SINGAPORE (EDGEPROP) - The last major launch of 2022 ended on a high note, with executive condo (EC) Tenet selling 447 out of a total of 618 units (72.3%) on the first day of launch on Saturday, December 3. The joint venture partners behind Tenet are developers Qingjian Realty, Santarli Realty and Heeton Holdings. The strong take-up rate was achieved despite the launch being held in December when most people are travelling overseas after the pandemic, says Yen Chong, deputy general manager of Qingjian Realty, on behalf of the consortium.
“It caps off another good year for the property market,” says Mark Yip, CEO of Huttons Asia.
The average price achieved at Tenet is about $1,360 psf, a new high in the EC cohort. “Tenet can command a premium given its location in Tampines, a mature and hotly sought-after residential area,” says Ismail Gafoor, CEO of PropNex. “While it has set a new benchmark price for ECs, it’s still lower than the new 99-year, suburban condos launched at average prices of $2,100 psf this year.”
The crowd at the sales gallery of Tenet on the preview weekend (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Besides its location in a mature estate in the east, Tenet is within a five-minute walk of an upcoming government land sales (GLS) site zoned for a mixed-use development, including a future mall of about 14,000 sqm (150,696 sq ft). The development will be integrated with a transport hub - Tampines North MRT station on the Cross Island Line and the bus interchange. “The mall is about the size of White Sands mall and will be an added convenience for homebuyers, in addition to the specifications and provisions provided by the developer of Tenet,” says Ken Low, managing partner of SRI.
In addition to its proximity to the future mixed-use development and integrated transport hub at Tampines North, Tenet is also situated in the vicinity of three major transformation areas: Changi Region, Paya Lebar Airbase and Punggol digital district, says Doris Ong, deputy CEO of ERA Singapore. “The proximity to the upcoming mixed-use development and growth areas presents buyers of Tenet with upside potential.”
According to Qingjian Realty, while all the three-, four- and five-bedroom units were well-received, the most popular unit types among homebuyers were the four-bedroom types.
Showflat of a four-bedroom unit at Tenet, which is the most popular unit type among homebuyers (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Most of the buyers at Tenet are existing residents in Tampines as well as those from the surrounding neighbourhoods in the eastern region, such as Bedok and Pasir Ris, notes ERA’s Ong. “For many first-timers and HDB upgraders, it means being close to their parents or in-laws but enjoying the lifestyle and privacy of a private condo,” she says.
“Buyers of EC projects have two distinct advantages - no need to pay the additional buyer’s stamp duty [ABSD] upfront and the option of the deferred payment scheme [DPS],” adds Huttons’ Yip.
The availability of DPS is one of the main draws of ECs, “especially in a climate of high interest rates”, notes SRI’s Low. “We saw a much larger proportion of buyers opting for DPS at a 3% higher purchase price,” he says.
Showflat of a three-bedroom unit at Tenet (Photo: Samuel Isaac Chua/EdgeProp Singapore)
The strong sales at Tenet follow that of Copen Grand, the 639-unit EC in the new Tengah Town in the west. Launched on Oct 22, Copen Grand saw 465 units (73%) sold at an average of about $1,300 psf. When sales bookings opened up for second-timers on Nov 26, the remaining 146 units at Cope Grand were snapped up, with the project entirely sold in just over a month.
Second-time buyers or second-timers refer to homebuyers who have purchased a subsidised HDB flat or received CPF housing grants before and are buying another one, according to HDB. Under the prevailing EC regulations, only 30% of the units in a new EC project can be allocated to second-time buyers. (Find HDB flats for rent or sale with our Singapore HDB directory)
At Tenet, second-time buyers who are interested in the project but were unable to pick up a unit during the launch period will have another chance to purchase a unit, with e-application to start from December 30 and sales booking scheduled for January 7, 2023, according to Qingjian Realty.
Tenet, located at Tampines North, is popular with homebuyers who are existing residents in Tampines and neighbouring areas such as Bedok and Pasir Ris (Source: Landlens)
“When sales booking opens for second-timers 30 days from now, I won’t be surprised if Tenet achieves close to or 100% take-up rate, like Copen Grand,” says PropNex’s Gafoor.
While the economic outlook for 2023 is softer, “the current employment situation is strong, and Singapore residents saw real income growth for the second straight year despite high inflation,” says Huttons’ Yip. “These are key confidence boosters for homebuyers.”
A likelihood of the US Federal Reserve taking its foot off the pedal on rate hikes could also have given more assurance to buyers to commit to the property purchase, according to PropNex research head Wong Siew Ying.
The next EC project launch is the Bukit Batok West Avenue 8 project which could hit the market in mid-2023, says PropNex’s Wong. The 375-unit EC project is another joint venture between Qingjian Realty and Santarli Realty. With the diminishing balance inventory of new EC units, she expects the next project launch to “garner an enthusiastic response from HDB upgraders and owner-occupiers seeking an affordable entry-point into the private residential property market”.