Real estate

Orchard Boulevard property report – November 2021

with Rowena Chan

Boulevard: What sets the Orchard Boulevard area apart from other luxury enclaves such as Nassim or Ardmore?

Rowena: The area has unique appeal for high-octane buyers, with its mix of tree-lined avenues, flagship luxury-brand stores, five-star hotels, and a range of new and older condos.

Boulevard: We’ve seen strong demand especially with the recent Park Nova launch – what’s driving it?

Rowena: Foreigners are taking a different approach to Singapore – many who were renting have switched to buy mode since the pandemic started. So we’re seeing increased demand for larger formats, a preference for freehold, and a lack of supply in the Orchard area – in fact developers are increasing their prices due to limited supply.

Boulevard: Do you see certain projects in the area as more suited to investment rather than end use?

Rowena: All projects in this vicinity are suitable both for own use or investment. However, purchasers here are very design sensitive. Thoughtful, considered design on larger floor plates is preferred for own stay.

Boulevard: How does the secondary market compare to new launches?

Rowena: We’ve seen increased interest and average prices psf. St Regis Residences sold 10 apartments in 2021 compared to just one in 2020. The psf has increased 18% in 2021. Four Seasons Park Residences transacted a 6,168 sqft penthouse at $19m for $3,081 psf.

Boulevard: We’ve seen strong take up at Boulevard 88 and Park Nova – what’s the next big offering?

Rowena: Park Nova transacted eight units in September before the pricing revision and continued selling in October. Boulevard 88 (above) has seen healthy take up from Indonesians and Singaporeans lately, and approximately 15 units have been sold this year despite the price increase.

The next big offering will be the release of 3 Orchard by the Park (top) loft units – also known as ‘Villas in the Sky’ – with private pool and sizes up to 3,251 sqft.

Boulevard: What do you think buyers will want from Orchard Boulevard properties in the coming years?

Rowena: Orchard Boulevard caters primarily to luxury home owners, and the trend is towards large format, well-appointed spaces. Biophilic design and a focus on sustainability will be key, as well as accommodations for hybrid work arrangements. Practical layouts with a focus on privacy are paramount, and of course it needs to be priced well. Buyers investing here could be landed owners downgrading for their retirement, especially as land prices rise, as well as millennials purchasing their first homes.

Another group investing in the area could be second-home buyers looking for a home-office in a prestigious locale to complement their primary residence. 3 Orchard by the Park’s duplex units will be a great opportunity. In my experience, young families are more open to duplex apartments, which offer a better demarcation of kids and family downstairs while parents work from home upstairs in a converted hybrid office. I’d also expect more hotel-branded
residences to come into the area, as developers look to capitalise on the demand for prestige, amenities and services associated with luxury hospitality groups.

Boulevard: Do you think we’re going to see more records on the psf front in coming years?

Rowena: With Park Nova, Shun Tak put together what I call a standalone project, like The Marq on Paterson Hill, Le Nouvel Ardmore, or Sculptura Ardmore, where, beyond locale, the product has something unique that appeals to ultra-luxury residents.

Barring any unforeseen macro circumstances that may then have a systemic risk on local properties, Singapore is also known to be a fairly anti-shock country for property investments. And on a positive note, with the recent purchase of 21 Anderson by Kheng Leong, depending on its plans for the site, this may be a catalyst for pushing the boundaries further in the near term. After all, Le Nouvel Ardmore is now fully sold and Nouvel 18 has been enjoying healthy sales lately. In the absence of more new launches in the Core Central Region and lower supply, I believe the secondary market may become more active, which could deliver some record highs in the resale segment.

Park Nova may have set the new benchmark for off-plan purchase, but with only 54 apartments, I believe that upon completion, some owners who did not have the chance to be in Singapore due to the travel restrictions may be willing to pay off the initial buyers, especially when they’re able to appreciate the final product. With that, I believe some owners will be able to sell at a profit, and perhaps a new record psf.

Boulevard: What are your hot picks for the area – professionally, for investment, and personally for own use?

Rowena: Boulevard 88 for the vibrancy of an integrated development; 3 Orchard by the Park for boutique luxury, privacy and exclusivity; Park Nova for a vertical garden home; and Cuscaden Reserve for chic, designer living. As a global lifestyle destination, this coveted address remains a prized real estate investment.

Rowena Chan

A former investment banker, Rowena has a passion for delivering wealth generation through real estate. Rowena specialises in the Core Central Region, and over the last 10 years as one of Singapore’s most successful luxury agents, she has transacted numerous GCBs and Sentosa bungalows, along with prestige residences in the Nassim, Ardmore and Orchard Boulevard enclaves.

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