The Dunman Road area is a highly sought-after residential enclave located in Singapore’s District 15, under the Mountbatten subzone of Marine Parade. Situated between the bustling Geylang-Paya Lebar area and food-filled Katong-Joo Chiat neighbourhoods, the area surrounding Dunman Road is known for its rich cultural heritage, diverse community, and trendy lifestyle offerings.
The area is home to an eclectic mix of pre-war shophouses, modern condominiums, and landed properties, making it a popular choice for those seeking a diverse range of housing options. With a plethora of amenities such as shopping malls, restaurants, cafes, and bars, as well as reputable schools, parks, and recreational facilities, the Dunman Road area is an ideal location for those seeking a balanced lifestyle that combines the best of urban living with the charm of a close-knit community.
The main goal of this opinion piece is to provide readers with a comprehensive analysis of Grand Dunman, one of the newest upcoming developments in Singapore’s real estate market. Our aim is to dive into the project’s distinctive features, location benefits, and amenities, while also examining potential risks associated with investing in it.
Our team has carried out a thorough evaluation of the development’s MOAT profile, comparing it with similar projects in the market to determine its long-term growth and profitability potential. Our objective is to provide our readers with valuable insights to enable them to make informed investment decisions. As the project progresses, we will keep our readers updated with timely news and developments, so stay tuned for our upcoming article.
Grand Dunman
Grand Dunman is a condominium located along Dunman Road in Dakota (D15). It has a 99-year leasehold tenure and spans a land area of 271,622 square feet (sqft). The Master Plan Gross Floor Area (GFA) for this project is around a total of 950,687 sqft. This will bring a huge supply of residential space to this part of the Rest of Central Region (RCR), yielding approximately more than 1,000 units. Mega projects such as this tend to attract a lot of attention from investors and prospective buyers (especially with such close proximity to an MRT station). The volume effect across the lifespan of this project will also be a boon for its prospects to appreciate in the future.
Grand Dunman is situated in the RCR, nestled between the very active areas of Paya Lebar and Katong. Conveniently located around 200m from Dakota MRT station on the Circle Line, Grand Dunman has easy access to malls around Stadium MRT and Paya Lebar MRT via the Circle Line. It also has great food options along Tanjong Katong Road, Joo Chiat Road, and Geylang Road. This neighbourhood has a vibrant mix of private and public residences and is balanced well with the amenities available, all while having close proximity to the city centre.
For those who enjoy exercising and staying active, the national stadium a few stations away is a great option for residents who enjoy a mix of indoor and outdoor activities. From rock climbing to badminton, skateboarding to running, there is a huge selection of activities for a great workout. East Coast Park is also relatively close to Grand Dunman (less than 2km away).
Grand Dunman is estimated to complete around 2027, which is the expected waiting time for a new launch in Singapore. This mega development might bring more than over 1,000 units (as of the time of writing), adding a tremendous amount of residential supply to this area. The added supply is approximately equivalent to 10% of the existing number of private residential units in the Dakota area.
The existing unit distribution of private housing in the immediate area is concentrated around 1-bedroom to 3-bedroom units, which takes up a strong majority of the units. Larger units that have 4-bedrooms and above are in relatively short supply in this immediate area for private housing.
While the developer of Grand Dunman has yet to confirm and release the unit distribution, it is noteworthy that larger apartments are in high demand but short supply in the immediate vicinity. Despite the presence of a new HDB estate, Dakota Breeze, in the area, there is still a lack of 3-bedroom private residences and above.
An analysis of the existing unit distribution in the surrounding private properties (excluding HDBs) confirms this. Thus, the availability of larger units at Grand Dunman presents a unique opportunity for buyers seeking more spacious living quarters. However, buyers will need to consider a trade-off between opting for a quantum play or paying more for a larger living space for their family.
After evaluating the current state of the new launch market and considering estimated land costs and other business expenses, we estimate that the price for Grand Dunman will range between $2,500 and $2,800 psf. It’s important to note that this number is speculative and subject to change as more information becomes available. The launch price may differ significantly from our initial estimates, depending on market sentiment. In our upcoming article, we will provide a more detailed analysis of the launch price, taking into account the latest market trends and developments.
