Upcoming launches in prized locations

Feily Sofian
Esther Hoon
/ The Edge Property
November 13, 2015 1:10 PM SGT
At least 25,000 units of private residential and executive condominiums will be looking for buyers over the next two years, on top of the existing launched but unsold stock in the market. Among them, several projects might pique prospective buyers looking for defensive assets.
We lined up upcoming projects located in the city fringe or near regional centres and close to an MRT station, which could hit the market in 4Q2015 and 2016. Notably, there are just a handful of them, amid the sea of projects expected to come onstream over the next two years. Prices are also likely to hold firm, based on the highest bids received for the land parcels.
Potong Pasir MRT station
MCC Land is expected to hold the preview for The Poiz Residences in mid-November. It is one of most anticipated projects, given its mixed-use development status and location right above the Potong Pasir MRT station on the city fringe. The project will offer 731 residential units and 84 retail units, named The Poiz Centre.
Tenders for the site attracted no less than 15 bids. MCC Land’s winning bid of $775 psf per plot ratio (ppr) could potentially translate into a competitive selling price for the project, which includes a retail component.
In June this year, a site for pure residential use near Braddell MRT station was sold to Evia Real Estate and its consortium for $755 psf ppr. Recently, a residential site on Lorong Lew Lian, some 400m from the Serangoon MRT station, drew a top bid of $710 psf ppr.
Based on all their new sale caveats, nearby projects such as Sant Ritz, Sennett Residence and The Venue Residences were transacted at an average price of $1,449 psf. Smaller units of between 500 and 700 sq ft changed hands at an average price of $1,539 psf, while those between 700 and 900 sq ft went for $1,458 psf on average.
On the rental front, nearby Nin Residence, which was completed in 2014, commanded an average monthly rent of $3.39 psf in 3Q2015. The project clocked 18 rental transactions during the period. Based on $3.39 psf rent and an expected selling price of $1,400 to $1,500 psf, the rental yield for new projects near Potong Pasir MRT station would range from 2.7% to 2.9%. While projects that are far from MRT stations may command higher rental yields owing to their smaller price tag, they...