News Analysis: Gigantic Grand Dunman draws huge crowd
- SingHaiyi Group’s 1,008-unit Grand Dunman project opened for preview last weekend (largest project launch this month) and attracted 10k visitors
- Key attributes are i) city fringe at much desired District 15; ii) next to Dakota MRT; iii) within 1km of Kong Hwa School
- Indicative price ranges from S$2.4k psf to S$2.5k psf; comparable to recent launches within the vicinity, ie Tembusu Grand (S$2.5k psf) and Continuum (S$2.7k psf)
- All eyes on sell-through rates; strong sales could spur developers’ re-rating from current heavily discounted valuation (0.5x P/B). Top picks are City Dev and GuocoLand
What has happened?
SingHaiyi Group’s Grand Dunman project opened for preview last weekend (1-2 July). It was reported to have attracted 10k visitors to the show flat. According to TheEdge, the last project which saw a crowd of c.10k was Chip Eng Seng’s Park Colonial at Woodleigh which was launched in 2018. Grand Dunman comprises 1,008 units, the largest among the 6-7 property launches this month. It is strategically located next to Dakota MRT (within 2 mins walk) and close to city fringe (5 stops away from Marina Bay Sands). In addition, it is within 1km to Kong Hwa School (another good school). The project offers 1 to 5 bedroom units from unit size 452sqft to 2,217k sqft (excluding Penthouse). We understand there is an exclusive block (in gold) that offers premium quality material (ie marble flooring and etc), private lifts and unblocked view towards Geylang River and Kallang Basin. The project is targeted to be launched for sale on 15 July.
Our View
We visited the show flat today and saw a decent crowd on a weekday afternoon (the carpark was full). According to the property agent, visitors have been largely Singapore residents with some interests from Chinese buyers. Cheques have already been submitted despite the show flat being only opened for 4 days. Given that 1- to 2- bedroom comprises c.50% of the total units, we believe this will attract some purchase for investment purposes. In addition, its location at city fringe (District 15) and next to MRT will likely be attractive for rental market. We understand the indicative average selling price will range from S$2.4k psf to S$2.6k psf, comparable to recent launches at the area such as Tembusu Grand at ASP of S$2.5k psf (53% sold on launch weekend) and Continuum at ASP of S$2.7k psf (27% sold on launch weekend). All eyes on the sell-through rates of these projects. A strong sell-through rate at Grand Dunman will further boost optimism in the residential market given its largest sized project amid the strong line-up of launch this month. Thus, could spur developers’ re-rating from current heavily discounted valuation of 0.5x P/B, -1 standard deviation. Top picks are City Dev and GuocoLand. (Poised for a rebound).
