The Atelier New Launch Condo Review – Prime Luxury Freehold Condo Near MRT with Spacious Units

TL;DR The Atelier’s spacious layouts, high-end luxury finishings, superb public transport connectivity and freehold status justifies its higher quantum.

• Project Name: The Atelier

• Location: 2 Makeway Avenue (District 9)

• Developer: Bukit Sembawang Land Pte Ltd

• Architect: Ong & Ong Pte Ltd

• Site Area: 3,868 square metres

• Tenure: Freehold (Estate in Fee Simple)

• TOP (Expected): March 2024

• Residential Units: 120 (Single block of 22 storeys)

• Parking lots: 123 + 3 handicap lots

• Nearest MRT: Newton MRT interchange (450m away; six-minute walk)

• Primary Schools within 1km: Anglo-Chinese School (Junior), Anglo-Chinese School (Primary), St. Joseph’s Institution (Junior), Farrer Park Primary School

The Atelier: Introduction

By building 120 units instead of the maximum allowable of 154 apartments at The Atelier, developer Bukit Sembawang strategically counters the trend of shrinking condo unit sizes, which instantly gives this a lot of appeal.

And because having larger units will mean a higher quantum, the developer also firmly positions The Atelier towards the premium end of the spectrum, with many touches of luxury and refinement throughout. The result is a freehold condo deserving of its prime District 9 location and yet with an average per square foot price tag of below $3k.

The draw of The Atelier is also its location, which is only a four- to six-minute walk to the Newton MRT interchange and Newton Food Centre, as well as within walking distance to the commercial, business and medical hub of Novena. There’s also a number of well-regarded primary schools within one kilometre and Orchard Road is right in the backyard as well.

In an Edgeprop article, a Bukit Sembawang spokesperson touted the freehold development as a generational asset “to be passed on for families for generations”. Units here consist of one- to four-bedroom apartments.

It’s all looking good at first glance, so let’s dive in for a deeper analysis in this comprehensive review of The Atelier.

Site Bid and Sale History

The Atelier was formerly the site of Makeway View, which was sold in an en bloc tender to Bukit Sembawang for $168 million in March 2018 during the height of the collective sale fever. The price reflects a land rate of $1,626 per square foot per plot ratio (psf ppr), and initially translated to a breakeven price of about $2,300 per square foot.

Since Bukit Sembawang has chosen to build just 120 units, which is fewer than the 154 allowed for the site, the breakeven price for the developer is higher and closer to $2,400 psf, which makes the starting price of $2,656 psf very attractive.

Unit Mix, Pricing and Maintenance Fee

The large unit sizes at The Atelier hark back to the good old days of larger condo layouts some 10 to 20 years back. One-bedroom units at The Atelier start from 549 sq ft, and the largest units are four-bedders at 1,496 sq ft.

Looking at the unit mix, two- and three-bedders at The Atelier make up more than two-thirds of the total units here. The majority of these units, therefore, will appeal to smaller families and couples who have the budget for prime district living with the luxury of space, but not at the astronomical price levels of Cuscaden Road or the Nassim area.

Developer Profile and Track Record

Bukit Sembawang is an experienced, publicly-listed property developer incorporated in 1967 and has built over 1,800 condominium units in Singapore’s prime districts 9 and 10. Its high-end portfolio includes developments such as 8 Saint Thomas, Paterson Collection, Paterson Suites and The Vermont on Cairnhill. Other significant projects include Luxus Hills and Nim Collection.

The developer has also won multiple awards through the years, including four international awards for 8 Saint Thomas in 2019. Paterson Suites also won the 2017 Asia Pacific Property Awards for Best Residential High-Rise Development in Singapore.

Location Analysis

The Atelier’s location at 2 Makeway Avenue along Kampong Java Road, is right at the border where District 9 meets District 11. Both are considered prime districts and The Atelier is nicely positioned at about the midpoint between Novena and Newton, which means walking distance to plenty of amenities, including the famous Newton Food Centre.

