The South Beach Residences – Ready, Jet Set, Go!

 

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“She looked like she was ready for the beach club in Saint-Tropez.”
― Kevin Kwan, Crazy Rich Asians

 No locals are around to remember it today, but Beach Road in the early 19th century was quite literally *the* waterfront location. Yes, that’s right, that entire stretch was once a fashionable residential enclave facing sand and sea, lined with coastal villas that served as homes for members of our budding nation’s European community.

Over time (the 1840s), ever increasing demand for commercial property near the Singapore River led to land reclamation in the area.[1] The rest, as they say, is history. A history which along the way has seen Beach Road adorned with many storied and national monuments, such as Raffles Hotel, Hajjah Fatimah Mosque, the original site for Raffles Institution, the former Satay Club, the Golden Mile, the Concourse, and our Civilian War Memorial.

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The neighbourhood also contains other contemporary Singaporean landmarks that most in Singapore have grown up with, such as Shaw Towers, Golden Mile Complex, the former Beach Road Camp, and Kampung Glam.

Yet with so many iconic developments along Beach Road, there seems there is room for still one more, that is destined for fame.

In 2016, the developer of South Beach Residences along Beach Road raised eyebrows when it turned down an offer of $26 million for one of its penthouses, saying “it wasn’t the right time to launch the project.”

A spokesman for City Developments Limited (CDL) told The Straits Times, “We did not want to conduct any piecemeal sale of South Beach Residences. The plan has always been to launch sales when conditions are right.[2]

 The deal, if it had gone through, would have put South Beach property squarely amongst the top 5 most expensive penthouses transacted in Singapore.

CDL was expected to preview its luxury project South Beach Residences on July 13 2018, but it has already chosen to postpone its launch in every year since it TOP’ed. So the question on property punter’s lips now is, when will conditions be right?

  

The Development

It was back in 2011 that developer City Developments Limited (CDL) and Malaysian company IOI Corp first inked their deal to develop South Beach, described as a mega mixed-use joint venture development that incorporates four heritage buildings formerly used by the military. These heritage buildings included the NCO Club of the old Beach Road Camp, along with two new tower blocks.

(Photo: RENDY ARYANTO/Visual Verve Studios)

The 45-storey South Tower (the taller of its two towers) was completed in December 2014. This tower houses a 634-room hotel, now known as JW Marriott Hotel Singapore South Beach, which is decked out by the famed French designer Philippe Starck.[3]

Offering a unique hospitality experience with a blend of the latest integrated technology and cool design elements, the hotel enjoys a symbiotic link with Suntec City Convention Centre, with connections built across and under the Nicoll Highway.

The South Tower also houses The South Beach Residences, comprising 190 luxury apartments ranging from approximately 950 square feet for a 2-bedroom unit to over 6,500 sq ft for a 5-bedroom penthouse. According to CDL, every unit enjoys panoramic views of the Singapore skyline, with stylish fittings and state-of-the-art furnishings. Its six penthouses each come with private swimming pools.

The developer tells us that each unit is epitomised by “Fine craftsmanship” and “Thoughtful finishing.”

They add, “South Beach Residences caters to the most discerning. Each unit is furnished with quality appliances and fittings from leading international brands such as Miele, Duravit and Keuco, infusing every unit with a sense of modernity and timelessness. Exquisitely designed, these homes set the benchmark for urban luxury.”

 

The Launch

South Beach Residences TOP’ed in 2016; however, the developer decided to delay launch of the property, citing unfavourable market conditions.

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In 2017, CDL announced in a statement that sales and rental options were being considered for the 190-unit luxury residence, adding that the group “will decide on the opportune launch timing, so as to achieve maximum value for this prime property.”[4]

In the second quarter of 2018, CDL reannounced plans to put South Beach Residences back on the market, suggesting that the market was right and primed for real estate.[5]

But as it turns out, the developer was blindsided by government’s recent property curbs, announced in June and enacted in August, which raised ABSD rates to 25% and tightened Loan-to-Value (LTV) limits by 5pt.

By August 2018, CDL would announce that South Beach Residences’ launch has once again been put under review following these new measures.[6]

 

The Developer

CDL is no newcomer in the local property development scene. In fact it is one of the largest players, here and worldwide. A leading global real estate operating company with a network spanning 100 locations in 28 countries and regions, CDL is listed on the Singapore Exchange, one of the largest companies by market capitalisation. Its portfolio comprises residences, offices, hotels, serviced apartments, integrated developments and shopping malls.[7]

 

It was recently named the top Singapore company for sustainability, and the most sustainable corporation in real estate management and development, in the prestigious Global 100 Most Sustainable Corporations in 2017.

