Grand opening launch for Grandeur Park Residences

The latest property development in Tanah Merah has sold more than half of its units over a weekend. Grandeur Park Residences reported strong sales with at least 58 per cent of its 720 units sold during its launch.

GrandeurParkResidencesSmaller apartments seem to be popular once again as the project sold most of the 96 one-bedroom units made available during the launch. Selling prices averaged $1,350 psf. The location, in close proximity to the Tanah Merah MRT station, could be one of the main factors pushing buyers to seriously consider the long-term and rental potential of the property. The condominium project which is also close to the Changi Business Park also has two- to five-bedders with prices starting from $550,000 for a one-bedder and $700,000 for a two-bedroom unit. Though the rental market is weak at the moment, buyers are counting on the property market rebounding by the time the project is ready for occupancy.

GrandeurPark2
Following the first private condominium launch this year of The Clement Canopy, response at the Grandeur Park Residences launch may be an expression of pent-up demand which could release keen albeit selective buyers back into the fold. However, the eagerness to snap up smaller units mean a lower overall quantum which may keep market figures low or at best level.

Fierce bids for Perumal Road land site

A mixed-use land site on Perumal road which could potentially yield 200 private homes and an entire floor of commercial spaces have attracted bullish bids from property developers since its release in November last year.

Sturdee-Residence11 bids have been placed, the highest at 4.4 per cent more than the next in line came from Low Keng Huat at $174.08 million. The second highest bid came from China Construction (South Pacific) development. The keen activity in the land sales sector could translate into a competitive primary and thereafter secondary market which will in turn mean a ready pool of buyers who are ready to spend after the prolonged market lull over the past few years.

Average selling prices at this site is expected to hover around $1,700 psf due to the high land cost and also its proximity to the Farrer Park MRT station and other amenities such as City Square Mall and Mustafa Centre. The neighbouring plot where Sturdee Residences stands only lodged at $787 psf.

The lack of land sites available for sale in the earlier part of 2016 could have resulted in pent up demand from developers who are looking to replenish their lank banks in preparation for 2018 and beyond when market recovery is expected to happen. Property analysts are already seeing signs of market stabilisation and developers who prepare ahead of the recovery could just catch buyers at an opportune time.

 

525 potential new residential units near city fringe and nature reserve

hertford-collectionNear Little India and off Toh Tuck Road, the Urban Renewal Authority (URA) has released 2 residential sites that may culminate to a total of 525 private homes. Both sites are released under the Government Land Sales GLS) scheme and have 99-year leasehold tenures.

The first site off Perumal road near Farrer Park MRT station may be of particular interest to developers due to their city fringe location, proximity to a MRT station and its yet unfounded potential. The area is also close to the new medical hub off Farrer park and Novena. The tender for this site closes at noon on Jan 10 and is expected to fetch $280 to $295 million at $800 to $850 psf. The bids may come in strong as there has been a lack of new launches in the area for sometime now, which could mean buyers will be looking for something new to put their money in when the time is right.

connexion-farrer-parkThe only con for this site might be the proximity to the Sri Srinivasa Perumal Temple which could mean a higher noise level especially during festivals. But its location and depending on what other facilities or incentives the new property offers, may overcome all that.

Though the Toh Tuck Road is on the reserve list, should a developer be able to meet the minimum bid set by the authorities, it should still be able to fetch up to $225 million. This site is near the Bukit Batok Nature Reserve and Nature Park plus schools such as Pei Hwa Primary and Ngee Ann Polytechnic which could be rental fodder for expatriates or foreign students.

New private homes with strong attributes still a draw

Amidst speculations of a bottoming-out real estate market, the 3 major project previews over the weekend might be good indicators of market fluctuations in the months ahead.

38-jervoisPhoto credit: Prominent Land

Judging from the strength of public response from recent launches, new private non-landed developments with strong attributes such as good locations, usually those near MRT stations and shopping malls, and affordable quantum prices will take market headlines for now. Buyers are not entirely shrinking away from making purchases, but they may be pickier as the choices available outweigh the current demand.

City Development’s (CDL) latest private residential offering of the Forest Woods condominium clocked an encouragingly positive level of sales in its recent launch, perhaps leading the way for the next few launches coming up – Queens Peak on Dundee Road in Queenstown, Parc Riviera in West Coast Vale and 38 Jervois in Jervois Road.

forestwoodsThe last of these projects is a rather exclusive boutique offering of 27 units developed by Prominent Land. At 38 Jervios, units range from 474 sq ft one-bedders to 1,098 sq ft two-bedders plus penthouse study with prices averaging $2,100 psf and up. Buyers can expect to fork out $1.08 million for a one-bedroom unit to $1,81 million for a 3-bedroom unit. 6 of the 27 units will be penthouses.

Although these new private homes may push sales figures past the 1,000 a month mark, property analysts do not yet expect a sudden market uptick as prospects of the economy remain lacklustre.

