2022 has been filled with exciting new launches, and we are only halfway through the year. It has been a phenomenal year for condominium and apartment new launches both in terms of price and the attention it has garnered from the public eye. Is there a bubble brewing in this property segment? Have people been buying new launches euphorically despite a moderately dull economic outlook?
Whether you think new launches these days are a bargain or overpriced, the fact remains that people are buying them up. Even though not every project sells out at launch (this is very rare these days), there is still a lot of market participation in the new launch segment. The growing price gap between new launches and resale properties is also worthy to examine.
Jalan Anak Bukit was a land sale bagged by Far East Organization and Sino Group for a mixed-use development that integrates residential and commercial space. Many are speculating that this new launch would be announced for Q3 of 2022. This article is an opinion piece that will highlight the basic pros and cons of the Jalan Anak Bukit site with a short analysis of the location and who might enjoy this private property the most. If you like this article, you can look forward to our follow-up article with an elaborate review once more information has been released.
Perks of the Jalan Anak Bukit Site
The Jalan Anak Bukit site is most obviously demarcated by the major roads of the area. It is located within a box made by Pan Island Expressway (PIE), Upper Bukit Timah, Jalan Anak Bukit, and Jalan Jurong Kechil. This “box” diagonal to Beauty World MRT was also proposed to host the upcoming Beauty World Bus Interchange. It is located in District 21, in Upper Bukit Timah.
The Jalan Anak Bukit site might not look or sound like much upon the name itself, but the location offers a well-rounded living environment. Looking at a bigger picture of the location, the site is located along important major roads with plenty of access to nature, retail, and educational institutions.
We made a quick list of perks as an introduction and will elaborate further in this section. First, this area is rather mature, filled with commercial and retail spaces. It will definitely not be a dead neighbourhood. Second, the site is very well connected with the Downtown Line, upcoming Bus Interchange, and major roads. Third, it is located near many of Singapore’s institutions of higher learning. Lastly, there is quick access to nature via Bukit Timah Nature Reserve and the Rail Corridor.
1. Wide Range of Commercial & Retail Amenities
The mixed-use development will complement the relatively mature intersection around Upper Bukit Timah and Bukit Timah Road. The area has Bukit Timah Shopping Centre, Beauty World Centre, and Bukit Timah Plaza. These more rustic malls will be accompanied by the new contrasting addition of the Jalan Anak Bukit commercial space to form a row of malls. On the opposite side of Upper Bukit Timah Road lies a wide range of eateries along Cheong Chin Nam Road. Bukit Timah Market and Food Centre can also be found nearby.
This wide range of food and retail options definitely give the area a lively feel. Residents here have high accessibility to quality food choices (which in case you didn’t know, matter a lot to Singaporeans). While it is not exactly a foodie’s paradise yet, it is definitely a great spot if you find yourself working from home and are used to eating out.
2. High Connectivity
The Jalan Anak Bukit site is highly connected. Not only is it located along four major roads, it has a Downtown Line station across the street and might soon host the upcoming Beauty World Bus Interchange itself. This is not something to be understated, as it is one of the prime benefits of the site.
This high connectivity makes the Jalan Anak Bukit site very friendly to both car users and public transport users alike. In some sense, you can interpret it as very family-friendly as well. Families with cars have the PIE and major roads on speed dial, while families without cars have the upcoming Bus Interchange (which benefits from the major road connectivity) and the Beauty World MRT. Residents who are still schooling should have no complaints about the connectivity of the location unless they are studying somewhere across the island.
3. Near Institutions of Higher Learning
Many buyers might look at how Pei Hwa Presbyterian Primary and Methodist Girls School is within 1km of the new launch if they have younger children. But what is more notable is how the project is located near many of Singapore’s institutions of higher learning and notable junior colleges.
Ngee Ann Polytechnic is within 1km of Jalan Anak Bukit. Singapore Institute of Management (SIM) and Singapore University of Social Sciences (SUSS) are just a little over 1km away along Clementi Road. Further down Clementi Road, you will find Singapore Polytechnic (SP) and National University of Singapore (NUS) approximately 4km away. This is around a 15 minute drive from the Jalan Anak Bukit site.
Hwa Chong Institution and National Junior College are also two other schools that are nearby. They are just three stations away from Beauty World on the Downtown Line and a little over 3km away. The close proximity to these popular junior colleges is a worthy mention.
4. Access to Key Natural Attractions
Jalan Anak Bukit boasts close proximity to two prime nature spots in Singapore. First, Bukit Timah Nature Reserve lies less than a kilometre away via Hindhede Drive. This is approximately a 15-minute walk and less than 10-minute cycle away from the new launch site. This is a great trekking and hiking spot for people looking to conquer Singapore’s highest hill (standing at 163m). While the 1.64 kilometre square is considered a “small” nature reserve, it is definitely much larger than most parks you will find near residential areas. The Jalan Anak Bukit site will be a great spot for nature and exercise enthusiasts who love greenery.
The next (arguably more exciting) nature-menity is the Rail Corridor, which is less than 800 metres away from the Jalan Anak Bukit site. Bukit Timah Railway station is around a 15-minute walk and less than 10-minute cycle away as well. The entire Rail Corridor is still being expanded and will likely be more connected in the future. However, even now it gives cyclists and hikers a nice clean trail from the Bukit Timah area through Holland Road, Buona Vista, Alexandra, Bukit Merah, Outram, eventually to Tanjong Pagar Railway Station.
These are the main perks of the Jalan Anak Bukit site. While the current prices have not been released by the developers, it will likely not be cheap. Speculations can easily put the site around $2,300 to $3,000 and above. Putting prices aside, the site is estimated to yield around 700 to 800 over new residential units, which is a good size for a new development.
