SINGAPORE (EDGEPROP) - Joint venture partners Hoi Hup and Sunway Developments sold 102 units (about 38%) of the 270-unit, freehold Terra Hill over the weekend of Feb 25-26. Situated at the top of Yew Siang Road, off Pasir Panjang Road, Terra Hill is the first freehold private condo launch in the Rest of Central Region (RCR) in 2023. The average price achieved across the units sold was over $2,650 psf.

At Terra Hill, 30 exclusive units make up The Prestige Collection. Twenty-four of the units are 1,894 sq ft, four-bedroom units priced from $5 million, with six 5-bedroom duplex penthouses of 3,035 sq ft. At the launch, seven units in The Prestige Collection were sold at prices averaging above $2,850 psf.

The preview over the past fortnight saw more than 10,000 visitors at the sales gallery along South Buona Vista Road. According to the developer in a media statement, the balloting and booking exercise for Terra Hill held on Feb 24-25 "received an enthusiastic response from the public”.

"The developer's target from the onset of the launch was to sell 100 units," says Ismail Gafoor, CEO of PropNex Realty. "Selling 102 units means they have achieved their target sales and set a new benchmark price."

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The 70% to 85% sales achieved at new project launches last year are unlikely to be repeated this year, according to Gafoor. "Last year, there were 17 new project launches with over 4,000 residential units in total," he estimates. "Up to 47 new project launches with a potential 12,000 new units are expected to be launched this year. So the new supply is three times higher, and buyers have more choices."

Gafoor expects most new project launches this year to achieve about 35% to 40% sales on the launch weekend, especially on the back of higher interest rates and market uncertainty. He points out that Pasir Panjang is one of nine estates outside the Central Area in which URA requires the average unit size of new non-landed residential projects to be 100 sqm. "Terra Hill's unit sizes are, therefore, larger, with higher absolute prices," he says.

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Mark Yip, CEO of Huttons Asia, is of the same view. "The weekend sales achieved at Terra Hill were within expectations," he says. "Sentiment on the ground is still positive. Even after the Budget announcement of the buyer's stamp duty increase, large crowds at show flats indicated that buying interest has not been affected."

Besides The Prestige Collection, Terra Hill has a mix of two-, three- and four-bedroom units in the 240-unit Signature Collection. Two-bedders of 624 to 840 sq ft are priced over $1.5 million. Three-bedroom types comprise 126 units. Sizes range from 904 sq ft to 1,335 sq ft, and prices from $2.3 million. Four-bedroom units from 1,302 to 1,862 sq ft comprise 63 units, with prices of $3.4 million ($2,611 psf).

The previous launch of a new residential project in the area was the 548-unit Kent Ridge Hill Residences in November 2018. It was entirely sold by November 2022, with the latest transaction being the sale of a strata-terraced house for $3.266 million ($1,580 psf). Apartments sold from Jul 1, 2022, to Nov 30, 2022, ranged from $1,644 psf to $2,062 psf, according to caveats lodged with URA Realis.

"However, Kent Ridge Hill Residences is a 99-year leasehold development, and we don't have any recent freehold condominiums for comparison," notes Gafoor. "At an average price above $2,600 psf, Terra Hill is reasonably priced as 99-year leasehold developments in the Outside Central Region have already crossed $2,000 psf."

The last new launch of a freehold development in the vicinity was the 120-unit Bijou in 2014. Completed in 2018 and located directly opposite Pasir Panjang MRT Station, the latest transaction at Bijou was for a 775 sq ft, two-bedroom unit that fetched $1.755 million ($2,265 psf) in late November.

According to Marcus Chu, CEO of ERA Realty Network, there are "few" freehold, non-landed residential developments in the District 5 enclave. Today, he adds that they represent just 14% of transacted private residential non-landed properties in District 5.

Buyers at Terra Hill were predominantly those living in the west, says Huttons' Yip. "There was a good mix of investors and owner-occupiers," he adds. "Both groups of buyers were drawn to the proximity to the future Greater Southern Waterfront, which is starting to take shape."

Terra Hill is a four-minute walk to the Pasir Panjang MRT station on the Circle Line, which "will become a full circle by 2026", says Yip. "This will enhance accessibility to the city centre."

Besides Labrador Tower, an office tower scheduled to complete in 2024, Terra Hill is near places of employment and higher learning, says ERA’s Chu. He adds that it is within 2 km of the Science Park and 3 km of the National University of Singapore (NUS), Biopolis and the Media Hub at one-north.

Check out the latest listings near Terra Hill, Kent Ridge Hill Residences, Bijou, Pasir Panjang MRT Station

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