Why Grand Dunman sold more than 50% during its launch weekend
PHOTO: 99.co
PUBLISHED ONJuly 26, 2023 6:01 AM
During its launch weekend, Grand Dunman sold about 550 out of 1,008 units. With a take-up rate of over 54 per cent, the development is the best-selling new launch project in over 2.5 years in terms of the number of units sold.
The record was previously held by Normanton Park, which sold 600 units during its launch weekend in January 2021.
Grand Dunman's sales volume is also the highest this year; it surpassed The Reserve Residences, which sold 520 units at its launch in May.
We analysed why Grand Dunman sold more than 50 per cent of its units and why prospective homeowners and investors found it a good buy.
Proximity to an MRT station
The first reason is probably the most obvious; Grand Dunman is just a two-minute walk from Dakota MRT station. As Singapore moves towards a car-lite society and the MRT network expands further, living near an MRT station is important for buyers, whether it's investors or owner-occupiers.
Dakota MRT is just four stops to Promenade, five to Bayfront and six to Marina Bay. Hence, it would take around 10 minutes to travel to the city centre via MRT.
If we look at other projects which performed well this year, they are also close to or are linked to an MRT station:
- The Reserve Residences (71 per cent sold on launch weekend) - connected to Beauty World MRT
- Blossoms by the Park (75 per cent sold on launch weekend) - four-min walk to Buona Vista MRT
- Sceneca Residence (60 per cent sold on launch weekend) - connected to Tanah Merah MRT
- Lentor Hills Residences (50 per cent sold on launch weekend) - five-min walk to Lentor MRT
'Sweet spot' pricing that's still affordable for buyers
Grand Dunman launched its units at an average price of S$2,490 psf.
The average psf price of new condo sale transactions in the Rest of Central Region (RCR) this year is S$2,508, while the figure is S$2,554 for those in District 15. On an average psf price basis, Grand Dunman seems to be priced lower than average in the RCR and District 15.
Two-bedroom units saw the highest sales with 79 per cent of available units sold, followed by three-bedroom units with 62 per cent sold and one-bedroom units with 57 per cent sold. Here are the starting prices.
| Unit type | Price (S$) | Psf price (S$) |
| One-bedroom | From $1,093,000 | From 2,418 |
| Two-bedroom | From $1,554,000 | From 2,330 |
| Three-bedroom | From $2,212,000 | From 2,309 |
According to Marcus Chu, Chief Executive Officer (CEO) of Electronic Realty Associates (ERA) Singapore, "Majority of the unit types that found buyers are priced within S$2.5 million. This is the current sweet spot pricing amongst the majority of homebuyers and investors."
Assuming a family is interested in buying a three-bedroom unit for S$2.5 million.
(*This assumes that the full 75 per cent financing is taken to maximise the Loan-To-Value (LTV) ratio and the loan comes with a 30-year tenure and a four per cent interest rate per annum.
It also does not take into account other loans, including property loans, car loans, study loans and personal loans.)
That means the average monthly household income is S$16,275 (assuming a Total Debt Servicing Ratio (TDSR) of 55 per cent), which is not unreachable for home upgraders and first-time buyers in a higher income bracket (around S$8,138 per person).
Ismail Gafoor, CEO of PropNex, says, "The pricing is also seen as acceptable by buyers, given the project's city fringe location, proximity to the MRT station, and easy access to the Paya Lebar commercial hub, Suntec City and Beach Road, as well as the central business district."
Investment potential of Grand Dunman
Grand Dunman is the first new launch condo near Dakota MRT in over 10 years. The last project, Waterbank at Dakota Top-ed in 2013. Hence, there's huge investment potential in terms of resale and rental prospects.
ERA's Chu says, "Grand Dunman presents an excellent opportunity for capital appreciation.
The presence of numerous million-dollar HDBs in the surrounding area further strengthens the assurance of a reliable exit strategy." He added that Grand Dunman's large size would likely see a "greater number of resale transactions" compared to smaller projects.
In terms of rental prospects, the rental yield of the condos in the area are higher than average. One and two-bedroom units also comprise almost half of Grand Dunman's units.
Plus, dual-key units allow residents to occupy one unit and rent out the other. These are perfect for rental opportunities, attracting those working in the city and the Paya Lebar business district.
Convenience of amenities for owner-occupiers and unblocked views
During Grand Dunman's launch, 90 per cent of buyers were Singaporeans and there was a good mix of investors and owner-occupiers. The latter was mostly interested in the two-bedroom plus study and larger units.
Apart from its investment potential, Grand Dunman is also very liveable for owner-occupiers.
Its proximity to reputable schools like Kong Hwa (within one km), Chung Cheng High (Main), Dunman High and Tanjong Katong Primary makes it attractive for families. Many units get unblocked views of the landed estate and the sea, which is rare in Singapore.
In terms of amenities nearby, the famous Old Airport Road Food Centre is within walking distance, and major shopping malls like Suntec City and Marina Bay Sands are within a 10-minute drive.
The Geylang Park Connector outside Grand Dunman also allows residents to jog or cycle to Marina Bay.
Highlights of Grand Dunman's units
The one- to three-bedders are the most popular unit types as they target first-time buyers, home upgraders and young families. The four- and five-bedders are suitable for multi-generational families and those rightsizing from the nearby landed estate.
Majority of the four-bedroom units (except one layout) and all the five-bedroom units have a private lift, perfect if you enjoy some exclusivity and privacy.
Some highlights of Grand Dunman's four-bedroom units are its functional dry kitchen in the dining area, spacious living area and the junior master bedroom with an ensuite bathroom.
The five-bedroom unit is for those who need a grander space as they come with generous living and dining areas which span the width of the balcony.
There's a sizeable dry kitchen and a powder room, great for those who like to entertain guests. There are also three bedrooms with an ensuite bathroom (including the main master bedroom and the junior master bedroom).