Project Launch Date
Showroom viewing starting from 31 Oct 2024
Booking day on 16 Nov 2024
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Showroom Address
Address : Merchant Loop, near Riverside Point Shopping Centre
Revised for Latest Information
Primer – this article will be constantly updated to reflect the latest information for Union Square Residences as new information is being released by developers.
Who is this article written for ?
This article is specifically written with the following readers in mind
- Buyers looking to build a unbiased investment case for investing in Union Square Residences
- Buyers looking to get a sense of what’s a good entry price and purchase quantum for Union Square Residences
- Buyers looking to identify key risk involved in buying into a property type like Union Square Residences
The key takeaways for this article
This article seeks to summarise all the key information that is important to an investor looking to consider Union Square Residences as an investment property, in a concise yet impactful read.
It should not take you more than 15 mins to capture the gist for investing in Union Square Residences.
The article will cover the following
- 4 Investment case for investing in Union Square Residences
- Entry price guide – what’s fair value, undervalue and overvalue
- 2 Key risk to look out for
- Average profitability of properties similar to Union Square Residences
General Information
Union Square Residences is a new launch development comprising one 34 storey block and another 40 storey block, comprising 366 units. The 1st and 2nd floor will house commercial units.
It is built in conjunction with Union Square Central, a 20 storey grade A office building with commercial units on the 1st and 2nd floor. And a 3 storey Co-living space with 134 co-living units.
| Developer | City Developments Ltd (CDL) |
| Region | Core Central Region (CCR) |
| Location | Corner of Havelock Road and Keng Cheow Street, near Clarke Quay |
| MRT | walking distance of three MRT stations – Clarke Quay (North-East Line), Chinatown (an interchange for the Downtown/North-East Lines) and Fort Canning (Downtown Line) |
| Lease | 99 years |
| Expected TOP | 2028 |
| Schools | Primary school within 1km radius – River Valley Primary School Primary school within 2km radius – Alexandra Primary School, Cantonment Primary School, St. Margaret’s School (Primary), and Zhangde Primary School Secondary schools – Crescent Girls’ School, Gan Eng Seng Secondary School, and Outram Secondary School Tertiary Institution – School of the Arts (SOTA), |
| Site | 6,238.23 metre square |
Reputable Primary School within 1km radius of Union Square Residences ?
One interesting attribute to note for Union Square Residences which is a CCR new launch development is that it is within the 1km radius of River Valley Primary School. River Valley Primary School, is ranked 59, 3 position above the highly sought after Nan Chiau Primary School.
This gives Union Square Residences an added draw to attract affluent family, locating to relocate to the area.
Track record of Union Square Residences’ Developer
Union Square Residences is developed by brand name developer CDL.
It currently has a 1 Conquas Band under URA’s rating, with 1 being the highest quality accreditation.
It’s developer has a strong track record of high quality development, previously developing new launch development Penrose, Canninghill Piers, Whistler Grand and SengKang Grand Residences.
Plot Density
In terms of plot density, on paper Union Square Residences is of similiar density as Canninghill Pier. To get a sense of how cramp or spacious the development is, it would be helpful to check out Canninghill Pier.
| Development | Plot Ratio | Site Area (sqm) / Land Size | No of Units | Site Area / Unit |
| Union Square Residences | 2.8 | 6,238 | 366 | 17 |
| Canninghill Pier | 7.6 | 12,925 | 701 | 18 |
| Landmark | 5.6 | 9,286 | 396 | 23 |
Investment case for investing in Union Square Residences
There is always a core investment thesis behind every new launch development. As investors, it is important to identify the core investment thesis of why you are buying into this new launch development and validate the assumptions supporting it.
Consider the following investment case for New launch development launching within the same period as Union Square Residences.
- Emerald of Katong – Buying into a desirable D15 development, at an entry price close to older new launch development Tembusu Grand, due to low developer land bid price.
- Chuan Park Residences – Buying into a mega new launch development in an area with limited supply of new 3 bedroom units. Tapping into spillover demand from buyers looking to move into Bishan, Serangoon area.
