Canninghill Piers Review: Insights from the Project IC

Thanks for coming to my Canninghill Piers article!

If you’ve followed me for a while, you probably already know that I’ve been appointed as a Project IC for this upcoming new launch Canninghill Piers.

As an IC, my role is to be a spokesperson of the Project and to sell units.

Given this position, it is necessary to be very familiar with the development.

This article is meant to give deep insights into Canninghill Piers.

You wouldn’t want to miss a ‘Once in a Blue Moon’ project like Canninghill Piers.

(Before continuing, head over to my Canninghill Piers Project page to find out the latest information on the project. You will also find a form to register for the VVIP preview there. Due to Covid19 Safe Measurement Measures, there will be capacity limits in the show flat. Register early to avoid disappointment!)

Now, we won’t know the actual prices until the launch day, but with about 75% of the units being 1br – 2+Study layouts, and the larger units having private lifts & arguably the more premium facings…

it’s bound to attract plenty of investors & own stay occupiers alike.

So, if you’re one, and are considering Canninghill Piers as your next purchase, there’s plenty to learn from this article.

Or, if you just heard about the Project but have many doubts, I hope this article gets you more excited.

Either way…

Keep reading!

Canninghill Piers: The Secret of District 6

Have you heard of a recent New Launch being from District 6?

If you haven’t, that’s normal.

Because District 6 is actually the district with the least number of condominium projects in Singapore.

There’s only 3!

  1. High Street Centre/One North Bridge, a 99-year leasehold mixed completed in the 1970s.
  2. Eden Residences Capitol, an exclusive, 39-unit luxury 99-year leasehold development launched in 2012.

And now, after almost 10 years since the last launch, no.3 Canninghill Piers.

Let me share with you more insights about this low-key district of Singapore.

According to the URA Master Plan’s Regional Highlights, there are 5 main regions of Singapore, plus the Central Area.

They are depicted in the Singapore map below from URA, with the Central Area lying within the Central Region inside the red boundary line.

To make some comparison, the Central Area of Singapore is like Manhattan in New York City.

Another more familiar term for the Central Area is the ‘City Centre’.

Many important areas of Singapore lie within the Central Area.

  • The Central Business District
  • Orchard Road
  • Cultural and Civic Districts of Fort Canning, Bras Basah and Bugis
  • Historic Districts of Chinatown, Little India, and Kampong Glam

Canninghill Piers, in District 6, is strategically located at the heart of this Central Area.

And here’s the biggest secret about this area:

Despite not being within the traditional CCR market segment, it benefits from being part of Singapore’s dynamic city centre home to a global business and financial hub, and a vibrant 24/7 lifestyle destination.

As further explained by URA, the area will continue to grow and become even more vibrant, by accommodating a wider diversity of uses and offering more jobs and business opportunities for the future economy.

More city living options nearer to amenities are planned too, with delightful streets and public spaces that celebrate its rich cultural, heritage and green assets.

In fact, some key plans have already been set in motion.

Highlights include transforming Orchard Road into a new lifestyle destination of varying experiences more than a shopping street…

And rejuvenation incentives for Central Business District buildings to enhance their unit mix to encompass more of a Live-Work-Play environment.

(For further reading, head over to this Publication by URA)

This is reflected in the pricings of the existing 2 projects in District 6:

For the newer Eden Residences, buyers are willing to pay in excess of $3,000 psf.

High Street Centre on the other hand has a 99-year lease from 1969. Currently, it has run more than half of that.

By estimating double of $1,478, we find that a fresh 99-year lease on that same site should logically transact at about $3,000 psf.

Which brings me to a key common factor shared by these developments in District 6…

Canninghill Piers: The Views

As one of the first official images released, you might have seen this image by now.

Unlike many artist impressions of other new launches in Singapore which might tend to fade out or exclude nearby buildings (I won’t pinpoint any here) …

This is an actual picture of the location around Canninghill Piers.

With the only addition of the actual Canninghill Piers structure being photoshopped in.

Why?

Because at Canninghill Piers, we are proud of our surroundings.

Below are shots of the views from each direction, courtesy of Google Earth and CDL.

From top to bottom, sights towards the Southeast, Southwest, Northwest, and Northeast.

These are certainly good views towards the Singapore Central Business District and Marina Bay Sands, The Singapore River, as well as Fort Canning Park.

What may be less apparent though, is how ‘permanent’ these views really are.

Singapore being a densely populated city state, buildings tend to be situated in close proximity to each other in order to maximise space efficiency.

