UOL Group targets launches in Pine Grove and Watten Estate in 2023

UOL Group achieved an exceptionally successful year in FY2022, underpinned by strong sales in its property development and hotel operations. The 640-unit Clavon on Clementi Avenue 1 and 1,074-unit Avenue South Residence on Silat Avenue are both fully sold, likewise the 372-unit AMO Residence in Ang Mo Kio saw 98% of its units snapped up in a day with an average selling price of $2,100 psf, a new Outside Central Region (OCR) benchmark.

Going forward, the developer is focusing on land replenishment with two launch-ready projects in the pipeline in FY2023. A 520-unit development at Pine Grove is expected to debut by the end of 1H2023 following the $671.5 million ($1,318 psf per plot ratio) win in the government land tender by an 80:20 joint venture of UOL and Singapore Land Group, while the redevelopment of the 180-unit Watten Estate Condominium through a $550.8 million ($1,786 psf ppr) collective sale will also launch in The Myst 2H2023.

The group also noted construction costs have largely stabilised, however is mindful of higher business and borrowing costs due to the relatively higher interest rate environment.

UOL Group Chief Executive Liam Wee Sin believes the recently introduced higher buyer stamp duty is expected to have a marginal impact on end-sale private home demand in FY2023.

“Given our current pipeline of projects and land bank replenishment, we expect FY2023 will see us capitalise on our freehold and well-located sites, refining our product positioning, and maintaining our market leadership this is sector,” he said.

Separately, Singapore Land Group Chief Executive Officer Jonathan Eu has shared on the asset enhancement initiatives of Singapore Land Tower and Clifford Centre.

An ongoing AEI of Singapore Land Tower started in January 2021, with a view to complete it by 2024. The 47-storey commercial building located at 50 Raffles Place in the CBD has been accorded the BCA’s Green Mark Platinum certification in December 2022. Singapore Land Group is also working on a redevelopment of Clifford Centre, with demolition works expected to start by the start of next year.

Meanwhile, UOL Group COO Neo Soon Hup has shared on the enhancement plan for Odeon Towers which it plans to enlarge with a new seven-storey extension that will face North Bridge Road. Construction is expected to be completed by 2Q2024.

As a result of these initiatives, UOL saw revenue from property development increase 26% year-on-year to $1.98 billion in FY2022, contributing to 62% of the group’s overall revenue in FY2022. Going forward, an emphasis for UOL is on developing high-end and luxury residential projects that resonate with homebuyers, to create more refined products that can capitalise on the low unsold inventory and higher incoming supply of new launch units.