Sales of The Metropolitan units surpass $1,000 psf

Since the completion of The Metropolitan last June, prices of the 382-unit condominium located along Alexandra View have increasingly crossed the $1,000 psf level, even surpassing the peak in 2007. Last September, a historical high of $1,332 psf was reached when a 732 sq ft unit on the 24th floor was sold for $975,000.

Prior to its completion, prices there had largely hovered below $1,000 psf since its launch in 2006 by CapitaLand and Lippo Group. Even during the property boom in 2007, with prices ranging from $638 to $1,330 psf, there was no strong support at the $1,000 psf level. Since October, however, all units were sold for more than $1,000 psf, according to caveats lodged with URA Realis.

The surge in prices could have been sparked by the launch of Wing Tai’s 373- unit Ascentia Sky last July. Prices of the upcoming development, located next to The Metropolitan, have averaged $1,250 psf since its launch, according to caveats lodged. A high of $1,459 psf was reached last August, when a 957 sq ft unit was sold for $1.39 million.

The buoyant demand for homes in the Alexandra area comes as prices of homes in the city area rise to stratospheric levels. On Nov 30, a 1,033 sq ft unit on the 25th floor of The Sail @ Marina Bay was sold for $3 million, or close to $3,000 psf. Over at Tanjong Pagar, following the recent completion of the Pinnacle @ Duxton, the first 50-storey HDB project, prices of projects in the vicinity, like The Beacon and Icon, have been rising. The price increases put the spotlight on more affordable options in the city fringe area like The Metropolitan — located next to Redhill MRT Station — offers good accessibility to the city and is near good schools like Crescent Girls School and New York University’s Tisch School of the Arts Asia.

From Nov 26 to Dec 18, five units changed hands at $1,095 to $1,190 psf. For instance, a 1,743 sq ft unit on the 32nd floor was sold for $2 million, or $1,147 psf — the third time it has changed hands. The unit was sold for $1.85 million, or $1,061 psf, last July. Previously, it went for $1.35 million, or $780 psf, during the launch in 2006, a 36% gain for the original owner, who held on to the unit for three years.

Another unit on the 42nd floor was sold for $1.22 million, or $1,190 psf. The original owner had purchased it for $919,800, or $890 psf, in 2007, a 33% gain for a two-year wait.

Meanwhile, another seller made a 41% gain from the sale of a unit on the 34th floor for $2.02 million, or $1,160 psf. In 2007, the 1,743 sq ft unit had cost $1.43 million.

Also in the Alexandra area is the 775-unit The Anchorage. After a quiet 1H2009, which saw only nine transactions ranging from $711 to $1,032 psf, sales picked up strongly. From July to Dec 18, there were 22 transactions ranging from $852 to $1,097 psf. With proximity to the city and more affordable pricing, homes on the city fringe are gaining strong interest and lifting prices.

Source : The Edge – 11 Jan 2010

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