One of the biggest draws of living in the Bukit Timah area is of course the concentration of reputable schools here. The Atelier is within one-kilometre of four primary schools, which is more than many of its neighbouring condos because the 1km radius is just wide enough to cover Farrer Park Primary School as well as the household names of ACS (Junior), ACS (Primary) and SJI (Junior). However, do note that the ACS and SJI primary schools are all-boys schools and of these schools ACS (Junior) is within a short walking distance of 400 metres.

Because many of the units here at The Atelier will cater to families, it’s also great that there’s a huge concentration of preschools, childcare centres and kindergartens within walking distance including reputable names like EtonHouse, Pat’s Schoolhouse and Kiddiwinkie Schoolhouse. Furthermore, United Square at Novena, which is a mall that’s about 650 metres away, is well-known for its enrichment and tuition centres.

United Square, along with Novena Square and Square 2, are a collection of malls around Novena MRT and this is an established commercial and business hub that also offers a great alternative to Orchard Road when it comes to shopping and dining. Novena is also a key hub for medical tourism and specialist medical services provided by Mount Elizabeth Novena Hospital and Royal Square Medical Suites.

The nearest MRT to The Atelier is at Newton, which is about a 450 metre walk from the main entrance. Bonus points because this is an interchange station between the North South Line and the Downtown Line, so connectivity to the city and CBD is excellent, and Orchard is only one stop away. The Downtown Line also takes residents up the Bukit Timah stretch, to Botanic Gardens in just five minutes while also connecting them to schools like the NUS Law faculty, Singapore Chinese Girls School, St. Margarets’, SJI, ACS Barker, Hwa Chong Institution and National Junior College.

There’s something about the walk to Newton MRT that could make residents think twice and choose to take the bus instead to wherever they want to go. That’s because the path to the MRT entrance involves crossing two traffic lights and going up and down a pedestrian overhead bridge, whereas the bus stops along Newton Road and Bukit Timah Road are much nearer and are well-serviced by a number of routes crisscrossing the island. In fact, getting to Orchard Road from The Atelier is faster by bus compared to the MRT.

The MRT lines and bus services combine to enable access to almost anywhere within the CBD in half an hour or less, and additionally there’s the catchment area of offices near Newton MRT and around Novena MRT. Novena is also where the up-and-coming Health City is currently taking shape. When fully completed in 2030, Health City Novena will be Singapore’s largest healthcare complex and along with it a very substantial employment node of healthcare professionals.

For drivers or those who travel by car, this location provides easy access to the city and CBD. However, because of the way that the one-way Kampong Java Road is laid out, car journeys to and from The Atelier will often involve the minor inconvenience of a two-minute detour.

For instance, residents cannot turn directly towards the city direction at the junction of Kampong Java Road and Thomson Road and will have to make a U-turn near Novena. If they want to go onto the Central Expressway (CTE) towards the city and AYE direction, they would have to head north to Balestier Road.

And although the condo is near to both the CTE and the upcoming North-South Corridor, the only slip-road entrances that are near to The Atelier are those that are heading away from the city (North-bound). Coming back to The Atelier from the city and Orchard, drivers will also have to deal with the often-congested Newton Circus.

District and Area Price Trend

There are a handful of condominiums within a 500-metre radius of The Atelier, and many of these are actually built in the past 15 years. Comparing the price performance of these developments, we find that they tend to occupy the range between the District 9 and District 10 median prices.

An interesting observation is that prices of properties in the immediate vicinity of The Atelier seems to jump higher at the start of property boom cycles. This happened in 2017 and looks to be happening again in 2021. That being said, when the property market experiences a cooling cycle, prices in the area where The Atelier is located appears to moderate downwards by a larger extent as well.

