INSIGHTS: Reasons behind stellar sales at J’den
By Elizabeth Choong
/ EdgeProp Singapore |
Scale model of J’den (Picture: Samuel Isacc Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - As part of the Master Plan for Jurong Lake District (JLD), URA intends for JLD to become Singapore’s next largest business district outside the CBD. By 2040 to 2050, JLD is projected to create 100,000 new jobs and have 20,000 new homes, which will add to the one million residents already living in the West Region. More than 100 ha of parks and a 70-ha lake, with over 10 km of active waterfront, are integral parts of the plans for JLD. Additionally, there will be an integrated transport hub next to the Jurong East MRT Station by 2028.
To kickstart the transformation, a white site in JLD was launched for tender in June under the government land sales programme. The 6.5-ha site comprises three land plots that will connect the existing commercial centre near Jurong East MRT Station to the new precinct and the future Jurong Lake District MRT Station on the Cross Island Line. The tender for the project will close in March next year.
Stellar sales performance of J’den
J’den is located along Jurong East Central 1 in District 22 and the Jurong East Planning Area. The 99-year leasehold condo is a redevelopment of JCube, a mall renowned for its Olympic-size ice rink. J’den will feature 368 condo units and a two-storey retail podium. The mixed-use development is expected to obtain it temporary occupation permit (TOP) in 2028.
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J’den was launched earlier this month and achieved a take-up rate of 88% at an average price of $2,451 psf during the launch weekend. The popularity of the condo among buyers may have been bolstered by its strategic location within JLD.
The connectivity and convenience that future residents of J’den will enjoy could have also contributed to the high take-up rate. The condo is a short walk to the dual-line Jurong East MRT Station, which will serve as an interchange station for the Jurong Region Line upon its completion in 2028. Additionally, Jurong East MRT Station is only one stop away from Clementi MRT Station, slated to be an interchange station for the Cross Island Line upon its completion in 2032.
Future residents of J’den will be within walking distance of three malls namely Jem, IMM, and Westgate. This is in addition to the retail podium within the development. Other amenities within a 1km radius include Fuhua Primary School, an upcoming integrated transport hub, Snow City, Singapore Science Centre, Jurong Regional Library, Jurong Community Hospital, Ng Teng Fong General Hospital, Genting Hotel Jurong, and the Ayer Rajah Expressway.
Lastly, sales for J’den could have received a boost due to pent-up demand for new condos in the vicinity. J Gateway is the latest condo development in the neighbourhood before the launch of J’den. J Gateway was launched in 2013 and obtained TOP in 2016. The 738-unit leasehold condo achieved a take-up rate of 92.7% during the month it was launched.
Smaller units were more popular with buyers
A detailed examination of J’den’s sales transactions lodged with URA indicates a preference among buyers for smaller units. At the time of writing, only one unit of one-bedder and two one-bedroom + study units remained unsold. Similar sales patterns were observed for slightly larger units, with one two-bedroom unit and six two-bedroom + study units still available.
A reason for the popularity of the smaller units in J’den could be their generous size compared to similar unit types in other new condos. The one-bedroom and one-bedroom + study units are above 500 sq ft in size, while the two-bedroom and two-bedroom + study units are about 700 sq ft and 800 sq ft, respectively. The ample size of these units makes them spacious enough for a small family.
Floor layout and total price matters
The one-bedroom + study units in J’den have a lower take-up rate compared to the one-bedroom units. This could be due to a higher total price resulting from their larger size. The one-bedroom + study units are larger than their one-bedroom counterparts by 97 sq ft. Based on the transacted prices for both unit types, the average price for the one-bedroom units is $1.32 million, which is about $240,000 higher than the average price of $1.56 million for the one-bedroom + study units.
Furthermore, the master bedroom and bathroom for the one-bedroom units are located next to each other, thus allowing buyers to have an en-suite master bedroom. However, the study is positioned between the master bedroom and bathroom for the one-bedroom + study units. As such, buyers will need to do some renovation to reconfigure the floor layout if they want an en-suite master bedroom. Unfortunately for buyers, there is only one floor plan type for both one-bedroom and one-bedroom + study units in J’den.
Buyers prefer enclosed kitchen
Among the two-bedroom + study units, those with floor plan type Bs1 still have six unsold units, but units with floor plan type Bs2 are all sold. There are only two types of floor plans for two-bedroom + study units in the development.
