Newsletter Jun 2024
By Kelvin Sin | Livefree.sg | 27 Jun 2024
1. Market Outlook June 2024
2. New Projects
3. Government Land Sales
4. HDB
1.1 Developer Sales Dips in May
Developers released 248 units in May, down from April's 278 units. In total, only 221 units were sold in May, down 26.6% from April’s 301 units. This was the lowest May sales figure since 2008 when records began. The decline was expected due to the lack of significant new project launches in the suburbs and city fringes. Besides the luxury project Skywaters Residences, only two boutique projects, Jansen House and Straits at Joo Chiat, were launched. The best-selling project was Lentor Hills Residences, which sold 25 units at a median price of $2,164 per square foot (psf) and is 88% sold. The Lentor precinct has launched five new condos, with nearly 75% of the 2,477 units sold, driven by strong demand for new private housing in the area. In the luxury segment, Watten House, 32 Gilstead, and Skywaters Residences had significant sales. Watten House saw three units sell for over $10 million each, while 32 Gilstead had three units sell for over $14 million. Skywaters Residences set a record with a unit selling for $47.3 million ($6,100 psf). Looking ahead, developer sales are expected to remain soft in June due to the lack of project launches and school holidays. Upcoming project launches, including Sora, Kassia, The Chuan Park, and Norwood Grand, may increase market activity.
1.2 Opening of Thomson-East Coast (TEL) Line Stage 4
The fourth stage of the Thomson-East Coast Line (TEL4) is set to improve connectivity for residents in the East-Coast. The new line will also benefit students, with more than 10 schools within walking distance of a TEL4 station. Additionally, the new stations will make popular areas like Joo Chiat and Katong more accessible. Currently, 27 out of 32 TEL stations are operational. The fifth stage, connecting Bayshore to Sungei Bedok, will be completed by 2026, and an extension to Changi Airport will be finished in the mid-2030s. At the opening ceremony of TEL4, Prime Minister Lawrence Wong highlighted that over 50 new MRT stations will be opened in the next ten years, including the new Jurong Region Line and Cross Island Line. Mr. Wong emphasized that the TEL will eventually connect Singaporeans from their doorsteps to the world. He mentioned ongoing expansions in the rail network, including new lines and extensions, to improve connectivity across the island. By the 2030s, eight out of ten households will be within a 10-minute walk of a train station. He also pointed out that Singapore's commitment to delivering planned projects sets it apart from many other countries, where projects often face delays due to budgeting, resistance from residents, or political changes. In addition to improving connectivity, TEL has been designed with special needs in mind. The Land Transport Authority consulted with organizations like the Singapore Association for the Deaf and the Singapore Association for the Visually Handicapped to incorporate inclusive features. These include larger and clearer station signs, more braille text, hearing enhancement systems, and additional lifts and entrances for better accessibility.
2.1 Sora
The 440-unit Sora, located along Yuan Ching Road in Jurong Lake District (JLD), will be previewed on June 22, with the official launch on July 6. Sora's developer, a consortium led by SingHaiyi, plans to price the units from $1,850 per square foot (psf), starting at just under $1 million for a 538 sq ft one-bedroom-plus-study unit. Sora will be the third 99-year leasehold residential project in JLD since The LakeGarden Residences and J’den were launched. Currently, The LakeGarden Residences is 39% sold at an average of $2,134 psf, and J’den is over 90% sold at an average of $2,459 psf. Sora is a redevelopment of the former Park View Mansion and sits on a 99-year leasehold site. The land rate for Sora is lower than that of The LakeGarden Residences, giving the developer some flexibility in pricing. The average selling price for Sora is expected to be around $2,180 psf. Sora offers a 300m frontage along Jurong Lake Gardens, with about 80% of the units having a view of the public park. The development consists of four residential blocks, featuring two 12-storey blocks and two 20-storey towers, with tiered sky gardens linking each pair of blocks. The design of the sky gardens was inspired by a hotel rooftop garden in Bangkok. Sora's main entrance is from Yuan Ching Road, with four side gates providing easy access to Jurong Lake Gardens. The development is close to several MRT stations and will have a link to the Japanese Garden, providing a cycling path to Jurong East MRT Interchange Station. The temporary occupation permit (TOP) for Sora is expected in 2028. Sora offers a variety of unit types, from one-bedroom-plus-study units of 538 sq ft to five-bedroom units of up to 1,938 sq ft. The majority are two- and three-bedroom units, which have been popular in other nearby developments. The upcoming launch of Sora may attract buyers who couldn't find suitable units at other projects. Contact Kelvin & Peixuan for a showflat tour Kelvin Sin 9722 2222 Chew Peixuan 9101 5301
2.2 Kassia
