The Continuum Sells 26.5% of Units at an Average Price of $2,732 psf

During its launch weekend in May, joint-venture developers Hoi Hup Realty and Sunway Property sold 216 units (26.5%) of their 816-unit freehold condominium, The Continuum, at an average selling price of $2,732 psf.

Considering the recent cooling measures and cloudy economic outlook, this represents a strong and encouraging sales performance.

In terms of absolute numbers, sales at The Continuum were comparable to the 206 units sold at the 275-unit Blossoms By The Park, which achieved a 75% take-up rate on its launch weekend.

Prior to the launch of The Continuum, the developers collected 545 cheques as expressions of interest during the two-week preview, translating to a conversion rate of nearly 40%. This demonstrates that well-designed properties in District 15 command a strong following, particularly large-scale freehold developments.

Larger units at The Continuum proved popular among homebuyers. Two-bedroom types starting from $1.67 million accounted for 62% of units sold over the weekend. Three-bedroom units starting from $2.306 million made up 29% of sales. Even for four-bedroom units, 15 units were sold at prices exceeding $3.312 million.

As a freehold development, The Continuum appeals to upgraders and owner-occupiers looking to pass down a legacy to the next generation.

As a premium project by Hoi Hup and Sunway, The Continuum also attracted first-time homebuyers and retirees looking to rightsize. These buyers are predominantly residents living in established residential enclaves within prime District 15.

Singaporeans made up 90% of buyers, with Singapore Permanent Residents accounting for the remaining 10%. In light of the latest property cooling measures, foreign buyers are currently unlikely to enter the market.

It has been nearly 20 years since a condominium project on a freehold site exceeding 200,000 sq ft in the Katong area was brought to market. Prior to The Continuum, the last such development was Haig Court in 2004.

The Continuum is set to be a landmark development in Katong, featuring an iconic bridge. Premium facilities, freehold tenure, proximity to reputable schools and the Paya Lebar Sub-Regional Centre are other key factors drawing buyers to the project.

For a mega development with over 500 units, achieving 20% to 30% sales on its launch weekend is a commendable performance. The developers still have three to four years to sell down the entire project.

Based on development sites sold over the past two years—including en bloc transactions and Government Land Sales—there are few upcoming new launches slated for 2024. Consequently, developers will be able to progressively sell down their existing inventory. Moreover, unit prices at The Continuum are attractively priced, with two-bedroom apartments starting from $2,584 psf.

The advantage of large-scale developments like The Continuum is that they can command higher prices in the secondary market compared to smaller developments. Greater visibility for the project leads to higher resale demand, higher transaction volumes, and stronger capital values.

Following the launch of The Continuum this month and Tembusu Grand last month, the third upcoming project in District 15 is the 99-year leasehold Grand Dunman. Developed by SingHaiyi Group, the 1,008-unit project is slated for launch in 3Q2023.