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On the weekend of July 10–11, Allgreen Properties will start their preview of Pasir Ris 8, a 487-unit integrated development with seven residential blocks covering the fourth to eleventh floors, a parking on the third level, and a two-story retail center on the first level that opens out to a town square.
The town plaza is connected to a central greenway with cycling and residential routes that go to the beach, which are less than 10 minutes away. There includes a polyclinic, as well as easy access to an air-conditioned bus interchange and Pasir Ris MRT Station, which is planned to become the Cross Island and East-West Lines’ interchange station.
The integrated development, when finished, would be a major component of Pasir Ris town’s “Remaking our Heartland” strategy and “will serve as a community focal point,” according to HDB.
Rare Opportunity for Homebuyers looking for Integrated Development with Transport Hub
Allgreen CEO Lee Yew Kwung was “thrilled” when the white site for the integrated development at Pasir Ris was released for sale in August 2018 under the two-envelope method of idea and pricing income. He adds, “We thought it was a once-in-a-lifetime chance to create a mixed-use development linked with a transportation hub, where we can be a part of Pasir Ris’ change.”
Lee was formerly at CapitaLand before joining Allgreen in September 2017. He was engaged in the construction of the 583-unit Bedok Residences, which sit above the three-story Bedok Mall, which has 220,000 square feet of retail space. It is linked to the Bedok MRT Station and the air-conditioned Bedok bus interchange as part of an integrated development.
Queues had developed days before Bedok Residences went on sale a decade ago, in November 2011. On the first day of sales, 350 apartments were sold for an average of $1,350psf. Based on caveats filed for the first half of 2021, apartments completed in 2015 have sold for a median price of $1,512 psf.
Allgreen’s Lee believes that the construction of Bedok Residences and Bedok Mall has taught him and his team valuable lessons. He is sure that they would be able to build “something new” at the Pasir Ris integrated development, which will be the focal point of the town’s revitalization.
Artist’s depiction of the 487-unit Pasir Ris 8, which is connected immediately to the Pasir Ris bus interchange and Pasir Ris MRT station, which will act as an interchange for both the East-West and Cross Island Lines.
In March 2019, Allgreen and its joint-venture partner, Kerry Properties, purchased the 400,000 sq ft white property in Pasir Ris for almost $700 million ($685 psf per plot ratio or ppr). Allgreen and Kerry Properties have collaborated on Pasir Ris 8 for the first time in Singapore. However, it is unlikely to be their last performance. The two were partners in the recent bid for the white property on Jalan Anak Bukit, which ended on June 29. A two-envelope system was also used to conduct the tender.
Developers Track Record
Both Allgreen and Kerry Properties are owned by the Kuok Group of Companies, which is led by 97-year-old billionaire Robert Kuok, Malaysia’s wealthiest man with a net worth of US$12.2 billion ($16.4 billion), according to Forbes’ most recent ranking in June 2021.
Given Allgreen’s expertise in managing retail malls in Singapore, including Great World City and Tanglin Mall in the premium Orchard-Tanglin region, the planned mall in Pasir Ris will be managed as well. The mall’s net lettable area (NLA) is projected to be 250,000 square feet.
“Today, Pasir Ris does not have a mall of this size,” Lee points out. “We aim to develop fresh experiences that would appeal to Pasir Ris 8 inhabitants and people in the surrounding area.” The retail component of the project will be called “Pasir Ris Mall,” but the name has yet to be approved by the government.
More about Pasir Ris 8 Integrated Development
The integrated development Pasir Ris 8, was inspired by its fortunate address: 8 Pasir Ris Drive 8. Despite the fact that the property was granted in March 2019 — a year before the Covid-19 epidemic — Allgreen had foreseen the need for “greater flexibility of space use” inside the flats, since unit sizes are getting more cramped in general, according to Lee.
At the entryway, each unit will feature a built-in cabinet for umbrella storage and package delivery.
A flexible space with dual access — from the kitchen and the living room — is available in three and four-bedroom homes. It’s perfect for a maid’s quarters, a utility room, or a study. The master bedroom has a walk-in closet that also serves as a dressing area, which is located next to the master bathroom.
