Piccadilly Grand New Launch Condo Review – Just another mixed-use development?

Piccadilly Grand has caught the attention of many, and has set off Q2 with a bang for new launches. With reputable developers and a great location to boot, this launch is not to be missed!

When seeing new launches, some questions you may have include:

• What is the project about?

•  Is the project a worthy investment?

• Can I afford it?

In this article, we cover all things Piccadilly Grand from its district performance to its affordability as a potential buyer.

 

What is the project about?

Piccadilly Grand is a Residential and Commercial mixed development located at Northumberland Road in District 8. Expected to TOP in 2026, this 99-year leasehold condo has a total of three residential towers and a retail podium.

The mid-sized development consists of 407 residential units and 14 retail units spread across 94,000 square feet (sqft) of land adjacent to the Farrer Park MRT station. The unit mix offered includes one to five bedroom types with flexi, study and dual key options.

 

This launch is a joint venture between City Developments Limited and MCL Land Limited with ADDP Architect as the project architect. Do the names sound familiar? Stay tuned as we delve more on them in the next section!

The project’s retail scene will improve amenities for nearby residents as well as increase housing options in the Rest of Central Region (RCR). Because the shops are in a glass-enclosed promenade, the commercial area is appropriately named Piccadilly Galleria.

 

Taking a look at facilities offered in the residential vicinity, Piccadilly Grand has almost full condo facilities minus a tennis court. Fundamentally, Piccadilly Grand’s facilities are pretty similar to those of a typical condominium. Gymnasium, function room, pools… You name it, they got it.

 

Now, what makes this project different from others? Here are 5 unique features of Piccadilly Grand.

1. Three Clubhouses + Five different Lifestyle zones

Although Piccadilly Grand does not have a tennis court, they offer a multi-purpose court and three curated clubhouses. The facilities have been thoughtfully grouped into five different lifestyle zones.

The developers describe the project as a ‘home of modern luxuries’ and it is true! The amount of thought and consideration that has gone into the project is obvious. Condominium developments usually have one or at most two clubhouses but Piccadilly Grand comes in clutch with THREE clubhouses.

Overall, Piccadilly Grand provides an elevated, sanctuary-like experience for residents. The facilities will be an upgrade even if you are moving from another condominium.

2. Mixed-use Development with a dedicated Childcare Centre

 

Piccadilly Grand joins Uptown @ Farrer as the only two mixed-use developments in District 8. Both are 99-year leasehold developments with a retail podium and residential towers.

Do note that both developments also have varying unit mix; Piccadilly Grand has 407 residential units, 14 retail outlets and 1 child care centre while Uptown @ Farrer has 116 residential units, 7 retail outlets and 240 serviced apartments (lyf Farrer Park Singapore).

Yes you read right! Homeowners who have a family or are considering starting one will be excited to learn that Piccadilly Galleria will have a childcare centre. This project joins the handful of condominium developments that have the room and permission to include a childcare facility on the ground. The 500 square metres of gross floor area set aside will provide ample space for children to play and learn.

When choosing a potential child care arrangement, convenience is often a crucial consideration for parents. The proximity of this family-friendly facility is guaranteed to take away potential worries of drop-off arrangements.

3. Connectivity Central

On top of being a mixed-use development, Piccadilly Grand can be considered an integrated development as it connects residents to public infrastructure aka Farrer Park MRT. It is also connected to communal activities such as Farrer Park Swimming Complex which will be further elaborated in the next section.

 

A frequent commuter? With direct access to Farrer Park MRT’s Exit E (North-East Line), residents will be efficiently connected to all MRT Lines in Singapore.

A frequent driver? Piccadilly Grand is well connected to many of Singapore’s major highways like PIE, CTE and KPE. With just a 17 minutes drive, you will be able to reach the Central Business District. How convenient it is for those working in the CBD area!

 

4. Location Location Location

Location is always a hot topic of discussion. Why? With real estate being immobile and heterogeneous, there are no two properties that are exactly the same.

Piccadilly Grand is located in the Farrer Park/Little India area which is rich in history and culture. In fact, the project name and the surrounding area has been inspired by many places in the United Kingdom.

 

The land parcel next to Piccadilly Grand has been designated for redevelopment, so Piccadilly Grand residents can look forward to improved sports and recreational facilities as well as capital appreciation.

 

Not to forget, Piccadilly Grand is in close proximity to Novena’s future HealthCity! It is an integrated healthcare vicinity that aims to provide a holistic experience for everything health-related. Expected to complete in 2030, residents will get to enjoy a plethora of services and amenities.

For parents who are concerned about nearby schools, there is a good selection of reputable schools nearby from St. Joseph’s Institution (Junior) to Anglo-Chinese School. The nearest university is Singapore Management University (SMU) which is only 3 MRT stops away.

With its prime location and accessibility, it is no wonder how 77% of units were sold over Piccadilly Grand’s launch weekend (7 & 8 May).

5. Renowned and reputable Developers and Architects

 

Piccadilly Grand is being developed by Maximus Residential SG Pte. Ltd., a joint venture by City Developments Limited (CDL)  and MCL Land Limited. Collectively with over a hundred years of experience in real estate development, it is rest assured that the development will be of highest quality.

This joint venture is also embarking on another project in the up and coming Tengah New Town. It is Tengah Garden, the first Executive Condominium launch in the estate expected to launch in Q3 2022.