In general, prices for all the districts have experienced an uptrend over the past 10 years. Here are the percentage median psf price increases for District 9, 10 and 11 in the period between 2011 and 2020:

• District 9 (Orchard/River Valley): 11.8% growth

• District 10 (Holland/Bukit Timah/Tanglin): 14.7% growth

• District 11 (Newton/Novena): 17.1% growth

The Atelier Condo Site Analysis

At slightly more than half the size of a football field, the land size of The Atelier is compact and importantly it’s nicely squarish with the longer side oriented towards the North and South. That means that the units here have low exposure to the morning and afternoon sun and the architect is able to produce unit layouts that are squarish and practical, which we’ll go into detail later.

Another thing to note is that the residential block itself takes up most of the land, so it’s nice to see the developer consciously try to maximise the common areas by placing facilities across three landscaped levels on the 1st, 6th and 18th storey respectively. There’s however no room for a tennis court here, but typically tennis courts are uncommon for projects of under 200 units anyway.

Units at The Atelier only start from the 7th storey onwards, so there’s technically no low-floor units in this development. In terms of views you’d get, there’s actually a very decent pocket unblocked view for North-facing units, and because of the canal along Kampong Java Road and Keng Lee Road the nearest condo block is at least 100 metres away so residents in the North-facing stacks of The Atelier will get a good degree of privacy.

For the south-facing units, views will be partially-blocked by Kopar at Newton, a 99-year leasehold condo that’s also currently under construction and will rise to the same height as The Atelier.  While Kopar’s two residential blocks restrict the views from The Atelier, they offer an added buffer to minimise any road noise, so this could actually be a blessing in disguise for residents.

However, the south-facing stacks can still enjoy views towards the southwest, depending on the floor level:

• 7th to 13th floor: Partially unblocked views towards the southwest

• 14th to 17th storey: Mostly unblocked city views towards the southwest

• 19th to 22nd floor: No views towards the southwest due to Istana security restrictions

A unique thing about units at The Atelier is that the highest floors might not give the best views at all. This is because 19th to 22nd floor units with windows facing the Istana are required to have mandatory security screens that completely block the view towards this direction. The units most affected by this requirement are as follows:

• #19-01, #20-01, #21-01, #22-01

• #19-02, #20-02, #21-02, #22-02

• #19-03, #20-03, #21-03, #22-03

• #19-04, #20-04, #21-04, #22-04

Looking at the site, we like the fact that there is a sufficient distance of at least 70 metres between the South-facing stacks and Bukit Timah Road, and the North-facing side towards Kampong Java Road is actually a very quiet facing with low traffic.

The Atelier Condo Facilities

As we mentioned, the facilities at The Atelier are spread across three levels, which also maximises the common area that residents get to enjoy. The ground level is where the main lap pool is located. We like the length of the lap pool, which is about 40 metres, but it’s important to note that this pool is only wide enough for two abreast so it’s not exactly for the hardcore swimmer.

In addition to the main lap pool, there are also areas for lounging, as well as a steam room, on the first storey. The condo’s concierge counter will also be positioned near the arrival piazza to assist residents and visitors with a porter service if they need it as well as e-bicycle rentals and laundry services, just to name a few.

Now the developer has made it clear that concierge services at The Atelier is not part of the estimated maintenance fees. The concierge will only be free of charge for the first two years from the TOP of the condo or up to the first Annual General Meeting of the MSCT, whichever is earlier, so any provision of concierge services after that will be voted on and a continuation may result in an increase in maintenance fees.

On the 6th storey is where the kids-centric facilities are located as well as dining facilities. We love that there are two full-sized playgrounds and the highlight is the Treetop Adventure which looks like a whole lot of fun. There’s also a kid’s pool as well as another pool (Sensory Pool) for adults to relax while their kid’s play. We also like that the kids facilities and the pools are located near to the dining facilities because this facilitates social and family gatherings that involve a lot of guests.

Moving onto the 18th storey, residents can find fitness and leisure facilities such as the gym as well as a seldom-seen billiard lounge. The gym itself, which has an indoor and outdoor area, is on the compact side of things. There’s again space to entertain guests at the clubhouse, which comes with kitchen appliances. There’s also a couple of spaces for working and studying, and we especially like the seats at The Hideout that faces outward towards the North.

