With inner-city living becoming increasingly popular, homebuyers and investors will have wider options as more old office buildings are torn down and redeveloped into high-rise residential towers.
The 43-storey, 312-unit The Clift developed by Far East Organization (FEO) is expected to be completed next January. Located in the heart of the CBD on McCallum Street, the project is across the road from the Amoy Street Food Centre, as well as just a short walk from the Tanjong Pagar MRT station.
The Clift is the second of three inner-city residential projects by FEO, the first being the 646-unit Icon on Enggor Street, which was launched in 2003 following the SARS outbreak and completed three years ago. FEO subsequently soft-launched the 99-year leasehold The Clift in July 2006, and units were initially sold at $1,019 to $1,196 psf.
Since April this year, prices of apartments at The Clift have crossed the $1,700 psf mark. The latest asking price for a 505 sq ft one bedroom unit there ranges from $1,900 to $2,000 psf, while two-bedroom units are from $1,750 to $1,800 psf. “There is demand, as the unit prices at The Clift on a per square foot basis are considerably less expensive than at other newer launches in prime District 1,” says PropNex marketing agent Elston Ng, who specialises in The Clift.
For instance, the latest asking prices of the recently completed 168-unit Lumiere development at Mistri Road range from $1,800 to $2,100 psf for units on the lower floors. The 45-storey residential tower is located just off Shenton Way. Boutique developer BS Capital is looking to launch the units above the 37th floor at prices above $2,500 psf.
Meanwhile, FEO’s latest launch in the Tanjong Pagar area is the 280-unit The Altez, located just a block away from Icon. The 62-storey development was launched for sale at the start of the year and as at end-July, 211 units had been snapped up at a median price of $2,600 psf.
At The Clift, 240 of 252 units launched have been sold as at end-July. According to caveats lodged with URA Realis, from Aug 3 to 10, four units there changed hands in sub-sales at prices ranging from $1,793 to $1,848 psf.
A 527 sq ft one-bedroom apartment on the 13th floor changed hands twice in the sub-sale market. On Aug 6, the unit was sold for $974,950 (or $1,848 psf), representing a 22% gain for the seller, who had bought the unit for $798,000 ($1,513 psf) in September 2009. The first owner had purchased the unit for $564,482 ($1,070 psf) from the developer in August 2006.
Meanwhile, another similar-sized unit was sold for the third time. The 20th floor apartment went for $956,388, or $1,813 psf. This was a 30% capital appreciation in just over 12 months for the seller, who had bought it for $738,000 (or $1,399 psf) in May 2009. The first owner had paid $619,053 (or $1,174 psf), having purchased the unit from the developer in August 2006.
Another seller reaped a significant 59% capital gain from the sale of his 12th floor, 527 sq ft one-bedroom unit. He sold it for $948,600 ($1,799 psf) recently, having purchased it four years ago for $596,850 ($1,132 psf) from the developer. A fourth unit at The Clift that changed hands recently was a 495 sq ft unit on the 11th floor that went for $888,000 ($1,793 psf).
Property agents estimate investors can expect a rental yield of 4% to 5% per annum, given the proximity of The Clift to the Tanjong Pagar MRT station and amenities nearby.
Source : The Edge – 30 Aug 2010