The new launch condominium market in Singapore has been getting exceedingly hot in Singapore. Does Sceneca Residence stand a chance? If so, what is so special about this new addition to one of Singapore’s most favoured property segments? The new launch market has been rather resilient despite macroeconomic headwinds.
Pricey new launch prices coupled with high interest rates did not seem enough to deter investors and buyers from projects such as AMO Residence and Piccadilly Grand. However, with the recent 0.75% interest rate hike from the US Fed, and another upcoming potential hike in December, would buyers still be willing to foot the bill on increasingly high interest payments?
In this opinion piece, we cover the upcoming new launch, Seneca Residence. We will discuss the basic details of the project and its MOAT profile. Following which, we will summarise the rough pros and cons of the project based on the information we have on hand. You can also look forward to our follow-up article once more details on the project are released.
The Basic Details
Sceneca Residence is located in the Bedok area. It is found along Tanah Merah Kechil Link in District 16. This new launch apartment is located right beside Tanah Merah MRT and is planned to be a mixed-use development, which is a phrase most private property buyers would want to hear. That means plenty of amenities and food options are being put on the table.
Sceneca Residence being a new launch apartment in the Outside Central Region (OCR), also makes it interesting in a number of ways. Being a new launch typically entails elevated price levels due to the rising cost of land, materials, and construction. Yet, being located in the heartlands often means relatively lower prices when compared to more centrally located properties. This gives Sceneca Residence the potential to be one of the more affordably priced new launches in 2022, all whilst being located right next to Tanah Merah MRT.
Sceneca Residence is expected to TOP in 2026. It is slated to have 268 units, found in 2 blocks of 14-15 storey towers. The unit size distribution is expected to be rather even between all the 1 to 4 bedroom options provided. The focus on a greater variety of 3-bedroom units is on the table, and buyers can expect a 3-bedroom variation that fits their housing and personal preferences.
Based on the current state of the new launch market, in combination with the estimated land and construction costs of Sceneca Residences, the ballpark figure for the price is around $1,700 to $2,000 psf. This number is speculative and will be revised in our upcoming article on Sceneca Residence once more information is made available.
For reference, many of the new launch projects in 2022 have been priced around the approximate average of $2,100 psf. This gives Sceneca Residence a potential to hit the market with a mouthwatering entry price for interested new launch buyers.
Tanah Merah is an eastie’s haven. For people working in the IT or Aviation industry in Changi, this might be an attractive location to live. Alternatively, if you have family living in the east (as most Singaporeans might), Sceneca Residence may be looking up for you. Bedok, Tampines, Pasir Ris are huge residential clusters. Sceneca Residence being located in the east of Bedok could help you reduce the travelling time needed for family visits.
In addition to that, Sceneca Residence is located between two great locations for nature and recreation. Bedok Reservoir and East Coast Park are just a short distance away. The Eastern Coastal Park Connector Network (ECPCN) cycling trail (image below) will also give Sceneca Residence another interesting selling point, it will be more connected to the rest of the eastern region.
Summarising the perks of Sceneca Residence, the most attractive feature would be the close proximity to Tanah Merah MRT station. The mixed-use development status is also sought after by many new launch hopefuls. The potentially attractive price point due to its OCR location could also be alluring. Finally, the access to nature and recreation is also not lacking.
What does the MOAT Profile look like?
Sceneca Residence looks to be rather attractive so far. Let’s take a deeper look at where it stands on PLB’s MOAT Analysis. If you haven’t heard, the MOAT Analysis helps us compare multiple properties along 10 different dimensions. You can read more about MOAT Analysis here. Articles on each of these different dimensions are also available on our website.
We take a look at nearby condominiums and apartments in order to have an estimate of Sceneca Residence’s MOAT Score. For comparison, we will be taking a look at Casa Merah, East Meadows, Grandeur Park Residences, Optima @ Tanah Merah, and The Glades. These are projects located all within the vicinity of Tanah Merah MRT Station. Sceneca Residence will definitely stand out with its mixed-use development status among all of these condos.
Taking a look at the MOAT Profiles of the five comparables, we arrive at an average MOAT score of 72.8%. This is considered a high MOAT Score. The primary contributors to the high score are the MRT Effect, Exit Audience, Rental Demand, Quantum Effect, and Bala’s Curve Effect. Generally, this profile sends a signal that the location is desirable to many buyers.
Being located within walking distance of the MRT is something that many residents here envy. In addition, the relatively affordable prices give it a good Quantum Effect score. High Rental Demand stands as a testament to this location’s desirability. Finally, the high Bala’s Curve Effect score tells us that the remaining lease of the projects around this area is still decent. Sceneca Residence being a new addition would mean it has the highest score on that dimension. Having an Exit Audience in the form of HDB upgraders in the area also helps to prop up the value of the property.
All these features combined does validate our earlier points on how Sceneca Residence might be an attractive new launch. But we shouldn’t stop here and only use the MOAT Analysis for confirmation bias. The MOAT Analysis also suggests dimensions in which Sceneca Residence did not perform exceptionally well.
The two key caveats to look forward to are the smaller pool of schooling options for children, lowering the Parents’ Attraction Effect to between 2-3 points. Landsize Density is also something to pay attention to. Whereas the low region and district disparity scores might be due to the premium buyers pay for the close proximity to the MRT.
Schools within the vicinity of Sceneca include but are not limited to St Anthony’s Canossian Primary, Bedok Green Primary, Red Swastika School, Bedok Green Secondary, Anglican High, Bedok View Secondary, Bedok South Secondary. A little bit further northwest, we can find Yu Neng Primary and Fengshan Primary.
Generally, the MOAT Profile still looks favourable and suggests a good chance of appreciation moving forward. This is not a given fact but the price point for entry is something that prospective buyers need to pay attention to as it will probably be one of the biggest factors affecting the probability of future appreciation.
The Verdict
If you’re still on the fence and put off by the tough economic conditions out there, you are erring on the side of caution which is a great thing. But this doesn’t mean that buyers are totally out of the market. Certainly, this isn’t the end of the world for Sceneca Residence. Like the Stoic philosopher Seneca (maybe the namesake?), we should keep calm and carry on. Weighing the pros and cons of the project carefully, buyers will be able to reach a more informed decision on whether this is the right time and right place for them.
Here is a quick summary of the pros and cons. We will let you be the judge of whether or not this property is for you.
Let’s Get in Touch
If you’re interested in the launch of Sceneca Residence, do reach out to us here to schedule a time for you to take a closer look at this project. The estimated Preview date is around 1 January 2023 and the estimated Launch date is around 14 January 2023. Keep an eye out for our next article on Sceneca Residence with more insight on prices and floor plans.
Feel free to reach out to us if you have any questions on this new launch or if you want to find out more about how our MOAT Analysis tool can help you with finding your perfect match when it comes to your future home. Thank you for reading and for supporting PLB!
