11 to 17 April 2023
City Developments Limited (CDL) and MCL Land’s latest project, Tembusu Grand, sold 340 out of 638 units, or 53% of available units during its launch weekend. Meanwhile, El Development’s Blossoms By The Park saw 4,000 people flock to its sales gallery during its three-day preview.
1. Tembusu Grand sells 53% of units on launch weekend
Tembusu Grand, City Developments Limited (CDL) and MCL Land’s latest joint development project, sold 340 out of 638 units, or 53% of available units during its launch weekend.
The units were snapped at an average price of $2,465 per sq ft (PSF), with Singaporeans accounting for 90% of the buyers, while Singapore Permanent Residents (SPRs) and foreigners making up the remaining 10%.
CDL and MCL Land revealed that all unit types were well-received, particularly the 2-bedroom units, 2-bedroom plus study units, and 3-bedroom units. Healthy take-up rates were also seen for the 1-bedroom plus study units and 4-bedroom units.
Prices start from $1.248 million for a 1-bedroom-plus-study, while a 5-bedroom unit is offered from $4.028 million.
Describing the Tembusu Grand as the “best-selling project in the Rest of Central Region (RCR) to date”, Huttons Asia CEO Mark Yip attributed the robust sales to pent-up demand as well as buyers’ desire to live within District 15 and the Katong area, reported Singapore Business Review.
Related article: Singapore District Map: Defining the CCR, RCR and OCR by the 28 Districts
2. Blossoms By The Park attracts 4,000 people over a three-day preview
El Development’s Blossoms By The Park saw 4,000 people flock to its sales gallery during its three-day preview, which started on 14 April 2023. Sales booking is set to start on 29 April 2023.
EL Development Managing Director Lim Yew Soon reportedly said that most of the visitors appear to be locals.
Situated at 9 Slim Barracks Rise, the District 5 development features 275 residential units in a single 27-storey tower, of which three floors will be occupied by commercial units.
Prices for the units start from $1.3 million or $2,352 PSF for 1-bedroom plus study units, $1.5 million or $2,211 PSF for 2-bedroom units, and $2.3 million or $2,183 PSF for 3-bedroom units.
3-bedroom dual-key units are offered from $2.1 million or $2,276 PSF, while 4-bedroom units go for $2.9 million or $2,243 PSF. 4-bedroom premium units, on the other hand, are priced from $3.3 million or $2,213 PSF.
Unit sizes at the 99-year leasehold development range from 549 sq ft for a 1-bedroom unit to 1,884 sq ft for a 4-bedroom premium unit.
The project occupies an 85,648 sq ft site that was sold to El Development for $320.1 million in November 2021, reported The Business Times.
3. URA releases two residential sites at Lentor for sale
The Urban Redevelopment Authority (URA) has put up a 99-year leasehold residential site at Lentor Central for sale via tender, while another site at Lentor Gardens has been made available for application by developers under the Reserve List.
With an area of 14,703.2 sq m, the Lentor Central site has a maximum Gross Floor Area (GFA) of 41,169 sq m and is expected to yield about 475 housing units. The tender for the site closes on 12 September 2023.
Meanwhile, the 99-year leasehold site at Lentor Gardens has an area of 20,640.8 sq m and a maximum GFA of 43,346 sq m. It is expected to yield around 500 housing units.
Huttons Asia expects the Lentor Central site to receive a lukewarm response, attracting between one and three bids with the bid amount ranging from $950 to $1,050 per sq ft per plot ratio (PSF ppr).
It noted that while the area is shaping up to be a private residential enclave, developers may be cautious in their bidding due to the pipeline supply of nearly 3,000 units as well as the harmonisation of GFA rules.
As for the Lentor Gardens site, Huttons does not expect the site to be triggered for sale.
Related article: URA Space: Learn to Read Singapore’s URA Master Plan in 4 Easy Steps
4. Price-sensitive homebuyers to be more cautious amidst inflation
Knight Frank expects price-sensitive homebuyers, particularly those within the mass market segment, to become more cautious with their spending amid the rising borrowing costs and macroeconomic concerns, reported Singapore Business Review.
However, demand for prime non-landed homes is forecasted to remain strong as luxury buyers – who are less dependent on debt financing – are willing to pay for readily available family-sized homes for their children studying in Singapore and for their jobs.
These buyers are primarily targeting the core central region, where prices have not expanded as much as the rest of the island over the last three years.
“As such, prices in the prime segment would likely increase whilst price growth in the mass market may begin to taper off with the exception of new launches, resulting in a possible two-tier market emerging in the coming months,” noted Knight Frank.
