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Convenience is king among property buyers in Singapore, this much is clear. They want a place to call home, but so much the better if home is part of a larger development where they can shop, run errands and seamlessly connect to the MRT as well. Property buyers are prepared to pony up premiums for projects with that extra value and accessibility, to the tune of anywhere between 7 per cent and 19 per cent within their launch year, compared to new sales of leasehold projects in the same district.
The average selling prices and rents of seven such projects - all leasehold projects - launched since 2007 were studied. All commanded premiums over other leasehold projects in their districts. (Marina One was excluded due to insufficient comparables.) These projects make up less than three per cent of the entire private non-landed residential stock in Singapore of about 294,000 units in Q2, going by Urban Renewal Authority (URA) figures, the report said. Rents also often fetch a premium going by the data in Q2. For instance, the median rent at Orchard Residences in Q2 was S$6.73 psf a month, much higher than the overall median rent of non-landed homes in district 9, which was S$4.42 psf per month.
Resale prices of two of the projects studied - Bedok Residences and The Orchard Residences, both already sold out - have also stayed above the median. For instance, Bedok Residences, which is integrated with Bedok Mall and Bedok MRT, fetched a median resale price of S$1,447 psf between Q1 and Q3 this year; leasehold projects in the area went for S$1,089 psf. Orchard Residences' median resale price was S$3,731 psf - above the S$1,849 psf recorded for leasehold projects in that district.
The average selling prices and rents of seven such projects - all leasehold projects - launched since 2007 were studied. All commanded premiums over other leasehold projects in their districts. (Marina One was excluded due to insufficient comparables.) These projects make up less than three per cent of the entire private non-landed residential stock in Singapore of about 294,000 units in Q2, going by Urban Renewal Authority (URA) figures, the report said. Rents also often fetch a premium going by the data in Q2. For instance, the median rent at Orchard Residences in Q2 was S$6.73 psf a month, much higher than the overall median rent of non-landed homes in district 9, which was S$4.42 psf per month.
Resale prices of two of the projects studied - Bedok Residences and The Orchard Residences, both already sold out - have also stayed above the median. For instance, Bedok Residences, which is integrated with Bedok Mall and Bedok MRT, fetched a median resale price of S$1,447 psf between Q1 and Q3 this year; leasehold projects in the area went for S$1,089 psf. Orchard Residences' median resale price was S$3,731 psf - above the S$1,849 psf recorded for leasehold projects in that district.
Exciting new condominium along Upper Serangoon Road integrated with shopping mall & Woodleigh MRT Station
The potential supply of these developments may not meet the demand of buyers in the coming years, given that there are only three projects in the pipeline.
One is the 667-unit Woodleigh Residences developed by Kajima Development and Singapore Press Holdings, which owns The Business Times. Woodleigh Residences will be linked to a 28,000 sq m retail mall, the Woodleigh Village hawker centre, Alkaff Lake and Heritage Walk; it will also offer direct access to Woodleigh MRT station and to Singapore's first air-conditioned underground bus interchange. The only integrated development in District 13 is likely to command a price premium over the vicinity's new launches.
Also upcoming are the Sengkang Central site won by a Capitaland-CDL joint venture, and a 3.8 ha mixed-use white site in Pasir Ris Central, which is up for tender now. Together, these three projects will generate a potential supply of about 2,000 units that could be sold to end-users over the next few years. Such projects are estimated to cost 5 to 10 per cent more for the convenience offered by their "package of amenities", compared to those in the rest of the district, especially those more than a 10-minute walk away.
One is the 667-unit Woodleigh Residences developed by Kajima Development and Singapore Press Holdings, which owns The Business Times. Woodleigh Residences will be linked to a 28,000 sq m retail mall, the Woodleigh Village hawker centre, Alkaff Lake and Heritage Walk; it will also offer direct access to Woodleigh MRT station and to Singapore's first air-conditioned underground bus interchange. The only integrated development in District 13 is likely to command a price premium over the vicinity's new launches.
Also upcoming are the Sengkang Central site won by a Capitaland-CDL joint venture, and a 3.8 ha mixed-use white site in Pasir Ris Central, which is up for tender now. Together, these three projects will generate a potential supply of about 2,000 units that could be sold to end-users over the next few years. Such projects are estimated to cost 5 to 10 per cent more for the convenience offered by their "package of amenities", compared to those in the rest of the district, especially those more than a 10-minute walk away.
Park Colonial conveniently located beside Woodleigh MRT, future shopping mall & aircon bus interchange
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