Mori at Geylang to Launch from $1,680psf

Teo Hong Lim, the executive chairman of Singapore-listed property giant Roxy-Pacific Holdings, grew up in the Geylang neighborhood in the 1970s. Teo Kok Leong, the company’s founder, has been a real estate developer since 1958. The older Teo used to run his company from the ground floor of a three-story building in Geylang’s Lorong 12 while his family lived above.

 

Past Project – Arena Residences

Arena Residences, located off Guillemard Road, is a redevelopment of four residential properties on Guillemard Lane that Roxy-Pacific acquired and combined. The locations are near Chen Li Presbyterian Church, which has been on Guillemard Road for more than 90 years. Teo had attended the church’s kindergarten when he was younger. As a result, he says, his purchase was partially motivated by nostalgia.

In September 2017, the first two properties at 12 and 14 Guillemard Lane were acquired for $22.5 million, followed by the remaining two sites at 2 and 6 Guillemard Lane for $33.5 million in October 2017. The outcome is a freehold 25,601 sq ft land on which the new 14-story Arena Residences are now being built and are expected to be completed in 3Q2022.

The 98-unit Arena Residences were completed in November 2018 and are now completely sold out. Roxy-Pacific developed ten residential projects in Singapore between April 2018 and October 2019, totaling 849 units. Six of the ten developments have sold out, bringing the total number of units sold to 766 and a 90 percent sales rate across the board.

 

Previous enbloc at Jalan Molek

When inventory was limited in November, Roxy-Pacific paid $93 million for 15 terraced house along Guillemard Road and Jalan Molek. It was the biggest private residential sale in 2020, bolstering speculation that developers were still looking for land to construct. It was also a watershed moment for Teo, since it was his second acquisition of land in the Guillemard region.

 

About Mori Condo at Guillemard

The 137-unit Mori, which is located on Guillemard Road and Jalan Molek, has a Japanese-inspired style with two residential buildings, one with five storeys and the other with eight. Given the degree of competition from other residential buildings that have sprouted up in the neighborhood in recent years, Roxy-Pacific paid close attention to Mori’s design, unit arrangement, and amenities.

According to Teo, unit sizes in Roxy-current Pacific’s residential portfolio are larger than normal. One-bedroom condos at Mori start at 484 square feet, with two-bedroom units starting at 710 square feet and three-bedroom units starting at 958 square feet. There are just two four-bedroom units in the property, each measuring 1,259 square feet. Additional storage spaces, a pullout kitchen tabletop, an additional vanity mirror in the master bathroom, and European brand fixtures such as Gessi faucets and Roca sanitaryware for the bathrooms, Bosch kitchen appliances, Blanco kitchen sink and mixer, and De Dietrich washer-dryer are among the amenities included in the apartments.

“We put a lot of attention into the usefulness and practicality of the arrangement of our apartment interiors throughout our design process,” Teo explains.

The light color scheme will be used in one- and two-bedroom homes, while the dark color scheme will be used in three- and four-bedroom units. “Although the color palette is different, the same principle applies in terms of the features and amenities,” Teo says.

 

Freehold Property with a City Fringe Address at Mori

Mori’s entrance price ranges from $1,680 psf to $1,900 psf, with the average price hovering around $1,900 psf.

The pricing are enticing,” adds Ismail Gafoor, CEO of PropNex, “since freehold houses often fetch a 20% premium over leased properties in the same location.” “A 20% premium reduction would result in an average of $1,520 per square foot for a 99-year leasehold property on the city outskirts.” The new 99-year leasehold projects that will be announced next year will sell for about $1,900 psf, based on bids in the Northumberland Road, Ang Mo Kio Avenue 1 and Lentor Central government land auctions.

Mori is a freehold property, which means it may be passed down to future generations, according to Gafoor. “The freehold tenure and city edge position to the East attract a large number of people who feel the property’s worth will be protected throughout time.” Gafoor forecasts high buyer demand at Mori, with the HDB resale market continuing brisk and suburban private condo releases decreasing.

