The long-awaited blockbuster new launch of the year is finally coming! The Tapestry, a 861-unit condominium developed by City Developments, is due to launch this coming weekend!
Is The Tapestry a good place to call home? Is The Tapestry a good investment? Should you be bringing your cheque book down to the launch this weekend?
Let us explore more below.
A Well-established Location for Private Housing
The location of The Tapestry needs no further introduction. The Tapestry is located along Tampines Ave 10 and close to Bedok Reservoir. Around the area, there are already 5 private condominiums and 1 executive condominium. This area is a well-established location for private housing. In the area, we can find plenty of schools – Primary, Secondary, Polytechnic and International School. Neighborhood retail amenities at Tampines Street 81 is a short 10-min walk away. The nearby retail warehouses – Ikea, Courts and Giant are just 6 min drive away from The Tapestry. For outdoor lovers, the Bedok Reservoir is also approximately 10-min walk away from The Tapestry.
The empty plot of land across the road along Tampines Industrial Ave 2 is zoned for future industrial development. The Tapestry is probably the last plot of land in the area that is left for private condominium development. There is another plot of land along Tampines Ave 10, beside United World College but this land is zoned for Executive Condominium development. Tender for this land will be held in May 2018 and this future EC is likely to be launched only in mid-2019.
The nearest MRT Station that serves this area is the Tampines West MRT Station that connects to the Downtown Line, but it will take 20-min to get there by foot. Nonetheless, the well-connected road network allows residents to access to different parts of Singapore easily. Tampines Ave 10 serves as a major arterial road that connects to TPE (towards the East) and PIE via Bedok North Road (towards the West).
What are the strength and weakness of the Condominium?
- A well-designed project that caters to market demand
- Well-established location for private housing
- Plenty of schools in the area – Primary, Secondary, Temasek Polytechnic, United World College
- Neighborhood retail amenities and large retail warehouses – Ikea, Courts and Giant nearby
- Probably the last site in the area for private condominium
- Bedok Reservoir is nearby for recreational activities
- Low entry price point
- Developed by CDL – the top developer in CONQUAS ranking
- Constructed by Woh Hup – the top contractor in CONQUAS ranking
- Long walking distance to MRT station
- Lack of a shopping mall in the area
Developed by CDL, Build by Woh Hup, Quality can be assured
The Tapestry is developed by one of the biggest developers in Singapore – City Developments Ltd. CDL has been ranked as the top developer in Singapore under the Construction Quality Assessment System (CONQUAS) developed by the Building and Construction Authority of Singapore (BCA). CONQUAS assesses the quality of workmanship in structural works, architectural works, and mechanical and electrical works, by sampling a representative number of units in a housing development. Several of CDL’s projects such as The Glyndebourne, Tree House, Nouvel 18 and Hundred Trees are also rated among the top projects in Singapore, in terms of construction quality.
The main contractor for The Tapestry is Woh Hup. Woh Hup is a highly reputable construction firm and it has also been ranked as the top contractor under CONQUAS.
At The Tapestry, buyers can be assured that they are getting a condominium of high quality.
Analysis of Surrounding Condos
In the area, there are already 5 private condominiums and 1 executive condominium.
The unit distribution of these developments is shown in the table below, with some of my observations.