 

In fact, they secured a $847 million green loan for Piccadilly Grand and Tengah Garden and the projects are expected to receive Green Mark GoldPlus certifications after their completion.

With over 10 consecutive years of being awarded ‘BCI Asia’s Top 10 Architectural Firms’, the project architect is also not to be missed. ADDP Architects LLP is well-versed in prefabricated construction, and recently embarked in Avenue South Residences which is expected to be the world’s tallest prefabricated residential construction.

The ultimate mid-tier trait of Piccadilly Grand: its Appearance.

 

When comparing the Piccadilly Grand façade to ADDP Architects’ previous projects, we believe the luxurious and sanctuary-like facilities could be better represented.

How will the project and the surrounding properties perform?

Piccadilly Grand is located in Farrer Park and is part of District 8 in the Rest of Central Region (RCR).

District 8 mostly comprises Farrer Park and Little India while the rest of Central Region comprises District 3, District 8, and parts of Districts 1, 2, 4, 5, 7, 13, 14, 15, and 20.

 

The number of sites available through GLS in 2020 decreased by half from the previous years as a result of the pandemic. As a result, the supply of private housing in 2022 is reduced. Piccadilly Grand is the only major launch that is happening in District 8 this year.

During its launch weekend (7 & 8 May), Piccadilly Grand sold 78% of its units at an average selling price of $2,185 psf. The take up rate is high to no avail.

The nearest comparable is Uptown @ Farrer which TOP-ed earlier this year. Uptown @ Farrer was part of the GLS programme and sold for $1,001 per sq ft per plot ratio (psf ppr) in January 2017. Piccadilly Grand’s take up rate far exceeded Uptown @ Farrer which had only a 11% take up rate in the first month. The average selling price of the development back then was $1,857 psf. All 116 units have been sold as of May 2022.

 

Another prominent launch of H1 2022 is Liv @ MB which is a redevelopment of a successful enbloc. Liv @ MB is a 99-year leasehold condominium in District 15 (RCR as well). It launched on May 21 and has already sold 75% of its 298 units. Its average selling price was $2,387 psf.

Comparing Uptown @ Farrer to the newer launches, you will notice at least a $300 psf difference. More developers are expecting the prices of new launches to increase. What do you think?

 

In our Insights 2022 Q1 report, we asked ourselves if the new projects are overpriced or if resale private condos will grow to match the much higher prices.

 

Developers can expect a profit of around $300 per square foot based on Piccadilly Grand’s estimated breakeven point and average selling price. We believe that a premium on the property is reasonable given its accessibility and amenities. The location and future developments in the area will almost certainly result in capital appreciation for buyers in the future, making the investment even more worthwhile. Afterall, there are only so many MRT stations where integrated developments can be built.

For Liv @ MB, the expected profit margin and other expenses is around $500. Although the margin seems hefty, the average selling price is considered pretty affordable in District 15. Similar to Piccadilly Grand, future residents will be in close proximity to a MRT. More specifically, the upcoming Katong Park MRT that will be 3 minutes away.

Something we would like to bring your attention to is the lower supply of new launches available in 2022 as compared to previous years. The limited supply itself can be a factor in the increased private condominium prices.

So far in H2, Piccadilly Grand and Liv @ MB have been the only two major launches. It may be too early to tell whether resale private condos will grow to match the much higher prices.

 

What will it be like if I really buy it? Can I afford it?

Let’s envision what it would be as a 2 Bedroom + Study owner. It was one of the most sought after units during its launch. We are looking at Type B2S with 63 sqm/ 678 sq ft of area. The expected quantum range for a unit like this would land in the $1.4 Mil region.

 

Buyers of Piccadilly Grand will be following a Normal/Progressive Payment Scheme that allows their loan to be serviced monthly as the development is being built. Assuming that the loan has a 75% LTV, the loan amount will be $1,050,000. Here is the breakdown of payment scheme:

 

As the bank disembuses 75% of the purchase price, the borrowers will pay a monthly mortgage that is based on the different stages of the project. As the project gets nearer to its competition, borrowers can expect to pay a higher monthly rate. These are the estimated monthly instalments to be paid at each construction stage based on a 2% interest rate for a 30 year tenure:

 

Following MAS’ Total Debt Servicing Ratio (TDSR), only 55% of a borrower’s gross monthly income can go towards repaying loans (personal and student loans included!). As a 2 Bedroom + Study owner, your minimum salary needed (assuming no other loans) is  $7,100~.

The maintenance fee for a 2 Bedroom + Study owner is $397 after GST. Below are the estimated MCST  fees for the various unit types:

 

 

Closing Thoughts

To answer the title question- Is Piccadilly Grand just another mixed-use development? We think not. Whether you are intending to rent or live in the units, the property will be a good investment nonetheless.

For investors looking to rent out units, the proximity to the city and transport links creates high rentability for the property. As Farrer Park and its surroundings continue to be rejuvenated, investors can expect exit strategies from rental and buyer demands.

On top of its connectivity and exit strategies, residents can enjoy the luxurious facilities Piccadilly Grand offers. From the clubhouses to retail options, this property ticks a lot of boxes. Homeowners with families or those planning to start one will definitely appreciate the childcare centre’s convenience and proximity to nearby schools. With everything so close by, the property can allow children to grow up close to home (even up to university!).

If you are interested to find out more about Piccadilly Grand or any of the upcoming new launches, feel free to contact our experienced consultants. Till next time!