New launch condos are popping off left and right. Developers are riding the momentum of Singapore’s property market, and realtors are fighting for their rice bowl with devious marketing techniques. But what exactly is in it for the property consumers? It can’t be a win-win situation for everyone. So, let me take you through The Continuum, an 805 units freehold development that is expected to be launched in the first quarter of 2023.
What is The Continuum
The Continuum is a joint development by Hoi Hup Realty & Sunway Developments, both of whom have excellent track records in hotel and condo developments. The Continuum hosts 805 freehold units at Thiam Siew Avenue, in the prime district 15. It is expected to TOP in 2027.
Entry Price
According to EdgeProp, the estimated breakeven price is at $2,296psf. Utilising a 15% profit margin formula, The Continuum is expected to go for $2,640psf. Its prices are expected to go at:
1 Bedroom - $2,800psf
2 Bedroom - $2,700psf
3 Bedroom - $2,600psf
4 Bedroom - $2,500psf
Source: EdgeProp
In Comparison to freehold new launch trends in the D13, D14, and D15 vicinities, The Continuum seems to be soaring way above historical prices. At $2,640, it will be 10% higher than the record prices within the three districts. It is a hefty price tag for an RCR new launch.
Entry Price: 3.5/10
Source: EdgeProp (Filtered for new launch condo at D13, D14, and D15)
Scarcity
For the purpose of this analysis, scarcity will relate to the supply of new launch condo within the D13, D14, D15 vicinity, and not the overall supply in the Singapore market.
Firstly, Dunman residence, situated within D14 with 1,040 units, is expected to preview in early 2023. The project is expected to TOP between 2026 and 2027.
Dunman Residence – 1040 Units, 99 year leasehold (Preview expected in early 2023)
Secondly, Jalan Tembusu residence, situated within D14 with 638 units, is also expected to preview in early 2023. The project is expected to TOP between 2026 and 2027
Jalan Tembusu – 638 units, 99 year leasehold (Preview expected in early 2023)
The bottom line – A total of 2,483 units are expected to be previewed in early 2023 and its TOP will be between 2026 and 2027. There is immense supply in the area, so what will make The Continuum stand out from the rest? Firstly, its freehold status, and secondly, its strong developer backing. In our opinion, this is not sufficient to justify the large supply of new launch condominiums.
Scarcity: 4/10
Developer Track Record
This project is rather unique. There are two developers with extensive track records respectively.
Hoi Hup Realty: Hoi Hup Realty is an all-rounder in executive condominiums, mixed-use commercial developments, private condominiums and many more. Let’s see how profitable its condominiums are.
Kovan Regency: Kovan Regency, completed in 2015, has an estimated 93.4% profitable sales. Its profitable transactions annualised 1.98% in capital gains yield, and 3.55% in rental yield. It has a 5.53% in average annualised yield.
Sea Esta: Sea Esta, completed in 2015, has an estimated 97.1% profitable sales. Its profitable transactions annualised 3.81% in capital gains yield, and 4.03% in rental yield. It has a 7.84% in average annualised yield.
Sophia Residences: Sophia Residences, completed in 2015, has an estimated 69.7% profitable sales. Its profitable transactions annualised 1% in capital gains yield, and 3.32% in rental yield. It has a 4.32% in average annualised yield.
Hoi Hup Realty averages 5.9% annualised yield based on its 3 recent condo developments.
Disclaimer: Track records are selected based on recency. Capital yield is calculated based on the recent 10 profitable transactions are the time of writing
Sunway Developments is a Malaysian based developer that focuses mostly on local projects and dabbles in international projects. Currently, it has ventured into a small-scale project, Avant Parc, a 15 unit Terrace House. No analysis will be performed on Sunway Development’s track record due to its lack of projects in Singapore.
Developer Track Record: 7/10
To keep this analysis short and readable, The Continuum scores an average of 4.8/10 based on the factors of (1) Entry Price, (2) Scarcity, and (3) Developer Track Record. This, however, excludes factors of MRT effects, exit plans, and upcoming developments within the vicinity.
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