- There is a total of 3,660 units in this area from 6 projects, including The Alps which is still under construction
- Majority of the units in the area are 2-Bedroom and 3-Bedroom units. There are 1,095 units of 2-Bedroom and 2+Study apartments, i.e. 30% of the total units in the area. There are 1,598 units of 3-Bedroom and 3+Study apartments, i.e. 44% of the total units in the area
- There are only 472 units of 1-Bedroom and 1+Study apartments in the area, i.e. 13% of the total units in the area. These units are typically bought for investment purposes
- This doesn’t come as a surprise since the developments here primarily target the HDB upgraders’ market and families and hence developers tend to build bigger units
Site Plan and Unit Distribution
Below is my review of the site plan:
- Most of the blocks are at least 30 m apart from each other
- Car entry is via Tampines Street 86
- The inwards pool facing units are the most premium units
- A lot of landscaping, pools and facilities surrounding the entire development
- The smaller 1-BR/1+S units are all located at Blk 51 and 61 that are nearer to Tampines Street 86
- Bin Centre and Substation are located beside Blk 51
- There will be a future place of worship beside Blk 51
- Carpark ingress and egress are also located next to Blk 51
- CDL has cleverly put the small units in Blk 51, knowing that the small units are sellable despite the ‘negative’ attributes of the block location
- Majority of the units do not have issues with the evening sun. Units along Tampines Ave 10 will receive some evening at an angle, but these units do enjoy an unblock view towards Tampines Quarry
Looking at the unit mix and sizes table below, The Tapestry has a higher proportion of the smaller 1-BR, 1+S and 2-BR units and smaller proportion of the bigger 3/4/5-BR units than the other projects in the area. This is probably to fill the shortfall gap of these smaller units in the area. The developers for the older condominiums such as Tropica, Waterview and Q Bay built a lot more of the bigger 3/4/5-BR units in the area. CDL is targeting the segment that has been underserved with pent-up demand.
Unit Layout Review
After comparing the different unit layouts at The Tapestry against the other surrounding projects’ layouts, my conclusion is that the developer CDL has made the effort to study and understand the other condominiums in the vicinity and then design a project to offer unique design, layout and sizes that are lacking in the area. All in all, CDL has put in the effort to make sure that The Tapestry can meet the requirements of buyers and offers what other surrounding condominiums can’t provide.
Below is a review of the various typical layouts at The Tapestry:
Indicative pricing for The Tapestry is listed in the table below:
You might think that pricing at The Tapestry does not look cheap. But if we consider the recent land sale prices in the collective sales market, I would think that The Tapestry is fairly priced.
Among the surrounding condominium developments, the supply in the secondary market is low. Santorini and The Alps were launched in 2015 and 2016 respectively and buyers of these projects are still under the 4-year seller stamp duty restriction period. Other projects like Waterview and Q Bay tend to have bigger units and hence, higher price quantum. The Tapestry would probably appeal to buyers who are focusing on affordability and the price quantum of a unit.
Moreover, the Tapestry is the last private condominium in the area (excluding the EC land that will be launched later this year). This might be the last chance for someone who wants to buy an affordable unit in the area.
CDL is also generous in its fittings. The list of definitely looks impressive and gives buyers a feeling of good value for money:
- Wireless SMART Home System
- 1 smart home gateway with built-in IP camera
- 1 smart home voice assistant
- 1 digital lockset
- 1 main door sensor
- 1 lighting control
- 2 air conditioner controls
- Haiku designer ceiling fan
- Teka Cooker Hood
- Oven (Teka combi steam oven for 4/5 BR)
- Washer Dryer
- Kitchen and Bathroom wares from Grohe and Duravit
Early buyers of The Tapestry to benefit from Sim Lian’s Tampines Court project
After the launch of The Tapestry, we might have to wait for another 1 to 2 years for the next condominium launch in Tampines to happen – Sim Lian’s Tampines Court project.
According to a report from DBS, the estimated breakeven selling price for Sim Lian’s project is around S$1,160 psf, higher than the estimated breakeven selling price of S$1,065 psf for The Tapestry. This would probably mean that Sim Lian is likely to launch the Tampines Court project at a higher price than The Tapestry. It may be around 9% higher if we compare the difference in the breakeven price for the 2 projects. If there is no major shock to the property market within the next 2 years, we can expect buyers of The Tapestry to benefit from a paper gain when the Tampines Court project launches.
Why you should keep a close watch on The Tapestry launch
You might not be interested in The Tapestry. But nonetheless, it is important to keep a close watch on the pricing and sales performance of The Tapestry. Why?
Singapore residential property market has been overly-hyped up by all the media reports on enbloc deals, recovering residential prices and rentals. The expectation of a strong pick-up in the residential market has already been set in the mind of property buyers. Now it is the time to see whether this expectation translates to actual property sales transactions.
The Tapestry is the first major new project launch in 2018 and this project should be a bellwether of the Singapore property market, particularly the mass market segment, for the year ahead.
To find out whether the 1-Bedroom and 1+Study units are good for investment, please continue reading by clicking this link!