TL;DR

219 modern apartment-styled units is styled alongside a 30-storey grade A office building, retail and F&B outlets. Predicated to enhance the street life, it forms the residential sector of Guoco Midtown.

Project Details

Sited near where the previous Beach Road Police Station was along Middle Road and Beach Road, this impressive development is a 99-year leasehold, unveiling 219 modern apartment-style units, a 30-storey office building of Grade A office spaces, shops and FnB outlets. It is predicated to enhance the street life and introduces a new urban live-work-play living concept along, forming the residential sector of Guoco Midtown. Prefect for singles or young couples working in the Central Business District.

The term “midtown” is an emergent term in the 50s, stemmed between sites of uptown and downtown Manhattan. It is an intricate concoction of shops, hotel, entertainment, offices and homes.

Midtown Bay’s 33-storey residential block has one-bedroom units totalling half of the total units, 70 units which are two-bedders and the remaining duplex units.

Starting at $1.38 mil for a one-bedder, its psf was anticipated to be pretty steep, but from its initial launch, we can anticipate a decent take-up rate due to its effect to revitalise the Bugis-Beach Road district. Read on to find out more about this upcoming property.

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Accessibility to city centre

Convenience to business offices and amenities

Exclusive address

Limited layout selections

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Surrounded by ERP and road congestion

Not too family-friendly

The exterior stands out in comparison with the surrounding older buildings, visually enticing the cosmopolitan. Observing the greenery around the residence, it is clear how the Greenmark Award was attained, consisting 170,000 sqft of public space and landscaping.

Instead of a mega structure, Guocoland envisions dedicated buildings to encourage healthy human traffic, among other factors. This comes with a few caveats, such as to access the meeting room, second lap pool and 100m jogging track, a resident from Midtown Bay will have to head to the next building. While this allows more facilities made available for buyers, accessibility may to be what Singaporeans would call “leceh”(troublesome in the common Malay language).

Part of a larger picture

Midtown Bay is part of Guoco Midtown, a project set to be completed in 2022 and to revitalise the Bugis-Beach Road district. It presents a 30-storey office block, Midtown Bay and an array of public spaces across a gross floor area of almost 1 million sq ft, with the developers spending more than $2.4 mil on the total mega project.

Network Hub — a first-of-its-kind social and business club — spanning 80,000 sq ft across five levels; more than 30,000 sq ft of retail and entertainment space featuring three different retail concepts across the entire development; 170,000 sq ft of landscaped and public spaces; a three-storey conservation building (which used to be the old Beach Road Police Station); and Midtown Bay, a luxury condominium with 219 units.

Guoco Midtown II is also in the works, sited on the 124,122 sq ft at Tan Quee Lan Street. It is an extension of the Guoco Midtown in question, linked by an underground tunnel. It will presents another residential component titled Midtown Modern.

A new internal street, titled Midtown Walk, will be flanked by two sheltered public plazas Midtown Garden and Midtown Market; the garden for social interaction while the market interpreted as a street market. It will also cater to the public with access to the office and underground network. Guoco Midtown aims to be a key connector between 3 office micromarkets City Hall, Marina Centre & Bugis.

History lesson about the Beach Road Police Station

The famous former Beach Road Police Station building is located within the same vicinity as Midtown Bay and considered a heritage site. It was built by the British government in the 1930s, went through the Japanese Occupation, back to the British, the Malaysian government and finally Singapore’s government after independence and was operational till in 2001. It then attained the conservation status and marked a historic site soon after. It then was utilised by Raffles Design Institute from 2007 to 2013.

About the Developers

A competitive bid

With Guocoland at the helm, their plan for a futuristic Midtown suite is underway in Bugis, along with a host of amenities built in the development. Guocoland was required to build an underground walkway between the plot and Bugis MRT Station for Guoco Midtown and restore the former Beach Road Police Station which is on site.

Though recent data has shown units priced at $1.5 mil and below are more popular, Mr Cheng Hsing Yao, the Group Managing Director, from Guocoland, said “If you whittle everything down to dollars and cents, then you don’t need developers with innovative ideas and quality. Yes, dollars and cents is important but I think equally important is the value you get out of it.”

A highly regarded real estate developer in Singapore, they have developed at least 35 residential condos and integrated mix developments in and around Singapore, reputably Sofitel Singapore City Centre, Tanjong Pagar Centre and Wallich Residence. Achieving accolades such as International Property Awards, Building and Construction Authority awards, EdgeProp Excellence Awards and more.

