Terra Hill achieves 38% sales on launch weekend, with an average price above $2,650 psf

New Tower at the Labrador Park MRT Station, scheduled to complete in 2024 (Source: EdgeProp Landlens)Hup and Sunway Developments had acquired the 856.7 sq m, freehold site at Yew Siang Road for $41 million ($981 psf per plot ratio) in a tender that closed in June 2017. It was the highest bid at the tender, surpassing seven other offers.At Terra Hill, Pasir Panjang saw the first freehold private condo launch in the Rest of Central Region (RCR) The Myst in 2023. Over the weekend of 25th-26th Feb, Hoi Hup & Sunway Developments sold over 38% of the 270-unit condo with an average price achieved across the units of over $2,650 psf.

The site at Yew Siang Road in Pasir Panjang, where Terra Hill is situated, was acquired by Hoi Hup and Sunway Developments in a tender that closed in June 2017 for $41 million.

With the launch of Terra Hill, the Rest of Central Region (RCR) welcomed its first freehold private condo launch in 2023. During the launch weekend of Feb 25-26th, a total of 102 units were sold (about 38%), with the average price achieved coming up to over $2,650 psf.

The preview of the condo ahead of the launch saw more than 10,000 visitors at its sales gallery, along South Buona Vista Road. According to the developer in a media statement, the balloting and booking exercise held on Feb 24-25th “received an enthusiastic response from the public”.

At Terra Hill, the 30 exclusive units in The Prestige Collection had 24 four-bedroom units of 1,894 sq ft priced from $5 million, and six 5-bedroom duplex penthouses of 3,035 sq ft. During the launch, seven units from The Prestige Collection were sold at prices averaging above $2,850 psf.

The CEO of PropNex Realty, Ismail Gafoor, noted that the sales achieved at Terra Hill were within expectations, as the developer’s target had been to sell 100 units. He went on to add that the 70% to 85% sales achieved at new project launches last year were unlikely to be repeated this year, as the new supply is three times higher and buyers have more choices.

Similarly, the CEO of Huttons Asia, Mark Yip, pointed to the fact that the Budget announcement of the buyer’s stamp duty increase had not affected buying interest.

Gafoor further stressed on the fact that at Terra Hill, the URA requires the average unit size of new non-landed residential projects to be at least 100 sqm. This means that unit sizes are larger, with higher absolute prices.

In the Signature Collection at Terra Hill, there were two-, three- and four-bedroom units, with two-bedders ranging from 624 to 840 sq ft, and priced over $1.5 million. Regarding the three-bedroom type, there were 126 units ranging from 904 sq ft to 1,335 sq ft, and prices from $2.3 million, while for the four-bedroom units, there were 63 units ranging from 1,302 to 1,862 sq ft, with prices starting at $3.4 million ($2,611 psf).

The most recent new launch in the neighbourhood that was a freehold development is Bijou, located directly opposite the Pasir Panjang MRT station, which was launched in 2014, and completed in 2018. The last transaction at Bijou was for a 775 sq ft, two-bedroom unit that fetched $1.755 million ($2,265 psf) in late Nov, 2022.

The 70% to 85% sales achieved at new project launches last year are unlikely to be repeated this year, according to Gafoor. In the area, the previous launch was the 548-unit Kent Ridge Hill Residences in Nov 2018, which was entirely sold by Nov 2022, with the latest transaction being the sale of a strata-terraced house for $3.266 million ($1,580 psf). Apartments sold from Jul 2022 to Nov 2022 ranged from $1,644 psf to $2,062 psf, as per the caveats lodged with URA Realis.

The proximity to the future Greater Southern Waterfront, as well as the four-minute walk to the Pasir Panjang MRT station on the Circle Line (which will become a full circle by 2026), helped attract buyers.

Besides Labrador Tower, an office tower scheduled to complete in 2024, Terra Hill is near places of employment and higher learning, such as the Science Park and NUS, Biopolis, and the Media Hub at one-north.

Buyers at Terra Hill were mainly west-dwellers and comprised a mix of investors and owner-occupiers. As few freehold, non-landed residential developments exist in the District 5 area, they only make up 14% of transacted private residential non-landed properties in the area.