First new launch of 2023, Sceneca Residence hits 60% sales on first day

The 268-unit Sceneca Residence located at Tanah Merah Kechil Link, was officially launched yesterday (Jan 14), after a two-week preview that started on Jan 1. Balloting of units kicked off at 10.30 am on Jan 14, and by the end of the day, 160 units (about 60%) had been sold at an average price of $2,072 psf.

As the first new project launch of 2023, the performance of Sceneca Residence is a predictor of what developers with projects in the pipeline may expect. The consortium made up of MCC Singapore, Ekovest Developments and The Place Holdings reportedly collected 560 cheques, meaning the project was two times subscribed with a conversion rate of 28.6%.

“The project is likely the first major private residential launch (excluding executive condominiums) after the implementation of the latest round of cooling measures on 30 September 2022, and we do observe that homebuyers are more conscientious and deliberate in their buying decisions,” reports Tan Zhiyong, CEO of MCC Singapore on behalf of the consortium.

Mark Yip, CEO of Huttons Asia, comments how rare it is to find a one-bedroom apartment for under $1 million in the current market.

The one- and two-bedroom units at Sceneca Residence – comprising 120 units with sizes from 463 to 883 sq ft – were all sold. Prices started from $958,000 for a one-bedroom unit and $1.33 million for a two-bedroom.

There were only four penthouses in the development, with sizes of 2,400 to 2,756 sq ft. The largest of these was also among the units sold on launch day.

The buyer pool included Singaporeans (88.5%), permanent residents (11.5%), and foreigners (11.5%).

If the development had featured a higher concentration of one- and two-bedroom units, Ismail Gafoor, CEO of PropNex, says it would have sold even more. This “strong appetite” for units priced below $1.8 million is visible despite the current high interest rate environment.

Adjacent to the Tanah Merah MRT station and with a 20,000 sq ft mall beneath the residential towers, Sceneca Residence also features convenience, accessibility, and amenities attractive to future residents, according to Marcus Chu, CEO of ERA Realty Network.

The fourth quarter of 2022 saw two executive condos (ECs) project launches: the 639-unit Copen Tengah Plantation EC Grand at Tengah Walk in the west and the 618-unit Tenet at Tampines in the east. The 165-unit SkyEden@Bedok and the 605-unit Lentor Modern were launched in September.

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The February and March launches of the 386-unit The Botany at Dairy Farm and the 271-unit Terra Hill in Pasir Panjang might see a good response, as there hasn’t been much new supply in the area, notes Yip.

Sceneca Residence’s performance has certainly started the year off on a positive note, says Gafoor. He advises developers to price their projects “right”, since homebuyers are increasingly price sensitive.

It certainly looks like 2023 could be one of the strong years for new property launches in Singapore.