AMO Residence, the year’s first major new launch in the Outside Central Region (OCR), was met with sizzling demand as it sold nearly all its 372 units on the first day of its launch on Saturday (Jul 23).
The 99-year-leasehold private residential development, which is a joint venture between UOL Group, Singapore Land Group and Kheng Leong Company, has sold over 98 per cent of its units and was left with 7 unsold ones.
Prices started from S$1,890 per square foot (psf). The consortium was awarded the site in a state tender last year after they put in the top bid of S$381.38 million or nearly S$1,118 psf per plot ratio (psf ppr).
While the consortium did not comment on the average pricing for units transacted over launch weekend, market talk suggested it was roughly around the S$2,100 psf level.
Anson Lim, UOL’s general manager (residential marketing), said: “There is strong underlying demand as it is the first major private residential project in the mature housing estate of Ang Mo Kio in more than 8 years.” Buyers are mostly owner-occupiers, while some families have purchased multiple units so as to live in the same vicinity.
Lim added: “(Buyers) are particularly attracted to the project’s proximity to Mayflower MRT station, popular schools, lush parks and shopping malls.”
Sources told The Business Times that 68 units were sold on Friday at a VIP preview for buyers who were keen to buy multiple units. One of the project’s 3 penthouses was also sold at the preview, at over S$6 million or about S$2,400 psf.
The 99-year leasehold development offers 2- to 5-bedroom units ranging from 614 sq ft to 1,475 sq ft, along with 3 penthouses sized from 2,293 sq ft to 2,497 sq ft. The 2-bedders and 4-bedders are understood to be completely sold out.
Lee Sze Teck, Huttons’ senior director for research, told BT that buyers opted for the largest units within their budget, driven by the need for more space post-Covid.
Wong Siew Ying, head of research and content at PropNex Realty, highlighted that AMO Residence’s first-mover advantage in being the first major launch in the OCR this year gave sales a shot in the arm. Wong also reckons that some buyers felt the project offered decent entry prices, given that firm land prices and elevated construction costs in the current environment could give rise to future suburban launches trending at over S$2,000 psf.
She said: “In anticipation of potentially higher launch prices in the future, rising interest rates as well as considering the low unsold new private home inventory in the mass market, we believe many of the buyers likely decided to act now by securing a unit at AMO Residence, which is located in a mature estate with a range of amenities in the vicinity, as well as proximity to the Mayflower MRT station and good schools.”
The last non-landed launch in Ang Mo Kio was The Panorama in 2014, while recent resale transactions at The Panorama in Q2 2022 ranged from S$1,626 psf to S$1,819 psf.
According to Huttons’ Lee, AMO Residence is the best-selling project since The Linq @ Beauty World, which was released in November 2020. The mixed-use development at Beauty World MRT station sold 115 of its 120 units at launch between S$2,150 and S$2,200 psf on average.
Lee added: “The success of AMO Residence shows that the market is hungry for attractively priced homes in good locations.”
Analysts say that the robust demand for AMO Residence bodes well for other upcoming launches in the OCR this year, which include QingJian Realty’s The Arden at Phoenix Road, Guocoland’s Lentor Modern and Frasers Property’s Sky Eden @ Bedok.