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By the end of the day, 415 apartments had been sold, bringing the take-up rate to 85.2 percent. According to an email answer from Allgreen, prices for the units sold ranged from $1,400 psf to $2,000 psf, with an average price of close to $1600 psf.
“Both residents and investors responded positively to the project,” says Lee Yew Kwung, CEO of Allgreen. “There was a decent range of interest across all of the different unit categories, with the two-bedroom flats showing the most interest.”
Pasir Ris 8 is part of a crucial integrated development in the remaking of Pasir Ris New Town, with the supporting infrastructure of Pasir Ris Mall, as well as solid connectivity with Pasir Ris bus interchange and MRT Station, according to Lee. “Moreover, the developers, Allgreen and Kerry Properties, have strong local and international track records,” he says. “We understand our consumers’ demands and are committed to providing them with a high-quality, well-priced product they can be proud of.”
The buyers were claimed to be a mix of HDB upgraders and investors looking to acquire for their own use. “They value the convenience of an integrated development next to a transportation hub and a large 260,000-square-foot shopping mall,” Lee explains.
At its VIP preview on July 23, Allgreen sold 79 apartments to staff and multi-unit buyers ahead of the public debut. Those who bought many units with family members were said to be the multiple unit purchasers.
Pasir Ris 8 is the first big launch of a private condo in the suburbs or Outside Central Region (OCR) this year, not including executive condos (ECs) such as Parc Central and Provence Residence, according to Mark Yip, CEO of Huttons Asia. “In terms of proportion, it’s one of the best-selling projects so far this year.”
Pent Up Demand
The frantic rate of transactions is attributed to “a mixture of pent-up demand and Fear Of Missing Out (FOMO)” according to Nicholas Mak, head of research at ERA Realty. He says that there hasn’t been a project launch in the Pasir Ris area since the 994-unit Coco Palms in 2014.
According to Lee Liat Yeang, senior partner of Dentons Rodyk’s Corporate Real Estate practice, the Pasir Ris MRT station will be the future interchange for the East-West and Cross Island Lines, adding to the appeal of the integrated development. “Its attractiveness is enhanced by the proximity to Pasir Ris Park and beach,” says Lee. “I suppose such projects are hard to come by, and there aren’t any new ones in Pasir Ris, so there’s a lot of demand.”
Land bids that have recently occurred
“Recent land bids for Lentor Central and Tampines St 62 government land sale (GLS) sites boast confidence to homebuyera and investors, which ended on Thursday [July 22],” says Ismail Gafoor, CEO of PropNex.
Gafoor forecasts the selling price of the new private residential project to be close to $2,000 psf, based on the best bid of $1,204 psf per plot ratio (psf ppr) for Lentor Central. According to Gafoor, the Tampines Street 62 executive condo (EC) site, which earned a top bid of $659 psf ppr, is expected to sell for roughly $1,250 psf for the new project. “After witnessing these recent bid prices, those interested in Pasir Ris 8 got even more confident about moving ahead with their purchase, especially as Pasir Ris 8 is an integrated development,” says Gafoor.
The project consists of seven 10- to 11-story blocks with a fair mix of one- to four-bedroom units. The sizes ranged from 517 to 1,550 square feet. The 92 one-bedroom flats were all occupied. Only 10 of the 219 two-bedders are still available. There are 146 three-bedroom units, 100 of which have been sold. Thirty four-bedroom units were available, with 20 of them being occupied.
Spill Over Effect
The positive response at Pasir Ris 8 has boosted market sentiment and boosted sales of other OCR projects that had previously been introduced. Dentons Rodyk’s Lee adds, “This should act as a positive jab on sales velocity of current new residential developments in neighboring Changi and Tampines, as well as boost demand for EC projects in the eastern region.”
Interest in developments like Casa Al Mare on Jalan Loyang Besar and Parc Komo on Upper Changi Road North has increased. Sustained Land developed Casa Al Mare, a 49-unit freehold development at Jalan Loyang Besar, in August 2018. Based on caveats lodged between May and July 15, 2021, it has sold 36 units (73.5%) at a median price of $1,596 psf.
Parc Komo, a freehold mixed-use development by CEL Development on Upper Changi Road North, is one of the winners. Six units in Parc Komo were sold in the last week following the launch of Pasir Ris 8 at an average price of $1,576 psf. The new sales raise the overall number of apartments sold at Parc Komo to 163 out of 276. (59 percent ).
“Units will move as long as developers keep selling prices at current levels,” warns Gafoor of PropNex. “People are expecting the residential market to stay resilient, with prices rising in lockstep with land bid values.”