Singapore Property: Encouraging start for new launches
- Lentor Hills Residences sold 50% or 298 units during launch at an average S$2,080 psf, close to Lentor Modern
- The Myst sold 110 units (27% sell-through) for S$2,057 psf, maintaining D23 recording pricing for new launches
- Encouraging sales momentum overall with > 400 units sold in a week despite a robust launch pipeline.
- Developers estimated to achieve gross margins in excess of 10%-25%
What matters
In one of the busiest weekends for residential new launches for 2023, we saw The Myst and Lentor Hills Residences selling 27% (110 out of 408 units) and 50% (298 out of 598 units) of units respectively over the weekend. This two projects are the first of five new residential launches that will be hitting the market in July’23. The average selling price for The Myst was S$2,057 psf, while Lentor Residences achieved an average selling price of S$2,080 psf, which maintained the onward trajectory for new projects in the outside central region to maintain at the > S$2,000 psf range. Singaporeans and Permanent Resident buyers remain the key drivers of demand, presumably mostly upgraders.
It was a strong showing for Guocoland-Hong Leong’s Lentor Hills Residences which rode on the strong sales momentum of previous launch, Lentor Modern (90% out of 605 units sold at average pricing of S$2,102 psf) located within the vicinity. We note good take-up across various unit type with the one-bedroom and two-bedroom units attracting more buyers, accounting to more than 70% of the units sold during the launch weekend. The Myst launch weekend sale of 110 units is also encouraging in our view, coming on the back of the recent launch of The Reserve Residences (71% of 732 units) located within the same district. Similarly, the one-bedroom and two-bedroom units attracted buyers, given its affordable overall quantum.
Our view
With most one-bedroom and two-bedroom being the most popular types have shown that overall price quantum remains the key consideration for buyers (or investors) who could be affected by the current high interest rates and cloudy economic outlook. That said, with both projects clearing close to c.400 units in total over one weekend is a commendable effort given a robust pipeline of new projects competing for buyers’ attention in the coming weeks. Based on the pricing achieved, we estimate that gross margins in excess of 10%-25% to be achieved.
| Project | Developer | Units | % Singaporeans | Launch | Potential Asking Prices |
| Sceneca Residences | MCC Land | 268 (60% sold at launch) | 88% | 1Q23 | S$2,072 psf achieved |
| Terra Hill | Hoi-Hup and Sunway | 270 (38% sold at launch) | – | 1Q23 | S$2,650 psf achieved |
| The Botany at Dairy Farm | Sim Lian Group | 386 (48% sold at launch) | 85% | 1Q23 | S$2,070 psf achieved |
| Tembusu Grand | CDL / MCL | 638 (53% sold at launch) | 90% | 2Q23 | S$2,450 psf achieved (S$2,300 marketed) |
| Blossoms by the Park | EL Development | 275 (73% sold at launch) | 96% | 2Q23 | S$2,423 psf achieved |
| The Continuum | Hoi Hup and Sunway | 816 (26% sold at launch) | 90% | 2Q23 | S$2,732 psf achieved |
| The Reserve Residences | Far East Org. / Sino Land | 732 (71% sold at launch) | 99% | 2Q23 | S$2,450psf achieved |
| Lentor Hills Residences | Hong Leong / Guocoland / TID | 598 (50% sold at launch) | majority | 3Q23 | c.S$2,080 psf achieved |
| The Myst | CDL | 408 (27% sold at launch) | majority | 3Q23 | S$2,057 psf achieved |
| Altura (Executive Condo) | Qingjian Realty | 375 | – | 3Q23 | S$1,450 psf onwards |
| Grand Dunman | Singhaiyi | 1,008 | 3Q23 | S$2,200 psf onwards | |
| Lakeside Residences | Wingtai | 206 | 3Q23 | S$2,300 psf onwards | |
| The Arden | Qingjian Realty | 105 | 3Q23 | c.S$1,900 psf onwards |
Source: media, DBS Bank
Singapore Property: Encouraging start for new launches
- Lentor Hills Residences sold 50% or 298 units during launch at an average S$2,080 psf, close to Lentor Modern
- The Myst sold 110 units (27% sell-through) for S$2,057 psf, maintaining D23 recording pricing for new launches
- Encouraging sales momentum overall with > 400 units sold in a week despite a robust launch pipeline.
