02 Aug 2024
GLS Tender Results: Margaret Drive and Jalan Loyang Besar (EC) Analysis
Property Insight

Margaret Drive

The top bid for the Margaret Drive land parcel was submitted by Intrepid Investments Pte. Ltd., Hong Realty (Private) Limited, and GuocoLand (Singapore) Pte. Ltd at $497.0 million, translating to $1,154 per square foot per plot ratio (psf ppr). There were only two bidders for this land parcel, which may reflect developers' cautious approach due to anticipated future land releases in the Queenstown area. Developers likely adopted a wait-and-see strategy, anticipating the impact of upcoming land releases on the market, such as Media Circle (Parcel A) and Media Circle (Parcel B) in the 2H2024 GLS programme.

Margaret Drive's location, within 300 meters of Queenstown MRT station on the East-West Line, makes it highly attractive. The site is surrounded by numerous amenities, including Dawson Place, Anchorpoint, Alexandra Central Mall, IKEA, Margaret Drive Hawker Centre, and Mei Ling Market & Food Centre. It is also near several schools like Queenstown Primary School, Queenstown Secondary School, and Crescent Girls' School, potentially increasing its marketability to families.

The parcel benefits from its proximity to the upcoming redevelopment of Tanglin Halt Estate and a new Integrated Development, which will introduce additional amenities and enhance the area's appeal. This development history, combined with successful past projects like Stirling Residences, indicates strong market demand in the Queenstown planning area.

Jalan Loyang Besar (EC)

The highest bid for the Jalan Loyang Besar EC land parcel was by CNQC Realty (Progressive) Pte. Ltd. (Qingjian Realty), Forsea Residence Pte. Ltd., and ZACD Laserblue Pte. Ltd. at $557.0 million, or $729 psf ppr. This bid was just 3.4% higher than the second-highest, showing strong competition and interest among developers.

This land parcel's attractiveness stems from its potential for a new executive condominium (EC) project, particularly since the last EC launch in Pasir Ris was Sea Horizon in 2013. The extended period without new EC developments in Pasir Ris indicates potential pent-up demand for new residential options, encouraging developers to bid.

Data from URA Realis reveals an increase in HDB upgraders purchasing new EC units, with 322 units bought by buyers with HDB addresses in the first half of 2024, a 65.1% year-on-year increase. This rise in demand highlights a growing interest in ECs among HDB upgraders.

The proximity of the parcel to Downtown East, known for its diverse retail, dining, and entertainment options, and the newly opened Pasir Ris Mall, enhances the lifestyle appeal of the future development. Nearby educational institutions like Hai Sing Catholic School, Casuarina Primary School, Pasir Ris Crest Secondary School, and Pasir Ris Primary School make the location appealing to families.

Click here for the full report   

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

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Property Insight
21 Nov 2024
Faber Walk GLS Land Bid: GuocoLand Tops Tender at $900 psf ppr

The Government Land Sale (GLS) site at Faber Walk, designated for residential (non-landed) development, was awarded to GuocoLand (Singapore) Pte. Ltd., TID Residential Pte. Ltd., and Intrepid Investments Pte. Ltd. at $349.9 million, translating to $900 per square foot per plot ratio (psf ppr). This bid exceeded the second-highest by 8.9%, reflecting the developers' competitive positioning. 

The Faber Walk site has several advantages. The planned transformation of Clementi MRT station into a Cross Island Line (CRL) interchange will enhance accessibility. The upcoming completion of the CRL is expected to improve connectivity to key areas in Singapore, boosting the site's appeal among homebuyers and investors. The lack of new residential launches in the area, as seen with the sold-out projects Clavon and Ki Residences at Brookvale, presents an opportunity to meet market demand.

Resale activity in the Clementi planning area has risen significantly, with non-landed and landed property transactions increasing by 20.6% and 14.3%, respectively, from January to October 2024 compared to the same period in 2023. This trend suggests a growing pool of upgraders who may be drawn to future developments at Faber Walk. The site's proximity to commercial hubs like the International Business Park and JTC Summit makes it attractive to expatriates and professionals in high-tech and industrial sectors.

Additionally, Faber Walk benefits from its location near reputable schools, notably Nan Hua Primary School, which has seen high demand in recent years. Families prioritizing proximity to such institutions may find this site appealing, further driving demand for its residential units.

The Jurong Lake District's transformation into a vibrant commercial and residential hub is likely to further increase interest in western Singapore. Improved infrastructure and business developments in the region will enhance convenience and connectivity, appealing to residents seeking work-life balance near major employment centers.

The site is projected to launch at competitive prices of $2,100 to $2,300 psf. Although future competition may arise from developments like The Elta at Clementi Avenue 1, the staggered launch timelines are expected to reduce direct competition.

The Faber Walk site is well-positioned to cater to a diverse demographic, including young families, professionals, and upgraders, offering a balance of exclusivity and value. Its strategic location, combined with improving infrastructure and market demand, presents an opportunity for developers to deliver a compelling residential development.

