District 19 is one of the largest private residential estates in Singapore. Six collective sales in 2017 occurred in Serangoon and Hougang area. Developed by Oxley-led consortium, Affinity At Serangoon is the redevelopment new launch on the former HUDC Serangoon Ville on Serangoon North Avenue 1, which is just a four-minute drive to Serangoon Gardens. It was sold for $499 million, or $835 psf ppr, in July 2017.
Another former HUDC Rio Casa was purchased by Oxley-led consortium for $575 million, or $706 psf per plot ratio in May, 2017. Actually Oxley has taken the first-mover advantages to lead the market in terms of new launches in District 19. In fact, it was the Oxley-led consortium’s purchases of Rio Casa and Serangoon Ville that fired up the collective sale market in the northeast region last year.
Being a first mover in the area means the Oxley-led consortium will be the first out of the gate with a project launch. The 1,052-unit Affinity at Serangoon will launch at the beginning of June 2018, and the 1,472-unit Riverfront Residences on the site of the former Rio Casa will make its debut a month later.
In the northeast region, GLS sites sold include the 99-year leasehold commercial and residential site at Woodleigh Lane, which was sold for $1,118 psf ppr last June. The following month, a residential site across the road saw 15 bids, with the winner paying $1,110 psf ppr for the site. Last July, the GLS site at Serangoon North Avenue 1 received 16 bids and fetched a top bid of $965 psf ppr. That month, Oxley paid $835 psf ppr for the Serangoon Ville site.
JLL regional director for capital markets, Tan Hong Boon estimates the Oxley-led consortium’s price advantage to be “in the $150-to-$200 psf range” over subsequent land sites sold in the area.
Keen competition among developers for collective sale and government land sale (GLS) sites has driven up land prices to record levels since 2Q2017, notes Alice Tan, head of research and consultancy at Knight Frank Singapore.
“Developers such as the Oxleyled consortium that purchased sites last year at prices below $1,000 psf and are launching this year are likely to enjoy a first-mover advantage when it comes to capturing homebuyers,” says Ismail Gafoor, CEO of PropNex Realty.
With unsold units of existing launches in the northeast region largely depleted, even individual owners in the resale market have raised their asking prices by 15% to 20% this year, says Knight Frank’s Tan.
Source: Oxley’s first-mover advantage, Edgeprop, 21 May, 2018