• Vivian Chong

Invest Now Or Wait To Buy A Property In District 15 East Coast? (Updated 2022)

Updated: Sep 21




Singapore's property market is truly resilient.


With the latest round of cooling measures announced and take effect only 3 months ago on 16 December 2021, the market is set to frenzy mode again!


A couple of sites were put up for public tender under the Government Land Sale (GLS) program, and another few sites were successfully en bloc.


In today's article, we are zooming in to District 15 East Coast. 2 land parcels at Thiam Siew Avenue were sold in November last year. Another site at nearby Jalan Tembusu was sold via GLS in January this year.


Meanwhile, a mega site was put up for public tender in Dunman Road.


With the upcoming launches and supply in the pipeline for this area, should a property buyer looking in District 15 invest now or wait? We will discuss the following in this article:


Upcoming new launch supply for District 15


Existing new launch supply for District 15


Average prices of existing new launches in District 15


Conclusion: Should I buy now or wait and see?



With the upcoming launches for District 15, should a property buyer invest now or wait?

Upcoming New Launches For District 15


As mentioned above, there are a number of sites which has been sold via en bloc and GLS.


(1) Thiam Siew Avenue


Situated at Thiam Siew Ave between Haig Road and Tanjong Katong Road. 2 land parcels have been sold to a joint venture between Hoi Hup Realty and Sunway Developments. This was the largest residential development site sale since the 2018 cooling measures.


Sitting on a freehold land area of 263,794 sqf and with a plot ratio of 2.8, there are plans by developer to build 2 high rise condominiums with more than 800 units.


Business Times: Thiam Siew Ave freehold sites sold for S$815m; it's biggest housing site sale since 2018 cooling measures



The Thiam Siew Avenue site is the largest residential development site sale since the 2018 cooling measures.

(2) Jalan Tembusu


Near to Thiam Siew Avenue is another plot of land at Jalan Tembusu, which was sold to City Development Limited (CDL) through the GLS program in January 2022.


This plot of land is a 99-years leasehold site. CDL has plans to build 4 blocks of 20 to 21 storeys, with a total of around 640 residential units. According to CDL, the project will enjoy sea views as well as unblocked views of the CBD skyline and Singapore Sports Hub.


Straits Times: CDL bids $768m for Jalan Tembusu site in state land sale



government land sale, district 15, east coast property
The site at Jalan Tembusu was sold to CDL in Jan 2022.

(3) Dunman Road


The mega site at Dunman Road under the confirmed list of the first half of 2022 (1H2022) Government Land Sale (GLS) program has been awarded to SingHaiYi Group!


And guess what is the tender price? A whopping $1.28 billion!


Straits Times: GLS Sites in Dunman Road, Pine Grove awarded to highest bidders


This plot of land is a 99-year leasehold site, with close proximity to Dakota MRT station.


Spanning an area of 271,622 sqf and a plot ratio of 3.5, this site can yield up to 1,040 units.


This Dunman Road mega site is one of the rare billion-dollar residential sites since Farrer Court's en bloc transaction at $1,338,800,000!


(4) 2H2022 GLS Reserve List - Jalan Tembusu Site


Under the 2H2022 GLS programme, 7 new sites were released by the government. 3 of the sites are confirmed while the remaining 4 are under the reserve list.


Under the reserved list, 1 of the sites is a 825-units, 99 years leasehold private housing in District 15 Jalan Tembusu. This site is in close proximity to the GLS site which was awarded to CDL earlier this year (refer to point 2 above)


Jalan tembusu, dunman, thiam siew avenue
A residential site in District 15 Jalan Tembusu has been placed under the reserved list in the 2H2022 GLS programme.

District 15 has always been a highly sought after area with homeowners and investors.


However, with all these supply in the pipeline, should you buy now or wait to invest in a unit in District 15?



Existing New Launches & Stock Levels In District 15


Firstly, let's check out the existing new launches in District 15. Where are they and what is their existing stock level?


District 15 16 projects for sale
Existing District 15 New Launches & Inventory Levels (Updated 20/9/22)

From the table above, we can see that there are a total of 1,744 units (comprising 1 to 5 bedrooms and penthouses) from the 12 new launches in District 15. Out of these 1,744 units, there are only 142 units available for sale in the whole of District 15.