- Norwood Grand – Buying into a new launch that taps into the sizable HDB upgrader demand in Woodlands, accompanied by Woodland regional transformation appeal.
- Union Square Residences – Buying into Tomorrow’s development at Today’s price, accompanied by Central Area transformation plan appeal.
Looking to invest in a new launch ?
Deploying your capital into an optimal new launch project is crucial at this point.
It helps to have a detailed comparison of all the pros and cons across all new launch opportunities available.
Drop as a whatsapp text and we will revert with a comparison of the best new launch opportunities available at the moment.
Investment Case #1 – CCR new launch developments emerging as value buys
One narrative that is being pitched on the ground is the price convergence between CCR new launches vs RCR and OCR new launches.
The common understanding amongst buyers is that it should cost more to live closer to the central area. But due to growth in prices for RCR and OCR new launches across 2019 to 2023, driven by the pandemic, and the dampening of prices for CCR new launches due to increase in foreigner’s ABSD from 30% to 60% in 2021.
The price gap between CCR vs RCR and OCR property have narrowed significantly. With this in play, moving forward buyers could redirect their attention towards CCR developments for value entries.
Union Square Residences being a CCR new launch development could benefit from this potential shift in buyer’s preference moving forward.
Price Convergence Overtime CCR vs RCR and OCR New Launches
| New Launch | Psf pricing – 2019 | Psf pricing – 2020 | Psf pricing – 2021 | Psf pricing – 2022 | Psf pricing – 2023 | Psf pricing – 2024 |
| CCR | 2,858 | 2,579 | 2,732 | 2,842 | 3,016 | 3,186 |
| RCR | 1,882 | 1,879 | 2,088 | 2,357 | 2,539 | 2,639 |
| OCR | 1,453 | 1,507 | 1,604 | 1,873 | 2,081 | 2,122 |
| New Launch | Price Gap (psf) – 2019 | Price Gap (psf) – 2020 | Price Gap (psf) – 2021 | Price Gap (psf) – 2022 | Price Gap (psf) – 2023 | Price Gap (psf) – 2024 |
| CCR | 0 | 0 | 0 | 0 | 0 | 0 |
| RCR | 976 | 700 | 644 | 485 | 477 | 547 |
| OCR | 1,405 | 1,072 | 1,128 | 969 | 935 | 1,064 |
Price convergence between CCR, RCR and OCR New Launches
Here’s a glimpse at the latest price gaps between the latest CCR new launches vs RCR and OCR new launches.
Latest New Launch Price Gap – CCR vs RCR and OCR
| CCR New Launches | Average Price (psf) | Price Disparity vs CCR |
| Union Square Residences | TBC – ? | |
| Canninghill Pier | 2,985 | |
| Landmark | 2,767 | |
| One Bernam | 2,747 | |
| Average | 2,833 | NA |
| RCR New Launches | Average Price (psf) | Price Disparity vs CCR |
| Arcady at Boon Keng | 2,576 | |
| Grand Dunman | 2,563 | |
| Tembusu Grand | 2,481 | |
| Pine Tree Hill | 2,485 | |
| Average | 2,526 | 307 |
| OCR New Launches | Average Price (psf) | Price Disparity vs CCR |
| J’Den | 2,478 | |
| AMO Residences | 2,353 | |
| Lentor Mansion | 2,272 | |
| Sora | 2,151 | |
| The Myst | 2,114 | |
| Average | 2,274 | 559 |
Quick Intro – Decoupling Expertise
Before you commit the next 5 mins of your life towards reading this article, it helps to find out who’s behind the keyboard.
We are a team of specialist realtors specialising in helping our readers research and shortlist investment properties for both homestay and investment objectives.
Having noticed an information gap towards helping investment minded Single buy and select the right property.
We seek to answer every real estate related query that a Single could have, with well researched content and non obligatory consults.
Investment Case #2 – Central Area URA Transformation
URA transformation is always a compelling narrative for you or your agent to sell your property to your future buyer. Whether it truly plays out in your favour to drive actual price appreciation is a factor that is hard to validate, as URA transformation normally takes 5 to 10 years to fully play out.