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here

for the full report 

   

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics 

  

  

Email:

mohan@sri.com.sg


  

Property Insight
18 Nov 2024
Norwood Grand and Meyer Blue Lead October 2024 Property Market Surge

Norwood Grand and Meyer Blue Lead October 2024 Property Market Surge

In October 2024, developer sales experienced a robust increase, with 738 units (excluding ECs) sold, an 84% surge from September’s 401 units. This growth was largely attributed to the launches of Norwood Grand and Meyer Blue, which accounted for over half of the sales at 56.4%. Norwood Grand emerged as the top seller with 292 units transacted at a median price of $2,081 psf, benefiting from its strategic location near Woodlands South MRT and proximity to schools and amenities. Meyer Blue followed with 124 units sold at a median price of $3,240 psf, appealing to buyers with its prime location in the Rest of Central Region (RCR) and freehold status.

Other notable projects included Pinetree Hill and Hillock Green, with steady sales across different price segments. The data reveals strong local demand, with Singaporeans making up 88.5% of total transactions. Purchases by Singapore Permanent Residents (PRs) and foreigners increased, with PRs accounting for 8.8% of sales and foreigners contributing 2.7%. Foreign buyers showed a slight rebound, marking their highest monthly purchases since May 2023.

November is set to be a dynamic month, with six new launches targeting diverse buyer needs, ranging from Chuan Park to Union Square Residences. This wave of launches aims to capture growing interest ahead of the year-end holiday season. Favourable interest rates, improved financing conditions, and strategic launch timings indicate a positive outlook for the final quarter.

This surge underscores the market's responsiveness to well-located and thoughtfully developed projects. Developers’ strategic timing, coupled with improved buyer confidence, reflects a vibrant property market poised for sustained momentum.

Click

here

for the full report 

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics 

  

  

Email:

mohan@sri.com.sg


  

Property Insight
07 Nov 2024
EC Market Trends 2024: Price Growth and Investment Insights

Executive Condominiums (ECs) represent a unique segment in Singapore's housing market, appealing to both first-time buyers and upgraders due to their blend of public and private housing features and relative affordability. These hybrid developments have shown steady price growth, driven primarily by limited supply and strategic regulatory frameworks. For example, EC developers are only allowed to begin sales 15 months after securing a site or once foundation works are completed, whichever is sooner. This strategy helps prevent oversupply and supports price stability, ensuring ECs remain a resilient asset class.

Over the past few years, the pricing landscape for ECs has transformed. In 2022, the average price for new ECs stood at $1,329 per square foot (psf). This rose to $1,406 psf in 2023, marking a year-on-year increase of 5.8%. In the first nine months of 2024, the average price reached $1,460 psf, reflecting a more moderate 3.8% rise. These upward trends underscore the high demand for ECs, particularly among young families and upgraders seeking a bridge between public and private housing with long-term value potential.

Demand for ECs remains robust, as evidenced by impressive take-up rates in recent launches. For instance, Altura, introduced in the third quarter of 2023, reached a 95.8% sales rate. Similarly, Lumina Grand, launched in the first quarter of 2024, achieved 83.2% sales. This strong buyer interest reflects a willingness to invest at higher price points, particularly in developments that boast strategic locations and lifestyle amenities. In 2024, half of the EC units sold ranged between $1,500 and $1,600 psf, highlighting buyers' confidence in the value of these projects.

The resale EC market has also gained momentum, particularly for older ECs that have attained privatized status. Units that are over ten years old saw significant price increases, with the average price rising by 15.5% year-on-year to $1,171 psf in 2024. In comparison, newer resale ECs saw a more moderate price increase of 5.7%. Some projects, like The Dew, recorded an impressive 20.2% increase, which may be attributed to nearby new launches and proximity to popular schools. This trend emphasizes the appeal of matured ECs, especially as they become available to a broader pool of potential buyers.

In recent quarters, the price gap between new and resale ECs has narrowed, reflecting a difference of only 6.9% by the third quarter of 2024. Contributing factors include the limited supply of new ECs and the five-year Minimum Occupation Period (MOP) requirement before resale. This narrowing gap presents ECs as a structured, appealing investment, with the potential for value appreciation as they transition to full privatization.

New developments, like Novo Place at Tengah New Town, continue to attract buyer interest. Positioned near the upcoming Jurong Region Line MRT station, Novo Place benefits from enhanced connectivity and strategic location. Given the limited EC supply and successful launches in nearby areas, this development is likely to generate significant interest among potential buyers.

Overall, ECs have maintained their position as a desirable housing choice within Singapore’s real estate market. Their unique status, regulatory-backed supply alignment, and consistent demand from both new and resale markets ensure ECs remain attractive to buyers. Combining affordability, strategic location, and capital appreciation potential, ECs present an enduring appeal for many Singaporeans.

Click

here

for the full report 

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

  

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