Envisioning Guoco Midtown

Keeping the attributes of the Duo Residence and South Beach Towers, the new but not-so-new concept of “work-live-play” was envisioned, with practicality and appeal for modern living standards. The developer was notable for Guoco Tower’s impact on Singapore’s cityscape in 2016, which is a mixed-use development in Tanjong Pagar. Towering at 283.7m — it is the tallest building in Singapore. With these high expectations (pun intended), we hope Guoco Midtown arena sets a new standard for the Bugis/Beach Road precinct as well.

It has won numerous awards, including the Mixed-use Development Excellence Award at the 4th EdgeProp Excellence Awards 2020 and Best Mixed-use Development at the 10th Asia Property Awards (Singapore) 2020. Midtown Bay itself has also won a Green Mark (Platinum) for New Residential Buildings during the BCA Green Mark Awards 2020 and Innovation Excellence Award, Residential Development (Uncompleted) at the 4th EdgeProp Excellence Awards 2020.

Purchase and Breakeven Price

Acquired at $1.62 billion and outbidding five other contenders such as Far East, OUE and two other private companies, it reflects the confidence of the land’s potential growth. Far East Organization submitted a bottom bid of the top five bidders with $1.29 billion.

The bid by Guocoland anticipates “Singapore’s Office Market to be in the recovery stage within the coming four to ten years”, agrees CBRE Singapore and Southeast Asia, Mr Desmond Sim.

Future Developments/Master Plan

From the surrounding areas, you can observe how the core district is set for a huge revitalisation.

While Midtown is a major development in itself, the nearby sites are set for a facelift too. It will be joined with Guocoland’s Midtown II (as mentioned above), which will involve the upcoming Midtown Modern residential development as well.

The New Shaw Tower Site has already begun, and is expected to be completed by 2024 to host office and retail outlets. It will replace the previous Brutalist architecture that has seen its glory in the 80s as one of the tallest buildings then at 134 metres.

The M condo is also slated for completion in 2024 just across, with a combination of residential and retail to boot.

As of time of writing, the construction of the North-South Corridor has resumed. This expressway connects the Admiralty sector located towards the north of Singapore, to Rochor. It is set to ease congestion to the city centre, and improve bus and cycling commute both to and from the north.

Accessibility and Conveniences

The development’s location is a strategic one. Compared to The Central business hubs like CBD or other industrial areas, of which the populace thins out in the evenings and weekends, the Bugis/Beach Road do not suffer the same human traffic pattern. It lies within walking distance to various shopping malls and shophouses. But within the development itself, Guoco Midtown combines the retail concept and modern trends in food and lifestyle. This not only adds to the doorstep convenience, but more options to explore within the residence.

While most developments within district 07 are associated with the upper echelons of society, the convenience of having three major MRT stations within walking distance and a great number of buses might encourage residents to commute through local transport — reducing their need to own a car altogether. In fact, ERPs and congestion are surrounding the locale, so it will be a wiser choice to go green.

From the showflat, a covered walkway leads residents to Suntec City, shielding residents from our tropical weather. But residents will enjoy the close proximity to three major MRT stations, opening up accessibility to the rest of the island easily. Don’t forget, each of the stations hold their own smorgasbord of offerings.

Bus stations located at Nicoll Highway and Beach Road, boasting bus routes to the rest of Singapore.

 

CTE and ECP are the major expressways connecting the location to the rest of the island. CTE has various routes, and on the usual busy hour in Singapore, will take you roughly 10 minutes to reach CTE. For ECP, it is a stunning 3 minutes’ drive.

Food

Cafe hopper, fine dining junkie, bar regular. It doesn’t matter. The surround area of Bugis has all that and much more to offer for any sort of hangout. If you recall how Bali is like (oh how long ago it was), exploring a hole-in-the-wall dining experience, the streets around here are pretty similar in that aspect, but you get mall conveniences as well. Here’s how it looks like around Midtown Bay.

Shopping

Avid shoppers will appreciate that popular places to shop fills your neighbourhood. Imagine going down to the streets for a stroll, where most pedestrians took 30 minutes or more to window shop, and you took less than 5-10 minutes to arrive. What a luxury.

Singapore is renowned for the city attractions, shopping and multi-ethnicity; you will be in the midst of it all, soaking all of it every day.

Bugis is a popular destination for residents and tourists. With cheek by jowl shopping malls and shophouses, most of your shopping needs can be found here. Due to its healthy mix of traditional and modern goods available here at decent prices, it was also recently named one of the coolest neighbourhoods IN THE WORLD.

