February 15, 2021
A special look into Liang Court Development
By PropNex Research
As of 6th March updated, Liang Court development is now newly named as Canninghill Piers (Residential) & Canninghill Square (Retail)
The curtains came down on Liang Court in Clarke Quay and in its place a new icon in contemporary riverfront living awaits. The upcoming project, an integrated development with 700 luxury residential apartments, lies in heart of the city along the storied Singapore River.
Jointly developed by City Developments, CapitaLand and Ascott Residence Trust, the former Liang Court will also comprise a commercial component, a hotel and a serviced residence. Targeted to open in phases from 2024, the integrated development is set to be a new landmark in Clarke Quay and the Fort Canning/River Valley area.
History and urbanity
Steeped in history and heritage, the Singapore River has been a crucial lifeline for generations of people in the country’s past, as a focal point of trading activities. Today, the riverside is a flourishing centre of activity with beautifully-restored historic buildings, bustling nightlife, and uptown living.
The new development will complement the rejuvenation of the Singapore River precinct, bringing more vibrancy to the waterfront lifestyle destination. When it is completed, the integrated development at the former Liang Court site – with the Fort Canning MRT station at its doorstep - is poised to be a nexus of business, leisure, and community activities.
Given its prime location and attractive development attributes, the project is expected to enjoy keen buying interest when the residential units are launched for sale. Future residents can look forward to enjoying a range of lifestyle, F&B, and entertainment options along the Singapore River, or take a slow jog along pedestrian-friendly promenades, as the warm glow of the setting sun gives way to the cool evening breeze.
Why is the project attractive?
The residential units at 99-year leasehold integrated development will likely appeal to a wide group of buyers, including local and foreign investors, families, and professionals who appreciate the convenience of city living and revel in the hustle and bustle of being at the fringe of the central business district.
The development is directly connected to the Fort Canning MRT station on the Downtown Line, which will provide easy access to a myriad of attractions within just one or a few stops. They include Chinatown, the Marina Bay Financial Centre, Marina Bay Sands integrated resort, Suntec City mall and convention centre, the art district in Bugis/Bencoolen, and Little India, amongst others.
Being in an amenity-rich area, future resident of the development will not have to venture far for their daily necessities and more. Apart from the commercial options offered at the integrated development, they will also be able to enjoy other amenities at Clark Quay, Robertson Quay, UE Square, UE Shopping Mall, The Central, and Riverside Point. The glitzy Orchard Road, Singapore’s prime shopping district, is also minutes’ drive away.
For nature lovers and history buffs, Fort Canning Park just across the development looks set to provide hours of quiet respite as a green oasis in the city. The 18-hectare park is one of Singapore’s most prominent historical landmarks and is filled with attractions, from sprawling lawns, to lush greenery, gazebos, a spice garden, and the Battle Box, a former underground military complex that was used in World War II. Over the longer term, the government – under its Master Plan 2019 - has outlined plans to improve connectivity in the precinct, creating a continuous hill-to-hill link from Fort Canning Park towards Singapore River and eventually to Pearl’s Hill City Park, offering the public a seamless belt of leisure and recreation.
Living in the city beat, very often, time is of the essence and convenience is much prized. That is why many buyers have opted to get a home within an integrated development, which offers a one-stop shop for all their daily needs. In particular, the appeal of an integrated development was on display at The Linq At Beauty World, where virtually all its 120 units were sold out at launch in November 2020.
Apart from convenience, units in integrated developments generally command a premium (in both sales and leasing markets) over pure residential projects. This is an important consideration especially for investors who are looking to generate rental income from the property.
Based on market data, it appears that residential units in integrated developments have been able to yield a higher rent compared to the rentals within the same district where the property is located. An analysis of Realis data showed that Bedok Residences, North Park Residences, Park Place Residences At PLQ, Hillion Residences, and Watertown had median rents that were higher than the median rent in their respective district in December 2020.
RCR pricing, CCR vibe
The upcoming development is in District 6 in the city fringe or Rest of Central Region (RCR), just on the cusp of the Core Central Region (CCR), which is typically seen as a proxy for the luxury housing sector. Although RCR non-landed private home prices have gained strength in 2020 - posting a 4.7% increase from 2019, they are still relatively more affordable than high-end homes in the CCR.
According to Realis figures, the median unit price of new non-landed private homes in the RCR was $2,025 psf – about 25% lower than the median price of $2,698 psf for their CCR counterparts. With the ongoing pandemic, developers are expected to continue to price units sensitively. In addition, the ultra-low interest rate environment will also be supportive of home financing.
Buoyed by growing optimism surrounding the vaccine roll-out in Singapore and the improving economy as well as enhanced investor confidence, the new integrated development on the former Liang Court site is expected to generate great interest among local and foreign buyers alike. It offers a rare opportunity to acquire a property that presents capital appreciation potential as the Singapore River precinct undergoes transformation in the years to come.