New condo launches to look forward to in H1 2017

Regardless of how soft the property market gets, developers have to keep building. The good news is, we’ll see a lot of different new condo launches despite the apparent downturn. And if prices don’t pick up by the time they’re built, there’ll be a lot of smiling home owners (and also a lot of developers sitting in showrooms with black faces).

If that happens, we suggest against yelling “Wah, why so cheap ah!” until you’re out of earshot. In the meantime, here’s the list of new condo launches to look out for in H1 2017:

1. The Clement Canopy

The Clement Canopy is the first of the new condo launches situated along Clementi Avenue 1. You may have seen the land parcel if you’re in the area – it’s between Clementi Avenue 1 and Ayer Rajah Expressway, and it’s near Nan Hua High School and the National University of Singapore (NUS) School of Maths and Science.

This project is a joint venture by UOL and Singland Homes, consisting of 18 storeys and 460 units. It’s a 99 year leasehold condo, and the expected completion date is 2020.

While there isn’t much detail available on each unit yet, we know they range from single to four bedroom units. Knowing UOL, the finishings will be high-end. These were the same developers who built Nassim Park Residences; while they are not confined to the luxury property market, they are known for high standards.

Location wise, there are two main advantages.

The first is that Clementi is a mature district, that has seen a lot of improvements over the past few years. The emergence of Clementi Mall, along with Star Vista and the neighbourhood IKEA, make it a convenient enclave. The Clementi 448 market and food centre, also provides good and affordable eateries.

The second advantage is for anyone studying at NUS. As you might know, this major university is about as conveniently located as a well-hidden corpse in a murder mystery. It’s out of the way is what we’re saying; and this is one of few residences that provides easy access if you or your children are studying there.

The main drawback to this project is its far distance from the Clementi MRT station. This is mainly residence for drivers, who will like the quick access to the Ayer Rajah Express, and are just a few minutes drive from a variety of major retail malls. Otherwise, we expect there will be a shuttle service for residents, if you don’t mind using those.

We don’t know the exact prices, but at the top bid of $302.1 million for the land, the break-even price would be around $1,100 per square foot. This is according to the official website.

2. ARTRA

Artra is a new development next to the Redhill MRT station. This is a 99 year leasehold project, expected to consist of 400 units and 43 storeys. Artra is one of the few integrated developments in the area, and the project is expected to include one childcare center, one supermarket, and 15 retail stores.

Great World City and Anchorpoint malls are nearby, so these can be considered major amenities for this project. The expected TOP date is 2021.

The nearby Alex Residences (probably a direct competitor to Artra given its proximity) has units going for $1,600 to $1,700 per square foot. You can check out the details on this via 99.co‘s listings. Based on these numbers, along with Artra being new and close to the MRT stations, we’d guess the price range is upward of $1,700 per square foot.

The big plus to Artra is its being next door to Redhill MRT. The area itself is also mature, with plenty of amenities and major malls to keep residents entertained. The nearby Tiong Bahru has a lot of bustle, and is something of a hipster enclave. This should appeal to home buyers who don’t like to travel to town often.

For landlords, we’re not entirely certain; besides Alex Residences (429 units), Artra is also close to Echelon (508 units). Another 400 units may be an oversupply issue, when it comes to attracting tenants; any landlords here will likely face stiff price competition. That’s not what you need in the current weak rental market for new condo launches.

Still, long term prospects for rental are quite solid, as is the case in most mature districts.

3. INZ Residence EC

INZ residence is an Executive Condominium (EC), along Choa Chu Kang Avenue 5. It’s developed by Qingjian Realty, and you know it will be fancy because its name looks like a typo. This is a 99 year leasehold unit, consisting of nine blocks of 15 to 16 storeys. There are around 490 units.

Residents who want to get away from the glass and concrete city scape will like the location; but it’s a good distance from the Choa Chu Kang and South View MRT stations. Lot One Shopper’s Mall would the biggest retail and entertainment area for this new launch project.

In terms of price, we expect INZ to be amongst the most affordable new offerings. Wandervale, which is the closest unit for comparison, consistently fetches prices of between $760 to $780 per square foot, as you can see on 99.co.

INZ will probably sell well, on the basis of its EC status alone. As we’ve seen throughout 2016 and 2017, ECs tend to remain popular despite the softening market – the lure of private property, subsidised by the government, is still huge. There’s also a lot of room for capital appreciation, given the continued development of the Jurong Lake District.

This is enhanced by the affordability of the units; people buying in this location are getting in on the ground floor, and getting a good buy before prices rise.

The drawback to INZ is that it’s not super accessible, and quite far from the central region. This could be off-putting to some tenants, if you’re looking to rent out. If you’re a home owner, you may want to hesitate if you don’t drive.

4. Seaside Residences

This is an East Coast property along Siglap Link. You’d never guess from the name, but the big selling point of Seaside Residences is that you get a big, unobstructed view of the sea (well, if your unit is high up that is. In our experience, the bottom five floors of any “sea view” condo get a view of the tree line of the sea, and maybe one bored security guard).

The units, like Costa Del Sol further down the road, have a gigantic window (practically a glass wall) that overlooks row upon row of cargo ships. Enjoy nature at its finest!

(But seriously, the way the ships light up the night outside your window is beautiful).

The development is by Frasers Centrepoint. It’s a 99 year leasehold unit, and the exact number of units is still to be determined. The expected TOP date is 2020.

Due to its proximity to Katong, a major culinary hub of Singapore, residents will gain weight but smile about it. This is the place to stay if you’re a foodie, with the increasingly hipster cafes along Joo Chiat complemented by 112 Katong and Parkway Parade. Don’t forget the famous Katong laksa, the chicken rice in the basement of Katong Shopping Centre, and the fact that medical science makes unclogging arteries easier every year.

According to the official website, the price paid by the developer was about $858 per square foot. Based on that, we’d guesstimate a price upward of $1,550 per square foot.

One big advantage to this project is the upcoming Siglap MRT station, which will be less than a five minute walk way. It’s also good for home owners who like a laid back lifestyle – just good food and slow walks by the beach, as opposed to the bustle of central area living.

In the meantime however, you’ll have to live with the inaccessibility. There really isn’t a convenient MRT station in sight, so you’d better like busses and Uber if you don’t drive.

5. Grandeur Park Residences

Grandeur Park Residences is by CEL Developments, and it’s located at the junction of New Upper Changi Road and Bedok South Avenue 3. It’s a three minutes walk to the Tanah Merah MRT station, and it’s a 99 year leasehold development with 720 units. Expected completion date is 2021.

The main worry with Grandeur Park Residences is oversupply of new condo launches in the area. With several other residences nearby, such as Optima@ Tanah Merah, the Glades, and Eco, landlords will see a lot of competition for tenants. There will probably a spiel about how you’ll have an abundance of tenants anyway, given proximity to the airport and the SIA training centre. Don’t be too quick to believe it. The writer rents out a unit at Changi Court, which is right next to the SIA training centre and is also close to the airport; my rental income has fallen from around $3,700 a month to $2,900 a month. There are not loads of pilots and air stewards rushing to rent new condo launches “near the airport”.

That being said, we note that all the residences around Grandeur Park Residences have mostly sold out; that’s a good sign, given the sluggish property market around 2016. This remains a solid location for affordable private residences, and home owners who are not obsessing over capital gains or rental yields should check it out.

The Glades has an average price of $1,380 per square foot, as you can see on 99.co. Grandeur Park Residences will be within this range, perhaps a bit higher due to the proximity of the MRT station.

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