Terra Hill sells more than a third of units at launch
During the booking exercise on February 24 and 25, Terra Hill at Pasir Panjang successfully sold 102 units at an average price of S$2,650 per square foot (psf). This accounts for approximately 38% of the luxury development’s total of 270 units. Among the sold units, seven were from the prestigious Prestige Collection situated on the highest point of the site, fetching an average price of over S$2,850 psf. Joint developers Hoi Hup Realty and Sunway Developments confirmed these sales figures on Sunday, February 26.
Terra Hill is located on Yew Siang Road and is being developed as a low-density project comprising nine five-story blocks on the former site of Terra Hill condominium. Wong Siew Ying, the head of research and content at PropNex Realty, commented that the average price of S$2,650 psf for a freehold project in the city fringe is reasonable. She also noted that the sales rate of over one-third being sold aligns with expectations, considering the current high-interest rates. Wong suggested that buyers may take more time to decide, especially with upcoming launches in the market, as they compare various options before making a purchase.
Demand for Terra Hill has been healthy due to its freehold tenure, which is a rarity among non-landed private developments in District 5. He highlighted its accessibility to public transportation, as it is only a few minutes’ walk from Pasir Panjang MRT Station, making it attractive to both homeowners and investors.
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. Recent transaction data from URA Realis shows that a 775 sq ft unit was sold in November for S$1.8 million or S$2,265 psf.
Lee Sze Teck, senior research director at Huttons, mentioned that the buyers for Terra Hill have been a mix of investors and homebuyers, mostly residing in the western region of Singapore. He stated that both groups were drawn to the project’s proximity to the future Greater Southern Waterfront, which is gradually taking shape. Lee also highlighted the upcoming completion of the nearby Grade A office building, Labrador Tower, by 2024, which will further enhance the potential tenant pool in the area.
Looking ahead, Wong from PropNex expects a take-up rate of 30% to 40% to be the norm for subsequent launches this year, particularly in the Rest of Central Region (RCR) city fringe. Some of the upcoming launches mentioned include EL Development’s Blossoms by the Park at Slim Barracks Rise and City Developments Limited’s Tembusu Grand at Jalan Tembusu. Wong noted that the high take-up rates of over 70% achieved at some RCR launches in 2022 were exceptional, attributed to lower interest rates and pent-up demand due to fewer launches the previous year. She considers a take-up rate of 30% to 40% to be decent in the current market conditions.
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