Artist’s impression of One Bernam commerical shops
One Bernam is set to become a mixed-use development encompassing both commercial and residential communities in the heart of District 02. Before diving into the recent updates on the launch of this not-to-be-missed project spearheaded by two developers – Singapore’s MCC Group and Hao Yuan Investment, let us do a short recap on the location analysis.
Nestled in the sweet spot of 1 Bernam Street at Tanjong Pagar, the Downtown area has been the Financial Centre and the Central Business District of our garden city for the past decades. Recent developments in this particular area were laid out to attract talents into our human resource. To keep up with other competing countries, Singapore has plans to rejuvenate the area into a living space that can be equally self-sufficient, under URA’s 2019 development plans.
The redevelopment of this region aims to diversify and transition into a city centre for modern living from what used to be mainly for commercial uses. Currently, the CBD as we know it is made up of more commercial spaces than residential or mixed-use purposes. With the rise in residential towers such as Altez, Skysuites@Anson, and the upcoming One Bernam, the Downtown is subsequently being repositioned as a more integrated business hub with more lifestyle that is incorporated into the culture of the CBD. In the coming future, we will also be seeing the rise of the Greater Southern Waterfront, which will stretch from Pasir Panjang to the Marina east area. For an in-depth review of the happenings over at the Greater Southern Waterfront, you can visit here. From this, it is very evident that One Bernam will be set in the thick of all the ongoing revitalisation around its vicinity.
Courtesy Urban Redevelopment Authority (URA)
According to The Business Times, the developers for One Bernam have decided to release their units for sale in phases. Following the effect of this said announcement, the developers have decided to bring forward their launch date (or phase 1 of launch) to 7th May 2021. Since the launch, more than 80 out of the total of 351 units have been sold – which culminates to about 23% of total available units.
Out of those sold over the launch, 90 per cent were one- and two-bedroom units, with an average selling price of S$2,650 PSF. Based on further information provided by the developers, most of the homebuyers are Singapore Citizens (SC) and Permanent Residents (PR). The table below will show the current price distribution for the different types of units available over at One Bernam.
Table showing the prices for the available units
One Bernam has two distinctive home offerings – the Prestige Collection which consists of 1-, 2- and 2-bedroom+study units; and the Palazzo Collection comprising 29 3-bedroom units, two 3-bedroom penthouses, and one 5-bedroom penthouse. This residential-led development will also feature a total of 35 lifestyle amenities that spread across the 4th and 34th levels. We have consolidated the different types of layouts that are available below.
1-bedroom layouts
2-bedroom layouts
2-bedroom + study layouts
3-bedroom layout
3-bedroom penthouse layouts
5-bedroom penthouse layout
For a more detailed analysis of each layout, head over here where our PropertyLimBrothers Insights team has done a deeper analysis.
Pick-up rate
Let us now take a look at the pick-up rate for One Bernam. The majority of the units (319 out of 351 units which makes up 91 per cent) are made up of 1-bedroom to 2-bedroom + study layouts. This distinctively brings out the target audience of the development itself. It would be evident that this project is not catered directly to the needs of most families but would cater more to couples or singles instead unless families are looking towards purchasing the highly exclusive penthouse versions.
Evidently from the outcome of the sales, out of the 23 per cent of units sold during the project launch, 90 per cent of which were 1-bedroom and 2-bedroom layout types. This can be correlated to the fact that the Central Business District (CBD) area is highly populated with expatriate residents who may have become PRs, considering the fact that many PRs were among the home-buyers as well.
Investment purposes
By the time One Bernam obtains the Temporary Occupancy Permit (TOP), which is approximated to be around 2026, we shall all hope that the COVID-19 pandemic has been contained and the economy can flourish again by then following its alleviation. Taking this into consideration, we shall now look into the investment potential and outlook.
For those who are looking to invest in One Bernam, here are some of the details that we have fished out to further elaborate on the investment prospect. One Bernam will have a direct facing of the upcoming Greater Southern Waterfront facade. The plan for the Greater Southern Waterfront coincides with the government’s idea of creating a self-sustainable CBD area and for it to live up to the standards of modern living, although the progress of this has definitely been hindered by the COVID-19 situation, and not much news has been available as of the time of writing.
For the 1-bedroom layout types, the starting price is at $1.0-odd million while that for 2-bedroom units are going from $1.6 million. Larger sized units such as the 3-bedroom is going at $3.3 million. From this, we can see that the 1-bedders and 2-bedders, which are of a lower quantum as compared to the larger unit sizes that are catered more to families is definitely a good entry price into the District 02 housing market as compared to competitors alike in the Rest of Central Region (RCR), which we’ll be covering later in the article.
And as mentioned earlier, the rejuvenation of the CBD in the coming years will also contribute to One Bernam being a more sought-after project to invest in, given that it sits directly on the fringe of the CBD.
Connectivity-wise, the CBD is just about to see an increase in transport efficiency. Stated in the masterplan development for CBD by the URA, the Downtown area will be even more connected than ever with the upcoming Maxwell and Shenton Way stations on the Thomson-East Coast Line, and Prince Edward and Cantonment stations on Circle Line Stage 6. With these additions, all developments in the Downtown area will be within a 10 minutes’ walk of an MRT station. Also, active and convenient commuting within the city will also become a reality with the existing 22 km of cycling paths and another 5 km of expanded cycling path network by the end of the year.