Union Square Residences located in the Clarke Quay, situated in the central part of Singapore, will benefit from the URA’s central area rejuvenation plan.
Development to look out for that will drive tangible price appreciation includes
- New GLS land plot for residential development
- Redevelopment of existing buildings into mixed residential and commercial development under the strategic development incentive scheme
Both of which will result in development of new residential development that will set a new benchmark price serving as catalyst for Union Square Residences’ price appreciation.
Having said that, we do need to take this with a pinch of salt, as the URA development plan was announced in 2019 and it will take at least 5 to 10 years for it to fully play out.
URA – Increasing Residential Communities in CBD
Investment Case #3 – Upcoming CCR new launches as price catalyst
Two of the most tangible price appreciation growth drivers are …
- Comparable new launches around your unit launching, setting new benchmark prices
- Comparable resale units in your area selling at a higher price
In the CCR area there are 3 upcoming new launches that could potentially be launching at a higher price than Union Square Residences, setting new benchmark prices for Union Square Residences to price against.
Upcoming New Launches in CBD to Prop up prices
Investment Case #4 – Buying tomorrow’s property at today’s price
Inline with the earlier point, entry price is one of the most tangible investment cases to be made for an investment property.
The validity of this investment hinges entirely on the launch price of Union Square Residences.
If Union Square Residences were to be launched at a price very close to the older neighbouring new launch CanningHill Pier or recently TOP Riviere within the $2,800 to $3,000 psf range. Then Union Square Residences would have the opportunity to ride on the price appreciation of CanningHill Pier and Riviere.
| CCR New Launches | Location | Completion | Average Price (psf) |
| Upcoming CBD New Launches – Price Catalyst | |||
| Marina View Residences | Marina | 2027 | TBC |
| Newport Residences | Anson Tanjong Pagar | 2030 | TBC |
| Aurea | Middle Road, Golden Mile | TBC | TBC |
| Bugis Area | |||
| TMW Maxwell | Anson, Tanjong Pagar | 2025 | 3,739 |
| Midtown Bay | Middle Road, Golden Mile | 2024 | 3,436 |
| Midtown Modern | Middle Road, Golden Mile | 2025 | 3,152 |
| Rivervalley, Clarke Quay – Direct Comparables with Union Square | |||
| Canninghill Pier | High Street, Clarke Quay | 2025 | 2,985 |
| Riviere | Jiak Kim Street, Rivervalley | 2023 | 2,859 |
| Outram, Tanjong Pagar | |||
| Landmark | Outram, Chin Swee Road | 2025 | 2,767 |
| One Bernam | Anson, Tanjong Pagar | 2026 | 2,747 |
| One Pearl Bank | Outram, Chin Swee Road | 2024 | 2,573 |
| Union Square Residences | High Street, Clarke Quay | 2028 | TBC |
This provides a good opportunity to segway into our next section on determining the fair, undervalue and overvalue pricing for Union Square Residences.
Entry Price Consideration – Fair, Under and Overvalued
For Union Square Residences, the crux lies in its launch price. If it can be launched at a price very close to CanningHill Residences then there is a strong investment case for it.
Peer Comparison – Fair Value
| Development | Completion / TOP | Average Price (psf) |
| Canninghill pier | 2025 | 2,985 |
| Riverie | 2023 | 2,859 |
Lower Bound Comparable – Undervalue
| Development | Completion / TOP | Average Price (psf) |
| Landmark | 2025 | 2,767 |
| Martin Modern | 2021 | 2,714 |
| One Pearl Bank | 2024 | 2,550 |
Upper Bound Comparable – Overvalue
| Development | Completion / TOP | Average Price (psf) |
| Midtown Bay | 2024 | 3,436 |
| Midtown Modern | 2025 | 3,152 |
Referencing the price comparison table above, we set the following price boundary for consideration when evaluating Union Square Residences Launch Price.
