched up to $1,099 psf.

“Considering that there was an earlier launch in the same area a year ago, selling more than half of its units on the first day of launch is very good,” remarks Lee Sze Teck, director of research at Huttons Asia.

Tighter measures prompt developers to ‘wait it out’

While Provence Residence’s launch which came on May 13 was not affected by the tighter safe management measures announced on May 14, it is likely to lengthen the decision making process for buyers as ECs are for owner occupation, and buyers will want to have a look before committing to a purchase, says Mark Yip, CEO of Huttons Asia. “Virtual tours of showflats will help to mitigate this,” he adds. (See: MCC Land to kick off previews of One Bernam, Provence Residence)

PropNex’s Gafoor expects developers to avoid launching any new projects in the next four weeks – from May 15 to June 13 – with the tighter measures in place and the cap of two visitors per group (including agent) at project sales galleries and showflats. “The projects that have already been launched will implement these measures,” he says. “But developers with projects in the pipeline for launch are likely to wait it out. This is because people would want to stay home as well, due to anxiety over the increasing number of [Covid-19] clusters.”

While there will be no launches for the next two weeks and the whole month of June due to the tighter measures, “We are unlikely to revisit the trough of 277 new home units sold in April 2020 as around 400 units are estimated to have already been sold in the first two weeks of May,” reckons Huttons’ Lee.


Provence Residence EC Official Site