Hong Leong’s Kassia freehold condo sells 52% of 276 units on launch weekend
SINGAPORE - Freehold condominium project Kassia sold 52 per cent of its 276 residential units on its launch weekend, with prices ranging between $1,821 per sq ft (psf) and $2,177 psf.
The development, which comprises four blocks of eight storeys, occupies a site area of 150,838 sq ft in District 17 off Upper Changi Road North.
Kassia’s one- and two-bedroom units were the most popular on the launch weekend, said Hong Leong Holdings on July 21.
Its apartments are priced from $883,000 for a one-bedder (473 sq ft), $1.196 million for a two-bedder (656 sq ft), $1.659 million for a three-bedder (904 sq ft), and $2.462 million for a four-bedder (1,345 sq ft).
About 90 per cent of the buyers were Singaporeans, while permanent residents made up the rest. The project is estimated to obtain its temporary occupation permit in 2027.
Industry watchers cited Kassia’s comparatively “attractive” prices for a freehold project and connectivity to key business hubs and schools in the east among factors for its strong sales launch, amid a cooling primary market.
Mr Nicholas Mak, chief research officer of Mogul.sg, noted that Kassia’s take-up rate in its first weekend of sales was the highest compared with other residential launches in the past three months. It could “provide the stimulus needed to boost sales in the residential primary market”.
“The mediocre take-up rate of other recent residential launches has caused some developers to hold back their launches and wait for a more opportune time to launch,” he said.
“The strong take-up rate of the launch of Kassia could be the starter gun to herald the crescendo of project launches for the rest of this year.”
He added that Kassia’s healthy sales illustrate how home buyers are price-sensitive, and will gravitate towards freehold residential launches with units they perceive to offer value for money.
PropNex chief executive Ismail Gafoor said: “Following the first half of 2024 that was marked by relatively placid new home sales, the strong performance at Kassia is like a breath of fresh air and will hopefully generate a little more buzz in the market.”
He added that this may encourage prospective buyers to begin evaluating their real estate needs ahead of more impending launches in the second half of 2024.
The US Federal Reserve’s expected rate cuts in September could also “possibly help to shore up market confidence in the months ahead”.
ERA Singapore CEO Marcus Chu said Kassia’s take-up rate was “well within expectations”, with units priced up to $1.5 million hitting “the sweet spot” among today’s home buyers.
He noted that home buyers were mostly in their 30s and 40s, with a fair mix of owner-occupiers and investors. Kassia’s starting price of $883,000 for a unit within a freehold project in District 17 is also attractive, he added.
“For now, units priced up to $1.5 million are considered by home buyers and investors to be more prudent options, as the higher-for-longer interest rates and elevated additional buyer’s stamp duty continue to be key considerations.”
Likewise, Huttons Asia CEO Mark Yip said: “Buyers would have to travel back to pre-Covid-19 times to find a freehold one-bedroom unit priced from $883,000.”
He added that there has not been a launch of a 999-year or freehold major non-landed residential project in the outside central region (OCR) since 2021, which makes Kassia a “rare” find.
Even as buyers scooped up almost 70 per cent of Kassia’s one-bedroom and one-bedroom plus study units, he noted that the supply of one-bedroom units has dwindled since the Urban Redevelopment Authority implemented a minimum dwelling size in 2018.
Highlighting the limited number of freehold new launches in the OCR that are medium-sized projects, PropNex’s Mr Gafoor said: “Kassia presents a buying opportunity for those who are looking for a new freehold home but are not keen on boutique developments, which tend to have fewer than 100 units in the project.”
Kassia is the final launch in a cluster of private condos within the Flora Drive-Flora Road enclave by joint venture Tripartite Developers, comprising Hong Leong Holdings, City Developments and TID.
The other completed projects in the neighbourhood include Azalea Park, Ballota Park, Carissa Park, Dahlia Park, Edelweiss Park, Ferraria Park, The Gale, Hedges Park, The Inflora and The Jovell.
Lim, P. (2024, July 22). Hong Leong’s Kassia freehold condo sells 52% of 276 units on launch weekend. The Straits Times. https://www.straitstimes.com/business/hong-leong-s-kassia-freehold-condo-sells-52-of-276-units-on-launch-weekend