Future connectivity of CBD Courtesy URA
This is all consistent with the idea that the CBD will be flourishing with entertainment and work life balance when redevelopment plans have been fully implemented. In turn, this would then garner more attention to the available residential developments and increase the liveability around the area with increased amenities, services and needless to say, connectivity to the rest of Singapore.
With all this down in plans and currently in the midst of development, local residents and expatriates would also see an increment in value of settling downtown and foresee greater potential in Singapore’s improved infrastructure. Especially with the decentralisation of the CBD happening faster than anticipated, property prices in the Downtown area will see an adjacent increase in value. Visit here for a more in depth look at the decentralisation of the CBD area and how developments in the RCR and CCR have been affected by the COVID-19 pandemic.
The built environment in Singapore is constantly evolving and changing, buildings are becoming greener, more sustainable and healthy. So, in terms of potential, we think that One Bernam is great for investors in the coming years when redevelopment plans end.
Rental yield for One Bernam and surrounding areas
For Altez, monthly rental prices go from S$ 2,000~S$ 9,509 and for Skysuites@Anson monthly rental prices start at S$ 2,600~S$ 6,800. As for One Bernam, we would prospect for it to be around the same price range as its competitors. Connectivity itself is already a given for the site of One Bernam. There are also a wide range of amenities and services available at 100 AM mall, and Tanjong Pagar Plaza, which are both just a street away. Major MNC companies and Grade A office developments including Guoco Tower, Fuji Xerox are also within the Tanjong Pagar precinct, encouraging expatriate interest in the vicinity.
Something worth mentioning would be the future developments over at the Greater Southern Waterfront where there will be more bustling activities over where PSA currently sits, including both a work district and more recreational areas.
For a more in-depth look at the rental potential for One Bernam, do visit this article that was previously published by our PropertyLimBrothers Insights team.
Price comparison with developments around the District 02 area
Although One Bernam will not stand as tall as the other two taller residential skyscrapers Altez and Skysuites@Anson, residents will not have to worry about their sea views getting obstructed as One Bernam will be the closest to the shores among the three projects. However, considering the relatively different launch style of One Bernam, let us now do a brief price comparison with the two surrounding residential projects.
Skysuites@Anson Courtesy CTBUH
Altez Courtesy CTBUH
Over at the Altez, PSF range is from S$ 1,809 – S$ 2,931. Skysuites @ Anson has its PSF ranging from S$ 2,006 – S$ 2,965. And as for One Bernam, although the breakeven PSF price would have been at $2,200, developers have an attractive average PSF price of S$2,650 for the 1- and 2-bedders. This thus makes One Bernam one of the more expensive price quantums that you can find in District 02. However, in our opinion, considering the close proximity to the upcoming developments, and it being a mixed-use development altogether, it is not surprising that One Bernam is priced more lavishly than the other two projects. Furthermore, if we were to take into consideration other developments in the RCR such as One Pearl Bank, the median PSF there is about $2,512 while that of One Bernam is about $2,4XX. Considering the location, One Bernam is nestled in a rather sweet price quantum.
Comparison between One Bernam and other RCR New Launches
In addition, it is to note that Altez TOP-ed in 2014 while Skysuites@Anson TOP-ed in 2015. This thus makes One Bernam the newest addition of residential/ mixed-use development in the Downtown core region. Considering the younger land lease, One Bernam units are thus more attractive as compared to the rest.
What we think will happen for the next segment of sales
The developers of One Bernam are angling this mixed-use development as one for investors and expatriates given that the majority of units are those of the smaller sized layouts (1- and 2-bedders). From the sales performance over the first phase of launch, we can see where the buyer interest came from and will come from for subsequent sales. Accurate as of the date when this article was written, 18th May 2021, the best-selling units would be the 1-bedders, with more than half of the total units being sold (34 units left out of the total of 87 1-bedroom units). We’ve included a chart showing the availability of units below.
Availability of units
There are only three exclusive penthouse units which consist of two 3-bedroom layouts and one 5-bedroom layout. Clearly, this project is not positioned to be catered towards the needs of a bigger family.
Let’s rewind back to the point of the 1-bedders being of an attractive entry-price quantum of $1.0-odd million onwards. For a 1-bedder unit in the CBD area with multiple Grade A offices, $1.0-odd million is a decent price point to enter into the District 02 market. Furthermore, with the quantum and disparity effect coming into play, even if there is not going to be an appreciation in value over the next 5-10 years or so, One Bernam will still remain one of the more affordable yet newest mixed-use developments in the Downtown/ Tanjong Pagar region. Thus, this makes exit strategies in the future feasible for buyers. However, we would believe that there will be price appreciation given the number of development plans that have been laid out for the area surrounding this project as mentioned above. All in all, we think that the successive sales outcome of One Bernam will see a higher take-up rate of the 1- and 2-bedders as compared to the rest of the other units available.
Concluding remarks
One Bernam Courtesy One Bernam
Located at 1 Bernam Street at Tanjong Pagar, One Bernam is to become the next mixed-use development in the District 02 region, comprising a 351-unit condominium; a two-storey, 15,726 sq ft retail podium; and a 13-key boutique serviced apartment.
Geographical landscaping for buildings has been implemented to promote the idea of environmental sustainability. This, in the future, will thus make the Singapore landscape very palatable for ecocentric idealists. Integrating buildings with nature. The built environment in Singapore is constantly evolving and changing, buildings are becoming greener, more sustainable, and healthier than ever before.
For those who are interested in finding out more about this exclusive new launch in District 02 or would like to start planning for your property portfolio, you may contact our PropertyLimBrothers team. For our deeper analysis on One Bernam, visit here.
