Despite persistent rain during the launch period, developer Sim Lian Group sold 187 flats at its 99-year leasehold condominium project The Botany at Dairy Farm on launch day, selling almost half of the units. The $2,070 per square foot unit sales price sets a new price benchmark for the Dairy Farm community and is in line with the average price of suburban projects launched last year.

The 48% sales rate exceeded popular expectations, a strong showing that reflects real demand for mass market homes in a market with a limited inventory of unsold new private homes in the OCR [outside the Central Region].

During the past two weeks of previews, the development achieved a strong conversion rate of 40% of the total cheques collected from interested buyers, reflecting the popularity of the development among homebuyers. The developer added that the project is also the first new launch since the outbreak to be 'live booked'.

HDB upgraders and investors have created a strong demand for suburban flats. Research shows that buyers with HDB addresses traded 52% of all condominium units.

Singaporeans accounted for 85 per cent of the total buyers. In comparison, permanent residents and foreign buyers accounted for 15 per cent of buyers, including those from Germany, Switzerland and other parts of Asia.

According to the developer, couples and smaller families are mainly buying one- and two-bedroom units. Families seeking more living space favoured three-, four- and five-bedroom units.

The project is almost sold out of 36 one-bedroom units and 104 two-bedroom units. Prices started at $980,000 for the one-bedroom units and $1.18 million for the two-bedroom units. This success reflects the strong interest of investors who are looking for stable and long-term capital appreciation through rental units.

The focus on one and two-bedroom units may also be due to rental demand from the German European International School next door. Two-bedroom units are also attracting smaller family-sized buyers.

In addition to the German European International School, The Botany is close to Dairy Farm Nature Park and less than a 9 minute walk from Mountain View MRT station. These are some of the quality attributes that appeal to investors and owner-occupiers alike.

Developer Sim Lian also sold over 20% of the larger units. There were 175 three-bedroom units; the four-bedroom category accounted for 57 units; and only 14 units in total in the five-bedroom category. Three-bedroom units start at $1.71 million, while four-bedroom units start at $2.52 million and five-bedroom units are priced at a whopping $3.11 million.

Owner-occupiers prefer larger units with more space, however given the current high interest rate environment, resale market winds and other projects expected to be launched in the coming months, it will take them longer to decide on a home.

This year, 12,000 new units will be launched for sale and sales are expected to reach approximately 9,000 units. Sales are expected to normalise to the 30% to 50% range on launch day for homes in the Rest of the Central Region (RCR) and Outside the Central Region (OCR) due to increased supply.

Upcoming projects in the next two months include EL Development's Blossoms by the Park at Slim Barracks Rise; City Developments and MCL Land's Tembusu Grand on Jalan Tembusu; Hoi Hup at Thiam Hoi Hup and Sunway Developments' The Continuum at Siew Avenue; and The Reserve Residences at Jalan Anak Bukit, a joint venture between Far East Organization and Sino Group.