The 372-unit AMO Residence, located off Ang Mo Kio Avenue 1, is the first new project launch in Ang Mo Kio in eight years (Photo: Samuel Isaac Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - The fast-paced sales at AMO Residence wrapped up the evening of July 23 with 98.1% of the 372 units in the project taken up. The average price of units sold is said to be about $2,100 psf, according to sources, which means AMO Residence has set a new benchmark for prices of projects in the Outside Central Region (OCR).
Read also: AMO Residence to open for preview on July 9; prices to start from $1,890 psf
“There is strong underlying demand as it is the first major private residential project in the mature housing estate of Ang Mo Kio in more than eight years,” says Anson Lim, UOL general manager (residential marketing) in a statement.
AMO Residence is a joint development by UOL Group, Singapore Land Group and Kheng Leong Co. The 372-unit, 99-year leasehold condominium is located just off Ang Mo Kio Avenue 1, and is within a five-minute walk of the Mayflower MRT station, 1km range of two popular schools (CHIJ St Nicholas’ Girls School and Ai Tong School) and close to two parks, namely Bishan-Ang Mo Kio Park and Lower Peirce Reservoir Park. “Buyers are mostly owner-occupiers, and based on what we observed, they are particularly attracted to the project’s proximity to Mayflower MRT station, popular schools, lush parks and shopping malls,” adds UOL’s Lim.
AMO Residence is also the first major launch of a residential project in the OCR this year. It is likely to go down in the annals of new residential project launches in Singapore as one of “resounding success”, says Lee Sze Teck, Huttons Asia senior director of research. “The record sales comes on the back of rising interest rates and cooling measures,” adds Lee.
“It is the best-selling project since The Linq @ Beauty World.” The 120-unit, The Linq @ Beauty World is a freehold mixed-use development at Upper Bukit Timah by BBR Holdings, where 115 units (86%) were sold on the first day of launch in November 2020, at an average price of $2,150 psf to $2,200 psf. The project is located in the city fringe neighbourhood of Upper Bukit Timah area in the Rest of Central Region (RCR).
However, if one were to look at 99-year leasehold projects in the OCR, It would be the launch of Hoi Hup Realty’s Hundred Palms Residences executive condo in Yio Chu Kang, says Doris Ong, deputy CEO of ERA Singapore. All 531 units were snapped up on the first day of launch in July 2017 five years ago. "While higher interest rates are still a concern for homebuyers and investors, we see people who are more interested in buying property as a hedge against inflation," she adds. "Even the younger people are more prudent and savvy. Instead of buying a car, they are channeling that money into buying property."
With 365 units sold, AMO Residence has just seven unsold units: two penthouses and five five-bedroom apartments. About 68 units (18.3%) were snapped up at the VIP preview yesterday [July 22], which was open to bulk unit buyers, family members who want to purchase units together. Bulk purchases were said to make up 55 of the 68 units. “This level of interest from bulk purchasers is unusual for an OCR project,” notes Ismail Gafoor, CEO of PropNex.
However, given the fact that the developer had collected close to 1,500 cheques during the preview stage, the project was four times subscribed ahead of its launch. “That means your chance of getting a units is only 25%, based on the number of cheques collected and the fact that there are only 372 units available,” says Gafoor. “As a bulk buyer, you’re able to join the VIP preview and select a unit of your choice. Hence, we see homeowners and investors choosing that route.”
The largest of three penthouses in the development was also sold at the VIP preview on Jul 22. The 2,497 sq ft penthouse is said to have fetched over $6 million ($2,406 psf), according to property agents.
Gafoor attributes the strong sales to the fact that there hasn’t been a new launch in Ang Mo Kio since early 2014, when The Panorama was launched. “People see AMO Residences as a buying opportunity, given Ang Mo Kio’s central location,” he says. “They are also well aware that the selling prices of future projects will not be lower, based on the recent price psf per plot ratio achieved at GLS [government land sale] tenders.”
He points to the GLS tenders that closed in June, where a joint venture between UOL and Singapore Land paid $1,318 psf ppr for the site at Pine Grove Parcel A, and SingHaiyi Group paid $1,350 psf ppr for the site at Dunman Road. The expectation is that the new projects will be launched at prices above $2,300 psf, estimates Gafoor.
Instead of rolling out more property cooling measures, Gafoor expects the government to increase the supply of land via the GLS programme. “The strong demand from Singaporean buyers is due to the dwindling stock of new housing units in the OCR,” he says. “They could also recalibrate the interest rates of the total debt servicing ratio loan framework which is currently pegged at 3.5%.”
According to Huttons’ Lee, the success of AMO Residence shows that “the market is hungry for attractively priced homes in good locations”. “This definitely bodes well for upcoming launches in 2022,” he adds.
Check out the latest listings near AMO Residence, The Linq @ Beauty World, Mayflower MRT station, CHIJ St Nicholas’ Girls School, Ai Tong School