TMW Maxwell sees slow sales at launch with only 7 units sold at an average of $3,310 psf

TMW Maxwell sold just seven of its 324 units during its first phase of sales, with transaction prices ranging between S$1.5 million and S$2.47 million, translating to a price range of S$3,143 to S$3,739 per square foot (psf).

A spokesperson for SingHaiYi disclosed that the average selling price for the seven units was S$3,310 psf.

Sales results for the mixed-use development by CEL Development, Singhaiyi Investments, and Chuan Investments fell well short of market observers' expectations, who had anticipated a take-up rate of at least 20% based on recent project launches.

A total of 80 units were released during the first phase, with the remaining units to be launched progressively in subsequent phases.

Located on the site of the former Maxwell House, TMW Maxwell comprises a single block featuring three storeys of commercial facilities and a total of 324 residential apartments. It is also the first of four new launches slated for the downtown Central Business District (CBD).

Most developers anticipate that total new private home sales will surpass 5,000 units in the first eight months of 2023.

The market has seen an influx of new project launches over a short span across July and August. Within six weeks, eight private residential projects were launched, bringing more than 3,000 units to the market.

The last time the market saw at least eight project launches was in November 2018, when 1,265 units were released for sale. In terms of units launched, the previous high was in the first quarter of 2021, when four launches brought 2,629 units to the market.

With more projects slated for release, full-year new home sales are projected to reach around 8,000 units, up from 7,099 units in 2022.

Developers launched three new projects for sale over the weekend. Alongside TMW Maxwell, Orchard Sophia in the Core Central Region (CCR) and The Arden in the Outside Central Region (OCR) were also rolled out.

Orchard Sophia and The Arden each achieved a take-up rate of around 23% during their launch weekends. The former sold 18 of its 78 units, while the latter moved 24 of 105 units.

The lacklustre sales performance of projects launched during this period compared to earlier launches can be attributed to several factors, including buyer fatigue and hesitation stemming from an abundance of choices.

Homebuyers today are spoilt for choice with an ample supply available on the market. This has directly diminished the urgency for buyers to snap up units during launch weekends. With buyers enjoying a wider array of options, upcoming new launches may encounter some headwinds, particularly if there is a substantial inventory of unsold units nearby.

TMW Maxwell's location and unit mix, which leans heavily towards smaller units, will appeal to a niche pool of buyers, including investors, couples, and small families.

While genuine homebuying demand remains resilient, an increasing number of property seekers are taking their time to weigh multiple options across different developments before committing to a unit in their chosen project.