Schools

We will not shy away to admit that for families with school-going children, Stamford Primary stands as the only primary school within the 1km radius. However, we are inclined that Midtown Bay was not meant for full-scale families to begin with. In fact, the tenancy pool and buyers might well be in their tertiary education. Of which, there is a plethora of options for academia. Some of the notable choices of international schools within a stone’s throw away from Midtown Bay are SMU, SOTA, Lasalle, Nafa, Kaplan and MDIS (not discounting others not mentioned, of course).

Work

The developer focuses on the working class and the accessibility to major business centres. In fact, this opens up the future tenant pool and exit strategies in future (which we will cover later). Not many residences have this convenience, and even if so, don’t forget that Guoco Midtown will have its own office building, so for business owners, it will be optimal to get both a residence and an office within the same development. Or of course, you could have an office space within your residents with the dual-key units.

Facilities

Guocoland aims for the residences to transit over to Midtown Square and the marketplace for their needs, which is predominantly why the features are not as elaborate. We don’t blame them, though. Modern residents usually have their own preferred workout areas. Uniquely though, Guoco Midtown has a 40m Lap Pool, 100m Jogging Track, Meeting Room, Fitness Hub and an Event Terrace. As mentioned above, you will have to traverse across to the other buildings to access these.

You can find more of  Midtown Bay’s offerings here.

Site Plan and Units

Midtown Bay will embody flexibility in its interior designs to resonate with the work from home (WFH). Wardrobe doors and reflective surfaces are neutral, allowing homeowners to turn their bedroom into a home office, with the living areas converting into conducive workspaces. Even before the pandemic began, Guocoland was already on its way to bring a a new methodology of work-live-play, where the lines between the three are blurred and embraced within your living space.

Recreational amenities, landscape, public & green spaces and networking spaces are an extension to residents’ homes, providing a functional and flexible layout. The interiors were curated by renowned designer Peter Tay.

The limited number of 3-bedroom units and the absence of any 4-bedder layouts indicates the main target audience for the development — working class adults. The large quantity of 1-bedroom and 2-bedroom units caters to young couples or small family nucleus.

Midtown Bay has two equally magnificent views, one facing the city. While the other of Marina Bay and Kallang, which is you get the full view of fireworks during National Day. The Sky Terrace serves as a breather for the limited duplex units, spread across four levels of the stacks.

In the next segment, we will be covering some of the key units and take aways we have observed from the showflat and layout brochures. If you are keen on learning more, or would like a mindful purchase, do contact PropertyLimBrothers here.

1-Bedroom

Type A1 has a 65 sq ft more space at 484 sq ft than A1a’s 409 sq ft. The major difference is A1 features a balcony, located at Stack 09 and faces the Marina Bay Area. A1a, alternatively, faces the city, but without a balcony at Stack 02.

The take-up for A1a has been great for lower floors, but both layouts still have a decent selection. Our recommended stack will be A1a, as the price quantum will be kept low at the $1.45X mil region, due to its lesser gross area.

Both layouts for the 1-bedder is at 484 sq ft, and are mirroring units. As with all 1-bedders, a compact style is assumed.

Prices start from $1.55X mil for Stack 07 and $1.52X mil for Stack 08.

With the size of one-bedroom units being smaller than 500 sq ft (barring the ground units), space is at a premium. For starters, we can see that the unit has an efficient layout with little to no wasted space. Let’s look at A2a in-depth.

The developers also got creative with the sliding door located between the bedroom and living room which could reduce the feeling of being cooped within a small space. However, a point to note is the small size of the bedroom. After the addition of a queen-sized bed, there is little space for homeowners to play around. Storage space is also limited, even more so if the homeowners decide a dressing table is required in the bedroom. Having said that, homeowners could also look to open up the sliding door when they are alone, making the home feel much more like a studio home. The sliding door also brings along a disadvantage as homeowners will have to be creative if they decide that a television is required in their home due to the lack of dedicated space catered for the television and console.

All in all, we like the design of using sliding doors provided the bachelor/bachelorette/couple decides that a television is not a necessity. The sliding doors present the illusion of a seamless and spacious home, with added privacy when guests are over at the house.

This pair is 452 sq ft for A3a, and 463 sq ft for A3. It hardly differs other than as mirroring layouts, and probably lose 1 sqm due to its orientation. Price difference is at the same price quantum  at $1.5-1.6~ mil.

2 Bedroom

At 732 sq ft, both  B1 and B1a units adopts a squarish layout, and present an equipped kitchen enroute to the living and dining space. From here, a balcony presents a definitely decent view of the city. The two bedrooms, one having more door space than the other, is sited further in. The arrangement of the two bathrooms is done in a way that you can conveniently have a tenant to stay in the larger bedroom with one of the bathrooms (a door outside makes it somewhat ensuite).

