Joint venture partner Hoi Hup, and Sunway Developments sold 102 units (about 38%) of the 270-unit freehold Terra Hill over the weekend between February 25 and 26. It is located on the uppermost part of Yew Siang Road, off Pasir Panjang Road, Terra Hill is the first private condominium launch that is freehold located in the Rest of Central Region (RCR) in 2023. The median price for those units was greater than $2,650 per sq ft.
At Terra Hill thirty exclusive units form The Prestige Collection. 24 of them are 1,894 sq ft., four-bedroom apartments priced as low as $5 million. Six of them are penthouses with five bedrooms that are 3,035 square feet. The launch was a success seven units from the Prestige Collection were offered for sale for a price that was higher than $2,850 per square foot.
The preview of the past week was attended by more than 10,000 people at the sales area on South Buona Vista Road. The developer in a press release the voting and booking procedure to Terra Hill held on Feb 24-25 “received the most enthusiastic reaction from the general public”.
“The initial goal for the developer at the time of debut was selling 100 units” states Ismail Gafoor, CEO of PropNex Realty. “Selling 102 units indicates they’ve met their goal sales and have set the new value benchmark.”
70% to 85% or 85% sales that were made at the new projects in the past year are not likely to be replicated this year as per Gafoor. “Last year there were 17 brand new projects launched, with more than 4000 residential units,” he estimates. “Up up to 47 brand new project launches , with an estimated 12,000 new units are anticipated to be announced this year. This means that the supply will be three times greater and buyers are able to choose from a wider selection.”
Gafoor believes that the majority of new projects launched this year to see 35% to 40% sales over the weekend of the launch, particularly due to increased rates of interest and uncertainty in the market. He explains the fact that Pasir Panjang is one of nine estates that are not part of in the Central Area in which URA stipulates that the minimum unit size for new residential developments that are not landed to be 100 square metres. “Terra Hill’s units are therefore larger and with higher absolute costs,” he says.
Mark Yip, CEO of Huttons Asia, is of the same opinion. “The weekend sales that were achieved in Terra Hill were within expectations,” he says. “Sentiment about the situation is positive. Even after Budget announcement about the stamp duty hike for buyers huge crowds at shows flats showed that interest in buying is not affected.”
In addition to the Prestige Collection, Terra Hill offers a variety of three- and four-bedroom apartments of the 240 unit Signature Collection. Two-bedroom units ranging from 624 to 840 square feet are priced at more than $1.5 million. Three-bedroom types comprise 126 units. The sizes range from 904 sq ft up to 1,335 square feet, with prices range from $2.3 million. Four-bedroom units ranging from 1,302 sq ft to 1,862 sq ft are 64 units, and costs in the range of $3.4 million ($2,611 per square foot).
The first announcement of a brand new residential development in the region included the five-48 unit Kent Ridge Hill Residences in November of 2018. It was completely sold by the end of November 2022, with the most recent transaction being that of selling a strata-terraced home in the area for $3.266 million ($1,580 per square foot). Apartments that were sold from July 1st of 2022 until November 30, 2022 were priced from $1,644 per square foot to $2,062 per sq ft, according to caveats that were filed by URA Realis.
“However, Kent Ridge Hill Residences is a 99-year leasehold project We do not have any freehold condominiums that we can compare,” notes Gafoor. “At an average cost of $2600 per square foot, Terra Hill is reasonably priced considering 99-year leasehold developments within the Outside Central Region have already reached $2,000 per sq ft.”
The most recent new release of a freehold project within the area is the 120 unit Bijou in the year 2014. In 2018, the Bijou project was completed and it is situated right next to Pasir Pajang’s MRT Station. the most recent sale at Bijou is for 775 square foot two-bedroom apartment that sold for $1.755 million ($2,265 per square foot) in the latter part of November.
Based on Marcus Chu, CEO of ERA Realty Network, there are “few” freehold non-landed residential developments that are located in District 5’s Enclave. He says that today, they account for only 14% of the private residential transactions that are transacted non-landed properties in District 5.
The buyers at Terra Hill were predominantly those who resided on the western side, according to Huttons Yip. “There was a great mix of owners and investors,” he adds. “Both types of buyers were drawn by the location close to the planned Greater Southern Waterfront, which is beginning to develop.”
Terra Hill is a four-minute walk from the Pasir panjang MRT station, which is on the Circle Line, which “will be a complete circle by 2026” Yip says. Yip. “This will improve accessibility to the city’s centre.”
Apart from Labrador Tower, an office tower set to be completed by 2024. Terra Hill is near workplaces and places of higher education, according to the ERA’s Chu. He also says that it’s located within 2 km of and 2 km of the Science Park and 3 km of the National University of Singapore (NUS), Biopolis and the Media Hub in one-north.