The URA Master Plan for the Geylang – Marine Parade area has some good things in store for residents in Grand Dunman. In the north, Paya Lebar Central and Geylang Serai will be more happening with new commercial developments. Closer to Grand Dunman, Dakota Crescent will have more public housing being injected (which means a potential Exit Audience in the future), and Mountbatten CC will be upgraded. New MRT stations along the Thomson – East Coast Line (Tanjong Katong, Katong Park, Marine Parade, Marine Terrace) will also be added to the south in 2024. East Coast Park itself will also go through improvement works.
The development of Paya Lebar Airbase (PLAB) could also be a future factor for appreciation in the coming decades. While this may be much further ahead in the future, it may be hard to estimate the impact of PLAB on properties along the fringe of this new integrated estate. Nonetheless, it is a future development that prospective residents of Grand Dunman would need to be aware of as it will introduce a huge supply of residential and commercial developments in the future.
Overall, Grand Dunman finds itself in a well balanced and starkly attractive location. Its close proximity to the MRT as well as the large development size is a unique selling point that few RCR new launches can match. In this regard, Grand Dunman stands out as a great city fringe option for buyers who are looking for a conveniently located home.
What does Grand Dunman’s MOAT Profile look like?
PLB has developed the MOAT Analysis as a comprehensive method to assess the value of a property, taking into account various factors that may impact its worth. This approach involves a thorough comparison of the property with others across ten different aspects to provide an impartial evaluation of its appeal to the broader Singaporean market. Our article offers a comprehensive explanation of how our tool works to gain a deeper understanding of its operation. For further details on the MOAT Analysis, please refer to our article here.
Before we jump into the analysis, we will highlight some of the other condominium projects to which we will use to approximate the MOAT score of Grand Dunman. We will use five condominium properties based on its development size, location and recency of development. The comparison condos are: Dakota Residences, Park Place Residences at PLQ, The Sunny Spring, The Waterina, Waterbank at Dakota.
According to the MOAT Analysis, the average MOAT score of the comparison condos is around 64%, which is considered decent. However, the score is pulled up by Park Place Residences at PLQ, which has a score of 70%. This is due to the integrated nature of the development and its close proximity to Paya Lebar MRT, which is connected to both the East-West Line and Circle Line. Waterbank at Dakota, which has a score of 60%, is the closest development to Grand Dunman, and also has a moderately high score. Overall, the condos in this area perform well due to Rental Demand, Quantum Effect, and MRT Effect. A detailed analysis of the MOAT Analysis and how it impacts the value of properties can be found in our article.
With an estimated over 1,000 units, Grand Dunman lives up to its name when it comes to size. The large development size does matter, and may act as a potential catalyst for the price of condos in the surrounding area to appreciate if the volume of transactions pick up in the area due to this new launch. If you are already a resident of a private residential condo in this area, this project may be something you should pay attention to if you are intending to sell your existing property.
Focusing in on the Parents’ Attraction Effect, we notice that there is a moderately low score for the condos in this area. The nearby schools are Kong Hwa School, Tanjong Katong Secondary, Tanjong Katong Girls’ School, Chung Cheng High School (Main), Broadrick Secondary School, and Dunman High School. While there are only a few primary schools in the immediate area, there are plenty of reputable secondary schools nearby, which may be of interest to some parents with schooling children.
The Verdict for New Launch
It’s crucial to weigh the advantages and disadvantages of Grand Dunman and decide whether it suits the unique needs of your family. Remember, each property has its own features, and what works for one family might not be suitable for another. To help you make an informed decision, here are some essential pros and cons to consider. Ultimately, purchasing a residential property is a significant decision, and it’s crucial to do your due diligence and consider all factors carefully before committing to the purchase.
The new launch of Grand Dunman is a mega project in the RCR. The Dakota area is in close proximity with the Paya Lebar and Katong hotspots and will be expected to have high buying interest when it comes to the quality of the locale. With the MOAT scores pointing to high Rental Demand, Quantum Effect, and MRT Effect in this area, Grand Dunman looks to be attractive to families who are looking for a conveniently located home in the city fringe.
Let’s get in touch
If you find Grand Dunman attractive, or are curious to find out more about which new launches fit the bill for you in 2023, reach out to us here. Thank you for reading and following PLB. Stay tuned for more regular updates on new launches in Singapore that are worth your time.
The tentative preview of Grand Dunman may be in June-July 2023. This might change without advance notice. We will update this in our next article on the new launch.
