Wing Tai sells 23% of LakeGarden Residences at an average price of $2,120 psf on launch weekend

/ EdgeProp Singapore |

August 6, 2023 7:15 PM SGT

Two-bedroom units were the most popular at LakeGarden Residences (Photo: Albert Chua/EdgeProp Singapore)

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Over the weekend of August 5-6, two suburban residential projects in the western region were launched: Wing Tai Holdings' 306-unit LakeGarden Residences private condo on Yuan Ching Road in Jurong and the 360-unit Altura executive condo (EC) in Bukit Batok West Avenue 8.

The LakeGarden Residences registered sales of 71 units, the equivalent of a take-up rate of 23.2% as at 6pm on Sunday, August 6. The average price of units sold was $2,120 psf.

According to Wing Tai, only 209 units in the project were released. Hence the sales translate to 34% of released units.

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The developer says 73% of the buyers are Singaporeans, with Singapore Permanent Residents making up 25%. The remaining 2% are foreigners.

“All unit types were well-received, with the two-bedroom types being the most popular,” says Stacey Ow Yeong, head of marketing at Wing Tai Property Management. “Majority of the buyers are families and upgraders living in the Western part of Singapore. This reflects a healthy demand for private residential units in the up-and-coming Jurong Lake District.”

According to Ow Yeong, units offer “unparalleled views of Jurong Lake Gardens” and lifestyle facilities which focus on wellness and sustainability. She’s confident that The Lake Gardens Residences will continue to attract homebuyers in the vicinity as well as those who are anticipating the strong potential of Jurong Lake District (JLD).

The 306-unit LakeGarden Residences fronts the Jurong Lake Gardens and is situated within the up-and-coming Jurong Lake District. (Photo: Albert Chua/EdgeProp Singapore)

Benefiting from JLD transformation

The LakeGarden Residences is a redevelopment of the former Lakeside Apartments, which Wing Tai purchased en bloc last year for $273.89 million in May. Some buyers of LakeGarden Residences included former owners of Lakeside Apartments, according to PropNex.

Future residents at The LakeGarden Residences will benefit from being at the doorstep of the 90ha Jurong Lake Gardens and its location within the up-and-coming JLD.

Almost 80% of the units sold at the launch of The LakeGarden Residences were one- and two-bedrooms, says Mark Yip, CEO of Huttons Asia. "This shows that investors saw the potential of staying in JLD and took action to secure the future upside," he adds. "Given that there are not many projects by Jurong Lake, the price upside could be huge."

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Plans to develop an integrated tourism attraction and the future Jurong Innovation District will see "JLD transformed into a key commercial and lifestyle hub", says Marcus Chu, CEO of ERA Singapore.

The government has kickstarted the development of the Jurong Business District with the launch of a 6.5 ha master developer site, which opened for tender on June 22. The site, which is an amalgamation of three sites, is estimated to cost at least $5 billion, according to CBRE.

The development of the Jurong Business District "could speed up the transformation of Jurong and benefit the residents in the area", notes Ismail Gafoor, CEO of PropNex.

Over 1,800 groups visited The LakeGardens Residences’ sales gallery in the fortnight leading up to the launch on August 5, with the developer collecting 196 cheques as expressions of interest. (Photo: Wing Tai)

'Buyer fatigue'

The LakeGarden Residences is the first private condo launch in Jurong Lake District since the 710-unit Lake Grande in July 2016. "The take-up rate of 23% fell slightly below our expectations," says Gafoor.

Gafoor attributes the slower sales to "buyer fatigue", with 2,534 new homes launched in quick succession in both the Rest of Central Region (RCR) and Outside Central Region (OCR) last month: the 598-unit Lentor Hills Residences (OCR), the 408-unit The Myst (OCR), the 520-unit Pinetree Hill (RCR) and the 1,008-unit Grand Dunman (RCR). "Buyers are probably taking their time to assess and weigh the available options before committing to a purchase," he says.

Justin Quek, deputy CEO of OrangeTee, agrees that there is some measure of fatigue from the slew of new launches in 2023, with more impending. “Buyers in the OCR market are more sensitive to proximity to amenities like the MRT station and may choose other options that fulfil such requirements,” he says.

Buyers in this market segment are generally looking for a home, observes Quek, and may not be in a hurry to purchase at the start of the launch, with TOP expected only in 2027.

LakeGarden Residences is a redevelopment of the former Lakeside Apartments which Wing Tai purchased en bloc in May last year for $273.89 million. (Source: EdgeProp Landlens)

'Dialing down FOMO'

Next weekend (August 12-13) will see the launch of three other projects – one in each submarket: the 324-unit TMW Maxwell in District 2 (RCR), the 78-unit Orchard Sophia on Sophia Road in District 9 (Core Central Region) and the 105-unit The Arden on Phoenix Road in Bukit Batok (OCR).

Slated for launch sometime in 4Q2023 are two more new private condos in Jurong Lake District (JLD): the 360-unit J'Den, a 40-storey residential tower with a two-storey commercial podium by CapitaLand Development. It's a redevelopment of the former JCube, a mall with an ice-skating rink. J'Den will be connected directly to the Jurong East MRT Interchange Station, the neighbouring Westgate and IMM Building via J-Walk, a covered pedestrian network in JLD.

The other is the 440-unit Sora on Yuan Ching Road, adjacent to The LakeGarden Residences. Sora is a redevelopment of the former Park View Mansions on Yuan Ching Road, acquired en bloc for $260 million by a consortium of Chip Eng Seng, SingHaiyi Group and KSH Holdings in July 2022. Sora will have a 330m frontage along Jurong Lake Gardens.

"The release of more new projects has helped dial down the 'FOMO' [fear of missing out], a contributing factor that spurred buyers to enter the market more quickly in recent years," says Gafoor. "The slowdown in sales reflects buyers taking more time to deliberate before committing to a property purchase."

Some buyers are worried about Singapore's slowing economy, notes Huttons’ Yip. "Others may have held back, waiting for other projects to launch and to do a comparison before committing," he says. "However, each project has unique selling points and caters to individual buyers' needs and wants."

Three-bedroom showflat at LakeGarden Residences. (Photo: Albert Chua/EdgeProp Singapore.)

Prices of new launches 'very competitive'.

The prices for new launches in 2023 have been very competitive, notes Yip, with 99-year leasehold OCR projects in the $2,000-$2,100 psf range and RCR projects in the $2,400-$2,500 psf range. He does not expect prices of new projects to soften in 2H2023.

"Singapore imports almost all of its construction materials, including labour," reasons Yip. "With global inflation stubbornly high, the costs of imported materials and labour are getting higher. Similarly, interest rates have remained high. These have invariably pushed up costs and added to the selling prices of new homes."

Check out the latest listings for The Lakegarden Residences, Lakeside Apartments properties

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