EL Development has succeeded with its latest project, Blossoms By The Park at Slim Barracks Rise. The 275-unit project had been subscribed 2.75 times before its launch, garnering 745 cheques over a fortnight. Boasting a take-up rate of 73%, 200 of the 275 units had been sold by 6 pm on April 29, marking the highest first-day sales in 2023. The average price of units sold was $2,423 psf.
Notably, all one- and two-bedroom units had been snapped up, except for the two-bedroom penthouse units. One-bedroom units, ranging from 549 sq ft, were priced at $1.3 million ($2,352 psf), while two-bedroom units of 678 sq ft were priced at $1.5 million ($2,211 psf). “The two-bedroom and two-bedroom-plus-study units were the favourite among buyers,” reveals Marcus Chu, CEO of ERA Realty Network.
Over 70% of the three-bedroom and three-bedroom dual-key units were sold for $2.3 million ($2,183 psf) and $2.1 million ($2,276 psf), respectively. About a third of the four-bedroom units were purchased for $2.9 million ($2,243 psf).
Furthermore, the strong sales exceeded the developer’s expectations, especially given that they came just two days after the government’s latest property cooling measures took effect on April 27. “Before the property cooling measures, I was pretty optimistic about the expressions of interest,” comments Lim Yew Soon, managing director of EL Development. Nevertheless, Lim had initially considered delaying the project by a week but chose to proceed with the launch as scheduled. He opines that any delay would have made no difference since he felt the government would not repeal the cooling measures.
The project’s success speaks to the resilience of the Singaporean real estate market. Despite recent regulatory measures, the demand for residential properties remains strong, particularly among Singaporean citizens and Permanent Residents (PRs). Lim reports these two groups account for 96% of the buyers, with foreigners making up the remaining 4%. The Myst’s location is at Upper Bukit Timah Road.
In conclusion, the impressive sales of Blossoms By The Park cannot be understated. Experts such as Ismail Gafoor, CEO of PropNex, laud the project’s achievement, stating that “I had expected more than 50% sales, but close to 75% is a positive thing”. EL Development has succeeded in winning investors’ trust and satisfaction.
CEO of Huttons Asia, Mark Yip, said, “The cooling measures enacted were aimed at a small group of buyers, and first-time buyers were not affected.” Yip believes that excellent sales figures provide much-needed confidence for those deliberating their purchase and waiting for ideal financial circumstances to commit.
Blossoms By The Park’s strong sales results are a testament to investors’ belief in the attractiveness of the Singaporean real estate market, according to Lee Liat Yeang, senior partner of Dentons Rodyk real estate practice group. Yeang affirms that the Singapore government had to impose the highest additional buyer’s stamp duty [ABSD] to deter foreign buyers, underscoring the market’s desirability. Even Singaporean and PR investors buying their second and subsequent properties face elevated ABSD. The consequent rise in ABSD has spurred individuals to sell their current property before committing to a new purchase, according to Dentons’ Lee. In the meantime, individuals will rent before taking their time to purchase their next home. Foreigners waiting for their PR approval are also expected to rent. Therefore, many investors prognosticate that the rental market will continue to grow.
The healthy sales response attests to the scarcity of new private residential developments around the one-north precinct, says PropNex’s Gafoor. Given that the last project launch in the area, the 165-unit One-North Eden, is sold out, this is hardly surprising. Of the two sites designated for residential homes around Biopolis and Fusionopolis, Blossoms By The Park is one, while the other is the upcoming 142-unit The Hill @ One-North Homes. Huttons’ Yip claims that both sites have significant investment appeal. “The rents at One North are estimated to be 20% higher than nearby non-landed projects like Dover Parkview and Heritage View and are likely to outperform given the limited supply,” he says.
One-north is home to around 400 multinational companies and 15 public research institutions, and higher learning institutions such as Insead and Essec Business School. There are also corporate campuses like Unilever’s global campus, Unilever Campus @ one-north, and approximately 50,000 knowledge workers near the National University Hospital (NUH), the National University of Singapore (NUS), and Science Parks 1 and 2. According to ERA’s Chu, “Both owner-occupiers, as well as future tenants, would like to live within a short commute to work.”