SINGAPORE (EDGEPROP) - Property developer and construction firm Sim Lian Group took three years to sell all 2,203 units at Treasure at Tampines. It achieved this feat by Feb 13, 2022.

Treasure at Tampines is scheduled for completion by September, ahead of the original Dec 31 completion date. Since late last year, homebuyers have inundated the developer with calls about when they can move in.

“We are encouraged that Treasure at Tampines, Singapore’s largest private condominium is well-received and fully sold within three years of its launch,” says Kuik Sing Beng, managing director of Sim Lian Land. “We are continually looking for development sites with good attributes and locality to add to our portfolio of residential developments.”

Sim Lian has found a site with these attributes in the 168,597.28 sq ft, 99-year leasehold site at Dairy Farm Walk, which it purchased in March last year. It emerged at the top of seven bids at the close of the government land sale (GLS) tender and won the site for $347 million or $980 psf per plot ratio (psf ppr). The new development on the site, the 386-unit The Botany at Dairy Farm, is expected to preview on Feb 18, with sales to start on Mar 4.

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Read more: New launch The Botany at Dairy Farm to preview on Feb 18, prices start from $998,000

While Tampines is an urbanised regional centre, the Dairy Farm neighbourhood is surrounded by greenery. Nearby are nature parks such as the Dairy Farm Nature Reserve, Bukit Timah Nature Reserve and Bukit Timah Hill. Chestnut Nature Park — Singapore’s largest nature park — is also close by, as are Zhenghua Nature Park, Bukit Batok Town Park and the 24km Rail Corridor.

“Imagine having a 75ha nature park in your backyard,” says PropNex CEO Ismail Gafoor. PropNex is the appointed marketing agency for The Botany jointly with ERA, Huttons Asia and OrangeTee & Tie.

Gafoor adds that The Botany is just a three-minute walk from Dairy Farm Nature Park, while the Rail Corridor is just a three-minute cycle away. “Many homebuyers today desire to be close to nature,” he says. “There is a greater emphasis on greenery and a sense of well-being.”

Amenities within and in the vicinity

The Botany has five blocks of 9- to 15-storeys and a footprint covering 30% of the site area. Landscaping and condominium facilities comprise 70% of the site, including five swimming pools, a tennis court and a “grand clubhouse”. Within the clubhouse are a co-working space for working from home, a function room, a gym and an open terrace overlooking the swimming pool.

The developer has also incorporated private corners and open-air communal spaces within the landscaped area. There is also a parcel collection station, a dining facility for those who want to entertain guests, and wellness areas. “We saw an opportunity to plan for more private and green spaces within the development, as we notice that residents in the Dairy Farm area tend to appreciate being close to nature,” says Sim Lian’s Kuik.

The development is within an eight to nine-minute walk of the Hillview MRT Station on the Downtown Line. From there, it is just two stops to Bukit Panjang MRT Station, an integrated transport hub that includes the LRT station and bus interchange, and two stops from the future Beauty World integrated transport hub.

Direct buses to Orchard Road, Somerset area, Woodlands, Marine Parade and Eunos are also available. Residents of The Botany will enjoy a complimentary shuttle bus service for a year to the Bukit Panjang integrated transport hub, which is linked to Hillion Mall. Developed by Sim Lian, Hillion Mall opened in 2017 and is part of a mixed-use development that includes the 546-unit Hillion Residences.

“It’s less than a 10-minute walk to the Hillview MRT Station and a three-minute drive to the Bukit Timah Expressway,” says Mark Yip, CEO of Huttons Asia. “It has good connectivity to different parts of the island.”

Rental potential

Across the road from The Botany is the German European School Singapore. The campus opened in 2018 and has a student body of 1,800, representing 68 nationalities. Local primary schools within a 1km radius include CHIJ (Our Lady Queen of Peace) and Bukit Panjang Primary School. Other schools nearby include Ngee Ann Polytechnic, Middleton International School, and St Francis Methodist School.

Given its location, The Botany is expected to appeal to both owner-occupiers and investors. The residential development has a mix of one-bedroom-plus-study to five-bedroom units.

One-bedroom-plus-study sizes range from 506 sq ft to 710 sq ft and comprise 36 units (9.3%). There is a wide range of two-bedroom to two-bedroom-plus-study units, with sizes from 603 sq ft to 904 sq ft. They make up 104 units (27%) of total units.