Price Range
- Undervalue – psf below $2,800 psf
- Fairvalue – $2,900 psf – $3,000 psf
- Overvalue – psf greater than $3,000 psf
Estimated Launch Price for Union Square Residences
Base on latest update from developer the project is scheduled to be launch with a estimated launch price between $2900 psf to $3000 psf.
Preliminary indicative launch price from developer by bedroom type
- 1 Bedroom – 463 sqft – from $1.38mil – $2,981 psf
- 1 Bedroom Plus Study – 506 sqft – from $1.49mil – $2,945 psf
- 2 Bedroom – 700 sqft – from $1.998 mil – $2,854 psf
- 2 Bedroom Plus Study – 743 sqft – $2.18 mil – $2,934 psf
- 3 Bedroom – 990 sqft – $2.82 mil – $2,848 psf
- 3 Bedroom Premium – 10666 sqft – $3.16 mil – $2,964 psf
- 4 Bedroom Premium – 1518 sqft – $4.62 mil – $3,043 psf
Referencing the price comparison section above, noting that its closest comparable development Canninghill Pier was launched at a price $2985, in 2021.
Union Square Residences, launching at $2900 to $3000 psf, as a equivalent or similiar price to Canninghill Pier forms a good investment case. Assuming resale take up for Canninghill Pier is healthy, buyers of Union Square Residences will be able to ride on Canninghill Pier’s coat tail for price appreciation.
Purchase Quantum Consideration – Sweet spot for properties in area
Aside from Psf pricing competitiveness, purchasing quantum is equally important. In an environment whereby interest rates are no longer all time long, overall purchase quantum and affordability significantly affects buyer’s demand for a property.
The goal is to get a grasp of the purchase quantum of comparable resale development in the same area and to shape your entry prices and unit size selection towards the sweet spot for a competitive purchase quantum within the area.
2 Bedroom Unit Purchase Quantum
Peer Comparison – Fair Value
| Development | Completion / TOP | Average Price (psf) | Size (sqft) | Quantum |
| Canninghill pier | 2025 | 2,985 | 732 | 2,185,020 |
| Riviere | 2023 | 2,859 | 560 | 1,601,040 |
Lower Bound Comparable – Undervalue
| Development | Completion / TOP | Average Price (psf) | Size (sqft) | Quantum |
| Landmark | 2025 | 2,767 | 678 | 1,876,026 |
| Martin Modern | 2021 | 2,714 | 764 | 2,073,496 |
| One Pearl Bank | 2024 | 2,550 | 700 | 1,785,000 |
Upper Bound Comparable – Overvalue
| Development | Completion / TOP | Average Price (psf) | Size (sqft) | Quantum |
| Midtown Bay | 2024 | 3,436 | 732 | 2,515,152 |
| Midtown Modern | 2025 | 3,152 | 592 | 1,865,984 |
Quantum Range – 2 Bedroom
- Undervalue – $1.8 mil to $1.85 mil
- Fairvalue – $1.9 mil to $2.2 mil
- Overvalue – anything greater than $2.2 mil
3 Bedroom Unit Purchase Quantum
Peer Comparison – Fair Value
| Development | Completion / TOP | Average Price (psf) | Size (sqft) | Quantum |
| Canninghill pier | 2025 | 2,985 | 893 | 2,665,605 |
| Riviere | 2023 | 2,859 | 1,141 | 3,262,119 |
Lower Bound Comparable – Undervalue
| Development | Completion / TOP | Average Price (psf) | Size (sqft) | Quantum |
| Landmark | 2025 | 2,767 | 1,076 | 2,977,292 |
| Martin Modern | 2021 | 2,714 | 1,012 | 2,746,568 |
| One Pearl Bank | 2024 | 2,550 | 1,098 | 2,799,900 |
Upper Bound Comparable – Overvalue
| Development | Completion / TOP | Average Price (psf) | Size (sqft) | Quantum |
| Midtown Bay | 2024 | 3,436 | 1,324 | 4,549,264 |
| Midtown Modern | 2025 | 3,152 | 904 | 2,849,408 |
Quantum Range – 3 Bedroom
- Undervalue – Anything below $2.7 mil
- Fairvalue – $2.7 mil to $2.8 mil
- Overvalue – anything greater than $3.0 mil
Key risk consideration for investing in Union Square Residences
Noting that the key flow of buyer demand driving price appreciation for the last 3 years have been coming from HDB upgraders bidding up property prices in OCR area.