According to Lee Sze Teck, senior head of research at Huttons Asia, “the Guillemard neighborhood is regarded to be at an excellent city edge position, a short drive from the CBD and the Paya Lebar business center.” Food centers and shops, as well as sporting facilities like the Badminton Hall in Geylang and the Singapore Sports Hub, are among the area’s features. He points out that these are beneficial to both homeowners and renters.

Mori, according to Lee, is drawing more than just the typical buyer profile, such as investors or singles. “The availability of large three- and four-bedroom flats may also attract families,” he adds.
Suntec City and Marina Bay are just a 10-minute drive away, and three MRT stations — Aljunied, Dakota, and Mountbatten — are all within walking distance. Mori is within 1km of Kong Hwa School and Geylang Methodist School, making it ideal for families with school-aged children (Primary and Secondary).

The Old Airport Road Food Centre, the old Singapore Badminton Hall, renamed Guillemard Village, Tanjong Rhu Pau & Confectionery, and cafés such as Brawn & Brains Coffee and Grapevine @ Guillemard are all located in the Guillemard neighbourhood. According to Roxy-Teo, Pacific’s “the Guillemard region is getting gentrified.” “It’s on the outskirts of Geylang, with a mix of trendy cafés and traditional restaurants,” says the author. The Dakota area’s HDB flats are just across the street.”

PropNex’s Gafoor feels that the Guillemard neighborhood has its own distinct flavor. “Three MRT stations serve it, while the Nicoll Highway, East Coast Park Expressway, and Kallang-Paya Lebar Expressway link it to the Katong and Joo Chiat areas, as well as Suntec City, Marina Bay, and the CBD,” he says.

Mori is located next to Rezi 24, a 110-unit freehold condominium built by a joint venture of KSH Holdings, Heeton Holdings, and SLB Development. The project, which began in 2019, is nearly completely sold out, with 109 of the 110 homes sold by the end of October.

A few doors down is Macly Group’s 50-unit Noma, which opened in August of last year and is now completely sold out. This year will also see the completion of Macly Group’s 33 Residences, an adjacent boutique building. Private property developer Macly Group also built the 275-unit Guillemard Edge adjacent, which was completed in 2017.

Mori’s arrival, according to Doris Ong, deputy CEO of ERA Realty, would contribute to the neighborhood’s revitalization. “With these new condominium complexes mushrooming in the region and F&B establishments that are targeting the young,” she adds, “the whole cityscape is changing.” “It has the potential to be the next Tiong Bahru.”

Singaporeans, according to Nicholas Mak, director of research at ERA Realty, will make up the bulk of the purchasers. Singaporeans accounted for 83.2 percent of all residential property purchases in 3Q2021, up from 79.5 percent in 1Q2019, according to ERA Research. “That’s a 5% rise,” he points out. “In this environment, Singaporeans continue to be the majority of homebuyers, both in new launches and in the resale market.”

 

Roxy Pacific Projects in the Pipeline

Following the introduction of Mori, Roxy-Pacific is working on a new project that will be released next year. It’s a brand-new boutique condominium along River Valley Road on Institution Hill. Roxy-Pacific was part of a joint venture that paid $33.6 million in February for two 999-year leasehold residential plots at 10A and 10B Institution Hill.

Macly Group, a privately owned property developer, leads the joint venture for the acquisition of the Institution Hill properties, with a 48 percent share, Roxy-Pacific 42 percent, and LWH Holdings (previously Lim Wen Heng Construction) 10 percent. The plots have a total land area of 14,399 square feet, with a maximum floor size of 40,040 square feet when combined. It will be converted into a new 60-unit residential building.

Roxy-Pacific will keep looking for potential building locations. “However, I find today’s land prices to be pretty mind-boggling,” Teo admits. “Land costs are greater, and building costs are higher, and they will continue to be higher.” As a result, he says, the property group will be “conservative for the time being.”