We also want to point out that there will be two electric car charging lots as part of the 120 carpark lots within The Atelier’s basement car park. The developer has shown foresight by including an additional isolator to accommodate more charging stations when the demand increases. We really like Bukit Sembawang’s proactive approach to future-proofing and this is something more developers should be doing.

In general, the amount and variety of facilities at The Atelier is decent for a 120-unit development. The star of the show are the play areas for kids, especially the adventurous type which is just as well as most of the surrounding primary schools within 1km are all-boys schools.

Unit Layout and Floor Plan analysis

The larger unit sizes at The Atelier are really a breath of fresh air, starting all the way from the 549 sq ft one-bedder unit. The generosity in space for this unit is most evident in the master bedroom, which at 11 square metres can accommodate a king-sized bed without feeling cramped. There’s also close to a metre from the foot of the bed to the opposite wall, which really helps to accentuate the sense of space.

Elsewhere in the one-bedroom unit, the kitchen comes with a split sink and plenty of counter space left, and the dining area can even accommodate a six- seater dining table. The balcony is also squarish instead of a long rectangular shape, which increases the functionality of this space.

The two-bedroom units, which is available in 872, 883 and 915 sq ft configurations, is again larger than what you’d see in new launch projects nowadays. The living room measures four-metres wide and compared to other new launch condos in the prime district with living rooms that are 3.5 metres or narrower, this here is a compelling statement of luxury.

In the smaller two-bedroom units, there’s also a slightly recessed area in the living and dining area that’s very versatile, because owners can choose to place the dining table here instead to free up even more space in the living area, or turn this recess area into a study or additional storage especially since there are no household bomb shelters within the units at The Atelier.

We also like the two-bedder’s kitchen space, and the horseshoe layout is highly functional and conducive to entertaining guests. We also like the fact that all units come with integrated refrigerators; one- and two-bedroom units get a single-door fridge, while three- and four-bedroom units get a double-door fridge.

Again, the balconies of the two-bedroom units are nearly squarish, which effectively enables owners to turn these into outdoor dining areas if they wish.

Moving onto the bedrooms of the two-bedders, we can see that the 915 sq ft configuration offers a common bedroom that’s about 20% larger in area. Regardless of which two-bedder unit configuration you choose, the common bedrooms can all accommodate a queen sized bed although the show unit opts to put a single bed in the space. Another thing to note is that the windows are half-height.

The two-bedroom units have sizable master bedrooms that measure about 13 square metres. This is similar to the size of master bedrooms in the four-bedroom types.

But it is the three-bedroom units that actually have the largest master bedrooms at about 15 square metres and a magnificent wardrobe that spans about 9 feet in total.

In fact, the three-bedroom unit types at The Atelier are full of highlights. In terms of luxury they feel like a step above the one- and two-bedders. There are two variations of the three-bedroom unit type, with the following key layout differences:

• 1,173 sq ft (Stack 5 up to 17th floor): No powder room and 9.1 sq m balcony

• 1,184 sq ft (Stack 5 from 19th floor): No powder room and 11.7 sq m balcony

• 1,281sq ft (Stacks 1 and 8 up to 17th floor): With powder room and 11.6 sq m balcony

So spacious are the living and dining areas of the three-bedroom units at The Atelier, that such generous dimensions can typically only be found in either older developments, high-end luxury developments above $3k psf, or strata landed homes. Owners will have no issue placing an eight-seater dining table and an oversized sofa here.

The kitchen space, with its engineered stone countertop and marble detailing, is nothing short of grand and comes with an integrated fridge as well as a separate washer and dryer.

What’s a really nice touch is that the upper cabinets are slightly set back from the central corridor, and this makes it easy for owners to install a glass partition should they want to enclose the kitchen.