Investing in a CCR new launch like Union Square Residences brings about a different risk profile, compared with investing in a OCR launch targeting HDB upgraders.
In the section that follows, we will dissect the key risk that comes with buying into an investment unit in Union Square Residences new launch.
Key Risk #1 – Smaller Buyer Pool with Different Priorities
The exit buyer profile for Union Square residences are not your usual families upgrading from HDB to private condo.
Buyers buying into the CCR areas typically fall into the following categories
- Affluent Single living alone or with a partner
- Affluent small families with no child
- Small families with Child previously residing in River Valley, Orchard looking to upgrade to a newer development in the same location.
- Local Investors purchasing their second property
As compared to the buyer demand for OCR and RCR properties you are potentially looking at a smaller buyer pool with different considerations and priorities.
The following factors that are normally of lower priority to OCR buyers could be key to CCR buyers.
Important to CCR Buyer
- Proximity to MRT
- Facing and unblocked view of unit
- Smaller compact units for affordability due to higher CCR pricing
- Quality to development
Not as Important to CCR Buyer
- Enclosed kitchen, cooking may not be as frequent as OCR buyers
- Space, may prefer smaller unit as there is only 1 or no child
The upside to this is that this segment of affluent Single and Married couples with no child is a growing segment in Singapore.
Appending a NUS survey below for reference. Unfortunately data is only updated till 2014, assumption is that the trend should continue.
NUS Survey – Increasing proportion of Singapore family without Child
Key Risk #2 – Reduced Buying Interest from Foreign Investors
A point to note is that prior to the 2023 ABSD cooling measure that saw ABSD on property purchase for foreigners to increase from 30% to 60% resulted in a decrease in foreign buyers purchasing investment properties in Singapore.
Traditionally, foreign buyers form a significant proportion of buyers for CCR property. So the question moving forward is if local buyers’ demand can continue to propel the price of CCR properties forward.
Local Buyer’s demand remained strong for CCR new launches
The situation seems to be better than expected. Based on the recent CCR launches, the take up rate remains healthy, with local buyers forming the majority of purchasers.
| Development | Launch day take up rate (%) | Percentage Singaporean Buyer | Percentage Foreign Buyer |
| CanningHill Piers | 86% | 75% | 13% |
| Midtown Modern | 61% | 76% | 9.70% |
| Midtown Bay | 75% | NA | NA |
Key Risk #3 – Chances of developer dropping prices after launch
As demand for CCR new launches can be a lot more volatile than a standard OCR or RCR new launch, there is a chance of the developer dropping price after launch day, if unit take up is not as healthy as expected.
Assuming the developer drops price after launch day there is a chance that you will suffer a paper loss if you make your purchase at a higher price during launch.
So far referencing the precedent set by both CanningHill Pier and The Landmark launches things seem to fall on the more positive spectrum. Both development sees healthy take up during launch day and developers have been staging prices upwards.
| Development | Launch day take up rate (%) |
| CanningHill Piers | 86% |
| The Landmark | Phased Launch. 90% of 120 units out of 360 units sold on launch day |
| Riviere | 25% |
CanningHill Pier Developer Price Trend
The Landmark Developer Price Trend
Riviere – negative example of developer dropping price
However things didn’t go as well as expected for Riviere, its developer launched its price on the high $2,837 psf in 2019 and sees a lacklustre take up of 25% during launch day. Its developer subsequently lowered the price down to the $2,700 psf range.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| Riviere Launch Price (psf) | 2,837 | 2,716 | 2,748 | 2,771 | 3,003 | 3,039 |
Riviere Developer Price Trend
Mitigation against risk of developer’s price decrease
To mitigate against the risk of developer’s price decrease, it would be helpful to firm up on your target entry psf price band and price quantum before attending launch day balloting.
