Botanique at Bartley - Space Customisation

Liam Wee Sing, UOL Group’s president of property, is confident of Bartley’s potential as an up-and-coming city-fringe location. “It’s like Tiong Bahru 10 years ago,” he says. “Everyone laughed at us when we first bought en bloc sale sites there because they thought it was an area with an ageing population. But, given its city-fringe location, it has been gentrified and has now become a hip area.”

UOL had changed the perception of Tiong Bahru as an area for retirees a decade ago with the launch of a series of freehold private condominiums such as the 234-unit Twin Regency in 2004, the 84-unit Regency Suites in 2005 and the 158-unit The Regency at Tiong Bahru a year later. That brought a new generation of young families, singles and couples to the neighbourhood.

When most people think of the Bartley area, they tend to associate it with the Mount Vernon crematorium and the Bidadari cemetery. The crematorium closed in 2004, and the corpses at the Bidadari cemetery were exhumed in 2002. The area will be turned into the Bidadari Estate, with 10,000 public flats and 1,000 private homes, under the URA Master Plan. And people’s perception of the area is starting to change, notes Liam. UOL Group’s introduction of dual-key flexi units at Botanique at Bartley could make the area an attractive residential zone for people of all ages. The dual-key flexi units are likely to appeal to both investors and multi-generational families.

The showflats of Botanique at Bartley feature prototype two- and three-bedroom dual-key flexi units. A departure from the typical dual-key units that share a common main entrance, the three-bedroom flexi unit with du- al-key option is designed with two separate main entrances to an interconnected unit, ex- plains Liam. Typical three-bedroom flexi units at Botanique at Bartley are 1,130 to 1,356 sq ft, while the two-bedroom flexi units are 732 to 956 sq ft.

“The flexi units will give homeowners some flexibility to customise their interior spaces ac- cording to their lifestyle needs at different stages of their lives,” says Liam. “The dual-key option will appeal to both owner-occupiers and investors.” Multi-generational families can live under one roof without compromising on privacy, while investors can live in their unit and lease out space at the same time, he adds. Dual-key units have taken various forms over the past decade. They first surfaced as units for multi-generational living in November 2006, when the 382-unit The Metropolitan, located next to the Redhill MRT station, was launched by CapitaLand and Lippo Group. Frasers Centrepoint championed the dual-key concept at two of its projects launched in 2009 — the 712-unit The Caspian at Lakeside and the 330-unit 8@Woodleigh at Potong Pasir. In 2012, the developer created a brand for its dual-key units called “Trio”. At North Park Residences, its 920-unit condo located within an integrated development in Yishun, Frasers Centrepoint introduced “Trio” loft units.

Some developers have offered homebuyers some form of customisation at their up- scale condos. For example, Far East Organization introduced its “white plan” concept under its Inessence brand at its luxury condo developments such as the 28-unit Boulevard Vue in 2007 and the 50-unit Alba at Cairnhill Rise in 2009. The developer introduced “white SOHOs” at The Seawind in Telok Kurau. They are basically loft units with high ceilings and platforms to provide homeowners with addi- tional storage or usage space.

Mainland Chinese developer Qingjian Realty pioneered “CoSpace” for its Ecopolitan executive condo (EC) project in 2013. The CoSpace was reintroduced at the launch of its two other EC projects late last year — the 561-unit Belle- woods in Woodlands and 651-unit Bellewaters on Anchorvale Crescent in Sengkang — giving homebuyers flexibility in turning the addition- al space into an expanded walk-in wardrobe or en suite study. Early last month, Qingjian also introduced its “CoSpace Flexi”, which offers homebuyers bare units that they can customise to suit their needs. The move also translates into savings of $30,000 to $45,000 for each unit.

‘Good to have’

Dual-key and flexi units may come in different shapes and sizes, but what is clear is that an increasing number of developers are providing homebuyers with more options for space customisation. “In the current market scenario, it’s a good option to have,” says Alvin Tan, senior director of Savills Singapore. Savills, Huttons and Knight Frank are the joint marketing agents of UOL’s Botanique at Bartley. With sentiment cautious as a result of worries about falling prices and rents, fears of oversupply, and buying restrictions from the introduction of the additional buyer’s stamp duty (ABSD) and total debt servicing ratio, homebuyers have become very discerning and price-sensitive. “With all the measures in place, they feel like they have only one shot at buying a home today, and they want to make sure that they buy the right one,” notes Savills’ Tan. “When homebuyers look at a new launch, they will consider the demand-supply dynamics in the particular location, whether there is a growth story that can enhance the future value of their property and accessibility in terms of public transport, amenities and schools,” says Liam. “Once all these boxes are checked, they will then zoom in on the layout and efficiency of the units, the design specifications and the reputation of the developer.”

Even though Botanique at Bartley is a mid- tier project, UOL is offering purchasers luxury specifications and finishing: full marble flooring for the living and dining room, American oak timber flooring for the bedrooms and SMEG kitchen appliances. The specifications for the development are on a par with those of UOL’s Thomson Three in District 20, an established residential estate on Upper Thom- son Road, and Seventy St Patrick’s in prime district 15 in the east.

