8 @ BT crossing $3000+ psf, Does it make sense?

If you are a follower of property news, the recent launch of Bukit Sembawang's 8@BT would not have escaped you. This was an interesting launch to say the least, even back to when Bukit Sembawang bought the land. A quick check from URA shows that Bukit Sembawang's winning bid came in at 15.6% higher than that of the second-highest bid.

Source: Urban Redevelopment Authority of Singapore

Well, Bukit Sembawang's decision to bid at a significantly higher price was somewhat vindicated with the strong performance of 8@BT launch day, where 52% of the units on sale were sold out, with the highest PSF crossing a whopping $3,000.

Yes, the strong sales were expected given that other projects in the Beauty World area such as The Linq and The Reserve Residences did extremely well too. But the transacted PSF were quite surprising, to say the least. All the more so, when you compare it against other projects in the market.

Take a look at the MRT line. While the location is definitely ideal for 8@BT right beside Beauty World Station, there is another project right beside Hillview station (Hillhaven), just a mere 2 stops way, going at almost $700 - $800 PSF cheaper.

Source: Land Transport Authority of Singapore

For a 2 Bedroom 2 Bathroom unit, that could a whopping half a million dollars difference! I will leave it to readers to decide if the two stations difference is worth half a million dollars.

The developer for Hillhaven purchased the land for a much lower price, which is why they have the leeway to price the units more competitively. Bukit Sembawang in contrast, paid a high price for the 8@BT land, and hence, the pricing has to reflect accordingly.

Source: Urban Redevelopment Authority of Singapore

Of course, different buyers have different considerations. Some may be willing to pay the premium as they find 8@BT project to be more aligned with their needs. Throw in the Bukit Timah prestige and you can see why buyers are sold.

For buyers who are looking for capital appreciation from your property purchase, it is advisable to take a look at all options in the market to assess which project would have the best appreciation potential, with the strongest exit strategy. If you wish to find out more, feel free to reach out for in depth analysis on real estate matters!