We also like that the utility and powder room is located along the entrance foyer, which is the ideal location for these rooms and in addition makes the foyer space much more functional than if it was just an entrance area flanked by two walls.

The common bedrooms of three bedroom units all measure at least 9.1 sq m, which allows a queen bed to fit comfortably. Here the developer has put in a bunk bed to show off the 2.9-metre ceiling height that occupants will get to enjoy.

To accommodate the master bedroom’s super-sized wardrobe, one of the common bedrooms has a narrow entryway that’s only slightly wider than shoulder-width, but for most owners this shouldn’t be an issue.

Master bathrooms of the three- and four-bedroom unit types at The Atelier have a different look. They come clad in cool-grey marble instead of the warmer tones of the one- and two-bedders.

Secondly, there’s a long vanity with his-and-hers basins as well as a large shower area with his-and-hers faucets and rain-showers—something that we rarely see. Although there’s no bathtub, the shower space can easily accommodate one.

Finally, measuring 1,496 sq ft each, the eight four-bedroom units at The Atelier can only be found on the 19th to 22nd levels in Stacks 1 and 8. Stack 1 will have views blocked by the security screenings and this we foresee will affect the amount of natural light the unit gets and also the future value and appreciation of the unit, compared to units that don’t have the security screens.

That being said, let’s consider the merits of the unit layout. In terms of the entryway, the kitchen and living and dining spaces, the four-bedroom unit is actually very similar to the largest three-bedroom unit type that also happens to be the show unit. Stack 8’s four-bedder has a 5% smaller balcony than Stack 1 and much of this space is channeled into one of the common bedrooms.

One amazing thing about the four-bedroom unit is the size of its common bedrooms. In most other developments, these would easily qualify as a master bedroom based on their floor area, which measures anywhere from 10.8 to nearly 13 square metres. In fact, these common bedrooms can easily fit a king-sized bed.

Although the bedroom sizes are huge, occupants of the three common bedrooms nonetheless have to share one common bathroom, although there’s also a powder room in the four-bedder unit. One thing to point out is that the window of Bedroom 3 in Stack 1 directly faces the window of Bedroom 3 and Stack 8 just a few metres away, so there’s very little privacy for anyone occupying this room.

Another few key points about the layouts at The Atelier is that, no matter where you look, you can’t find void areas such as double-volume ceilings anywhere, and that’s great for buyers who emphasise practicality. Also, even though the units themselves are upsized, the air-con ledges remain reasonably-sized throughout—kudos for the developer for this.

Meanwhile, the absence of private lifts, which are increasingly common in luxury projects, also help keep the maintenance fee down and keep the percentage of non-useable internal space high.

All said and done, there is little to fault about the unit layouts at The Atelier, except that some of the common bedrooms only come with half-height windows, and of course the security screens that can’t be helped. Also, the kitchens in the three- and four-bedroom units have homogenous tiles instead of marble even though these are essentially open-concept kitchens. But none of these affect our overall positive impression of the layouts at The Atelier.

Appliances, finishings, flooring and smart features

There’s luxury all-round: Kitchen appliances are from De Dietrich, which include an integrated fridge (double-door type for three- and four-bedroom units). All units will be fitted with matte black sanitary fittings from Gessi and sanitarywares from Villeroy & Boch.

For kitchen countertops, one- and two-bedder types have engineered quartz countertops whereas three- and four-bedders come in engineered stone with a marble finish. In the larger three- and four- bedders, the kitchen cabinetry comes with additional full-height black satin glass door panels that add a touch of class.

Flooring-wise, all units have marble flooring in the living and dining areas, although the colour differs between one- and two-bedders (warm beige, cream and brown tones) and three- and four-bedders (cool greyish and off-white tones). Although master bathrooms and powder rooms have marble floor and wall tiles, common bathrooms are given homogenous tiles. All bedrooms have engineered timber flooring and stain finish full-height wardrobes.

