Lendlease unveils Park Place Residences at PLQ

AUSTRALIAN-listed property developer and infrastructure group Lendlease will preview Park Place Residences at Paya Lebar Quarter (PLQ) on March 11. The project is slated to be launched on March 25.

“Based on market performance in 2H2016, we think this is an appropriate time to launch Park Place Residences at PLQ,” says Richard Paine, managing director of Paya Lebar Quarter. “We are confident that Park Place Residences at PLQ will offer potential buyers something new, with its superb connectivity and location.”

The 429-unit Park Place Residences at PLQ is part of Paya Lebar Quarter, an integrated development that includes a shopping mall with more than 200 shops and three towers with almost a million sq ft of Grade-A office space. The project will have a direct link to the Paya Lebar MRT interchange station. Park Place Residences marks Lendlease’s maiden venture into residential property development in Singapore after a 44-year presence.

The S$3.2 billion (RM10.1 billion) Paya Lebar Quarter, which occupies a 3.9ha site, is set to rejuvenate Paya Lebar Central, which URA designated as “a pedestrian-friendly commercial hub with a distinctive cultural identity” in the 2008 Master Plan.

Ong Teck Hui, JLL national director of research and consultancy, says: “The strongest attribute of Paya Lebar Quarter is that it promises to be a prestigious landmark development in the Paya Lebar/Sims area, bringing vibrancy to a locality in need of rejuvenation.”

The other significant attribute of the project is that it is served by both the East-West and Circle MRT Lines. “As it enjoys these attributes, Park Place Residences at PLQ will definitely be on the radar of many homebuyers,” adds Ong.

Units at Park Place Residences at PLQ will be a mix of one- to three-bedroom apartments across three towers. The residential blocks will be linked to the mall via an overhead bridge on the second level and in the basement, with another sheltered overhead bridge linking the residential towers to the office blocks.

‘Investment-grade product’

Jack Chua, CEO of ERA Realty, says expressions of interest in Park Place Residences at PLQ “have been good” because of its location — just six MRT stops from Raffles Place and eight from Orchard Road. ERA and Knight Frank are the appointed joint marketing agents for Park Place Residences at PLQ. “The last integrated development that was launched was North Park Residences in 2015, and that was in Yishun,” Chua says.

At Park Place Residences, one-bedroom units make up 117 (27.3%) of the 429 units, and they measure 480 sq ft to 580 sq ft. Another 234 units (54.5%) are two-bedroom apartments of 650 sq ft to 900 sq ft. The remaining 78 units are three-bedroom apartments of 1,080 sq ft to 1,350 sq ft.

As 81.8% of the units at Park Place Residences at PLQ are one- and two-bedroom apartments, Joseph Tan, CBRE executive director of residential services, considers it “an investment-grade product”. He foresees the majority of buyers being investors.

Market indication is that prices will start from S$780,000 for a one-bedroom unit, S$1 million for a two-bedroom unit and S$1.6 million for a three-bedroom unit. Average prices are likely to range from S$1,600 psf to S$1,700 psf, according to sources.

‘Pent-up demand’

Paya Lebar Quarter’s Paine notes that there is “pent-up demand for private residential projects” in the Paya Lebar precinct because the last project launched there was Katong Regency in 2012.

The demand was evident even during the launch of Katong Regency five years ago: All the apartments were taken up within a fortnight of its launch. Although the average price of units sold was S$1,610 psf, a handful of 570 sq ft to 581 sq ft one-bedroom units achieved sale prices of S$2,009 psf. Completed in 2015, the freehold Katong Regency (a redevelopment of the former Lion City Hotel and Hollywood Theatre) comprises 244 units sitting on top of One KM Mall.

At Katong Regency, 549 sq ft, one-bedroom units were recently listed for rent at S$2,500 to S$2,700 a month, with gross yields estimated at 3% to 3.4%.

ERA’s Chua reckons, however, that gross rental yields of the one- and two-bedroom units at Park Place Residences at PLQ could command a premium, owing to its location and the fact that it is part of an integrated development and linked directly to the Paya Lebar MRT interchange station. He adds that the office towers at Paya Lebar Quarter will provide “a natural tenant base” for investors of Park Place Residences at PLQ, as at least 10,000 people are expected to work there.

Fully fitted, efficient layout

Units at Park Place Residences at PLQ will be fully fitted with SMEG kitchen appliances, and Whirlpool refrigerator and washer/dryer. Bathrooms feature Duravit and Grohe fittings and accessories as well as built-in storage space. All units will be furnished with full marble in the living room and engineered timber flooring in the bedrooms.

Unit layout is efficient and spacious such that all common bedrooms can comfortably accomodate a queen-sized bed, and master bedrooms, a king-sized bed. Buyers may also choose either light or dark colour schemes for the kitchen cabinetry.

“Fitting out the apartments shows that the developer has given a lot of thought to the details,” says CBRE’s Tan. “These matter a lot to the homeowners, especially during the hand­over stage when they are given the keys to their new units.”

To make it even more convenient for homebuyers, Lendlease has engaged two interior design firms —Darwin Interior and Creative Mind Design — to offer ideas for fitting out and furnishing their new homes. Park Place Residences at PLQ is expected to obtain its Temporary Occupation Permit in 2H2020.

Lendlease has conceptualised a mobile application that will allow residents to use their smartphones for on-demand services, maintenance options and the booking of facilities in the project.

All apartments will be provided with an energy-saving ceiling fan in the living room, as well as other energy- and water-efficient fittings. It is no surprise that Park Place Residences at PLQ was awarded the highest accolade (Platinum) under the BCA Green Mark Award for sustainability.

Paya Lebar Quarter is designed to be a pedestrian- and bicycle-friendly city. In keeping with the government’s move towards a car-light nation, Park Place Residences at PLQ will also offer car-sharing services, with the vehicles located in the carpark of the mall.

Not subject to ABSD

As the 99-year leasehold Park Place Residences at PLQ is part of the Paya Lebar Quarter mixed-use development within a commercial zone, Lendlease is not subject to the additional buyer’s stamp duty (ABSD) rules, which require developers to sell all units in the development within a five-year period.

“This is a good indication that the developer will not be under pressure to sell out the units within a certain time frame,” observes CBRE’s Tan. “This will assure buyers of price stability for the project.”

Lendlease, which established its presence in Singapore in 1973, has been behind several significant commercial developments in the city state, including 313@Somerset mall, which is integrated with the Somerset MRT station, as well as Jem, a mixed-use commercial development at Jurong Gateway with retail and office space.

Lendlease also has a 60-year global track record in developing commercial and integrated developments in Australia, Asia, the US and Europe. Paya Lebar Quarter will join Lendlease’s “Quarter series” of integrated developments around the world. They include the International Quarter in Stratford City at East London, Darling Quarter at Darling Harbour in Sydney and Melbourne Quarter in Melbourne’s Docklands.

“Park Place Residences at PLQ’s strategic location within the precinct as well as its high connectivity and accessibility will translate into long-term asset appreciation that will benefit prospective buyers,” says Paya Lebar Quarter’s Paine.

This article first appeared in The Edge Property Singapore, a pullout of The Edge Singapore, on March 13, 2017.

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