Updated: Nov 1, 2022
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:
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.
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.
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!
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)
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?
Existing District 15 New Launches & Inventory Levels (Updated 6/10/22)
From the table above, we can see that there are a total of 1,766 units (comprising 1 to 5 bedrooms and penthouses) from the 13 new launches in District 15. Out of these 1,766 units, there are only 156 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: 9 units left
3-bedroom: 88 units left
4-bedroom: 32 units left
5-bedroom: 14 units left
Penthouse / others: 10 units left
Buyers looking for 1 or 2 bedroom units, there is really very limited supply.
It is no wonder units are flying off the shelves for the past few weeks!
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).
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.
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.
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.
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:
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.
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.
Read more about her: www.vivianchong.sg