Poiz Residences in Potong Pasir may be launched at S$1,380 psf

Singapore

MCC LAND will be releasing close to half of the 731 units in its new private condominium project The Poiz Residences during its sales launch on Nov 28. Sources told BT that the group has fixed the pricing for the initial units at an average S$1,380 per square foot (psf).

The project on Meyappa Chettiar Road forms part of a mixed-use development that includes retail component The Poiz Centre, which will be connected to the adjacent Potong Pasir MRT station. Its showflat opens for public preview on Friday.

MCC Land (Singapore) managing director Tan Zhiyong said The Poiz Residences is priced attractively in reference to recent project launches and its breakeven price of around S$1,200 psf. The group has engaged ERA Realty and PropNex as the marketing agents of the residential project and CBRE for the retail component.

"We are hopeful of selling more than 40 per cent of the units we release during the launch weekend," he told The Business Times. Despite market concerns of a potential oversupply in the housing market and rising vacancies, Mr Tan said some buyers are just adopting a wait-and-see approach. "But the government has moderated the pace of land sales since 2013, while private housing demand has remained high."

He added that with MCC Land's affiliates China Jingye Construction Engineering (S) Pte Ltd and China Jingye Engineering Corporation (Singapore Branch) undertaking the construction of its projects, there is better control of costs and quality. MCC Land and China Jingye are subsidiaries of China's state-owned Metallurgy Corporation of China headquartered in Beijing.

MCC Land, which acquired the land parcel in August last year, owns 51 per cent of the mixed-use project after roping in new partners. Greatview Development owns 39 per cent and Sustained Land owns 10 per cent of the project.

To cater to the needs of both owner-occupiers and investors, The Poiz Residences has three distinct zones - hotel-like "Suites" suitable for renting out, "Urban" units for price-sensitive young professionals and "Habitat" units for families looking for bigger spaces. Some 65 per cent of the residential units are one and two-bedroom units ranging in area from 420 sq ft to 1,259 sq ft.

The Poiz Centre will span a gross floor area (GFA) of 50,000 sq ft and house 84 shops. About 10 per cent of the space is allocated to food and beverages. While MCC Land plans to lease out the retail units, it does not rule out selling some of these strata units if there is strong demand.

R'ST Research director Ong Kah Seng noted that more affluent HDB upgraders will consider Potong Pasir given its proximity to the city area while new retail amenities could re-energise the area.

"In the longer term, HDB flat owners who own a flat in Bidadari will also wish to upgrade within the vicinity, further supporting the future resale demand for private homes in Potong Pasir," he added. "Investors will find the rentability of homes here higher than those in north-eastern areas."

SLP International executive director Nicholas Mak noted that when the land parcel was launched in the first half of 2014, the government estimated some 685 residential units to be built on this site, which means each unit would be 809.6 sq ft of GFA on average. The developer has managed to generate 731 units from the allowable GFA, translating to an average 758.7 sq ft of GFA per unit.

He reckoned that leasing prospects for the project are positive given its retail amenities and proximity to Potong Pasir MRT and the new Bidadari housing estate. But he also said that there could be competition in the vicinity - 59 per cent of units in developments within 300 metres of the Potong Pasir MRT station are less than 90 sq m in area.

"In the near future, there would be at least two mixed residential-commercial developments near the Woodleigh MRT Station," Mr Mak said.

MCC Land's development pipeline includes a private condominium site on Tampines Avenue 10, which is expected to be launched in the third quarter of next year.

Owing to its close ties with Chinese developer Hao Yuan Investment in China, MCC Land is providing project management for some of its overseas projects. This includes Hao Yuan's current mixed-use project in Danga Bay and an upcoming executive condominium project here on Woodlands Avenue 12, which is slated to be launched in April or May.

MCC Land is also undertaking project management for the private condominium project of HY Realty at Dundee Road, which is likely to be launched in Q3 next year. HY Realty shares the same shareholders as Hao Yuan Investment. China Jingye will undertake construction of these Woodlands and Dundee projects.