Terra Hill sells more than a third of units at launch

Feb 26, 2023


Some 38 per cent of Terra Hill's 270 units was sold at a booking exercise on Feb 24 and 25.
PHOTO: HOI HUP

TERRA Hill at Pasir Panjang moved 102 units at an average price of S$2,650 per square feet (psf), through its booking exercise on Feb 24 and 25.

This works out to roughly 38 per cent of the freehold luxury development’s 270 units.

The 102 units include seven from Terra Hill’s Prestige Collection, located on the site’s highest point, that were sold at an average of more than S$2,850 psf, said joint developers Hoi Hup Realty and Sunway Developments on Sunday (Feb 26).

Located on Yew Siang Road, the development is being built as a low-density project, comprising nine five-storey blocks on the site of the old Flynn Park condominium.

PropNex Realty head of research and content Wong Siew Ying highlighted that Terra Hill’s average price of S$2,650 psf is “reasonable” for a freehold project in the city fringe.

“The take-up rate of over one-third sold is also generally within our expectations, in view of the high interest rates,” she said.

“Buyers may now need more time to come to a decision, and with more launches coming up this year, some of them could be looking at comparing options before they purchase a property.”

Likewise, chief executive officer of ERA Realty Marcus Chu said demand for Terra Hill has been “healthy”, as it is one of the few non-landed private developments with a freehold tenure in District 5. Such units account for only 14 per cent of private residential non-landed properties in the area, he said.

“Furthermore, Terra Hill is accessible by public transport as it is located within a few minutes’ walk to Pasir Panjang MRT Station. This enhances its attractiveness to both homeowners and investors,” said Chu.

The last freehold development within walking distance of an MRT station in the Pasir Panjang area was the 120-unit Bijou by Far East Organization in 2014. Its latest transaction, based on data from URA Realis, was for a 775 sq ft unit in November at S$1.8 million or S$2,265 psf.

Lee Sze Teck, senior research director at Huttons, noted that buyers have been a mix of investors and homebuyers who mostly reside in the west of Singapore.

“Both groups of buyers were drawn to the proximity to the future upcoming Greater Southern Waterfront, which is starting to take shape,” he said.

The nearby Grade A office building Labrador Tower is also expected to be completed by 2024, said Lee, and will increase the potential tenant pool in the area.

For subsequent launches this year, PropNex’s Wong pointed out that a take-up rate of 30 to 40 per cent is likely to be the norm. This includes upcoming launches in the Rest of Central Region (RCR) city fringe, such as EL Development’s Blossoms by the Park at Slim Barracks Rise and City Developments Limited’s Tembusu Grand at Jalan Tembusu.

“Looking back at the take-up rates of over 70 per cent achieved at some RCR launches in 2022, we feel that they are the exception rather than the norm,” she said.

For instance, CDL and MCL Land’s Piccadilly Grand had sold 77 per cent of its 407-units over the launch weekend. Bukit Sembawang Estates’ LIV @ MB in Mountbatten had also sold more than 75 per cent of its 298 units on its launch weekend.

Wong attributed this to lower interest rates then as well as pent-up demand for new projects, with there being fewer launches last year.

A take-up rate of 30 to 40 per cent is therefore “decent in today’s market”, she said.

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