On the first weekend of sales, Wing Tai sells 23% of LakeGarden Residences at an average price of $2,120 psf

On the weekend of 5-6 August two residential developments for suburban residents within the Western region announced: Wing Tai Holdings’ 306-unit LakeGarden Residences private condo on Yuan Ching Road in Jurong and the 360-unit Altura executive condominium (EC) located in Bukit Batok West Avenue 8.

LakeGarden Residences LakeGarden Residences registered sales of 71 units, which is the equivalent of a take-up that was 23.2% as at 6pm on the 6th of August, Sunday. The average cost for units that were sold is $2,120 per square foot.

Lumina Grand represents a positive sign for its residents; offering not just housing but an extraordinary lifestyle enriched with amenities and connectivity.

As per Wing Tai, only 209 units from the project were made available. This means that the sales represent 34% of units released.

The developer claims that the developer claims that 73% of buyers are Singaporeans The majority of them are Singaporeans, including Singapore Permanent Residents making up 25%. Two% comprise foreign nationals.

“All kinds of units were very well received and the two-bedroom models being the most well-loved,” says Stacey Ow Yeong the head of the marketing department at Wing Tai Property Management. “Majority of buyers are upgraders and families who reside in the Western region of Singapore. This is a sign of a growing demand for private residences in the fast-growing Jurong Lake District.”

As per Ow Yeong, units offer “unparalleled views of Jurong Lake Gardens” and lifestyle amenities that are focused on sustainability and wellbeing. She believes the Lake Gardens Residences will continue to draw homebuyers from the area, and those who are looking forward to the immense growth potential that lies ahead in the Jurong Lake District (JLD).

Profiting from JLD transformation
LakeGarden Residences LakeGarden Residences is an expansion of the old Lakeside Apartments, which Wing Tai purchased in bulk in the year 2000 at $273.89 millions in the month of May. Some of the buyers of LakeGarden Residences comprised former residents of Lakeside Apartments, according to PropNex.

The residents who will be living in the future at the LakeGarden Residences will enjoy having access to the 90 ha Jurong Lake Gardens as well as its location in the upcoming JLD.

Nearly the entire 80% of the homes sold at the time of the launch of the LakeGarden Residences comprised one- or two-bedroom homes according to Mark Yip, CEO of Huttons Asia. “This is a sign that investors recognized the potential in remaining in JLD and acted accordingly to protect the potential growth,” he adds. “Given that there aren’t many developments near Jurong Lake, the price increase could be enormous.”

Plans to build an integrated tourist attraction as well as The future Jurong Innovation District will see “JLD transformed into a vital business and lifestyle center” According to Marcus Chu, CEO of ERA Singapore.

The government has commenced the construction of Jurong Business District with the opening of the 6.5 hectare master developer site that went up for tenders on the 22nd of June. The site is a combination of three sites and is expected to cost around $5 billion, according CBRE. CBRE.

The creation of Jurong Business District “could help speed the process of transforming Jurong and help the people living in the area” According to Ismail Gafoor, CEO of PropNex.

‘Buyer fatigue’

The LakeGarden Residences is the first private condominium launch in the Jurong Lake District since the 710-unit Lake Grande in July of 2016. “The taking-up ratio of 23% was slightly lower than what we had hoped for,” says Gafoor.

More than 1,800 people attended The LakeGardens Residences’ sales gallery over the course of a fortnight before the grand opening on August 5th, with the developer receiving 196 cheques for declarations of interests. The result is the conversion rate of around 36.2%.

Gafoor explains the slower homes sales on the basis of “buyer fatigue” as 2,534 new homes being built in rapid intervals across both Rest of Central Region (RCR) and Outside Central Region (OCR) in the month of March five98 units at Lentor Hills Residences (OCR) The Myst (OCR), The 4-08 unit The Myst (OCR) as well as the 528-unit Pinetree Hill (RCR) and the 1,008-unit Grand Dunman (RCR). “Buyers are likely taking the time to evaluate and weigh the various alternatives before making the purchase of a home,” he says.

Justin Quek, deputy CEO of OrangeTee is of the opinion that there’s a certain amount of exhaustion from the multitude of launches coming in 2023. He also says that more launches are coming in the near future. “Buyers within OCR OCR segment are receptive to the proximity to amenities like the MRT station and could choose alternatives that satisfy these demands,” he says.

Buyers in this typically are in search of a new home according to Quek and they may perhaps not be in any rush to buy at the beginning of the process and with TOP being expected 2027.

Dialing down FOMO

The weekend following (August 12-13) will witness the launching of three additional projects, one for each submarket: the 324 unit TMW Maxwell located in District 2 (RCR) The Orchard Sophia, a 78 unit Orchard Sophia on Sophia Road in District 9 (Core Central Region) and the of 105 units Arden on Phoenix Road in Bukit Batok (OCR). Arden located on Phoenix Road in Bukit Batok (OCR).

Scheduled for launch in the 4Q2023 period are two new condos for private ownership in the Jurong Lake District (JLD) which includes the 360-unit J’Den the 40-storey residential building with commercial podium of two stories built from CapitaLand Development. It’s a renovation of the old JCube mall, a shopping centre with an ice skating skate rink. J’Den will be linked directly with the Jurong East MRT Interchange Station as well as the nearby Westgate and the IMM Building through J-Walk which is a pedestrian path within JLD.

The second is the 440-unit Sora located on Yuan Ching Road, adjacent to The LakeGarden Residences. Sora is a renovation of the previously-owned Park View Mansions on Yuan Ching Road and was purchased in group for $260 million from a consortium comprising Chip Eng Seng, SingHaiyi Group and KSH Holdings in July 2022. Sora will feature a 330m frontage on Jurong Lake Gardens.

“The launch of innovative projects have helped to dial down the fear of missing out], which was a reason that has prompted buyers to move into the market faster in recent years,” says Gafoor. “The decrease in sales is a result of buyers taking longer to think about their options before making a decision on the purchase of a property buying.”

A few buyers are concerned about the slowing of Singapore’s economy as per Huttons Yip. “Others might have stayed put and waited for new projects to come on the market and then to conduct a comparative before making a decision,” he says. “However each project has its own selling point and is designed to meet the specific needs of buyers’ wants and needs.”

New launches’ prices are’very competitive’.
The pricing for new launches starting in 2023 have been competitive, according to Yip and he has 99 year leasehold OCR projects in the $2,000 – $2100 per sq ft range and RCR projects within the $2,400 to $2,500 price range. Yip does not anticipate that prices for new projects will be softer in the 2H2023 timeframe.

“Singapore imports a majority of its construction material including labour” Yip explains. “With the world’s inflation rate being stubbornly high, the cost of imports and labour are rising. In the same way, interest rates remain at a very high. They have always pushed up prices and increased the prices for selling new houses.”