At any point if launch price falls into the over valuation spectrum, it helps to walk away and consider a re-entry post launch if the developer drops price.
Key Risk #4 – Getting the right unit type
Selecting the right unit type has several implications. It determines the prospective demand for your unit and the competition you will face during rental or sale.
The key is to reference similar developments to unveil unit types that are well received during launch. For this, we look into comparable new launch CanningHill Pier for reference.
Takeup rate for units in CanningHill pier
Referencing the take up rate and supply of units, 2 bedroom units seem to be a sweet spot between supply and demand for the CCR area.
Surprisingly the 3 bedroom unit sees a pretty healthy take up as well.
| Bedrooms | 2021 | 2022 | 2023 | 2024 | Total |
| 1 | 239 | 9 | 1 | 1 | 250 |
| 2 | 130 | 32 | 1 | 163 | |
| 3 | 40 | 27 | 1 | 68 | |
| 4 | 26 | 28 | 5 | 59 | |
| 5 | 6 | 6 | 4 | 16 |
| Bedroom Type | Size (sqft) | Unit Available | Unit Sold | Units Left | % Take Up | % Unsold |
| 1 Bedroom | 409-560 | 328 | 250 | 78 | 76% | 24% |
| 2 Bedroom | 732-883 | 203 | 163 | 40 | 80% | 20% |
| 3 Bedroom | 893-1313 | 80 | 68 | 12 | 85% | 15% |
| 4 Bedroom | 1755-1959 | 60 | 59 | 1 | 98% | 2% |
| 5 Bedroom | 2788 – 8956 | 23 | 16 | 7 | 70% | 30% |
Profitability of Developments in the area
In this section, we reference the profitability of comparable developments in the area to provide a gauge to the potential profit and holding duration that can be expected for Union Square Residences.
| Development | Average Profitability | Holding Duration |
| Riviere | 116,950 | 4 |
| Martin Modern | 466,968 | 5 |
| Riverplace | 356,412 | 13 |
| Wharf Residences | 606,199 | 5 |
Profit by Unit Type – Martin Modern
| Bedrooms | Average Profitability | Holding Duration |
| 2 | 258,392 | 5 |
| 3 | 535,336 | 5 |
| 4 | 595,588 | 5 |
Profit by Unit Type – River Place
| Bedrooms | Average Profitability | Holding Duration |
| 1 | 255,064 | 12 |
| 2 | 299,591 | 13 |
| 3 | 610,120 | 14 |
| 4 | 980,000 | 15 |
In the section that follows, we will feature information that we will constantly update as we close in on launch day.
Next Steps – Groundwork
Aside from being an armchair researcher, this phase requires you to walk the ground. You will need to work with a competent new launch condo specialist to visit the showrooms.
The key takeaway in this phase is to have detailed understanding of the site plan, unit type and floor plan.
You must know which is the value stack, which is the premium stack, which is the stack to avoid and which unit type has the best layout.
Site Facing
At current state, the Union Square Residences is generally surrounded by low rise historical buildings.
Towards the north, assuming the current building remains at its current state, views will be unblocked looking towards Fort Canning Park and Singapore River. Towards the west you will be looking pass the current low to mid rise building towards River Vallye and Towards the east you will be looking at Marina Bay sands.
But do note that, except for the south facing side, which faces the old court building, the neighbouring building surrounding the other North, East an West facing sides are all zoned at higher plot ratio which can goes up to 3.6. Union Square is zoned at 2.8 plot ratio.
For reference a plot ratio of 2.8 equates to a building with max height of 36 storey, while a plot ratio of 3.6 comprise of a building greater than 36 storeys.
Union Square Residences – Floor Plan
Floor Plan – 1 Bedroom – 463 sqft
Floor Plan – 1 Bedroom Plus Study – 506 sqft
Floor Plan – 2 Bedroom – 710 sqft
Floor Plan – 2 Bedroom Plus Study – 743 sqft
Floor Plan – 3 Bedroom – 990 sqft
Floor Plan – 3 Bedroom Premium – 1066 sqft
Floor Plan – 4 Bedroom Premium – 1518 sqft
