SINGAPORE - Developer Sim Lian Group has sold 187 or almost half of the 386 units of its 99-year leasehold condominium, The Botany at Dairy Farm, on the first day of its launch on Saturday at prices averaging $2,070 per square foot (psf).
Mr Ismail Gafoor, PropNex’s chief executive officer, said the 48 per cent take-up rate was better than the around 40 per cent he expected. “We think this is a strong performance, and is reflective of the genuine demand for mass market homes, amid the limited unsold inventory of new private homes in the outside central region (OCR).”
He noted the project’s “market-sensitive pricing” – its average selling price of $2,070 psf is slightly lower than that of OCR non-landed new private homes (excluding executive condominiums) in January, which was $2,088 psf.
The project, located off Dairy Farm Road in District 23, is within walking distance of Hillview MRT Station, close to Dairy Farm Nature Park and Bukit Timah Nature Reserve, and near Dairy Farm Mall, which is currently under development.
All 36 of the project’s one-bedroom units and 93 per cent of its 104 two-bedroom units were sold, said Sim Liam on Sunday. In addition, over 20 per cent of the 175 three-bedroom units, 57 four-bedroom units and 14 five-bedroom units were taken up.
Singaporeans made up 85 per cent of all buyers, while permanent residents and foreign buyers accounted for 15 per cent, comprising those from Germany, Switzerland and other parts of Asia, said Sim Lian.
Mr Lee Sze Teck, Huttons Asia’s senior director of research, said: “Investors zoomed in on the one-bedroom units, probably for the rental demand from the German European School next door. Owner-occupiers were drawn to the tranquil environment and its proximity to nature.”
Mr Gafoor said: “The larger proportion of smaller units sold suggests that there is still investment demand in the market. Meanwhile, some owner-occupiers who prefer to look at the bigger units may take a longer time to review their finances and to commit to the purchase, in view of the high interest rates.”
Developers’ sales of new private homes were off to a slower start in January, in the face of a gloomier economic outlook, and higher interest rates and inflation. The number of units booked that month fell nearly 43 per cent to 391 from 684 in January 2022.
Analysts have said transaction volumes may recover with a slew of new launches in 2023 that could draw out the fence sitters, though housing affordability remains a concern.
In the next few weeks, the 275-unit Blossoms By The Park in Buona Vista and the 600-plus-unit Lentor Hills Residences are slated for launch.
Also in the pipeline in the next two months are two major projects in the Katong area – the 638-unit Tembusu Grand and 807-unit The Continuum. Huttons’ Mr Lee noted that the last comparable launch in terms of land size in the Katong area was Haig Court in 2004.