|BY GWYNETH YEO| THE EDGE SINGAPORE | MAY 13,2013
A 646 sq ft unit apartment at the 302- unit Martin Place Residences was sold for $1.55 million, or $2,400 psf last month. The price is the second highest achieved at the development, which was completed two years ago. The all time-high deal of $2,415 psf for an even smaller one-bedroom unit of 592 sq ft was recorded in December 2011.
There are only 13 one-bedroom units in Martin Place Residences, according to Benny Lim, a property agent with OrangeTee, who is familiar with the project. Larger units at the development have slightly lower asking prices in the range of $2,200 to $2,300 psf, and these tend to attract foreign buyers, particularly Indonesians and Malaysians. However, the one-bedroom units are more popular with local buyers, given their lower absolute prices, he adds. “One-bedroom units of such size tend to attract mainly young couples and newly-weds buying their first home.”
The cluster of transactions in the prime districts over the week of April 19 to 26 were generally in the range of $2,400 to $2,500 psf. That seems to be the price range that is seeing support from buyers.
Behind Paragon Shopping Centre on Bideford Road is Richmond Park. The 159-unit freehold condominium tower was completed 17 years ago by the former DBS Land (now part of CapitaLand). Last month, a 1,259 sq ft unit at the development changed hands for $3.1 million, or $2,459 psf. Prior to that, a 1,292 sq ft unit on the 17th floor was sold for $3.488 million, or $2,700 psf in October.
At the 68-unit Grange Infinite, units in the resale market changed hands in March and April at prices ranging from $2,200 to $2,410 psf. In fact, the most recent deal was for a 15th floor 2,573 sqft unit that was sold for $6.2 million, or $2,410 psf last month. The project was developed by Chip Eng Seng in a joint venture with Chicago-based hedge fund, Citadel Investment Group, and was completed in 2011.
The joint-venture partners sold 15 units in the project in the third and fourth quarter of 2007 at the peak of the last property boom, when prices averaged $3,200 psf. In March 2008, ARA Asia Dragon Fund purchased the remaining 53 units for $388 million, or $2,650 psf. The fund began to sell units in sub-sales in 2009-10 at prices ranging from $2,850 to $3,400 psf. Prices of units sold in 2011 ranged from $2,750 to $3,201 psf.
Following the imposition of the Additional Buyer’s Stamp Duty (ABSD) of 10% on foreigners in December 2011, transaction volume in the luxury segment, which had been dominated by foreign purchases, dropped. Units sold in 2012 were therefore done at prices of $2,469 to $2,500 psf. Following the latest round of cooling measures with higher ABSD for all buyers (except first timers) and reduced borrowing limit for those who are buying their second and subsequent homes, units that were previously priced at around $2,500 psf have now been adjusted downwards to around $2,300 psf, notes a property agent who declined to be named. The majority of the interested buyers are said to be Indonesians, who are purchasing homes either as an investment property or for their own use.
Rental demand in Grange Infinite has been steady, with asking rents of four-bedroom units of the project ranging from $14,000 to $16,000 per month. Meanwhile, three-bedroom apartments are being rented out for $11,000 to $12,000 per month.
Across the road from Grange Infinite is Paterson Suites, the freehold, 102-unit luxury condo development by Bukit Sembawang Estates that was also completed in 2011. In April 2012, the developer offered its remaining 20 units for sale at an average of $2,800 psf for those who opt for a 5% rental guarantee for the next four years. Alternatively, buyers can choose a straight 10% price discount without the rental guarantee, which translates into an average purchase price of $2,500 psf. Most buyers went for the straight discount, and 19 units were sold.
Most recently, a 2,196 sq ft unit on the fifth floor of one of the towers at Paterson Suites was sold in the resale market for $5.7 million, or $2,596 psf. With the project fully sold, construction is underway at the second phase called Paterson Collection. The 85-unit freehold condo is spread across two 19-storey towers containing a mix of two- and three-bedroom apartments as well as penthouses. The developer is not planning to launch the project anytime soon, given the cautious sentiment in the luxury condo segment.
