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First mover advantage

is a favourite catchphrase in show flats. Being the buyer of the first condo in an area supposedly gives you a huge advantage over others, as if you’re inventing a tablet device or an electric car. But does a pioneering spirit in property really pay off?

What, in theory, is the first mover advantage?

There are two common understandings of the term.

On one level, it refers to being the among the earliest buyers of a particular development.

For example, buying during the first phase of a launch. This provides certain advantages such as early-bird discounts, being able to pick the units with the best facing, choices of units.

The second meaning is being the first development in a particular area. 

Usually, this means getting in on a neighbourhood before it rockets in value, such as through development or redevelopment. 

Project Name	Launch Year	Launch Year Average PSF price	2020 Average PSF price	0% Change (Resale vs Launch PSF Price)
Prive	2011	$686	$1,018 (Resale)	+48%
Twin Waterfalls	2012	$715	$987 (Resale)	+38%
Ecopolitan	2013	$791	$978 (Resale)	+24%
Piermont Grand	2019	$1,098	$1,106 (New Sale)	N.A.

The average launch price for Prive—the first mover—was just $686 per square foot (psf). 

A year later in March 2012, Twin Waterfalls became the third Punggol EC to launch. It was roughly within a similar walking distance as Prive from Punggol MRT and the then-upcoming Waterway Mall. Twin Waterfalls sold at an average launch price of $715 psf, about 4.2% pricier than Prive.

Ecopolitan EC, located next to Twin Waterfalls, launched in August 2013 (a month after Prive’s TOP). The average launch price of Ecopolitan was $791 psf—10.6% higher than Twin Waterfalls and 15.3% higher than Prive!

Punggol has certainly matured well over the past decade. In 2019, Piermont Grand, the latest Punggol EC to launch, sold at a average of $1,098 psf. Eight years apart, the price gap has widened by 60%.

Moreover, Prive (the first mover) had the highest price appreciation out of the four ECs. So far, six units at Prive have been sold for an average of $1,018 psf, translating to a 48% appreciation since launch.