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Pent-up demand expected for Seaside Residences in Siglap

10 Apr, 2017

Market watchers are anticipating strong pent-up demand for the upcoming condominium project at Siglap Link by Singapore-listed Frasers Centrepoint Limited by virtue of its location and palatable price quantums for the smaller units.

The launch, scheduled on April 22 after a two-week preview starting this weekend, comes on the heels of strong sales in earlier launches this year.

The 843-unit Seaside Residences will be the first new project built along the East Coast Parkway (ECP) in 15 years, with unblocked sea views when ready in 2021.

The one-bedders (420-506 square feet) are priced from S$690,000 to S$1.05 million while the one-plus-study units (560- 592 sq ft) are from S$886,000 to S$1.16 million. Two-bedroom units are priced from S$977,000 to S$1.6 million, the three- bedders are in the range of S$1.45 million to S$2.33 million and the four-bedders are in the region of S$2.29-3.08 million. There is also a five-bedroom penthouse measuring 3,294 sq ft and two commercial units.

Some sources estimate the average pricing for the residential units in the 99-year leasehold project to be S$1,600-1,650 per square foot (psf).

The launch timing is good as it follows on the momentum created by earlier launches such as The Clement Canopy, Grandeur Park Residences and Park Place Residences and the positive publicity generated, said an analyst.

Secondly, the launch is also after the release of the flash estimates which show that non-landed prices may be headed for stability and this is likely to have a positive effect on buyers.

For the first time after 13 quarters of decline, the price index for non-landed private homes in the first quarter of this year remained flat, after easing 0.8 per cent quarter-on-quarter in Q4 2016, official flash estimates show. The overall private home price index eased 0.5 per cent quarter on quarter in Q1, unchanged from the preceding quarter.

There have been few new condominium projects launched in District 15 in the past three years. Hence, Seaside Residences could enjoy some pent-up demand from the largely middle-class buyers in that location.

CapitaLand also officially launched last month a District 15 project, Marine Blue in Marine Parade, at an average of S$1,700 psf, after moving 38 units since a soft launch more than two years ago. The 124-unit freehold project received its temporary occupation permit (TOP) in October last year.

The residential resale market in District 15 has been among the most active given its proximity to East Coast Park and the short driving distance to the CBD. With the upcoming Siglap MRT station being a three-minute walk to Seaside Residences, the rental prospects also look promising.

About 70 per cent of the units at Seaside Residences are sea-facing; the development site coverage is only 23.4 per cent of the site.

Frasers Centrepoint Singapore head of development and projects Cheang Kok Kheong said he expects this project to generate strong interest from new homebuyers and investors. "Singapore's eastern precinct is seeing development of large government-spearheaded projects like Jewel at Changi Airport, and Changi Airport's Terminal 4 and 5. These projects will greatly boost the area as an all-inclusive hub for work and leisure, making it a choice investment," he added.

Adapted from: The Business Times, 8 April 2017