On July 24, joint venture partners Allgreen Properties and Kerry Properties proceeded with their launch of the 487-unit Pasir Ris 8 integrated development.
A total of 415 units were snapped up, bringing the take-up rate to 85.2% by the close of the day. Prices for the units sold ranged from $1,400 psf to $2,000 psf with an average price of close to $1600 psf, according to Allgreen in an email response.
“The project received very encouraging response from both homeowners and investors,” says Allgreen CEO, Lee Yew Kwung. “There was a good spread of take-up across all the various unit types with the strongest interest displayed particularly for the two-bedroom units.” (See also: Pasir Ris 8: Behind the price increases).
Lee attributes the strong sales to several factors, including Pasir Ris 8 being part of a key integrated development in the remaking of Pasir Ris New Town, the supporting infrastructure of Pasir Ris Mall, as well as good connectivity with Pasir Ris MRT Station and a bus interchange. “In addition, the developers, Allgreen and Kerry Properties have good track records locally and overseas,” he adds. “We understand our customers’ needs and are focused on giving homebuyers quality and good value product that they can be proud of.”
The buyers were said to be a good mix of HDB upgraders buying for owner occupation, as well as investors. “They appreciate the convenience of an integrated development that is linked to a transport hub and a sizeable 260,000 sq ft retail mall,” says Lee.
Ahead of the public launch, Allgreen sold 79 units to staff and purchasers of multiple units at its VIP preview on July 23. The multiple unit purchasers were said to be those buying several units together with family members.
Excluding executive condos (ECs) such as Parc Central and Provence Residence, Pasir Ris 8 is considered the first significant launch of a private condo in the suburbs or Outside Central Region (OCR) this year, and an integrated development as well, says Mark Yip, CEO of Huttons Asia. “In percentage terms, it’s among the best-selling projects this year to date.”
‘Pent-up demand, FOMO’
Nicholas Mak, head of research at ERA Realty, attributes the furious pace of sales to “a combination of pent-up demand and FOMO [fear of missing out]”. There hasn’t been a project launch in the Pasir Ris area since 2014 when the 994-unit Coco Palms was released, he adds.
Adding to the allure of the integrated development, an added bonus is that the Pasir Ris MRT station will be the future interchange for the East-West and Cross Island Lines, points out Lee Liat Yeang, senior partner of Dentons Rodyk’s Corporate Real Estate practice. “The nearby Pasir Ris Park and beach adds to its attractiveness,” says Lee. “I guess such projects are rare to come by, and there are no new projects in Pasir Ris leading to pent-up demand.”
Recent land bids
Beyond the fact that Pasir Ris 8 is an integrated development and attractively priced, “homebuyers and investors drew confidence from the recent land bids for Lentor Central and Tampines St 62 government land sale (GLS) sites which closed on Thursday [July 22],” reckons Ismail Gafoor, CEO of PropNex.
Based on the top bid of $1,204 psf per plot ratio (psf ppr) for Lentor Central, Gafoor expects the selling price of the new private residential project to be close to $2,000 psf. The Tampines Street 62 executive condo (EC) site which received a top bid of $659 psf ppr, is likely to see selling price of around $1,250 psf for the new project, estimates Gafoor. “Those interested in Pasir Ris 8 became even more confident about going ahead with their purchase after seeing these recent bid prices, especially when Pasir Ris 8 is an integrated development,” says Gafoor.
The project has a good spread of one- to four-bedroom units across seven blocks of 10- to 11-storeys. Sizes ranged from 517 sq ft to 1,550 sq ft. All 92 one-bedroom units were taken up. Of the 219 two-bedders, only 10 are still available. Three-bedrooms make up 146 units, of which 100 were sold. Four-bedroom units account for 30 units of which 20 were taken up.
The strong response at Pasir Ris 8 has given a boost to market sentiment, and spurred sales of other OCR projects that were launched earlier. “This should serve as a positive jab on sales momentum of existing new residential projects in nearby Changi and Tampines, as well as fuel demand for the EC projects in the eastern region,” observes Dentons Rodyk’s Lee.
There has been a pick-up in interest in projects such as Casa Al Mare at Jalan Loyang Besar and Parc Komo at Upper Changi Road North. The 49-unit, freehold, Casa Al Mare by developer Sustained Land at Jalan Loyang Besar was launched in August 2018. It has sold 36 units (73.5%) at a median price of $1,596 psf, based on caveats lodged from May to July 15, 2021.
CEL Development’s freehold, mixed-use development, Parc Komo at Upper Changi Road North is one of the beneficiaries. On the back of the launch of Pasir Ris 8, six units at Parc Komo were sold over the past week at an average price of $1,576 psf. The latest sales bring the tally of units sold at Parc Komo to 163 out of a total of 276 units (59%).
“Units will move as long as developers maintain their selling prices at the current levels,” cautions PropNex’s Gafoor. “People are anticipating that the residential market will remain resilient, and that prices will inch up according to the land bid prices.”