• Vivian Chong

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

Updated: May 4




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


A mega site at Dunman Road was put up for sale by public tender under the confirmed list of the first half of 2022 (1H2022) Government Land Sale (GLS) program. 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.


With the top bid expected to exceed $1billion, this will be the rare few billion-dollar residential site since Farrer Court's en bloc transaction at $1,338,800,000!


(4) LIV @MB


Last but not least, do you still remember the Katong Park Towers site (located at Arthur Road off Meyer Road) which was en bloc in 2018, just before the cooling measures which were announced in July 2018?


Bukit Sembawang Estate bought the 99-year leasehold site, which sits on an area of 140,758 sqf. At a plot ratio of 2.1, it is going to be developed into 4 blocks of total 298 units.


Straits Times: Katong Park Towers sold to Bukit Sembawang Estates for $345million


LIV @MB is finally going to be launched. To find out more information on this project, contact us here.


katong part towers, east coast, arthur road, meyer road, property
LIV @MB is going to be developed into 4 blocks of total 298 units.

We are excited with the upcoming launches, after all 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 & Stock Levels (Updated 4/5/22)

From the table above, we can see that there are a total of 1515 units (comprising 1 to 5 bedrooms and penthouses) from the 12 new launches in District 15. Out of these 1515 units, there are only 218 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: 15 units left

  • 2-bedroom: 26 units left

  • 3-bedroom: 95 units left

  • 4-bedroom: 56 units left

  • 5-bedroom: 20 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 12 months.


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


amber park meyer mansion coastline residences
Average transacted prices for bigger new launch developments in District 15.

From the above chart, we can see that the average prices range from $2,458psf to $2,639psf.


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



(4) LIV@MB


liv@mb, meyer road, arthur road
LIV@MB will be launched soon in 2Q2022.

Last but not least, let's look at this development which was en bloc just before the July 2018 cooling measures.


LIV@MB is a 99-year leasehold site. It was sold for $345m, or $1,280psf ppr (taking into account an estimated $60m for the lease upgrading premium).


The estimated breakeven price for this project is $1,889psf ppr. LIV@MB will be launched soon in 2nd quarter 2022. What do you think the launch price will be?


LIV@MB, katong park towers, meyer road, arthur
The estimated breakeven price for LIV@MB is $1,889psf. What will the launch price be?

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. Looking at the existing stocks, you might get something suitable in Meyer Mansion or Amber Park (though available units are running low too).


If you are getting a unit from an investment point of view, it makes more sense to get it sooner rather than later.


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


Again, 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 us work the numbers with you.



Make An Appointment


 

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


 

About The Author


Over the past 2 decades, Vivian has transacted numerous real estate deals. She is well versed in property investment solutions like part-purchase (decoupling), buying under trust and the different types of mortgage strategies.


Vivian is also a mother to 2 boys. Being a real estate mom allows her to spend more time with her children as they were growing up. Both boys are avid footballers representing their schools and clubs. She loves watching their games and hardly misses a game whenever they play.

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