Developer Bukit Sembawang Estates has sold at least 18 units at its Watercove development amid an uptick in landed property sales driven by falling prices.
The positive level of transactions at the project, which comprises 80 freehold strata terrace units in Kampong Wak Hassan, Sembawang, comes ahead of the official launch on Saturday.
The units were sold at prices from about $2.3 million, translating to an average per sq ft price of about $738, according to Urban Redevelopment Authority caveats.
The seafront project includes a mix of terrace, corner terrace and semi-detached units between 3,200 sq ft and 4,400 sq ft.
"Watercove is sited in a locale with tremendous growth potential which has yet to be reflected in housing prices," said Ms Margaret Thean, executive director of residential at Edmund Tie and Company, the project's joint marketing agent alongside CBRE.
"In time to come, we expect the development to fetch excellent rental yields and enjoy substantial capital appreciation."
Transport links in the area are expected to improve in the coming years.
The Canberra MRT station in Canberra Link between Sembawang and Yishun MRT stations will be completed in 2019, while the upcoming North-South Expressway will provide residents with a direct connection to the city when it is up and running in 2020.
"The completion of Watercove is timed with the completion of these transport connections," said CBRE and Edmund Tie and Company in a statement.
While landed property prices have been falling, the developer behind Watercove has seen its shares soar this year because of its substantial land bank.
A DBS report noted in March that the rubber company-turned-property developer has one of the largest tracts of freehold land, which it had used for its rubber plantation.
About 75 per cent of its more than 2.8 million sq ft land bank is undeveloped and zoned for landed properties, largely in Ang Mo Kio, Seletar and Sembawang, said DBS analysts Derek Tan and Rachel Tan.
This would make the company an attractive takeover target amid limited land supply.
Lee Xin En