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The company’s properties have also achieved many firsts. For instance, 11 Tampines Concourse was named the first carbon neutral development in Singapore and Asia Pacific, City Square Mall was hailed the first local eco-mall, while Tree House condominium made it to the Guinness World Records in 2014 for having the largest vertical garden.[8] 

 

The Competition

According to Propnex, most of South Beach Residences’ potential buyers are permanent residents and foreigners. For foreigners, the additional buyer’s stamp duty (ABSD) is now 20%, up from 15% before.

However, this is not expected to affect demand for luxury condominiums in the Core Central Region (CCR), with a limited supply of CCR luxury apartments in the near term, no land parcels for sale, and the main buyers coming from overseas who enjoy lower stamp duties here compared to desirable property markets like Hong Kong.[9]

Only the 311-unit City Gate, which is still being built right now, poses as a serious competitor for buyers amongst new developments, but industry insiders say it lacks the ultra-luxury status, iconic location and exclusivity of South Beach Residences and may thus evoke less interest from the jet-set crowd that CDL looks to be targetting.

Rental yield is expected at around 3% for South Beach Residences.

Do take a look at our compare tool to see how South Beach Residences stacks up against its competition.

Table 1: Recent & Coming New Launches in D07

TOP Year Average PSF Rental Yield*
Southbank 2010 1,600

 

 

3.4

 

 

Concourse Skyline 2014

 

$2543

 

2.8

 

South Beach 2016 $3,473 NA
Duo Residences 2017

 

$2146 2.9

 

City Gate 2020 $2065

 

NA

* Based on transactions in the last 12 months, excluding projects with 3 or fewer transactions (https://www.squarefoot.com.sg/market-watch/rental-yield)

 

The Neighbourhood

At South Beach, residents are only 20 minutes from the Central Business District, Orchard Road (Singapore’s famous shopping district) or airport, with two MRT stations accessed via underground walkways (Esplanade MRT, City Hall MRT) and three train lines connecting to every part of the island.

In the development itself and around the area, there are tourist brochure-worthy shopping, dining, entertainment, clubbing and cultural destinations. The Esplanade and Marina Bay Sands are literally on the horizon – or a cool evening’s walk away.

Being this near to the waterfront also means first-class views of fireworks during New Year’s and National Day celebrations.

 

Can you afford it?

Well if you have to ask…. We’ll tell you! Sign up for a TRUNew account and our onsite mortgage calculator will help you figure out what you can afford.

We will also keep you up to date on South Beach Residences’s launch details, access to VVIP previews via a personalised news feed, plus the following unique benefits:

 

Be The First To Know

The continued delay of South Beach Residences launch has the effect of arousing monumental interest in the property market – both here and worldwide.

Get first hand news of its launch with a TRUNew account. Our personalised information feed will keep you to date on South Beach Residences’ launch details, access to VVIP previews, plus our platform’s unique benefits:

  • The widest listing of units direct from developers (from new launches to sale-of-balance units). We have 239 listings to-date, versus 167 from Propertyguru
  • First-to-market information for all project launches
  • In-depth information that your agents may not have told you (via this blog itself)
  • Customised, print-friendly reports for every project you are interested in
  • The ability to shortlist, save, and share detailed inter-project and inter-unit comparisons for all your needs
  • Free Truuue concierge services all throughout your property buying experience, from viewing to post-sales; via the Truuue Ops Team
  • Personalised information feed for each stage of your purchase (viewing, balloting, unit selection, S&P, post-sales, tenant sourcing)
  • Appointment reminders for any listed project

Our Compare tool is also handy for helping you see what else you can be buying in this city centre district.

 

Sign up now, it’s easy and it’s free!

[1] http://eresources.nlb.gov.sg/infopedia/articles/SIP_889_2004-12-23.html

[2] https://www.straitstimes.com/business/property/developer-rejected-26m-offer-for-south-beach-unit

[3] https://www.straitstimes.com/lifestyle/home-design/south-beach-goes-sleek

[4] https://www.propertyguru.com.sg/property-management-news/2017/8/158065/cdl-to-benefit-from-property-upcycle-calls-for-review-of-qc-policy

[5] https://thesouthbeach.com.sg/2018/06/15/south-beach-residences-boom-heres/

[6] https://sbr.com.sg/commercial-property/news/citydevs-massive-unsold-landbank-key-target-cooling-measures

[7] http://www.cdl.com.sg/index.php/the-company/corporate-profile

[8] https://www.propertyguru.com.sg/property-management-news/2017/1/144734/cdl-ranked-top-singapore-company

[9] https://www.edgeprop.sg/property-news/some-developers-postpone-others-proceed-previews

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