If we were to break down further, these are the available units based on room types:

  • 1-bedroom: 3 units left

  • 2-bedroom: 10 units left

  • 3-bedroom: 86 units left

  • 4-bedroom: 23 units left

  • 5-bedroom: 14 units left

  • Penthouse / others: 6 units left

With limited existing supply, it is no wonder units are flying off the shelves for the past few weeks!


district 15 launches
Units in Meyer Mansion have been flying off the shelves over the past few weeks.

Average Prices Of Existing New Launches In District 15


After looking at the balance stock in District 15, let's now look at the average prices that was transacted for the new launches in the past 6 months.


As most of the new launches are smaller developments, we will focus on the transacted prices for the 3 biggest developments (ie. Liv @MB, Amber Park and Meyer Mansion).


meyer mansion liv@mb amber park
Average transacted prices for bigger new launch developments in District 15.

From the above chart, we can see that the average prices range from $2,416psf to $2,702psf.


Now let's look at the upcoming launches and the estimated prices that they will be launched at.


liv@mb, jalan tembusu, thiam siew avenue, dunman road
Amber Park transacted at an average price of $2,458psf over the past 12 months.

Estimated Launch Price Of Upcoming New Launches In District 15


(1) Thiam Siew Avenue


The freehold site at Thiam Siew Avenue was sold at $815m, or $1,488psf ppr.


According to EdgeProp, the estimated breakeven price is $2,296psf ppr, after factoring in construction, other development cost and marketing cost.


Nicolas Mak, head of research and consultancy at ERA estimated that the launch price of this condominium will be between $2,400 and $2,630 psf.


en bloc, east coast property district 15
Estimated breakeven price for Thiam Siew Avenue site.

(2) Jalan Tembusu


This 99-year leasehold site at Jalan Tembusu was sold at $768m, or $1,302psf ppr.


EdgeProp estimated the estimated breakeven price, after factoring construction, other development and marketing costs, to be at $2,059psf ppr.


According to head of research and consultancy at ERA Nicholas Mak, the estimated selling price for this new project at Jalan Tembusu may be in the range of $2,300 to $2,400 psf.


east coast property, district 15, government land sale
Estimated breakeven price for Jalan Tembusu site.

(3) Dunman Road Site


This 99-year leasehold site was put up by public tender under the GLS program. Tender will close on 2 June 2022.


Spanning a land area of 271,622 sqf and with gross floor area of up to 950,687 sqf, this site can potentially yield around 1,040 residential units.


According to Steven Tan, the CEO of OrangeTee & Tie, the potential selling price of this future development could be in the range of $2,300 to $2,400psf.


Here is one interesting article from Stacked Homes on this site:


StackedHomes: Here's the next mega development: Why this Dunman Road site could attract developer bids of $1.3billion



Conclusion: Should I buy now or wait and see?


The decision to buy now or wait and see really depends on individual needs.


If you are buying for own stay with your family, you might need a 3 or 4-bedroom unit probably in a bigger development with more facilities. From the existing stocks, you might get something suitable in Liv@ MB, Meyer Mansion or Amber Park (though available units are running low too).


If you are getting a 1 or 2-bedroom unit, there are really very limited choices now.


Looking at the estimated price and location of upcoming launches vs existing projects, it makes the price of existing projects attractive. And I think many investors feel the same way, cos units are moving fast.


Therefore, from an investment point of view, it makes more sense to get it sooner rather than later.


However, this is not a call to run out and buy any random property in District 15. There are definitely many factors to consider. Due diligence is a necessity!


Contact us and let me share my insights with you.



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Related Readings


1) Crisis in Ukraine: What is the impact on Singapore Property?


2) Singapore Budget 2022: Impact on Property Owners and Your Property Investments


3) District 16 @ Tanah Merah - Which Property Should I Invest In?


 

About The Author


Vivian joined the real estate industry in 2002.


Over the past 2 decades, she has worked with many clients on their real estate journey. She is well-versed in both HDB and private properties, as well as property investment solutions like part-purchase (decoupling), buying under trust and the different types of mortgage strategies.


Vivian is active in District 15 and 16, and it is easy to find her in the East Coast area stretching from Tanjong Rhu to Bayshore.


Need her views on property related matters? Connect with her and have a non-obligated chat!


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