2 new launch condos near MRT in Q4 2019: Will buyers bite?

With property buyers currently locked in a wait-and-see mentality according to the latest PropertyGuru Consumer Sentiment Survey, the launch of two Q4 2019 new launch condos near MRT stations—Midwood and Sengkang Grand Residences—will be a litmus test for the appeal for new suburban private residential projects in Singapore.

Referring to the two projects, Tan Tee Khoon, Country Manager of PropertyGuru, said that “how they fare will be a good indicator of buyer appetite for Outside of Central Region [OCR] condos in the current market.”

Located in Hillview and Sengkang, these two suburban condos share very different attributes and will likely appeal to different classes of buyers. That said, both projects are within a short walking distance to nearby MRT stations.

“Regardless of market sentiment, MRT accessibility would be a major selling-point for buyers, whether it’s for their own stay or for investment,” Tee Khoon added. “This locational advantage is likely to auger well for sales.”

Located in the private residential enclave of Hillview in District 23, Midwood is nevertheless well-connected to key amenities. The 564-unit, 99-year leasehold condo is sited next to HillV2, a compact, 53,800 sq ft shopping mall with varied dining options and a supermarket.

Midwood is also a five-minute walk (400m) to Hillview MRT station on the Downtown Line, and close to Bukit Timah Expressway and Pan-Island Expressway.

Facilities-wise, it’s worth noting that Midwood will have an on-site childcare centre. Another key differentiating point is the height of the development, with two blocks spaced 120 metres apart that each rise to 29 storeys. The blocks are connected with a six-storey link bridge consisting of a 569-lot carpark, a clubhouse and a 50-metre rooftop infinity pool.

Midwood is expected to attain TOP in 2023.

Given Hong Leong snagged Midwood’s Hillview site at $1,067 psf per plot ratio in a pre-cooling measure Government Land Sales (GLS) bid, property watchers were initially speculating the project’s launch price to hover around $1,700 psf. Some even estimated $1,800 psf, given the site’s proximity to an MRT station.

Contrary to expectation, the developers last week announced “early-bird” launch prices that goes to as low as $1,550 psf for a one-bedroom apartment. Unit prices start from $750,000 ($1,550 psf) for a one-bedroom unit, $1.015 million for a two-bedder, $1.42 million for a three-bedder, and $1.99 million ($1,588 psf) for a four-bedroom unit, which goes up to 1,259 sq ft.

Expecting a robust buyer response to the pricing and value proposition of the condo, the developer, Hong Leong Holdings Limited, touted a 3,500-strong turnout for the Midwood on the preview weekend ahead of the sales launch this weekend (26 October).

The sales gallery for Midwood is located on Elizabeth Drive, near to the site of the project.

For Sengkang Grand Residences, this will be the first suburban condo that is part of an integrated development since the launch of North Park Residences in Yishun in 2015.

Sited atop Buangkok MRT station, the 99-year leasehold development – which forms part of an integrated community and lifestyle hub – comprises 680 residential units spread across nine blocks.

Unlike Midwood, this project is located amidst sprawling HDB heartlands in the northeast region of Singapore. Launch prices for Sengkang Grand Residences stand the range of $1,600 psf.

“There is usually a price premium for integrated developments such as this project with a direct MRT connection. It has better rentability and likely higher resale value.” said Tee Khoon. He also noted that the last sizeable project to be launched in the same postal district (D19) was The Florence Residences, whose recent psf transaction prices hover at the sub-$1,500 region.

Units sizes at Sengkang range from 474 sq ft for a one-bedroom plus study to 1,324 sq ft for a four-bedroom premium plus flexi unit type.

Prices start from $798,000 for a one-bedroom plus study unit, $998,000 for a two-bedder, $1.498 million for a three-bedder, and $2.1 million for a four-bedroom premium plus flexi unit.

Sengkang Grand Residences is expected to attain TOP in 2024.

Complementing the residential component, the integrated development also features a retail mall, hawker centre, community club, childcare centre, community plaza and a bus interchange. The three-storey mall has a gross floor area of 160,000 sq ft.

Developers CapitaLand and City Developments Limited (CDL) clinched the 3.7ha site—the biggest commercial and residential site awarded since 2015—for $777.78 million in August 2018, equating to $924 psf per plot ratio.

The Sengkang Grand Residences sales gallery is located next to Sengkang MRT station and will open its doors for preview this weekend. Bookings will commence from 2 November onwards.