B2 and B3 are Stacks 01 and 10, with 743 sq ft and 753 sq ft respectively. It has a slightly more elongated layout, with both mirroring units. Observably, the B2 layout has a window for one of the baths.

These four layouts are corner units, cheapest being Stack 05. This is probably due to its proximity to the Marketplace and other facilities. Noise, privacy and view. These are the main points that dictate the allocated price quantum. B1a is at Stack 05 and faces the city. It is starting at $2.06X mil, whereas for B1 which faces the Marina Bay, it’s going at $2.14 mil. We will suggest taking Stack 06 as it presents more private balcony and will be unblocked.

However, if we enter B2 and B3 into the fray, B3 faces outward to Marina Bay, whereas B2 will be facing the future Midtown II and the office towers. Our suggestion? B3 will be a better option for views, assuming $100k is within your budget.

Let’s look a little more in-depth at B1a unit.

One of the major selling points of the 2-bedroom units is the balcony. The balcony is decent considering the size of the unit and for those outdoor lovers, it is possible to move the dining area to the balcony. We recommend homeowners to do so, as the living room is rather small and having the dining table in the living room could lead to some space constraints.

As seen from the picture above, with a sofa being placed in the living room, it leaves little for a dining set. This would result in homeowners having to choose between a smaller sofa or a small dining table.

The sliding screen provided could also be utilised to reduce harsh sunlight when dining in the afternoon. Dining here in the evenings could also be a refreshing experience especially for residents of higher floors; the Marina Bay area can be seen from the balcony.

Furthermore, the walls of bedroom 2 could be knocked down to increase the living room space or to form a big study room. However, as a standalone room, it is rather small and after placing a bed, there is limited space for other furniture.

3 Bedroom Duplex

One of the unique selling points of this development is the flexibility of the duplex rooms. With the options being residential, dual key and home office, it caters to a wide variety of audience. Investors could possibly buy the unit and split the unit into two if they are unable to find a renter looking for such a big apartment. Potential buyers could also be small business owners who are looking to operate their business out of their home or workers whose companies have been riding on the work from home trend. The efficiency of working could be boosted through the segregation of work and home space with a dedicated working area.

Another selling point is the large balcony located within the master bedroom. Imagine looking at the Marina Bay Waterfront, sipping on a glass of champagne when night falls. Some would say that would be priceless (or pricey?). The balcony could be crafted into a place of relaxation or even candlelight dinners for events.

As some of the unit prices for the duplex are not disclosed for this article, the larger, more exclusive unit will be B3-DP at Stack 10, whereas the more affordable option will be B6-DP/B6a-DP at Stacks 03 and 04.

Comparative Analysis

Currently, the average price for a unit at Midtown Bay is $3,055psf. With a lack of freehold developments in the area, the developments in this area are able to command a higher-than-average quantum which is further amplified by the proximity to the Central Business Districts as can be seen from the prices of units in the area.

On first glance, one might bring up the fact the units at Duo Residences are a lot cheaper. This is likely due to the fact that Midtown Bay is seen as a part of a mega project Guoco Midtown which brings along its own set of prestige, hence commanding a higher price. Furthermore, Midtown Bay is also closer to Suntec City area which is home to many grade A office space, allowing it to command a higher rental as a result. Therefore, it is normal that Midtown Bay would be pricier than its competitors.

Since its launch in Oct 2019, the take-up rate was admittedly slow, but it seems to be back on track. It can be observed that the take-up rate is likely to continue, when the realisation of Guoco Midtown’s potential kicks in.

Let’s compare a one-bedder in Midtown Bay. This is a 10th floor on Stack 08, a 484 sq ft going at $1.56X mil. Side-by-side to Duo Residence’s 1-bedder at 527 sq ft on the 27th floor, sold at $1.34X mil. Duo Residences, though completed in 2017, would have been 5 years old, and experienced a year-on-year depreciation.

If you looked closely, the area highlighted in red is a wasted space, as it is used as a small walkway. However you could work around it; the angular design may pose more problems as compared to a reliable squarish layout. The true perk is that it is on a high floor.

Another reason for choosing Midtown Bay’s 1-bedder would be its exclusivity within the mega project Guoco Midtown, which consists its office and retail offerings.

Stacked against South Beach Residences

Let us compare against South Beach Residence’s smallest unit, 2Q2, a 2-bedroom at 936 sq ft, as the development’s unit spread has a much larger range, stretching to even the 4 bedroom penthouses. Midtown Bay’s closest unit competitor is B5-DP going at 990 sq ft.

