With its consortium partners, Singapore’s fastest growing property group to lead the market in terms of new launches
Recognising the latent housing demand in the neighbourhood of Serangoon, Singapore-listed property group Oxley Holdings snapped up three of the six collective sale sites made available in the northeast region last year. Two of the sites are large privatised HUDC estates that are well located: Rio Casa on Hougang Avenue 7, fronting the Serangoon River; and Serangoon Ville on Serangoon North Avenue 1, which is just a four-minute drive to Serangoon Gardens.
These sites were purchased as part of a consortium with partners KSH Holdings, SLB Development and Apricot Capital. Rio Casa was purchased for $575 million, or $706 psf per plot ratio in May; Serangoon Ville was acquired for $499 million, or $835 psf ppr, in July. The third site, Toho Green on Yio Chu Kang Road, is a smaller site, which Oxley purchased on its own for $8 million, also in July.
In fact, it was the Oxley-led consortium’s purchases of Rio Casa and Serangoon Ville that fired up the collective sale market in the northeast region last year.
One of the largest in Singapore, the northeast region encompasses the area from Sengkang, Punggol and Yio Chu Kang Road to Serangoon North, Hougang and Serangoon Gardens. “For many upgraders, especially young couples and families with children of school-going age, the most appealing enclaves are in Serangoon, Hougang and Yio Chu Kang,” says Eugene Lim, ERA Realty key executive officer. “Being mature neighbourhoods, they are where good schools, famous eateries, public transport and other amenities are situated.”
GREATER PRICE FLEXIBILITY
Being a first mover in the area means the Oxley-led consortium will be the first out of the gate with a project launch. The 1,052-unit Affinity at Serangoon (a redevelopment of Serangoon Ville) will be rolled out at end-May, and the 1,472-unit Riverfront Residences on the site of the former Rio Casa will make its debuta month later.
Oxley’s three en bloc sites have a combined total of more than 2,400 new housing units when redeveloped. “By being in control of the majority of the upcoming supply, Oxley and its partners have greater flexibility in terms of pricing and launch timing,” notes ERA Realty’s Lim.
JLL regional director for capital markets, Tan Hong Boon estimates the Oxley-led consortium’s price advantage to be “in the $150-to-$200 psf range” over subsequent land sites sold in the area.
Keen competition among developers for collective sale and government land sale (GLS) sites has driven up land prices to record levels since 2Q2017, notes Alice Tan, head of research and consultancy at Knight Frank Singapore.
In the northeast region, GLS sites sold include the 99-year leasehold commercial and residential site at Woodleigh Lane, which was sold for $1,118 psf ppr last June. The following month, a residential site across the road saw 15 bids, with the winner paying $1,110 psf ppr for the site. Last July, the GLS site at Serangoon North Avenue 1 received 16 bids and fetched a top bid of $965 psf ppr. That month, Oxley paid $835 psf ppr for the Serangoon Ville site.