Slow Start, Encouraging Signs: Hillhaven and The Arcady Mark Modest Beginnings for 2024 Condo Launches

In the initial private home launches of the year, Hillhaven in District 23 and The Arcady at Boon Keng in District 12 reported modest sales over the weekend. Despite a slow start, industry analysts consider the sales figures encouraging. Far East Organization, in collaboration with Sekisui House, sold 33% of their Phase 1 launch, comprising 59 units out of 179, at Hillhaven, with prices starting from S$1,903 per square foot. The Arcady at Boon Keng, a freehold development by KSH Holdings, SLB Development, and H10 Holdings, recorded sales of 30%, with 51 out of 172 units sold, as of 4 pm on Saturday.

Key Highlights:

1. Hillhaven’s Phase 1 Success:
   • Far East Organization and Sekisui House achieved a 33% sales rate for Hillhaven during its Phase 1 launch, selling 59 out of 179 units over the weekend.
   • The project, located in District 23, attracted Singaporean and permanent resident buyers, primarily in the age group of 31 to 50.
   • Majority of the units sold were two- and three-bedroom configurations.
2. The Arcady at Boon Keng Performance:
   • The freehold development, jointly developed by KSH Holdings, SLB Development, and H10 Holdings, sold 30% of its units, with 51 out of 172 units finding buyers.
   • Notable demand was observed for one-bedroom-and-study and two-bedroom units, with all 11 one-bedroom-and-study units and 25 out of 38 two-bedroom units sold.
3. Encouraging Market Sentiment:
   • Analysts consider the sales at both projects as encouraging, indicating that buyers, though price-conscious, are gradually returning to the market.
   • Expectations are that buying sentiment remains intact, with prospective buyers assessing the market and reviewing options before making decisions.
4. Attractive Pricing and Market Dynamics:
   • Hillhaven is perceived as attractively priced compared to the average transacted price of S$2,150 psf for new 99-year leasehold Outside Central Region (OCR) non-landed private homes in 2023.
   • The market has started the year on a positive note, with smaller family sizes influencing a preference for two-bedroom units at The Arcady at Boon Keng.
5. Strategic Appeal and Investor Interest:
   • Investors find The Arcady at Boon Keng appealing due to its proximity to schools such as St Andrews Junior School, Hong Wen School, and Bendemeer Primary School.
   • The development is strategically located in a thriving city fringe neighborhood, and demand for residential properties in the area is reflected in a remarkable 40% increase in rents from 2020 to 2023.
6. Positive Outlook for 2024:
   • Industry experts anticipate a positive outlook for 2024, with both projects marking a good start to the year. The sense is that buyers are taking their time, assessing options, and displaying a price-conscious and selective approach.

While the sales figures may mark a slow start, the overall sentiment is optimistic, with ongoing interest in the property market and a gradual return of buyers shaping the trajectory for the rest of the year.

The Business Times