There will also be concealed ducted air-conditioning in the living and dining rooms, with split air-conditioning units provided for bedrooms. Owners also have access to a host of smart home and smart living features, including the ability to control air-conditioning and water heaters remotely via an app. Other smart features include a face recognition and car plate recognition system, and services such as smart letterboxes.

Comparative Analysis: New Launch Condos vs The Atelier

Compared to competing new launch condos nearby, the first thing that stands out is that The Atelier commands a higher per square foot (psf) price over competitors. Looking at Kopar at Newton, the psf and quantum are also appreciably lower as it is a leasehold project where the land value would decline over time. Besides, most freehold buyers operate with a buy-freehold-only mindset, so we should look at Pullman Residence, Fyve Derbyshire and Neu at Novena as The Atelier’s closest competitors.

But in actual fact, the competition isn’t really that close. Although Pullman Residence has a lower psf and quantum, it’s one- and two-bedroom units are appreciably smaller than units at The Atelier. Only from the three-bedder units onwards to the units start to measure up in terms of size and liveability.

And when you actually compare the three-bedroom units at Pullman Residence that are on the same level as The Atelier, you’ll see that the quantum for Pullman is in fact higher when comparing the units of similar floor area, which is Pullman’s 1,163 sq ft three-bedder versus The Atelier’s 1,173 sq ft three-bedder. Meanwhile, PSF price is substantially lower for three-bedder units at The Atelier.

Looking at the unit layout, we also see that a lot of space in the Pullman Residence unit is taken up by the private lift and the private lift lobby. Bedroom sizes are also much smaller. While there are some buyers who very much prefer having a private lift, we feel there’s a far greater proportion that will gladly embrace having larger bedrooms and larger bathrooms for the same square footage.

Maintenance fees at Pullman Residence, especially for the larger unit types, are also significantly higher. While the owner of the three-bedroom unit at The Atelier will pay an estimated $574 every month in maintenance fees, the owner of the three-bedder at Pullman Residence will pay 52% more at $875 per month. The difference translates to paying $36,120 more fees in a 10-year period.

For Fyve Derbyshire and Neu at Novena, these are developments located in areas with slightly lower land value, and while Novena is a vibrant hub in itself, the MRT station isn’t an interchange so there’s slightly less connectivity. Fyve Derbyshire is positioned with highly budget-conscious buyers in mind with minimal facilities, and the two-bedders are more than 30% smaller than The Atelier, so The Atelier operates in a different league and much more similar to Neu at Novena.

Now assuming that the buyer feels that Neu at Novena’s location is just as attractive, he or she will instantly be drawn to the units there because of its significantly lower quantum compared to The Atelier. With facilities in both developments being quite similar, the next thing is to compare unit layouts.

Looking at the 646 sq ft two-bedder at Neu at Novena, we see that quite a few spaces are downsized as opposed to the two-bedder at The Atelier. Although not a squarish shape, the layout is in a dumbbell configuration, so there’s less wasted corridor space. Most importantly, bedroom sizes are decent and the master bedroom is especially spacious. So we feel that the remaining three units of two-bedders at Neu at Novena, which are more than $550k cheaper, could be the ones that get snapped up first.

Jumping straight into the four-bedder comparison, it’s the non-duplex units at Neu at Novena that might give The Atelier a real run for its money, especially for buyers that don’t need enormous bedrooms and expressions of luxury living like his-and-hers wash basins and showers. The advantage, aside from a quantum that is about $950k lower than The Atelier’s four-bedders, is the fact there is another ensuite other than the master bedroom.

That being said, Neu at Novena’s four-bedders come with a big caveat, which is that these are west-facing units with significant exposure to the afternoon sun.

Also, we feel that the space utilisation in the kitchen and foyer area is better in The Atelier’s four-bedroom unit. The larger space might also appeal to buyers who are coming from landed properties in the prime district, and these are high-net-worth buyers who aren’t that quantum-sensitive, and want a good balance of luxury and accessibility with having to rely on a car. If these buyers don’t mind being slightly further away from the city, then they can also consider projects such as Leedon Green, which we previously reviewed,  or RoyalGreen in District 10.