The kitchen counter in two-bedroom apartments has a swivel-top side table that can be stored when not in use. Outside the shared bathroom, there is a hidden storage area with an ironing board. For seclusion, one-bedroom apartments include a sliding door panel that separates the living area from the main bedroom. A flip-top dressing table that serves as a workstation will be offered in the master bedroom. A pull-out table is also included in the kitchen.
“We expect that after Covid, more people will work from home, necessitating greater space,” adds Lee. He says that the balcony has been built so that people may work from it if they want.
The communal spaces and the clubhouse will feature a free WiFi network, allowing individuals to work from wherever inside the complex. Coworking pods have been installed in the clubhouse area allowing individuals to plug in and work. Coffee and tea will be available from a self-serve pantry. Comfortable seats and ceiling fans will be installed in some of the outdoor pavilions to create a peaceful, resort atmosphere that is suited to both work and leisure.
While Allgreen has yet to announce a pricing, PropNex CEO Ismail Gafoor believes it will be in the region of “$1,700 to $1,800 psf.” He adds that smaller units may be priced “somewhat more.”
This is in keeping with the previous announcements of integrated development projects in the Outer Central Region (OCR). The 680-unit Sengkang Grand Residences, for example, opened in November 2019 near the North-East Line’s Buangkok MRT Station. That month, units sold for a median price of $1,744 per square foot. Units were sold for a median price of $1,691 per square foot during the last three months, from April to June 2021.
Due to a scarcity of land, prices have risen dramatically in the last two years. PropNex’s Gafoor cites the government’s recent land auction of a 99-year leasehold condominium property on Ang Mo Kio Avenue 1, which attracted 15 bids and concluded at the end of May. The highest offer was $381.4 million, or $1,118 per square foot per year. The new condominium building is expected to start selling at $2,000 per square foot at this pricing, according to Gafoor.
According to Lee Sze Teck, head of research at Huttons Asia, generally integrated projects demand a premium of 20% to 25% above other residential buildings in the same location.
About Pasir Ris Town
As of March 2018, there were about 108,400 people living in 29,654 existing HDB-managed public housing apartments in Pasir Ris municipality. “Pasir Ris is an established HDB estate, so there is a big pool of HDB upgraders looking for a private condominium with a resort-style feel,” adds Gafoor. “The project stands out in terms of location, convenience, and diversity of facilities within easy reach since it is so near to Pasir Ris Park, the beach, and the Changi resorts.”
According to Nicholas Mak, head of research at ERA Realty, there haven’t been any major new private condominium developments built in Pasir Ris in recent years. The Coco Palms at Pasir Ris Grove, a 994-unit 99-year leasehold private condo, was the most current. The condominium first opened its doors in May 2014, with a median price per square foot of $1,040. According to URA Realis, the median price per square foot for apartments sold in the last six months was $1,234 psf.
The freehold Casa Al Mere in Jalan Loyang Besar, however, is the most recent debut of a private residential complex in Pasir Ris, with just 49 apartments. The property, which opened in August 2018, saw apartments sell for a median price of $1,597 psf.
“A lot has been written about waterfront living in Punggol,” says ERA’s Mak, “but Pasir Ris is an unknown coastal community.” “It features a park close to the ocean, and major job clusters like Tampines Regional Centre, Changi Business Park, and Changi Aviation Park are nearby.”
According to Mak, Pasir Ris 8 should benefit from the fact that there have been few project debuts in the OCR this year. He believes the project would appeal to current inhabitants in Singapore’s east and northeast areas. “Those who reside in the east and northeast areas should also be drawn to the Pasir Ris Mall,” he adds. “Because it’s the new child on the block, residents in Pasir Ris and Tampines will be the target market over time.”
According to EdgeProp Singapore’s study, there are just 14 integrated condos that have been finished, with four more under construction, including Pasir Ris 8.
According to Mark Yip, CEO of Huttons Asia, “Buyers have demonstrated a preference for integrated projects because of the ease of connection and facilities they provide.” “We anticipate high demand for Pasir Ris 8,” adds Yip, citing a robust HDB resale market since 2020 and an unique integrated development connected to the future MRT interchange station at Pasir Ris.
In the run-up to the launch of Pasir Ris 8, PropNex’s Gafoor estimates that the project would get more than 500 checks as expressions of interest.