- Developers estimated to achieve gross margins in excess of 10%-25%
What matters
In one of the busiest weekends for residential new launches for 2023, we saw The Myst and Lentor Hills Residences selling 27% (110 out of 408 units) and 50% (298 out of 598 units) of units respectively over the weekend. This two projects are the first of five new residential launches that will be hitting the market in July’23. The average selling price for The Myst was S$2,057 psf, while Lentor Residences achieved an average selling price of S$2,080 psf, which maintained the onward trajectory for new projects in the outside central region to maintain at the > S$2,000 psf range. Singaporeans and Permanent Resident buyers remain the key drivers of demand, presumably mostly upgraders.
It was a strong showing for Guocoland-Hong Leong’s Lentor Hills Residences which rode on the strong sales momentum of previous launch, Lentor Modern (90% out of 605 units sold at average pricing of S$2,102 psf) located within the vicinity. We note good take-up across various unit type with the one-bedroom and two-bedroom units attracting more buyers, accounting to more than 70% of the units sold during the launch weekend. The Myst launch weekend sale of 110 units is also encouraging in our view, coming on the back of the recent launch of The Reserve Residences (71% of 732 units) located within the same district. Similarly, the one-bedroom and two-bedroom units attracted buyers, given its affordable overall quantum.
Our view
With most one-bedroom and two-bedroom being the most popular types have shown that overall price quantum remains the key consideration for buyers (or investors) who could be affected by the current high interest rates and cloudy economic outlook. That said, with both projects clearing close to c.400 units in total over one weekend is a commendable effort given a robust pipeline of new projects competing for buyers’ attention in the coming weeks. Based on the pricing achieved, we estimate that gross margins in excess of 10%-25% to be achieved.
| Project | Developer | Units | % Singaporeans | Launch | Potential Asking Prices |
| Sceneca Residences | MCC Land | 268 (60% sold at launch) | 88% | 1Q23 | S$2,072 psf achieved |
| Terra Hill | Hoi-Hup and Sunway | 270 (38% sold at launch) | – | 1Q23 | S$2,650 psf achieved |
| The Botany at Dairy Farm | Sim Lian Group | 386 (48% sold at launch) | 85% | 1Q23 | S$2,070 psf achieved |
| Tembusu Grand | CDL / MCL | 638 (53% sold at launch) | 90% | 2Q23 | S$2,450 psf achieved (S$2,300 marketed) |
| Blossoms by the Park | EL Development | 275 (73% sold at launch) | 96% | 2Q23 | S$2,423 psf achieved |
| The Continuum | Hoi Hup and Sunway | 816 (26% sold at launch) | 90% | 2Q23 | S$2,732 psf achieved |
| The Reserve Residences | Far East Org. / Sino Land | 732 (71% sold at launch) | 99% | 2Q23 | S$2,450psf achieved |
| Lentor Hills Residences | Hong Leong / Guocoland / TID | 598 (50% sold at launch) | majority | 3Q23 | c.S$2,080 psf achieved |
| The Myst | CDL | 408 (27% sold at launch) | majority | 3Q23 | S$2,057 psf achieved |
| Altura (Executive Condo) | Qingjian Realty | 375 | – | 3Q23 | S$1,450 psf onwards |
| Grand Dunman | Singhaiyi | 1,008 | 3Q23 | S$2,200 psf onwards | |
| Lakeside Residences | Wingtai | 206 | 3Q23 | S$2,300 psf onwards | |
| The Arden | Qingjian Realty | 105 | 3Q23 | c.S$1,900 psf onwards |
Source: media, DBS Bank