If ceiling height matters to you, here’s the rundown of the ceiling heights between The Atelier, Pullman Residence, Neu at Novena as well as Leedon Green and Royal Green. These heights refer to the living and dining areas as well as the bedrooms of these projects.

Comparative Analysis: Resale Condos vs The Atelier

The Atelier is surrounded by a number of freehold condos that aren’t that old and of a similar land area, and should sway some buyers who are agnostic towards new launch or resale. Here’s the rundown:

The first observation is that, based purely on quantum, The Atelier’s one- and two-bedroom unit types face stiff competition from resale condos in the immediate vicinity. However, we can write Newton Edge out of the equation because its positioning and compact layouts are not exactly in the luxury bracket. Park Infinia’s one-bedders are similar in size but the bay windows, household bomb shelter and lack of a balcony could give buyers some pause.

The Atelier has the most competition from resale in the two-bedder unit category in terms of volume, but what works in its favour is that all the truly upmarket alternatives have a higher quantum. The closest competitor here, we feel, is Trilight, whose two-bedder units come with functional layouts, a larger dining and living area with an oversized balcony and private lift that could be well-worth the higher quantum of about $100k in the minds of certain buyers.

Miro, located right across the road from The Atelier, offers something distinctly different as the units here are all loft or duplex units. The Atelier seems to be targeting exactly the buyer who wouldn’t go for loft or duplex units, so Miro isn’t that much of a competition considering its two-bedders have less useable space because of the loft design and the three- and four-bedders are of a higher quantum.

In the meantime, Newton One is more spacious, but its curved layout again veers towards the unconventional side of things and the quantum is also comparably higher. Finally, Parc Centennial remains one of D9’s most affordable condos but it is the furthest away from Newton MRT in our lineup and a handful of units here have obscured views due to Istana security restrictions.

For three- to four-bedroom resale condos in the vicinity, the price point begins to surge past that of The Atelier because these units have a far larger floor area even though they essentially have the same number of bedrooms compared to The Atelier. So quantum-wise for the three- and four-bedder units, we feel that The Atelier has a compelling advantage over their resale counterparts.

Among these resale condos, Newton One has shown the greatest price appreciation of 16% over a 10-year period from 2011 to 2020, whereas units at Miro have overseen an average price decrease of 20% over the same period. Overall, we feel that the practical and regular layouts of The Atelier could work in its favour when it comes to property value appreciation over time, but there are other potential drivers of future capital appreciation that we’ll be talking about next.

Future Development and Upside Potential

The hype in and around Newton and Novena mainly centres around Health City Novena. This is a mega-project conceptualised in 2010, that aims to turn the entire 17-hectare area around the existing Tan Tock Seng Hospital into a modern healthcare complex that’s Singapore’s largest.

The completion for the entire Health City Novena is scheduled for 2030 but a lot of it has already been completed or are near-completion. In terms of research and education, the Nanyang Technological University’s Lee Kong Chian School of Medicine has set up a campus at Health City Novena, and according to the official master plan for Novena this may be followed by an additional health sciences school.

Most importantly for those living in the area, the amenities at Health City Novena will also extend beyond healthcare towards a complete ecosystem that includes health services, research and education, commercial, leisure and public spaces. The increase in the number of high-value jobs, such as doctors, researchers and scientists, could also result in a higher demand for housing in the area.

Already in the past few years, we’ve seen the Marriott Courtyard hotel, Royal Square Medical Suites, and the second Mount Elizabeth Hospital pop up in Novena. These amenities are a sign that this area is also leaning towards highly-lucrative medical tourism, and this could indirectly encourage affluent buyers and investors to take a serious look at Novena and the freehold properties nearby. And a handful of them will surely be attracted to living somewhere between Novena and the famous Orchard Road shopping belt, and The Atelier then becomes very strategically positioned.