With this, Knight Frank anticipates private home prices to increase by 5% to 7% for the whole of 2022, down from the 8.6% growth registered in 2022.
Overall sales transactions are also expected to decline by 8% to 22%, from 21,881 sales in 2022 to between 17,000 to 20,000 this year.
5. Freehold residential site at Meyer Place on the market for $25 million
A freehold residential site located at 5 Meyer Place has been launched for sale via public tender carrying a guide price of $25 million, revealed exclusive marketing agent Singapore Realtors Inc (SRI).
Under the 2019 Master Plan, the 10,154 sq ft site, which currently features a single-storey landed home, is zoned ‘Residential’ with an allowable plot ratio of 2.1. Including the balcony space, the site has a maximum permissible GFA of about 22,817 sq ft.
Based on the latest URA guidelines, the site could yield 19 new housing units, subject to the approval of relevant authorities.
The guide price translates to a land rate of around $1,770 per sq ft per plot ratio (PSF ppr). SRI pointed out that the land rate is “inclusive of bonus balcony, with land betterment charge payable and subject to baseline verification”.
The tender for 5 Meyer Place closes on 15 May 2023.
6. Lentor Gardens awarded to GuocoLand-led joint venture
GuocoLand and Intrepid Investments – a fully-owned subsidiary of Hong Leong Holdings – have been awarded the Lentor Gardens site, after their Joint Venture (JV) submitted the sole bid of $486.8 million for the land plot.
The 99-year leasehold site, which has an area of 235,371 sq ft, was launched for sale on 31 October 2022, with the tender closing on 4 April 2023. It is expected to yield a maximum permissible GFA of 494,289 sq ft.
GuocoLand General Manager for Residential Dora Chng revealed that the site will be developed into a high-end residential development with about 530 units.
“The development will comprise a combination of eight-storey blocks and 16-storey towers with sky terraces,” she said, adding that over 6,000 sq ft of childcare facilities will also be provided.
GuocoLand expects the development to be ready for launch by H2 2024.
7. Residential price index to dip in H2 2023
After rising by 3.2% quarter-on-quarter (QoQ) during Q1 2023, Singapore’s residential price index is forecasted to register a slight decline during the second half of this year.
RHB attributed the decline to rising interest rates, slowing economic growth and increased competition, reported Singapore Business Review.
It noted that the resale market is also experiencing a decrease in activity amid a widening gap in price expectations between sellers and buyers. In fact, full-year resale volume is anticipated to drop by 5% to 20% from 2021’s resale figure.
Moreover, the authorities are monitoring the market closely, making drastic cooling measures unlikely, it said.
With this, RHB gave the real estate market a neutral rating, whilst City Developments Limited has been given a “buy” rating.
8. Analysts say first-time buyers seeking BTO flats should proceed with their purchases
While there are signs that the bullish property market may finally be stabilising, it is important for first-time buyers in Singapore to consider their financial capability before deciding to purchase a property.
Qian Wenlan, Director of the Institute of Real Estate and Urban Studies (IREUS) at the National University of Singapore (NUS), said homebuyers should bear in mind that housing is just one of a household’s many expenses.
Nonetheless, first-timers who are looking to acquire BTO flats, particularly those with urgent housing needs, should proceed with their purchases immediately, “but with the caveat that they should carefully work out their long-term debt obligations if they are taking out mortgage loans from commercial banks”, she said in a commentary posted in CNA.
She advised homebuyers taking out mortgage loans to “err on the side of caution and proceed with the premise that interest rates will continue to rise in the near future”.
Meanwhile, those with ample liquidity and financial reserves may also proceed with their purchases, given that a significant number of new launches are expected this year.
However, those who are more highly leveraged should take a more conservative stance and may want to observe the market further.
9. New F&B container park to rise at Cosford Road
Tee Tree Investments is set to develop a food and beverage (F&B) container park at 30 Cosford Road, with the opening set in the third quarter of 2023, reported CNA.
Costing over $3 million, Cosford Container Park will span across 38,000 sq ft, featuring 13 container units “optimised” for F&B.
The new park will come with indoor and outdoor seating areas which can accommodate over 340 people, an outdoor stage with a digital screen and an adult slide.
“We aspire to create a space that goes beyond just the food, with lifestyle spaces and a touch of immersive art and entertainment experiences with a festival vibe,” said Ant Tee, Director of Tee Tree Investments.
The site – which is within walking distance to Loyang and a 10-minute drive to Tampines and Pasir Ris – used to be occupied by Thai restaurant 555 Villa Thai.
It also has a historic significance since it served as the main artillery battery for the British coastal defence network during World War II.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
