As stated in the URA master plan 2019, there are big transformation plans for Greater Southern Waterfront- slated to be the biggest transformation planned for Singapore. There will be new waterfront districts, expansion of the CBD (high-tech hub for innovative, digital and creative businesses), St James Power Station being redeveloped into an office complex, development of Pulau Brani in the ‘Sentosa-Brani plan’, new Pasir Panjang linear park and many more.
A relatable example I would like to use to highlight the transformation factor would be The Sail at Marina Bay (TOP 2008). Back then, URA Master plan 1983 was to develop the Marina Bay area with a lot of funds and resources. Marina Bay Sands began operations in April 2010. From an average pricing of $961psf, The Sail at Marina Bay attained peak average pricing of $2580psf through the transformation period of Marina Bay. Similarly, Marina Bay Residences (TOP 2010), slightly later in the timeline of transformation for Marina Bay, went from average pricing of $1800psf to $3300 at it’s peak.
Today, factors that interests early investors will be the same factors attracting capital gains in the future resale market. Besides being located at the heart of the Great Southern Waterfront (GSW) transformation, The Reef at King’s Dock will be conveniently located at walking distance to the NE and CC MRT station, walking distance to 2 shopping malls, and the ferry terminal. Also, it is just 2 MRT stops away from CBD area, with existing waterfront living, surrounded by hills, park and water. The Reef will also be next to future Downtown South that is planned.
In cultures that value fengshui, prominently attributed to the Chinese culture traditionally, The Reef at King’s Dock location will be one of the attractive factors. It is believed that water signifies wealth hence, being located in a waterfront setting with slow-moving and clean water is attractive, whereas stagnant water would be avoided in the fengshui interpretation of location.
As we generally know from economics, when supply is high, prices fall to match the lower demand and similarly, with high demand, prices rise so that the lower supply is able to match it and achieve a point of equilibrium in the market.
There is a pent-up demand for waterfront lifestyle as there have been no waterfront new launches for the past 8 years. Using the neighbouring waterfront condos (Caribbean at Keppel Bay, Corals at Keppel Bay, and Reflections at Keppel Bay) as references for comparison, there is a good volume and demand for rental in the area (1091 units are tenanted out of 2464 units in 2019-2020 period). Due to this, rental yield can be expected to be healthy as well. The high rental demand can be attributed to the waterfront lifestyle, and the offices and malls in the area. Big names such as Merill Lynch, Google, Deutsche Bank, and Dyson (recently secured headquarters at St James Power Station) and many more are present in the office areas in GSW. All these contribute to the high rental demand in the area, which is yet another factor that is commonly used to predict capital appreciation potentials of a project.
The developer for The Reef at King’s Doc is Harbourfront Three Pte Ltd, a joint venture between MapleTree and Keppel Land. Architects of the project are KCAP Architects and Planners and DCA Architects. Landscape architect is by Grant Associates, with project interior design by Index Design Pte Ltd. This project will also become the first to include a floating deck in a residential development in Singapore. This is also the only condo to be inside historical King’s Dock with URA heritage status, and the only condo with prime harbourfront avenue address. Besides these, this will also be the only condo engaging water expert specialist for their facilities which include marine life viewing hammock.
Developers are usually one of the key factors behind the expectations of the end-product upon completion, and both developers in this project are well known and famous, with MapleTree being responsible for the transformation of the 24HA Harbourfront Precinct and the nearby 13.5HA Alexandra Precinct. Keppel Land on the other hand is Asia’s Premier Award-Winning Developer, with the popular ones being Corals at Keppel Bay, Reflections at Keppel Bay, The Garden Residences in Singapore, and many more.
All in all, to conclude the above analysis, we think that The Reef at King’s Dock is likely to be an investment opportunity due to all the strong factors supporting it’s potential, both for own stay and for investment purposes. Also, when do you think would be a good time to enter the market? Now, at the start of GSW transformation, or later, in midst of the possibly high growth period, or when the market has matured? It’s the pandemic now as well, do we wait it out, or act while others are waiting? What are your personal thoughts on this? Do share them with us!
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