Invest Now Or Wait To Buy A Property In District 15 East Coast?
Updated: Oct 6
Singapore's property market is truly resilient.
With the latest round of cooling measures announced and take effect only half a year 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 at Dunman Road was awarded to the highest bidder, Sing-Haiyi Jade under SingHaiyi Group.
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 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.
(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.
(3) Dunman Road
A mega site at Dunman Road has been awarded to SingHaiyi Group for $1.28 billiion 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.
This is one of the rare few billion-dollar residential sites since Farrer Court's en bloc transaction at $1,338,800,000!
(4) 2H2022 GLS Reserve List - Jalan Tembusu Site
7 new sites were released in 2H2022 GLS programme, 3 of them are confirmed and 4 are under the reserve list.
1 of the sites under the reserve list is a 825-units, 99 years leasehold private housing in Jalan Tembusu. This is near to the GLS site which was awarded to CDL earlier this year.
With all these supply in the pipeline, should you buy now or wait to invest in a unit in District 15?
Let's read on.
Existing New Launches & Inventory Levels In District 15
Firstly, let's check out the existing new launches in District 15. Where are they and what is their existing inventory level?
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 are really very limited units left!
It is no wonder units are flying off the shelves recently!
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 Liv@MB).
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.
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.
(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.
(3) Dunman Road Site
This 99-year leasehold site has been awarded to SingHaiYi at $1.28 billion.
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. Looking at the existing stocks, you might get something suitable in Meyer Mansion, Amber Park or Liv@MB (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 estimated launch price and location of upcoming launches vs existing launches, it makes the price 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.
About The Author
Vivian is an experienced real estate agent who has been in the industry since 2002. Over the years, she has transacted numerous property deals including HDB and private properties. She is well-versed in policies and regulations involving the sale and purchase of residential properties. She has also handled many transactions involving complicated situations like contra, divorce, administration/probate cases, and decoupling / part-share purchases. 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!