The Myst (D23, 99 years leasehold, City Developments Ltd)
CDL to launch The Myst at Upp Bukit Timah in 2H2023; impact of cooling measures on residential portfolio 'manageable'
May 19, 2023
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CDL to launch The Myst, a 408-unit project at Upper Bukit Timah Road, in 2H2023 (Picture: CDL)
Singapore-listed property group City Developments Ltd (CDL) announced on May 19 that it would launch The Myst, a new 99-year leasehold, 408-unit project at Upper Bukit Timah Road sometime in 2H 2023. The private condo is within a five-minute walk of the Cashew MRT station on the Downtown Line.
On the other hand, CDL has rescheduled the preview for Newport Residences, initially slated for April 29. The freehold, 246-unit Newport Residences is part of a mixed-use development that includes offices, serviced apartments and F&B and retail. It's a redevelopment of the former Fuji Xerox Towers commercial building on Anson Road in Tanjong Pagar in District 2 of the Core Central Region (CCR).
CDL deferred the preview following the rollout of the latest round of property cooling measures that came into effect on April 27, 2003. The additional buyer's stamp duty (ABSD) for foreigners buying residential property doubled from 30% to 60%. The ABSD for Singapore citizens buying their second and third or subsequent residential property increased to 20% and 30%, respectively, while that of Singapore Permanent Residents (PRs) increased to 30% and 35%, respectively.
"The Group will monitor the market conditions closely and launch the project [Newport Residences] at the appropriate time," says CDL.
‘Minimal impact’ on mass and mid-tier segments
In the near term, CDL expects the latest property cooling measures to impact projects with a higher proportion of foreign demand, typically high-end/luxury properties in prime districts or CCR.
The group expects "minimal impact" on the mass and mid-tier segments where most buyers are locals and PRs, as evidenced by the launch of EL Development's Blossoms By The Park at one-north, where 75% of 275 units sold on the first day of launch on April 29 at an average price of $2,423 psf. The launch of the 816-unit, freehold The Continuum by Hoi Hup and Sunway Property the following weekend saw 211 units sold (26%) at an average price of $2,730 psf. Meanwhile, the 732-unit The Reserve Residences at Jalan Anak Bukit, by a joint venture between Far East Organization and Sino Group, will launch on May 27.
Analyst at RHB, Vijay Natarajan, notes in his report on May 19 that the impact of the cooling measures on CDL's residential portfolio "is manageable", as the group has sold 88% of its launched inventory in Singapore as of April.
Natarajan estimates the group could recognise about $5 billion in unbilled residential sales over the next three years. CDL has four projects with about 1,500 units ($2 billion in gross development value) in the launch pipeline. He says that 80% of the unsold units are in the mid-tier and mass-market segments, less impacted by the latest cooling measures aimed mainly at foreigners and investors.
"While we expect a slight moderation in new launch prices post measures, margins are unlikely to see significant compressions and remain in an 8-20% range," says Natarajan in his report.
The group has residential developments in Australia too. As of 1Q2023, construction of the 198-unit The Marker in West Melbourne has been completed. To date, it is 92% sold. The 60-unit apartment project, Fitzroy Fitzroy, in Melbourne, is 40% presold ahead of its completion in 1Q2024. In Brisbane, its 215-unit Brickworks Park is 49% presold. The 97-unit Treetops at Kenmore, a JV project in Brisbane, is also 49% presold.
More at: https://www.edgeprop.sg/property-new...lio-manageable
Re: The Myst (D23, 99 years leasehold, City Developments Ltd)
The Myst sells 27% of units on launch weekend at average of S$2,057 psf
Jul 09, 2023
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The Myst is located at 800 and 802, Upper Bukit Timah Road, and comprises two 24-storey residential towers.
PHOTO: CDL
CITY Developments Limited (CDL) sold 110 units of The Myst in Upper Bukit Timah – or 27 per cent of the project’s total 408 units – at an average price of S$2,057 per square foot (psf) over its launch weekend, a statement from the developer on Sunday (Jul 9) indicated.
Around 99 per cent of the buyers are Singaporeans, while permanent residents from China made up the remaining 1 per cent, CDL said. All unit types were “well-received”, with one and two-bedroom types being the most popular, it added.
Apartments are priced from S$998,000 for a one-bedroom plus study (from 517 sq ft); S$1.33 million for a two-bedroom (from 678 sq ft); S$1.708 million for a three-bedroom (from 850 sq ft); S$2.826 million for a four-bedroom (from 1,518 sq ft) and S$3.18 million for a five-bedroom (from 1,690 sq ft).
The 99-year-leasehold condominium is located at 800 and 802 Upper Bukit Timah Road, and comprises two 24-storey residential towers. The land parcel was previously acquired by CDL in April 2022 from car company Tan Chong International for S$126.3 million.
Nicholas Mak, chief research officer of property portal Mogul.sg, noted the comparatively lower take-up rate of units in The Myst against other recent launches. This includes Lentor Hills Residences, which sold half of its 598 units during the same launch weekend.
One possible reason for this, he believes, is that the median transacted prices of the 999-year leasehold condominiums surrounding The Myst – such as Cashew Heights Condominium, Hazel Park Condominium and The Linear – “appear comparatively cheaper” than The Myst’s launch price.
“This means that the nearby resale condominium with longer land tenure is cheaper than the average price of The Myst by 23 per cent or more,” he said.
On the other hand, The Reserve Residences achieved strong sales during its recent launch at a higher median price of $2,474 psf, Mak noted.
Though it had a similar 99-year leasehold land tenure as The Myst, it had “certain advantages” over the latter, such as being located next to the Beauty World MRT station with the project being part of the Beauty World integrated transport hub.
But Mak believes this is just a “temporary setback” for The Myst, adding: “As it is a medium-size project with 408 units, the developer is very likely able to sell all the units within the five-year ABSD deadline.”
ERA Singapore’s chief executive Marcus Chu noted that the homebuyers whom ERA served for The Myst were primarily Singaporeans buying for owner-occupation. Beyond the project’s popular one-bedroom plus study and two-bedroom plus study unit types, it saw “fairly good interest for the larger family-sized units”.
“Most of the buyers live in and around the locale, and they are very familiar and comfortable with what the project and its attributes have to offer,” he said.
“With several upcoming project launches in the west, homebuyers who may not be as familiar with The Myst’s location as those that live in and around there may prefer to compare the various offerings before they make the plunge.”
Huttons chief executive Mark Yip said The Myst’s “attractive quantum” for its one-bedroom and two-bedroom units drew buyers, and also because of its “proximity to nature, good primary schools and Cashew MRT station”.
The Myst’s sales were within the group’s expectations, given that major non-landed projects have had sales of at least 100 units on launch day, he added.
“Take-up rate is dependent on the number of units in the project and the catchment area. It will vary from project to project, and thus should not be used to compare across projects in different parts of the island,” Yip said.
Mak also added that some buyers “could be holding back their purchases and reserving their funds for future launches”, as the next six months could see as many as 12 residential projects with a total of about 3,700 housing units launched.
“Faced with a myriad of new residential properties and to avoid paying the punitive Additional Buyer’s Stamp Duty, the local buyers are likely to choose their property acquisition carefully. As a result, they could also become more price sensitive,” he said.
https://www.businesstimes.com.sg/pro...rage-s2057-psf