As at end-February, only eight units remained unsold at the 445-unit Thomson Three, a joint-venture project between UOL and its sister company, Singapore Land. The latest median price achieved was $1,383 psf. At Seventy St Patrick’s, which is also by UOL, close to 80% of the 186-unit freehold project has been sold, with only 38 units remaining as at end-February. The latest median price achieved was $1,699 psf, according to URA.

UOL intends to price the 797-unit Botanique at Bartley at an average price of $1,300 psf. Based on the indicative price, about 70% of the units will cost less than $1 million. “That does not mean that all the units are shoebox apartments,” Liam says. Typical one-bedroom units start from 495 sq ft, while two-bed- room units are from 657 sq ft and three-bed- room units, from 1,033 sq ft. The three-bed- room premium units can go up to 1,270 sq ft. All the bedrooms in each unit of the project can fit a queen-sized bed with the exception of the helper’s bedroom, which fits a single bed, according to Liam. At least 70% of the units will have a view of either the landscaped gardens or water features, and there will even be one-bedroom units with a wide frontage to maximise views.

The preview of Botanique at Bartley starts on the weekend of March 21 and 22, with the official launch scheduled for a fortnight later. It will be the third residential project to be launched in the Bartley area.

According to property agents, Botanique at Bartley has been seeing “healthy interest” among potential homebuyers. It is located within a three-minute walk of the Bartley MRT station and in the vicinity of top school Maris Stella High School.

The first private condo project to be launched in the Bartley area was the 702-unit Bartley Residences in 2012. The 99-year leasehold project by listed property group City Developments Ltd (CDL) and its privately held parent company Hong Leong Group was fully sold with- in a year of its launch, at an average price of

$1,200 psf.

The second project was the 868-unit Bart- ley Ridge, a 99-year leasehold project jointly developed by CDL, Hong Leong and TID Pte Ltd (a joint venture between Hong Leong and Mitsui Fudosan). Launched in March 2013, only 25 units remained unsold as at end-February. Transactions from December to February ranged from $1,084 to $1,215 psf, according to caveats lodged with URA Realis.

“The Bartley area has gained acceptance, given the success of the two earlier projects that were launched, one of which [Bartley Residences] is fully sold and the other [Bartley Ridge] is 97% sold,” says Liam. “And in terms of future supply, there is only one other small site located opposite ours. So, there isn’t much supply downstream, and whatever has been launched upstream is already substantially sold.”

UOL had purchased the Botanique at Bart- ley site in January 2014 for $648 psf per plot ratio (ppr). Analysts estimate the break-even price for the project to be around $1,100 psf. UOL’s purchase price psf for the site was 4.3% higher than the $621 psf ppr paid by CDL and Hong Leong for the Bartley Residences site in 2011. CDL, Hong Leong and TID paid a more cautious $498 psf ppr for the Bartley Ridge site in January 2012, a month after the ABSD was rolled out.

Another 99-year leasehold residential project in the pipeline for launch this year is UOL’s 663- unit condo on Prince Charles Crescent. UOL and the privately held Kheng Leong Group paid $463.1 million, or $821 psf ppr, for the site, which was purchased in April last year. It is about 14.5% lower in terms of price psf ppr compared with the $960 psf ppr paid for an adjacent 99-year leasehold site in September 2012 by the consortium comprising Wing Tai Holdings, Metro Holdings and UE E&C. That site has since been launched as The Crest. The 469-unit project opened for sale last October, and 66 units were sold as at end-February, with the latest median price at $1,640 psf. “Our project on Prince Charles Crescent will be launched later this year, and it’s an exciting site,” says Liam. About 80% of the 294,712.5 sq ft, 99-year leasehold parcel will be open space. It fronts the Alexandra Canal and the Alexandra park connector on one side, and on the other sides, it overlooks the Good Class Bungalow area of Jervois Road, Mount Echo Park and Bishopsgate.

Last year, UOL made its maiden foray into London, buying the Heron Plaza site from UK developer Gerald Ronson of Heron International. UOL paid £97 million ($199.8 million) for the site located on Bishopsgate in the City of London. The Heron Plaza site has already obtained planning approval for the development of a 43-storey tower with 562,000 sq ft of gross floor area. It can be developed into a 190-room hotel with 109 residential units sit- ting on the higher floors. There are conservation shophouses on the site that will be turned into retail space. However, UOL is seeking approval to intensify the use of the space and to add more hotel rooms and residential units. The hotel block will be Pan Pacific’s flagship hotel in the UK and Europe.

The new residential development in Lon- don will be launched in 2016. It could be show- cased in Singapore, says Liam. “We saw a clear value proposition for the site, as it is located just 200m from the Liverpool Street station and the future Crossrail station and will be a game changer when it is completed in 2018.” The residential market in Singapore is expected to remain challenging this year with the property cooling measures still in place, says Liam. “Volatility is the new norm, so it’s a matter of how we navigate despite such volatility.”