Kassia, a 276-unit freehold development situated in the Flora Drive Enclave of District 17, will preview on July 6 and officially launch on July 20. This project, developed by the esteemed Hong Leong, TID, and CDL, features four blocks of 8-storey apartment flats with basement car parking, a clubhouse, a swimming pool, and other communal facilities. Completion is projected for Q4 2027. Kassia offers a diverse range of unit types, from 1-bedroom units at 474 sqft to 4-bedroom units at 1,345 sqft, with prices starting at $1,850 psf. One-bedroom units are priced just below $1 million, while two-bedroom units start from $1.2 million. The development will benefit from the upcoming Cross Island Line, enhancing connectivity across Singapore. It is conveniently located near major expressways such as the ECP, PIE, and TPE, ensuring easy access. Kassia is also close to key business hubs like Changi Business Park, Changi Airport, and Tampines Regional Centre. Daily amenities are within easy reach, including Downtown East, White Sands, Jewel, and the upcoming Pasir Ris 7 Mall. Contact Kelvin & Peixuan for a showflat tour! Kelvin Sin 9722 2222 Chew Peixuan 9101 5301
3.1 GLS Sites for 2H 2024
The government has initiated the tender for two sites from the Confirmed List of the 1H2024 Government Land Sales (GLS) programme, located at Dairy Farm Walk and Tengah Garden Avenue. Another site on Bayshore Road is available for application under the Reserve List. Bids for these sites might be cautious due to the current challenging conditions, including high construction costs and interest rates. Some sites like Jalan Lorong Besar and Margaret Drive may be highly contested, others might receive less enthusiastic bids due to the high number of GLS sites available. Dairy Farm Walk (Confirmed List) - Land Size: 235,448 sq ft - GFA of 494,443.5 sq ft. - Expected Units: About 540. - Previous Developments: Dairy Farm Residences and The Botany at Dairy Farm have sold well, indicating a strong appeal for the area. - Predicted Interest: Up to three bidders with a top bid of $800-$850 psf ppr. Tengah Garden Avenue (Confirmed List) - Land Size: 273,906.5 sq ft - GFA of 821,720 sq ft. - Expected Units: Up to 860 residential units, with commercial space on the first storey. - Location Advantage: Next to the upcoming Hong Kah MRT Station on the Jurong Region Line. - Concerns: Large site size requires significant upfront capital, and Tengah is still relatively unfamiliar to homebuyers. Bayshore Road (Reserve List) - Land Size: 112,914 sq ft - GFA of 474,247 sq ft. - Expected Units: About 515 - Location Advantage: Close to the soon-to-open Bayshore MRT Station on the Thomson-East Coast Line. Potential Buyers: Likely to attract those living in the east, especially HDB upgraders and those looking for proximity to East Coast Park. - Reserve List: Available for application, will be tendered if a developer submits an acceptable minimum price.
3.2 River Valley Green (Parcel A)
Wing Tai Holdings, submitted the highest bid of $464 million for the 99-year leasehold government land sales (GLS) site at River Valley Green (Parcel A). This bid translates to a land rate of $1,325 per square foot per plot ratio (psf ppr) for the 100,009 sq ft site. The River Valley Green (Parcel A) site has a plot ratio of 3.5 and a maximum gross floor area of 350,035 sq ft, potentially yielding up to 380 units. It's located next to Great World City MRT Station on the Thomson-East Coast Line, and close to Great World City mall. Considering the potential supply of 1,300 new homes from recently awarded sites at Zion Road, an additional site at River Valley (Parcel B) on the Reserve List could add another 360 homes and 220 long-stay serviced apartments if triggered and awarded. Wing Tai’s bid is slightly higher than the $1,202 psf ppr that City Developments Ltd (CDL) and Mitsui Fudosan offered for a nearby GLS site on Zion Road in April. Despite being the smallest among four GLS sites in the River Valley and Zion Road areas, this site only attracted two bids. The cautious bidding reflects the high interest rates and cooling measures impacting developer interest. Wing Tai’s breakeven costs could range from $2,300 psf to $2,500 psf.
4.1 June 2024 BTO Launch
The Housing and Development Board (HDB) has rolled out 6,938 new flats in its June 2024 Build-to-Order (BTO) sales exercise. These new flats are located in Jurong East, Kallang/Whampoa, Queenstown, Tampines, Woodlands, and Yishun. This is the final BTO sales exercise using the mature and non-mature classification. From October, new BTO projects will be categorized as Standard, Prime, and Plus. High demand is expected, especially for flats near MRT stations, as buyers may be wary of the upcoming changes in October. Tampines GreenTopaz could see higher application rates due to its location near Tampines West MRT station and various amenities. This 561-unit project includes two-room flexi and three- to five-room flats with a shorter waiting period of 37 months, appealing to those needing immediate housing. Teban Breeze in Jurong East offers 1,086 units and is close to the future Pandan Reservoir MRT Station. With no new public housing in Teban Gardens since 2021 The largest project with 1,609 units, Marsiling Peak I/II in Woodlands, may attract applicants despite being further from MRT stations. It offers a mix of two-room flexi, three- to five-room flats, and 3Gen flats, with a relatively quick completion time of less than three years. The 1,277-unit Chencharu Hills in Yishun will be the first new BTO in the Chencharu housing area, built on the former Orto leisure park site. Lower application rates are expected due to its distance from Khatib MRT station and ongoing construction in the area. The next BTO exercise in October will offer over 8,000 new flats in various estates, including Ang Mo Kio, Bedok, Bukit Batok, Geylang, and others. Some projects are expected to fall under the new Plus model, located in desirable areas near MRT stations and town centers. A unique aspect of the October launch is the introduction of 310 units with a new open-concept, beamless flat layout in Kallang/Whampoa, expected to draw strong interest due to their design and location.