A reason could be that floor plan type Bs2 (850 sq ft) is slightly larger than type Bs1 (818 sq ft) although both floor plans share a similar dumbbell layout. Despite the larger size, units with floor plan type Bs2 are only about $70,000 more expensive than their counterparts with floor plan type Bs1. Based on sales transactions lodged with URA, the average prices for types Bs1 and Bs2 are $2.12 million and $2.19 million, respectively.
Another significant difference in both floor layouts is the location of the kitchen. Type Bs2 allows the kitchen to be semi or even fully enclosed easily. The main door of the unit opens into a small foyer, and the kitchen is located adjacent to the main door. However, the main door opens directly into the kitchen for units with the type Bs1 layout, thus making it difficult to enclose the kitchen. The strong sales performance for type Bs2 would indicate that buyers not only prefer an enclosed kitchen but are also willing to pay more for one.
View helps to boost sales
Among the three-bedroom units, units in Stack 3 are all sold, but those in Stack 7 have a take-up rate of 70.3%. This is despite both stacks having similar floor layouts and sizes. Units in Stack 7 are slightly larger than those in Stack 3 by a mere 43 sq ft.
A reason for the disparity in sales performance could be the potential views from both stacks. Future residents in Stack 3 could enjoy unblocked views of the Lake Pool, while those in Stack 7 are likely to have views of the Floating Pavilion.
Based on transacted prices, the average prices for units in Stacks 3 and 7 are $2.65 million and $2.70 million, respectively, translating to a price difference of about $50,000. Units in Stack 7 (1,184 sq ft) are slightly larger than their counterparts in Stack 3 (1,141 sq ft), which could account for the price disparity. Sales for Stack 3 could have benefited from the better potential view as well as the higher total price for Stack 7. These two stacks are the only ones with three-bedroom units in the development.
Average transacted prices for different unit types
Based on the 315 sales transactions recorded in URA Realis, the average transacted price for J’den is $2,453 psf. The average transacted price for different flat types ranged from $2,302 psf for three-bedroom units to $2,581 psf for two-bedroom + study units.
Resale prices of neighbouring condos
There are only two condos located within a 500m radius of J’den. Both condos are leasehold developments in District 22 and the Jurong East Planning Area. However, they differ greatly in terms of age. Ivory Heights is a 654-unit development that obtained TOP in the 1990s, while J Gateway is a 738-unit development that obtained TOP in 2016.
As J Gateway is much newer than Ivory Heights, it is not surprising that the average resale price for J Gateway is consistently higher than the resale price for Ivory Heights. Resale prices for J Gateway are also trending above prices for leasehold condos in the same district. The current average resale price for J Gateway is $1,926 psf, significantly higher than Ivory Heights ($1,016 psf) and leasehold condos in District 22 ($1,434 psf).
Despite having a lower resale price than J Gateway, Ivory Heights has achieved a stronger price growth of 37.9% since 2017 compared to J Gateway (11.5%). However, the price growth achieved for both condos pales in comparison to the 50.2% price growth achieved by leasehold condos in the same district. The transformative plans for JLD could have given a boost to resale prices for condos in District 22, while the robust growth for Ivory Heights could be in anticipation of a future collective sale.
New condo prices for the West Region given a boost by plans for JLD
Since 2014, the average price for new leasehold condos islandwide has consistently been above their counterparts in District 22 and the West Region. The current average price for new leasehold condos in District 22 is $2,205 psf, currently lower than those in the West Region ($2,295 psf) and islandwide ($2,414 psf). Since 2012, price growth is much stronger for new condos in District 22 (107%) than in the West Region (64%). However, this still pales in comparison to the price growth for condos islandwide (118%).
It is notable that the overall average price for J’den is higher than its counterparts in District 22 and the West Region, and marginally higher than similar units islandwide. The launch prices for J’den would have taken into account URA’s plans for JLD, which could explain its higher launch price. Furthermore, mixed developments tend to command higher prices on the back of more amenities and convenience for future residents.
Conclusion
The outstanding sales performance of J’den underscores the importance of location for a condo development. J’den is well-located beside a dual-line MRT station that is slated to feature a third MRT line. Additionally, the development has three bustling malls within walking distance. The upcoming development of JLD is also expected to have positive spillover benefits for future residents. Furthermore, mixed developments tend to command higher prices on the back of added convenience for future residents.
A deep dive into the sales transactions for J’den also gives us several insights into buyers’ preferences. Developers might wish to note that buyers continue to favour water views, en-suite bedrooms, and enclosed kitchens.
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