With constant new developments coming up, what used to be a great unblocked view may someday turn into someone’s living room.

However, at Canninghill Piers…

See the large patches of Red?

They are conservations areas and buildings.

In these areas, URA Conservations Guidelines apply.

This is an extract from the URA Website: Our conservation guidelines are applied in varying degrees to the different conservation districts. We have to take into consideration the historical significance of each conservation district, the context of the surrounding developments and the long-term plans for the area. The extent of the building to be conserved and the degree of adaptation allowed also varies by district, and in some cases, by the uniqueness of the subject building.

TLDR: There will not be significant changes to places under conservation.

Which means, Southeast views of the CBD and MBS, as well as Northeast views of Fort Canning Park are here to stay.

Canninghill Piers fully capitalises on this by having the tallest residential tower block along the Singapore River at 180m with 48 stories of residential floors.

Canninghill Piers: Not just ‘another’ Integrated Project

A relatively newer trend in the property market, Integrated Projects have only come into the market from 2009 (with the single exception being Compass Heights in 2002).

Most recently this year we had 2: Midtown Modern and Pasir Ris 8.

Back then I wrote a comprehensive article then to compare the many different Integrated Projects across different areas of Singapore.

But Canninghill Piers is not just ‘another’ Integrated Project.

Below table summarises the various Integrated Projects in Singapore.

As we can observe from the data, the integrated projects located outside central regions only have residential and retail components.

On the other hand, only the Central Area integrated projects have hotel components.

Which is a reasonable expectation… as the places within the central area contains many tourist attractions.

You will also realise that Canninghill Piers will be the ONLY Integrated Project in Singapore with both a Serviced Apartment and Hotel component.

These are elements which support strong rental rates in the project.

(Information Tidbit: The Robertson Quay area has consistently been in high rental demand, with the average number of transactions yearly consistently more than 2,000. See below data)

Therefore rental demand in this area should not be of much question.

What about rental rates then?

Let’s look at the existing data from recent other recent Integrated Projects in the Central Area.

Bugis: Duo & South Beach Residences

We can observe that Duo and South Beach Residences‘ average rental psf are much higher than mixed projects City Gate and Concourse Skyline.

Over at Tanjong Pagar where Wallich is located…

We see more of the same premium commanded by the Integrated Development.

The actual rents may surprise you further.

At South Beach Residences, the 2-bedroom units rent for an average of $8,500 per month.

At Wallich Residences, the 1-bedroom has an average rent of $6,200 and 2-bedrooms at $8,400.

Why is that so? Well, besides for the convenience of being an integrated project…

Here’s another secret: Having multiple components in the project (like Serviced Apartments &/or Hotel), means that as a homeowner of a residential unit, you are not in the project alone.

Together with you there are large corporations that also have skin in the game.

With business operations running in the various different components, these large firms have the same goals as you…

And in fact, have way higher costs than you!

More so than us, they want the project to be a success for a long time even after completion.

Not a case of – Development Sold? Goodbye! As is the norm for regular residential projects.

This dynamic therefore leads to the project being better maintained and staying in prominence for years to come.

Consequently, it also attracts a pool of tenants who are willing to pay a rental premium as well for such projects.

Likewise, I believe it is fair to expect Canninghill Piers to be leading the future rents among nearby properties.

Your partners as an owner there?

Commercial Podium: Capitaland

Serviced Apartment: Somerset Serviced Residence (The Ascott Limited, a member of Capitaland)

Hotel: Moxy by Marriott International.

By the same token, such projects also tend to be priced higher than their non-integrated counterparts.

Example in point, Wallich Residences which had a premium over the nearby other projects.

(Information Tidbit: Interestingly, you will notice only Wallich had an increase in price over the 2013 – 2021 period, whereas the rest are down trending)

Additionally, the ‘Newer Property’ factor will also have a strong influence on rentals.

Martin Modern, the recently completed new condominium by Guocoland is transacting at an average rent of $6.4psf, a close to 30% premium over the nearby older developments.

When Canninghill Piers achieves its TOP in Dec 2026 (estimated), it will most likely be even higher.

Putting it all together…

The Complete Package at Canninghill Piers

Some have asked me – will Canninghill Piers likely be too expensive: hearsay $3k psf?

Or how can a 99-year leasehold property be selling at this price when you have nearby Freehold at River Valley selling at a similar price point: also brand new, The Avenir?

Well, are we comparing apples to apples?

Here’s the uniqueness of Canninghill Piers in a few points: