23/03/2021
Midtown Modern sees 61% of units sold over launch weekend
Edgeprop, 23 Mar 2021, Tue
By Cecilia Chow & Timothy Tay
The sales launch of Midtown Modern, GuocoLand’s 558-unit condominium, saw 340 units sold between March 19 to 21. This is 61% of the total number of units in the 99-year leasehold condo on Tan Quee Lan Street in District 7.
Over the launch weekend, close to 90% of all the one- and two-bedroom units, and close to half of all the three-bedroom units were sold. Additionally, the developer also sold eight 4-bedroom units and the larger of the two penthouses in the development.
Units in Midtown Modern include one-bedroom units of 409 to 474 sq ft, two-bedroom units of 592 sq ft to 721 sq ft, and three-bedroom units of 904 sq ft to 1,066 sq ft. Four-bedroom units range from s 1,432 sq ft to 1,464 sq ft, while four-bedroom premium units are from 1,733 sq ft to 1,808 sq ft.
Average price of $2,800 psf, biggest penthouse sold for $4,213 psf
According to GuocoLand, the average price achieved was about $2,800 psf. Prices start from $1.17 million for a one-bedder to $5.63 million for a four-bedroom unit. The 3,520 sq ft five-bedroom penthouse sold for $14.83 million ($4,213 psf).
The buyers were a mix of owner occupiers and investors, with Singapore citizens making up 85% of the total, and foreigners the remaining 15%. The owner occupiers were mainly singles, couples or those with smaller households, according to GuocoLand in a release.
“A number of investor-buyers also gave feedback that they intend to move into Midtown Modern when they get older because the extensive range of amenities and direct connection to the Bugis MRT interchange station makes their busy lifestyles easier,” says Dora Chng, general manager of residential at GuocoLand Singapore. “We are expecting larger families to come as they get better acquainted with the development.”
Chng attributes the “overwhelming demand” for Midtown Modern to its unique features, direct access to Bugis MRT interchange station, and being part of the transformative Guoco Midtown as well as full condo facilities.
“With more than 300 units sold by Saturday alone, this is the best first-day sales for a CCR [Core Central Region] project since the circuit breaker,” says Lee Sze Teck, director of research at Huttons Asia, one of the joint marketing agencies for the project together with ERA, OrangeTee & Tie, PropNex and SRI. “Buyers were attracted to the central location, excellent connectivity, lush landscaping and integrated development,” adds Lee.
One- and two-bedroom units most popular
According to Ismail Gafoor, CEO of PropNex Realty, of all the units sold over the weekend, the first to “fly off the shelves” were two-bedroom units followed by one-bedroom units. “These were extremely popular and almost sold out. The buyers were predominantly investors, looking for their second or third property,” he says.
The strong take-up rate of-three-bedroom units that range from 904 sq ft to 1,066 sq ft, “reflect the strong demand among families for a city lifestyle”, notes Huttons’ Lee.
The four- and four-bedroom premium units, of which there were 55 units each, found buyers too, with eight units sold over the weekend. Prices were said to range from $3.7 million to $5.7 million, or up to $3,159 psf.
“Overall sales at Midtown Modern were very positive,” continues Gafoor. Besides the overall concept and the fact that it is part of the Guoco Midtown integrated development, the project has direct connectivity to the Bugis MRT interchange station and is situated in the Beach Road-Bras Basah-Bugis area which is undergoing rejuvenation. “These factors alone convinced investors and homebuyers on the strength of the project’s future rental yield and capital appreciation potential,” he adds.
‘Attractive pricing’
Attractive pricing was also one of the contributing factors to Midtown Modern’s strong sales. While there was a premium for high-floor units, with prices above $3,000 psf, with the biggest penthouse sold for $4,277 psf, most of the lower-floor units were priced from $2,500 psf, adds Gafoor.
Nicholas Mak, head of research and consultancy at ERA Realty echoes that view. The "sweet spot" in terms of pricing for new residential units in the area seems to be “between $1.2 million and $2 million”, he observes.
Buying interest was also buoyed by the fact that Midtown Modern is an integrated development, says Mak. “Integrated developments provide convenience, especially for residents who work in the Central Business District,” he adds. “Buyers value the convenience that comes from easy access to daily necessities such as grocery shopping, F&B options and entertainment venues.”
Based on transactions over the three years from 2017 to 2020, the median prices of new projects in the city area — Districts 1 and 7 — hovered around $2,400 to $2,500 psf, says Han Huan Mei, director of research at List Sotheby’s International Realty. “This is about 10% below those of new projects in the traditional prime districts of 9, 10 and 11.”
“A launch weekend with 60% or more of total units sold will be those developments with exceptional or very positive attributes and Midtown Modern is definitely a majestic project,” says Gafoor.
Mark Yip, CEO of Huttons Asia, expects the upcoming launches to “ride on the positive sales momentum” seen at Midtown Modern, such as Irwell Hill Residences, One Bernam and One-north Eden. “They each have their unique selling points catering to different target groups,” says Yip. For example, One Bernam, located within the CBD, will be attractive to investors, while Irwell Hill Residences is a luxury project within prime district 9 – the first new launch in District 9 in 15 months, and One-north Eden will be able to tap on “pent-up demand” in the one-north area, where there hasn’t been a new launch in 14 years, he adds.
Source: https://www.edgeprop.sg/property-news/midtown-modern-sees-61-units-sold-over-launch-weekend
Midtown Modern condo sells 90% of one-, two-bedroom units at launch
The Business Times, 23 Mar 2021, Tue
By Fiona Lam
ABOUT 340 units or 61 per cent of GuocoLand's 558-unit Midtown Modern condominium in Bugis were sold during its launch weekend.
The majority of the units moved on Saturday and Sunday were one-bedders and two-bedders. The project also featured more large units to appeal to a wider-than-usual pool of owner-occupiers.
Some 90 per cent or about 273 of these smaller apartments were transacted over the weekend.
And among the more spacious offerings, almost half of the three-bedroom units were sold. But just eight of the four-bedroom units, out of more than 110 available, were purchased, as well as one of the two penthouses.
The average selling price achieved at the launch was close to S$2,800 per square foot (psf), GuocoLand said on Monday. Transaction prices ranged from S$2,401 psf to S$3,501 psf, or about S$1.17 million for a one-bedroom unit to S$5.63 million for a four-bedroom unit.
The five-bedroom penthouse, spanning 3,520 square feet (sq ft), fetched S$14.83 million or S$4,213 psf. The other penthouse, which has not been sold, is a four-bedroom unit sized at 3,272 sq ft.
Situated along Tan Quee Lan Street, the 99-year leasehold luxury condominium is expected to be completed in 2024 and will comprise two 30-storey towers and a retail podium.
One-bedders, sized at 409-474 sq ft each, make up 30 per cent of the project, while the two-bedroom units, each 592-721 sq ft, account for another 25 per cent.
Almost half or 249 of Midtown Modern's residential units are three or four-bedroom apartments. Three-bedders, at 904-1,066 sq ft each, make up 25 per cent of the project, while 20 per cent are four-bedders spanning 1,432-1,808 sq ft.
The bigger apartments could appeal to larger families as well as other owner-occupiers such as affluent individuals or households, GuocoLand Singapore group managing director Cheng Hsing Yao told The Business Times (BT) in a recent interview.
Asked why the bigger apartments appeared slower to move at the launch, Dora Chng, general manager for residential at GuocoLand Singapore, told BT that "it is normal for buyers of the largest units in a development to take a little more time to decide to buy". This is especially considering that the four-bedroom units at Midtown Modern are priced from almost S$4 million to more than S$6 million.
"There is also a shortage of good-sized and well-designed four-bedroom apartments in the high-end market," Ms Chng added.
There was a "relatively high proportion" of owner-occupiers, and some of the investors were also purchasing units with the intention to eventually move into Midtown Modern when they are older, she said.
Most of the buyers of the larger two-bedroom units and the three-bedroom units are planning to live there, as they are younger or from smaller households and thus found those sizes and layouts "thoughtfully designed for liveability", said Ms Chng. "We are expecting larger families to come as they get better acquainted with the development," she noted.
Singaporeans made up 85 per cent of the total buyers over the weekend, and permanent residents and foreigners accounted for the other 15 per cent.
Citi estimated that the average selling price of S$2,700-2,800 psf translates to a profit-before-tax margin of 12-15 per cent. This is based on breakeven of S$2,370 psf and land cost of S$1,535 psf given gross floor area of about 521,000 sq ft.
DBS Group Research analysts estimated that the total project cost is close to S$1.15 billion, implying breakeven of S$2,300-2,350 psf. "This strong sales at launch weekend is a good start, and hopefully kick-starts a steady momentum for the project. Our estimated gross margin of up to 12-17 per cent is very decent, in our view, given the current climate," they wrote.
Midtown Modern is being developed by a 60:30:10 joint venture between GuocoLand, Hong Leong Holdings and Hong Realty.
Nearby, Wing Tai Holdings' 522-unit The M likewise recorded a take-up rate of 69 per cent or over 360 units at its launch weekend about a year ago. The 99-year leasehold project along Middle Road recorded an average price of S$2,450 psf at its launch in February 2020.
Citi analyst Brandon Lee said the initial performances of both Midtown Modern and The M underlined the attractiveness of the Ophir-Rochor precinct as well as buyers' continued preference for units that go for S$1 million to S$1.5 million.
"Notably, this augurs well for upcoming major high-end launches such as the 540-unit Irwell Hill Residences, the 696-unit former Liang Court, the 351-unit One Bernam, and the 230-unit Perfect Ten, after subdued demand for most high-end projects in 2020," Mr Lee wrote.
City Developments Limited's (CDL) Irwell Hill Residences in District 9 will launch on April 10. Meanwhile, the residential component of the Liang Court redevelopment project, by CapitaLand and CDL, is launching in the second half of 2021 and will comprise a 48-storey tower and a 24-storey tower.
Midtown Modern is part of GuocoLand's mega Guoco Midtown integrated development. The other residential project within Guoco Midtown is the 33-storey, 219-unit Midtown Bay, launched in October 2019.
Source: https://www.businesstimes.com.sg/real-estate/midtown-modern-condo-sells-90-of-one-two-bedroom-units-at-launch
ABOUT 340 units or 61 per cent of GuocoLand's 558-unit Midtown Modern condominium in Bugis were sold during its launch weekend. Read more at The Business Times.