Additionally, we also feel that the upcoming North South Corridor expressway, which runs under Novena and brings in traffic from other parts of Singapore, could give a boost to land value in the area. And when that happens in the 10 to 20 year horizon we might also get to see the commercial redevelopment of United Square and Goldbell Towers, further boosting the appeal of condos such as The Atelier.

With a lot being said about Novena and Health City, there could be even more upside potential coming from the immediate area around Newton MRT interchange. Much of the land around the MRT station exits have yet to be developed, or are currently underutilized as low-rise office buildings.

These parcels of land, which are denoted with a yellow colour on the URA Master Plan, are currently zoned as Reserve Sites. This means a definite use for the land has yet to be decided upon. Judging by the high land value of the area and the typical developments that eventually spring up around MRT interchanges, we believe that Newton could potentially be developed into a massive commercial and business hub with new lifestyle and leisure amenities especially in the Monk’s Hill area.

In fact, the entire swathe of reserve sites in Newton is one of the most exciting unknowns in Singapore’s urban planning today, and The Atelier is right within walking distance to this potential development hotspot.

The Atelier: Own stay vs investment

Typically, property investors seek 99-year leasehold properties because it comes at a lower quantum that allows them to minimise cash outlay and maximise rental yield. Developer Bukit Sembawang clearly understands that, and signs are everywhere that this freehold project has been fashioned in a way that quantum and price considerations become secondary and quality of living takes priority.

In fact, based on rentals in nearby Trilight and Park Infinia, we projected gross rental yield for The Atelier to be 2.4% per annum or below. Next door, the 99-year leasehold Kopar at Newton has a projected rental yield of around 3%. So investors might want to look over there instead.

Bukit Sembawang also markets The Atelier as a quality generational asset. Based on what we saw, we fully agree on this point. Moreover, there is a sense of practicality and pragmatism that we don’t often see in new launch condos nowadays. Your money will go towards larger bedrooms and living areas, as well as high-end appliances and fittings, instead of towards double-volume ceilings and private lifts that are more ostentatious manifestations of luxury but may lack practicality.

Even the balconies and utility rooms in The Atelier’s units are highly functional. And we imagine the practical luxury of The Atelier would particularly appeal to landed homeowners wanting to transition into a condominium but don’t want to compromise on space and insist on buying freehold. We think the price point here is in the sweet spot for the affluent buyer living in landed areas like Novena, Thomson or Serangoon.

It would have been even better if there’s a fully sheltered route to either the bus stop or Newton MRT station, or if the maintenance fees could be a tad lower, but these by no means diminish the appeal of the Atelier, which is already nearer to an MRT compared to 95% of prime district condos out there.

The Atelier: Buyers playing the waiting game?

At the time of writing, only four units of The Atelier have been sold since the project’s launch in early-March this year. Ironically, the only thing holding back the buyers most suited to The Atelier could be their practical mindsets, which encourage a more cautious wait-and-see approach. These buyers could be waiting for more concrete signs of an economic recovery from Covid-19 before entering the market for a higher quantum condo like this.

These typically savvy buyers also know that, with a breakeven price of $2.4k psf, there is possibly room for the developer to lower prices slightly. That being said, the waiting game is something that developers are more than willing to play nowadays, because the URA Price Index looks to be continuing its upward march this year, and eventually higher-end projects like The Atelier could seem like a value buy as long as at an average psf price of under $3k.

In fact, given the rising price trend, we predict that The Atelier will be the last new launch condo in the Newton area to launch at an average price point of below $3,000 psf. And considering what’s still left in the new launch pipeline, you probably won’t come across another condo ticking the all four boxes of space, public transport accessibility, prime location and freehold status anytime soon.

Finally, buyers should consider acting sooner rather than later to lock in the currently highly favourable home loan interest rates, and be able to choose the best or most value-for-money units within a certain project, especially in a development that only has a handful of units such as The Atelier. Speak to our new launch consultants to find out if The Atelier is right for you, or get answers to any questions you may have about buying or selling a home.