The crowd at the preview weekend of The Continuum on April 22 (Photo: Timothy Tay/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - Over the weekend of May 6-7, joint developers Hoi Hup Realty and Sunway Property sold 216 units (26.5%) of their 816-unit freehold condominium, The Continuum. The average price of units sold at the project on Thiam Siew Avenue -- just off Haig Road and Tanjong Katong Road -- was $2,732 psf.
"It's a strong showing considering the recent cooling measures and cloudy economic outlook," says Mark Yip, CEO of Huttons Asia.
In absolute numbers, the sales achieved at The Continuum is on a par with the 206 units sold at the 275-unit Blossoms By The Park, which achieved a 75% sales rate last weekend [April 29-30], notes Ken Low, managing partner of SRI.
Before the launch of The Continuum, the developer collected 545 cheques as expressions of interest during the two weeks of previews. The sales achieved reflect a conversion rate of close to 40%. “This shows that there is a strong following for a beautifully designed product in District 15, especially a sizeable development that also enjoys a freehold tenure,” says Koon Wai Leong, general manager of Hoi Hup Realty.
Showflat of a two-bedroom-plus-study, priced from $1.818 million or from $2,584 psf contributed to 32% of the units sold (Photo: Samuel Isaac Chua/EdgeProp Singapore)
SRI’s Low says the nearly 40% conversion rate is higher than the 20% to 30% average at most launches. For instance, at the 99-year leasehold, Blossoms By The Park, the developer collected 745 cheques before its launch and 2.7 times subscribed. The 206 units sold reflect a sales rate of about 28%.
Located at Slim Barracks Rise in one-north, Blossoms By The Park saw all one- and two-bedroom units sold on April 29. The average price achieved was $2,423 psf. Tembusu Grand, a 99-year leasehold condo located off Tanjong Katong Road, sold 53% of its 638 units at an average price of $2,465 psf on its launch weekend in early April. Over 70% of the units sold were one- and two-bedders.
Therefore, the one glaring factor at The Continuum was the sale of less than a handful of the 61 one-bedroom units at launch. "One-bedroom units appeal to investors who prefer 99-year leasehold condominiums," says Ismail Gafoor, CEO of PropNex. "The lower quantum price compared to a freehold project in the same area also means a higher rental yield."
At The Continuum, the larger units found favour with home buyers. Two-bedroom types priced from $1.67 million accounted for 62% of the units sold over the weekend. Three-bedroom units from $2.306 million made up 29% of the sales. Even the four-bedroom units saw 15 units sold at prices above $3.312 million. The Continuum, being freehold, appeals to upgraders and owner-occupiers who want a legacy to pass to the next generation, adds Gafoor.
Showflat of a three-bedroom unit, where over 26 units were sold from $2.306 million or prices from $2,629 psf (Photo: Samuel Isaac Chua/EdgeProp Singapore)
A premium project by Hoi Hup and Sunway, The Continuum has also enticed first-time homebuyers and retirees looking to right-size, says SRI's Low. He adds that these are primarily residents of the neighbouring established housing estate off Tanjong Katong Road and Dunman Road in prime District 15.
Singaporeans made up 90% of the buyers, according to PropNex, whose sales team handled about 100 of the 211 units sold. Just 10% of the buyers were Singapore Permanent Residents (PRs). "Foreign buyers have taken a backseat since the latest cooling measures on April 27, where additional buyer's stamp duty (ABSD) doubled to 60%," says Gafoor. "They are unlikely to purchase for now as they evaluate the impact of the ABSD and their other options."
It's been almost 20 years since a significant condominium on a freehold plot of over 200,000 sq ft in the Katong area entered the market, notes Huttons' Yip. Before The Continuum, the last such project was Haig Court in 2004.
"The Continuum will be a landmark project in Katong with an iconic bridge connecting two sites," says Yip. "The quality fittings, freehold tenure, proximity to good schools and the Paya Lebar sub-regional centre are other reasons drawing buyers to the project."
The Continuum will have 408 units sitting on two freehold plots linked by a bridge across Thiam Siew Avenue, which is accessible via both Haig Road and Tanjong Katong Road (Source: EdgeProp Landlens)
For large-scale developments with more than 500 units, achieving a 20% to 30% take-up on launch weekend "is a laudable performance," says Gafoor. "Developers have another three to four years to sell the entire project."
SRI's Low agrees. He says that based on the development sites sold in the last two years – both en bloc and government land sales – "there are very few new launches in the pipeline for 2024". Developers will therefore be able to sell out their existing inventory progressively. What’s more, prices of units at The Continuum are “attractive”, with two-bedroom apartments starting from $2,584 psf, he adds. (See potential condos with en bloc calculator)
According to Marcus Chu, CEO of ERA Realty Network, the advantage of a large-scale development like The Continuum is that it is likely to fetch higher prices in the secondary market compared to smaller developments. "Higher visibility of the project leads to increased resale demand and a higher volume of transactions at higher prices," he says.
With the launch of The Continuum this weekend, and that of Tembusu Grand last month, the third project in the pipeline for launch in District 15 is the 99-year leasehold, Grand Dunman. The project by SingHaiyi Group will have 1,008 units and is scheduled for a roll-out sometime in 3Q223.
Check out the latest listings near The Continuum, Blossoms By The Park, Slim Barracks Rise, Tembusu Grand