Three-bedroom types account for 175 units (45.3%). They are a mix of regular to premium and those that come with a “flexi-space” and a study. Sizes range from 883 sq ft to 1,281 sq ft. Four-bedroom units make up 57 units (14.8%), ranging from 1,270 to 1,518 sq ft. The remaining 14 units are five-bedroom units of 1,5399 to 1,765 sq ft.

Huttons’ Yip expects to see “healthy interest” for the one- and two-bedroom units. For investors who are looking at rental potential, the appeal will be the fact that The Botany is next to the German European School, he adds.

The units at The Botany are designed “with efficiency and liveability in mind”, notes Yip. The appeal of the two-bedders is the dumbbell design and the fact that the kitchen can be enclosed. He adds that the common bedrooms for the two- to four-bedroom units can comfortably fit a queen-sized bed.

‘No other new supply’

The last new condominium project in the Dairy Farm neighbourhood was Dairy Farm Residences next door to The Botany. All 460 units at Dairy Farm Residences were taken up within 21⁄2 years of its launch in November 2019. According to caveats lodged to date, the average selling price achieved was $1,616 psf to date.

Dairy Farm Residences is a 99-year leasehold, mixed-use development with a two-storey, 40,000 sq ft retail mall named Dairy Farm Mall. The mixed-use development is scheduled for completion by the end of this year. Dairy Farm Mall will have a 10,000 sq ft FairPrice Finest supermarket, a childcare centre, cafes, and hair and nail spas. “It’s just across the road and a two-minute walk from The Botany,” says Sim Lian’s Kuik.

Retail centres within a short drive or MRT ride include HillV2 Mall, The Rail Mall, Junction 10, Hillion Mall and Bukit Panjang Plaza. Bukit Panjang Hawker Centre, Bukit Timah Wet Market and Food Centre, and Beauty World Centre are also nearby, providing “added convenience to home-owners”, says Kuik.

With Dairy Farm Residences entirely sold, there is no other supply of new homes in the vicinity, observes Yip. According to Huttons Research, projects that obtained Temporary Occupation Permit (TOP) in 2022 saw prices increase by 20% from their initial launch. Huttons, therefore, projects the average selling price of Dairy Farm Residences to be “around $1,940 psf” upon completion later this year.

With launch prices of executive condominiums now above $1,350 psf, homebuyers accept that $2,000 psf is “a fair price” for new suburban, 99-year leasehold condominiums, says PropNex’s Gafoor. Being among the first buyers at a new launch also ensures a greater potential for capital appreciation, adds Gafoor.

At Sim Lian’s Treasure at Tampines, for example, the average price of units sold by the developer from November 2019 to February 2022 was $1,356 psf. In sub-sales from April 2022 to Feb 3 this year, the average price of units transacted was $1,544 psf or 13.9% higher, based on caveats lodged. “Hence, people are more comfortable buying at a new project launch from a developer as the developer will try to hold the prices steady,” says Gafoor.

First-mover advantage

While there may not be other new launches in the Dairy Farm area, elsewhere in District 23, a 99-year leasehold condominium project slated for launch sometime in 2Q2023 is City Developments’ 408-unit The Myst at Upper Bukit Timah Road (redevelopment of the former Tan Chong industrial building).

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Another condominium expected to debut sometime in 3Q2023 is Far East Organization and Sino Group’s joint project, The Reserve Residences at Jalan Anak Bukit. It is part of a mixed-use development that is linked directly to the future Beauty World integrated transport hub.

As these subsequent projects could be launched at higher prices, “homebuyers who want first-mover advantage may consider The Botany”, says Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.

Buyers at The Botany are also assured of “future appreciation”, according to Marcus Chu, CEO of APAC Realty and ERA Pacific. This is because the neighbouring residential development site has yet to be released for sale. The future development is expected to be launched at a higher price psf.

PropNex’s Gafoor sees The Botany attracting predominantly Singaporean homebuyers. He expects the project to sell at least 50% of the units at the weekend launch in early March. “Any project launch that achieves 50% sales on the first weekend is considered successful, especially with the higher price points, elevated mortgage rates and higher buyer’s stamp duties.”

Check out the latest listings near Treasure at Tampines, Dairy Farm Residences, Hillion Residences, Hillview MRT Station, Bukit Panjang MRT Station, CHIJ (Our Lady Queen of Peace), Bukit Panjang Primary School

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