Private residential property prices in Singapore have been trending upwards for four consecutive quarters now, driven by strong domestic demand and the resurgence of foreign investment interest.
The bullish sentiment is evident too in the number of bids and level of prices developers have submitted to secure land in areas where supply of new homes is limited.
The high land cost, especially those outside of the Core Central Region, have caught fresh attention from the market over the price implications the acquisition value will have on the resulting developments.
Take for example the 99-year leasehold private housing site in Ang Mo Kio Avenue 1 that drew 15 bids and closed in May.
The 12,679.4 square metre site near the soon-to-open Mayflower MRT station of the Thomson-East Coast Line (TEL) drew a winning bid of $381.38 million, or nearly $1,118 per sq ft per plot ratio (psf ppr).
The winning offer by a UOL-led consortium was 6.3% above the $358.9 million, or $1,052 psf ppr, second highest bid.
Leonard Tay, Head of Research at Knight Frank Singapore, described the bid as optimistic and above expectations.
“At $1,118 psf ppr, the possible selling price for the residential units here when ready to launch could start from $2,000 psf to $2,100 psf,” he said.
Similarly, DBS Group Research wrote that with the site within one kilometre of the popular school CHIJ St Nicholas Girls, it implied possible inherent demand for condominium units.
“We estimate breakeven of $1,750-1,850 psf, implying launch price could hit $2,000 psf,” it said.
The development plans
UOL Group has said that the plot, which has a maximum permissible gross floor area of 31,699 sqm, will be developed into a 24-25 storey project of more than 370 units.
It expects healthy demand for the Outside Central Region project given that it is the latest Government Land Sales site in Ang Mo Kio in the last seven years.
The last site awarded in this area was in 2013, now the site of The Panorama, by WheelockProperties.
How will this affect pricing of condos with similar attributes?
A launch price of around $2,000 psf in Ang Mo Kio is likely to push the pricing envelope for not only future launches in favoured non-Core Central Region locations, but also fairly new developments with similar attributes to the yet-to-be-built UOL project, such as proximity to an MRT line, among others.
Ohmyhome looked at five such developments that are mostly in the vicinity of the new TEL MRT stations set to open on August 28. Is there some upside in their pricing now given the future AMK Ave 1 development? Will a rising tide float the boats of these older developments?
1) Thomson Impressions
Average Selling Price: $1,608 psf
Location: Lorong Puntong
Tenure: 99 years leasehold
District: 20/ Bishan
Total No. of Units: 288
This project, developed by the Nanshan Group, is 360 metres, or a 4-minute walk, from Bright Hill MRT station (TEL) and is close to Ai Tong School. The development has two 19-storey blocks, as well as five strata landed semi-detached bungalows. Its 1-, 2-, 3- and 4-bedroom units range in size from 463 sqft to 2,121 sqft, while the semi-d/bungalows are just over 2,000 sqft.
2) The Panorama
Average Selling Price: $1,487 psf
Location: Ang Mo Kio Avenue 2
Tenure: 99 years from 2013
District: 20/Ang Mo Kio
Total No. of Units: 698 units
This Pinehill Investments development is 441 metres, or a 5-minute walk, from Mayflower MRT (TEL). It is near Ang Mo Kio Hub and Junction 8 and is within a kilometre of CHIJ St. Nicholas Girls’ School. This development has two 20-storey towers and four 17-storey towers, with units ranging in size from 431 to 2,411 sqft configured in 1- to 5-bedroom units.
3) Thomson Three
Average Selling Price: $1,540 psf
Location: Bright Hill Drive
Tenure: 99 years from 2012
District: 20/ Bishan
Total No. of Units: 435
Thomson Three was developed by United Venture Development and is 416 metres, or a 5-minute walk, away from either Upper Thomson MRT station (TEL) or Thomson Plaza. Its mix of 1-4 bedders (total 445 units) are spread across several 21-storey towers, in sizes ranging from 495 sqft to 3,283 sqft.
Average Selling Price: $1,691 psf
Location: Thomson Lane
District: 12/ Toa Payoh
Total No. of Units: 273
This Times Development project, which comprises 42 storeys and 273 units, is a short drive away to Balestier Hill Shopping Centre and HDB Hub. Caldecott MRT station (TEL) is 1.4-kilometre away while schools nearby include CHIJ Primary (Toa Payoh), CHIJ Secondary and SJI International School. Units here range in size from 1,851 sqft to 5,597 sqft in 3-, 4- and 5-bedroom configurations.
5) The Calrose
Average Selling Price: $1,277 psf
Location: Yio Chu Kang Road
District: 20/Ang Mo Kio
Total No. of Units: 421 units
This development by MCL Land is 234 metres, or a 3-minute walk, from Lentor MRT station (TEL). It is also a short drive away from Ang Mo Kio Hub and Thomson Plaza. The Calrose has 5 floors and 421 units which are configured in 2-, 3- and 4-bedroom units sized from 1,098 sqft to 2,554 sqft.
Frequently Asked Questions
What is Government Land Sales (GLS)?
The Government Land Sales Programme releases Singapore state land for development. Each programme is planned for and announced every six months. GLS sites are released either through the Confirmed List or Reserve List.
Is the Thomson-East Coast Line open?
The Thomson-East Coast Line Stage 2 (TEL2) will open for passenger service from August 28, 2021. The six new stations connect Springleaf, Lentor, Mayflower, Bright Hill, Upper Thomson and Caldecott. The first stage of the line, which connects Woodlands, Woodlands North and Woodlands South, opened in January 2020.