Grand Dunman - Biggest New Launch of 2023 | District 15 RCR
Introduction
Fancy sweating it out at the sports hub, or kayaking over a relaxing weekend, and later putting it all back at your favourite hawker centre, Old Airport Rd?
STL Properties presents to you the biggest launch of the year, in the Rest of Central Region, within 3 mins walk to Dakota MRT on the circle line, Grand Dunman!
Fig 1: Actual location of Grand Dunman’s site, highlighted in Blue
Site Details (Dunman Road)
Purchased under the Government Land Sales in June 2022 by Singhaiyi, Grand Dunman is located on a huge land plot of over 270,000 sqft, yielding 1,008 units.
Fig 2: MRT Map of stations close to Grand Dunman. Source: LTA
Accessibility and Educational Roadmap
Expect unparalleled convenience, situated next to Dakota MRT, which is four stops to Suntec City and Millenia Walk at Promenade, and two stops to Singapore Sports Hub where you can catch concerts by popular artistes such as Jay Chou and Black Pink. In the other direction, one MRT stop brings us to the vibrant Paya Lebar central with outdoor dining areas, pedestrian-friendly streets and commercial offices at Paya Lebar Quarters.
Apart from accessibility to work places such as the CBD and Paya Lebar, liveability is elevated with recreational spaces aplenty. For example, East Coast Park is just a 5 min drive away, while Singapore Sports Hub and Kallang Wave Mall are within the vicinity, easily accessible via the Park Connector which also connects to Gardens by the Bay.
For food options, apart from the popular Old Airport Rd Hawker Centre with famous stalls such as Nam Sing Hokkien Mee and Xin Mei Xiang Lor Mee, you’re also nestled in between the vibrant eateries along Tanjong Katong Rd as well as the Geylang and Sims vicinity towards the North.
For families with children, you’ll be pleased to hear that Kong Hwa School and Tanjong Katong Primary School are within 1KM of Grand Dunman.
Fig 3: Kallang Alive Project, Source: Pomeroy Studio
Transformation in the Kallang River precinct
Situated at the fringe of the Kallang Planning Area, Grand Dunman will stand to benefit from the 89 hectare Kallang Alive Project that has been underway along the Kallang River and Kallang Basin, creating one of the world’s most sustainable sports precincts.
Apart from offering a greater array of international sporting events with the Kallang Tennis Centre and Kallang Football Hub, local programmes can also have their stage for events such as the National School Games finals.
Towards the north of the sporting arena, we have several white sites around both Kampong Bugis and Kallang airport. Kampong Bugis is to be developed in phases, potentially yielding 4,000 dwelling units and 50,000 m2 of gross floor area for complementary uses such as retail, serviced apartments and offices.
Fig 4: Kampong Bugis residential & recreational precinct. Source: URA
Fig 5: Change in zoning from Residential/Institutional to Commercial/Institutional. Source: URA Masterplan
Fig 6: Run up in prices for 4 properties neighbouring Grand Dunman. Source: Squarefoot
Fig 7: Waterbank at Dakota’s recent transacted prices reaching $2011 psf. Source: Squarefoot
In terms of exit strategy, Grand Dunman can look forward to HDB upgrader demand from newer flats in Dakota that will reach MOP in the next 5 to 10 years. It also enjoys strong anchor points such as reputable primary schools within 1km and close proximity to MRT supporting Grand Dunman’s value in the long run. In addition, this area has enjoyed a very good track record with over 90% profitable transactions over the last 10 years.
The Geylang area is also undergoing transformation, with an entire stretch of residential land converted to commercial/institutional zoning under the 2019 Master Plan (Refer to Fig 5).
Closer to home, there is also a large plot of land opposite Grand Dunman with the same plot ratio zoned for residential use, and several other residential plots of land within the vicinity yet to be announced for development. These will help provide support for prices in the future.
Pricing, Supply & Demand
Grand Dunman was purchased at a land price of $1350psf ppr, $48psf ppr higher than its neighbour, fellow 99-year project Tembusu Grand, which sold at an average of $2465psf on launch day, an estimated 20% margin from their breakeven. If we apply a similar margin structure, we do expect prices to be on average around $2544psf.
The strength of this area can be seen from neighbouring projects such as Dakota Residences, Waterbank at Dakota, Sunny Spring and Waterina, which have all experienced a good run-up in prices since launch (Fig 6). In fact, a 3 bedder at Waterbank at Dakota has recently transacted at $2011psf in March, despite being a 14 year old development (Fig 7) – solidifying the strong potential of this area from private property seekers.
Should Singhaiyi indeed price Grand Dunman at an average of $2544psf, that is just a 27% premium over the last transacted at Waterbank at Dakota, which we would consider a small price gap given the difference in age.
Another factor we consider is that resale properties in this area tend to have larger sized units. Hence, even if psf is lower, the total quantum may not necessarily be much lower than Grand Dunman.