From just the perks of the area alone, it would look like more mature family units would benefit the most from this area. Families with children attending institutions of higher learning, with parents perhaps nearing retirement or in the later stages of their career. The proximity to Bukit Timah Nature Reserve and the Rail Corridor makes healthy living much more enjoyable and feasible for these families too. This also takes into account the affordability factor with more mature family units having more time to accumulate wealth for the purchase. Even as an investment option, this spot provides a great location as rental for foreign student tenants.
Drawbacks of the Jalan Anak Bukit Site
The Jalan Anak Bukit site offers much in terms of the food and retail options, proximity to institutions of higher learning and nature, as well as its high connectivity via MRT, bus, and major roads. But these benefits are not without some potential drawbacks to the location. Looking at the initial map might already set off alarm bells on the noise level of the area. Furthermore, the location is also filled with much older development and malls that may be refurbished in the near future. This might potentially bring more construction (noise and dust) to the area. Additionally, the entry price (while not released) may be of a concern to many. The timing of the launch may also not be the best given the recession in the U.S. and the rising interest rate environment.
1. Noise Level
The potentially high noise levels are the most glaring, with the Jalan Anak Bukit site located right next to the PIE and many other major roads. For most people, being located next to one major road is considered to be enough of a nuisance. This new launch might not be very suitable for people who are very sensitive to noise pollution. As someone who has personally underestimated the persistence and volume of living next to active traffic, living next to a consistently noisy environment can build up stress, whether you’re aware of it or not.
All this being said, the layout of the building and its floor plans have not yet been released. Units which face away from the PIE may be preferred. Floor plans which have bedrooms isolated from the traffic-facing windows might also help. Either way, future buyers should definitely consider ways to mitigate this drawback to help with exit down the road.
2. Potential Future Redevelopments
Many people are aware of the rustic feel of the Beauty World area. The old malls and shophouses in the area might be redeveloped in the near future. If these buildings are redeveloped after the Jalan Anak Bukit new launch is completed, its residents would need to mentally prepare themselves for noise and dust pollution from the redevelopment of the area.
This area has a very rich history both pre and post independence. Coincidentally in tune with the National Day celebrations, it reminds us of how far Singapore has come. These old malls are not simply reminders of the past, nor are they relics. They are still spaces that Singaporeans enjoy and use day-to-day.
Beauty World Centre was opened in 1984, Bukit Timah Shopping Centre was completed in 1981. Bukit Timah Plaza was opened in 1978 as one of the first shopping malls outside of the CBD as a mixed-use development. Beauty World Centre and Bukit Timah Plaza are historic malls near the halfway mark of their lease (Bukit Timah Shopping Centre is an exception as it has a 999-year lease). These buildings might see future redevelopments soon.
This can generally be taken as a piece of good news for the future. But the first residents of the Jalan Anak Bukit new launch would have to be ready to live with the elevated noise and dust levels from redevelopment (and potentially traffic delays and diversions).
3. Pricing & Affordability
While this is not exactly a drawback in itself, some might have concerns over the price tag and affordability. You are getting what you are paying for. As mentioned earlier in the article, this new launch might be a better fit for more mature family units. The new launch will be more closely located to institutions of higher learning and along major roads. The connectivity, and accessibility to amenities, educational institutions and nature will not come cheap.
Just from speculation, the Jalan Anak Bukit new launch will probably be more expensive than recent launches in that area. Mayfair Modern and Mayfair Gardens had their launches in 2019 and 2018 respectively. They also had an average psf range of around $1,900 to $2,300. It would not be surprising to see the range grow between $2,200 to $2,600. Given how other recent new launches have been performing, the market would likely accept higher prices for the time being.
4. Launching in Uncertain Times
The Jalan Anak Bukit launch in Q3 2022 (if it doesn’t get delayed) would coincide with the potential recession in the U.S. and overlap with the Fed’s quantitative tightening. Interest rates will likely continue to rise until the end of 2022. And if inflation is still above the Fed’s threshold, it might mean a prolonged period of high interest rates (approximately 3%) into 2023.
This might be of concern to buyers of new launches and not just the Jalan Anak Bukit launch. The only additional issue is that more countries might enter a recession in subsequent quarters if Europe, China, and other Asian countries follow behind the U.S. If Jalan Anak Bukit does not perform well on its launch day/weekend, it might take more time for the developer to sell its units. Especially so if the target prices are high. There might be concerns about whether high prices will hold if a recession hits Singapore later in 2023.
That being said, recent new launches have still been performing well. AMO Residence, Piccadilly Grand, Liv@MB, did pretty well on their launch dates. It might be possible that tough macro conditions and even additional cooling measures might be insufficient to curb this overheating demand for new launches in Singapore.
The Verdict — Who would stand to benefit the most from Buying?
Before we share our verdict on which buyer profile would benefit the most from buying the Jalan Anak Bukit Launch, let’s first review the pros and cons of the project. We have prepared the table below to summarise the main points.
Based on the pros and cons of the location and the economic context of today, this new launch might be most attractive to more mature family units. This refers to families with young adults and parents in the later stages of their careers.
These features of the target demographic will help ease affordability and concerns about a recession. More mature family units should be able to build up more wealth that offers stability during recessionary environments and also higher income levels to support the property purchase.
Buyers will need to be aware of the noise levels from the surrounding traffic as well as future noise and dust pollution from potential redevelopments. This relies a bit on personal tolerance levels and solutions to mitigate these drawbacks of the location.
If you would like to know more about this new launch and keep up to date, contact us here. We will keep you updated on any information updates from the developers and the important dates to be aware of. Thank you for reading, and stay tuned for our next article on Jalan Anak Bukit!