The B5-DP features a duplex, and has a no-fuss approach. It’s perfect for renting out, or to convert the entire space into an office cum living area.

2Q2 has an open kitchen concept, including a store and additional yard area. The master bath is spacious, and has a bathtub (we assume drop-in) to boot.

Price-wise, B5-DP is starting at $2.78 mil, and even at this price, it is at a premium 26th floor, which tops at 32nd floor.  2Q2’s recent asking price is at $3.46 mil. From this, we can deduce that B5-DP might be a better option, as both are 99-year leaseholds, and by the time Midtown Bay is complete, South Beach would be more than 8 years old.

For location, South Beach is accessible to Esplanade MRT, but is farther away from Bugis MRT. Another concern is that South Beach Residences is facing a junction that gets quite busy during peak hours.

To us, B5-DP might be a better choice. If you are still keen on purchasing a unit from Midtown Bay, do drop PropertyLimBrothers a message here.

Stacked against The M

Next, let’s check out The M, another 99-year leasehold just down the road from Midtown Bay. It has a 522 unit count, and we will be diving into the 732 sq ft units.

The M’s BS6 is a 2-bedder with an asking price of $1.86 mil, whereas Midtown Bay’s B1 has a starting price of $2.14 mil and capping off at $2.59 mil. Both are exactly 732 sq ft, with different configurations.

The M adopts a dumbbell layout for the bedrooms, with a longish living and dining space. A small balcony accompanies the living area. B1, on the other hand, has a squarish layout with a wide balcony. The BS6 has a L-shaped kitchen, and B1 utilises the walkway for a single countertop kitchen. Additionally, a study area lies in between the bedrooms for BS6.

The price difference of around the $200k mark. But we do understand that the exclusivity of Midtown Bay will be greater when the connectivity to the whole Midtown precinct is established. It is also key to note that for choc-a-block projects, there’s reduced privacy, and there’s a desensitised feel and non-continuity when spaces around you change. These may affect the pricing.

Tenant Pool

Despite the ongoing Covid-19 economic downturn, rental in the area is still strong with rental prices not taking a significant hit. With the current rental prices in the area, units at Midtown Bay are estimated to also be able to command an average rental yield of around 3%. Furthermore, one benefit of the duplex units at this development is the ability to rent the apartments to a variety of renters as the units can be dual-key.

As mentioned earlier, the proximity to business districts, especially Suntec City and also tertiary education (Singapore Management University)  provides homeowners with an ample tenant pool. International students from Singapore Management University and other universities may look towards renting units at this development and although the prices are at a premium, most parents rather have a safer, smaller unit with direct amenities.

However, this may not be the case for foreign workers looking to rent an apartment during their work here. As rental for apartments are often covered by the company, these foreign workers are much more willing to shell out the premium for the units at Midtown Bay in exchange for the convenience Guoco Midtown could provide with Midtown Hub, Market Place and Midtown House catering to the needs of a family.

These are just a few of the many MNCs that are found within the area. We figure that major bulk of tenants will come directly from the Midtown office tower, which is postulated to be constantly refreshed.

Exit Strategy

Potential Buyers will be looking for high-end properties instead of mass-market developments.

With GuocoLand’s track record with Wallich Residence and other developments, a majority of them have seen price appreciation and Midtown Bay should be of no exception. Just like how Guoco Tower reshaped Tanjong Pagar as a business and lifestyle centre, GuocoLand is targeting to do the same with Guoco Midtown, bringing many new-to-market brands into the market. This could potentially increase the footfall within the area and hence, increase the prices of the units here at Midtown Bay.

Furthermore, the effect of the completion of the Guoco Midtown will not be fully felt until a few years later when majority of the office spaces and retail space is filled in the development.

Adding on to the above, the fact that it is part of a mixed-used mega project makes it a unique project which appeals to a different crowd who are less price sensitive. Hence, selling a unit should not be as challenging due to the different target group.

Verdict

Midtown Bay is perfect for affluent singles or young couples who are working in the Central Business District, as a reduced travel time also translates to more time for leisure. It’s always about time efficiency and productivity, isn’t it?

It is also beneficial for those not looking to own a car due to the proximity of the MRT stations to the development. However, these singles or young couples should also not be looking to have a child in the near future due to the lack of schools in the area and the small unit sizes may prove to be a problem for more active children.

Moreover, this kind of layouts are great for investment, which will probably pay out once the entire Guoco Midtown and Midtown II enclave is established.