Forest Woods condominium in Serangoon selling fast

Keeping unit prices at the new Forest Woods condominium below the $1 million mark seems to be a good move by developer, City Developments (CDL).

forestwoodsBuyers are attracted by the prime suburban location and its proximity to the Serangoon MRT station which speaks volumes since location is still a key mitigating factor for most tenants. The fact that the Serangoon MRT station is a major interchange node connecting between different MRT lines, is linked to a bus interchange and also a huge shopping mall, NEX, are all bonuses. And as property prices have been falling for a couple of years now, buyer sentiment is that they will not fall any further, and are taking the opportunity to buy now before interest rates potentially rise in the later part of the year. The $6,000 to $12,000 early bird discount may also have enticed some to seal the deal early.

forestwoods2All the one- and two-bedroom apartments launched at Forest Woods have sold out and the median selling price currently stands at $1,400 psf. The development has a range of units ranging from 506 sq ft one-bedders to 2,185 sq ft penthouses. As of Sunday evening (the project was launched last weekend), almost 65% of the units were already sold. One of the three penthouses available was also sold at $2.85 million. Almost 90 per cent of the buyers were Singaporeans, with the rest being permanent residents or foreigners from China, Indonesia, Malaysia, Taiwan, Vietnam and Switzerland.

European-living in Tampine’s new condominium

It looks like the east will be getting a mountain deal of a new condominium development with a 9-block, 626-unit Swiss Alps-inspired one in Tampines. Named The Alps Residences, it is designed by a Switzerland-based architectural firm and the developers promise nature landscaping and a general ambience akin to living in well, the Swiss Alps, sans the alps of course. And resort-living it could be, as it will boast 30 facilities including a 50-metre lap pool, roof terraces, 2 shops and more than 100 bicycle lots.

alpsresidencesMCC Land launched a preview of the 99-year leasehold project last Saturday and it will be one of the larger launches this quarter, following weaker market showing due to the Hungry Ghost month in August. This will be their second private residential project in Tampines, the first being the Mediterranean-inspired The Santorini.

SantoriniThe Alps Residences is situated near the Tampines Regional Centre which consists of a hub of 3 shopping malls, the bus interchange and also the Tampines MRT station. The project has a good mix of 182 one-bedders, 416 two- and three-bedders and also larger units such as four-bedroom apartments and penthouses. Unit sizes are ranging between 441 to 2,486 sq ft and prices are set between $900 psf to $1,200 psf. With one-bedroom units going for approximately $400,000, the prices are well within the affordability range of recent buyers. Completion is estimated for 2020.

 

High demand for bigger units in mature estates

Senja HeightsAccording to response from applicants for the latest HDB sales launch of BTO (build-to-order) and SBF (sale of balance) flats, bigger units in mature estates seemed to be most hotly contested.

3,770 BTO flats were rolled out in last week’s launch, with units available in Ang Mo Kio, Bedok, Bukit Panjang and Sembawang. In addition, 5,170 SBF flats were also available for selection across 29 HDB estates. The units in Bedok and Ang Mo Kio were most in demand as these mature estates have well-developed infrastructure and some buyers who have lived there most of their lives prefer to move within the estate.

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Photo credit: HDB

Will this mean a corresponding demand for resale flats of similar size in the same estates? It is debatable as prices of larger resale flats have already been falling as demand waned. As the availability of new units direct from HDB, and options of going into the private property market beckons, HDB upgraders will have quite a few pros and cons to weigh. While private homes within the same price range may be quite a lot smaller, rental and future value appreciation of selected private properties may entice buyers. On the other hand, upgrading within the resale HDB flat market may get you a larger unit though not necessarily with future sale benefits. Rental demand however could still be high should the unit be near a MRT station, school or other amenities.

Executive living in Executive Condominiums

Despite the number of new private condominiums out in the market, executive condominiums (ECs) are still one of the more popular property types out there. Being the hybrid property they are, they provide buyers an option that allows them to transition comfortably between public and private property market.

EcopolitanPhoto: Ecopolitan Executive Condominium

Sold as public property, buyers are able to take advantage of the grants provided by the Housing Development Board (HDB). Though income ceilings apply, they have been raised to $14,000 last year and that has possibly opened the door to more applicants. And one of the best parts is after 10 years, ECs are considered private properties and thus increases their inherent value considerably.

Developed and built by private developers, many of these executive condominiums used to be situated in not-so-ideal locations. But as Singapore becomes more built-up, many new ECs are now quite conveniently located, near schools, transport nodes and many other amenities and shopping malls.

BellewoodsECPhoto: Bellewoods EC

Take the Ecopolitan EC for example, it is situated near the Punggol MRT station, Waterway Point, Punggol Waterway Park, Coney Island and just a 20-minute drive away from town. It will receive its Temporary Occupation Permit (TOP) this year and will no doubt inject much life into the Punggol HDB estate.

Another new EC, Bellewoods in Woodlands, can also look forward to being serviced by the upcoming Thomson-East Coast MRT line, with their proximity to the Woodlands South MRT station. Both properties are developed by Qingjian Realty and look set to be some of the more prominent projects in these blossoming estates.