When ARTRA, a 400-unit condominium on Alexandra View, launched for sale in 2017, the project went against the grain of buyers’ expectations in the market at the time.
Typically, most new projects feature a balanced mix of units that include smaller-sized layouts to keep the price quantum (the absolute price) palatable and within the housing budgets of most buyers – at times, this results in a higher average $PSF price.
But when ARTRA entered the market nearly a decade ago, the project offered larger-sized units at a comparatively lower $PSF. The unit mix didn’t include any one-bedroom units; this is a layout that tends to get sold quickly, given its affordable price.
The project was jointly developed by Far East Consortium International and New World Development (yes, that Hong Kong-listed real estate conglomerate which was mired in financial trouble last year).
When ARTRA entered the market nearly a decade ago, the developers signalled that the project was positioned for buyers who wouldn’t quibble over a higher price for more living space in a desirable location. They were building homes for families.
Nearly ten years on, it’s time to see if this contrarian approach paid off.
In the first of this two-part article, we’ll analyse whether ARTRA lived up to its launch narrative by examining it through three lenses: its launch performance, its resale behaviour after completion, and how it stacks up against nearby projects and the wider 99-year leasehold market.
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How was ARTRA positioned at launch?
When it launched for sale, ARTRA was positioned as a lifestyle-oriented, city-fringe development that banked on its proximity to Redhill MRT station on the East-West Line (EWL). It also featured a retail podium with 16 shops, and its larger-than-average unit sizes were part of the marketing narrative.
For example, two-bedroom units in the condo range from 786 to 829 sq ft, while three-bedders range from 1,044 sq ft to 1,410 sq ft.
Rather than compete against neighbouring projects in terms of overall price quantum, buyers were sold on the price efficiency of its units, namely, that it offers more generous living space at a comparatively lower $PSF.
Without any one-bedders to sell, ARTRA arguably lost out to the “sell one, buy two” profile of buyers at the time. Broadly speaking, this is the idea that you could sell your existing home, then have you and your partner buy two separate units – a larger one to live in, and a smaller one (usually a one-bedder) to rent.
How did ARTRA perform at launch?
| Year | Average $PSF | No. of units sold |
| 2017 | $1,672 | 190 |
| 2018 | $1,815 | 124 |
| 2019 | $1,946 | 53 |
| 2020 | $2,037 | 33 |
| % change | 21.81% | – |
We see that the average selling price at ARTRA gradually increased after its sales launch, which generally mirrors the price trend of most new project launches so far. When the project was fully sold in 2020, the average selling price had increased 21.8% to about $2,037 psf.
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