UOL Group targets launches in Pine Grove and Watten Estate in 2023
In FY2022, Singapore-listed property company UOL Group recorded total revenue of $3.2 billion, up 28% y-o-y. Revenue from property development was $1.98 billion, up 26% y-o-y. Property development contributed to 62% of the group’s overall revenue for FY2022.
Higher revenue recognition came from the 640-unit Clavon, the 448-unit The Watergardens and the 372-unit AMO Residence.
Launched last July, AMO Residence at Ang Mo Kio Rise was 98% sold on the first weekend of sales at an average price of $2,100 psf, setting a new benchmark for prices in the Outside Central Region (OCR).
Clavon at Clementi Avenue 1 is fully sold, just over two years after its launch in December 2020. The 1,074-unit Avenue South Residence at Silat Avenue, off Kampong Bahru is also fully sold 3.5 years after its launch in September 2019.
The Watergardens at Canberra Drive has just five unsold units, while the luxury 56-unit Meyerhouse along Meyer Road has just one unsold unit.
The inventory of new residential projects is almost depleted, according to Liam Wee Sin, group chief executive of UOL Group at the group’s results briefing on Feb 27. After a year of “robust sales” in the residential market, Liam intends to focus on land replenishment.
Upcoming projects
The developer’s recent focus on neighbourhoods such as Ang Mo Kio, Watten Estate and Pine Grove is an indication of the characteristics of future projects, says Liam.
“We believe that the high-end and luxury residential market (in Singapore) presents opportunities for us to create more refined products that resonate with homebuyers,” he adds.
UOL has two launch-ready projects in the pipeline this year. It plans to preview its upcoming 520-unit residential development at Pine Grove by the end of 1H2023. The developer was awarded the site last June when it submitted the highest bid of $671.5 million ($1,318 psf per plot ratio) in a government land tender.
This upcoming project comprises three 24-storey residential towers with a mix of one- to five-bedroom units. The design will also emphasise the nearby greenery of Clementi Forest and Bukit Timah Nature Reserve.
Meanwhile, the developer says it will launch the redevelopment of the former Watten Estate Condominium in 2H2023. The developer acquired the condo in a $550.8 million ($1,786 psf ppr) collective sale in October 2021.
The Watten Estate project will be a low-rise five-storey luxury condo with 180 units. UOL says that it will concentrate on large-format unit layouts in this project, with a unit mix consisting of three- to five-bedroom units.
Given its prime location, the low-rise development will be designed “in the style of a mansion” similar to Meyerise, he adds.
Seeking efficiencies and optimisation
In addition to property development, UOL Group is also working on asset enhancement and redevelopment for some of its office and commercial developments.
Singapore Land Tower (SingLand Tower) at 50 Raffles Place is undergoing asset enhancement works in phases, says Jonathan
Eu, CEO of Singapore Land Group (SIngLand) which is a listed property company and subsidiary of UOL.
Asset enhancement works are scheduled to complete by 2024. The building will have a new facade and energy-saving features. It
has obtained the BCA Green Mark Platinum certification in December 2022.
New amenities to the building include endof-trip facilities, a variety of communal spaces and a covered walkway to the Raffles Place MRT interchange station. SingLand is also exploring a management agreement with a co-working operator to provide co-working and flexible workspaces as an amenity for its tenants.
SingLand is also redeveloping Clifford Centre, located nearby at 24 Raffles Place. Tenants have vacated the building at the end of 2022. Plans are underway to proceed with demolition works this year, and redevelopment by 2024, says Eu.
The total development cost for Clifford Centre and asset enhancement works for SingLand Tower is estimated to be in the range of $500 million to $800 million, including land betterment charges and other costs.
UOL is also undertaking asset enhancement works at Odeon Towers on North Bridge Road. The building will have a new seven-storey extension facing Raffles Hotel on North Bridge Road. Construction is expected to be completed by 2Q2024 and estimated to cost $35 million, says UOL Group COO Neo Soon Hup.
Year of higher business costs
For FY2023, Liam expects to see moderate price growth due to a combination of low unsold inventory and higher supply from upcoming new residential project launches. The recent hike in buyer’s stamp duty is expected to have “a marginal impact” on new home sales, he adds.
UOL will capitalise on its pipeline of prime and freehold residential development sites as well as replenish its landbank to maintain its lead position in the sector, notes Liam.
However, the group will remain “mindful” of higher business costs and borrowing costs due to the high interest rate environment, says Liam.