Yahoo Finance Turning site challenges into unique selling points
Sim: Overall residential development standards are higher and have evolved to cater to homebuyers' needs today (Photo: Samuel Isaac Chua/The Edge Singapore).
As CEO of Edmund Tie for 2½ years, Desmond Sim is a first-time judge on the EdgeProp Singapore Excellence Awards 2023 panel. Before joining Edmund Tie, Sim spent nine years in research at global commercial real estate services firm CBRE, where he was head of research for Southeast Asia.
Sim found the experience as a judge on the panel interesting. “You get to look at property from many other aspects, especially with the diversity of the judges,” he says. “It’s a learning experience. As a real estate researcher, I focused on market data and transactions. But real estate development is more than that.”
The projects that stood out for him were those on collective sale sites, such as the 816-unit The Continuum, the 270-unit Terra Hill (former Flynn Park condo) and the 117-unit The Hyde (a redevelopment and amalgamation of two condos — the former Balmoral Mansions at 11 Balmoral Road and the neighbouring Balmoral Gardens at 11B Balmoral Road).
The Continuum is a redevelopment of 22 freehold plots with pre-war bungalows and semi-detached houses on either side of Thiam Siew Avenue in prime District 15. The combined plots have a total land area of 273,794 sq ft.
Hoi Hup Realty and Sunway Developments jointly purchased the sites en bloc for $815 million. They paid another $284 million in development charges (or land betterment charges) to redevelop the sites, bringing the total purchase price to nearly $1.1 billion.
Instead of developing two separate and distinct private condos, the joint-venture partners decided to build an 816-unit development across the two plots. Each plot has two 17-storey blocks and an 18-storey block with 408 units, dedicated facilities, clubhouse, basement parking, main entrance, arrival and drop-off point, and security access. An overhead bridge will link the two plots.
“Unlike a government land sale, an en bloc site like that is not as clear-cut,” says Sim. “The developers worked around the constraints, especially with the road separating the two sites. And they overcame those constraints and created an interesting landmark with the serpentine bridge linking the two sites.”
He notes that Hoi Hup and Sunway Developments also came up with an exciting design for the 270-unit Terra Hill in Pasir Panjang. “The site terrain was a challenge, but they were able to overcome it too by creating something aesthetically appealing and sustainable,” he says.
The developers capitalised on the views from the elevated site and the proximity to the surrounding greenery, including Kent Ridge Canopy Walk, Southern Ridges and Hort Park, notes Sim.
“Overall residential development standards have evolved and are higher today,” he says. “A lot more consideration is given to personal space within the units, for instance, space to do Zoom calls or work from home.”
He also sees developers putting a lot more effort into the design of their projects to distinguish themselves from the rest. “Hence, each project has its unique points,” says Sim. “There’s a lot more emphasis on greenery, and it’s clear that sustainability is high on their agenda.”
Another element is the use of aerial spaces in high-rise towers. Some have turned the sky terraces into observation decks for residents to enjoy views, for instance, at the 716-unit Whistler Grand at West Coast Vale.
Others have turned the rooftop terrace into a luxurious clubhouse, with private dining space, residents’ lounge, and an infinity pool, such as the 117-unit The Hyde on Balmoral Road. Residents can also enjoy aerial views of the cityscape and the black-and-white bungalows at Goodwood Hill. Sim adds that the developer created communal landscaped spaces for residents to enjoy the greenery.
While home buyers have become more cautious, some are still looking to buy a home, especially those who have just sold their property in recent months, notes Sim. On the other hand, investor returns are being hit by the higher additional buyer’s stamp duty as part of April 27 property cooling measures and the higher mortgage payments given the high-interest-rate environment.
This year’s awards also shone the spotlight on the co-living and hospitality segment. “There is demand for co-living from consumers and investors,” says Sim. “Co-living may not appeal to Gen X, but [it appeals to] the younger generation who do not mind the social aspects of co-living and do not want to be tied down by a mortgage.”
Sim notes that the younger generation could have a family home passed on to them or gain parental support when they buy a home later. “So, they live for today and don’t mind living in a small co-living space curated for them.”
With the post-Covid recovery, more new hotels have opened this year. The hospitality sector has seen a rebound in occupancy and average room rates this year. “It’s an encouraging time for the hospitality sector,” says Sim.
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