There was a spike in interest and transactions at the nine-year-old Compass Heights in mid-July, which property agents attribute to the upcoming launch of Keppel Land’s Sengkang Square condominium called The Luxurie.
Keppel Land had announced last month that it is likely to launch the Sengkang Square condo development by year-end. The developer had purchased the 99-year leasehold, 194,000 sq ft site in March for $286.8 million and is planning to build a 622-unit condo. Property agents are speculating that it is likely to be launched at the end of this month or in September.
The Luxurie is adjacent to Compass Heights and just metres away from the Sengkang MRT station and Compass Point shopping mall. The launch could lead to a revaluation of properties in the vicinity, say property agents. Homebuyers may have snapped up units in Compass Heights in anticipation of future price increases, says Vincent Lim, division director at ERA Realty Network.
Property agents estimate The Luxurie’s selling price to be above $1,000 psf, given its location next to the MRT station. This is because the selling price at Compass Heights, which was completed in 2002, is at an aver- age of $860 psf currently.
Meanwhile, H2O Residences by City Developments Ltd, located in Sengkang West and next to the Layar LRT station, was launched in March, with units currently selling at an average of $950 psf. The 521-unit development is three LRT stops from the Sengkang MRT station, compared with The Luxurie, which is just across the road from it. Therefore, property agents such as ERA’s Lim think The Luxurie should fetch a higher selling price, in the region of $1,000 psf.
The 536-unit Compass Heights, developed by Frasers Centrepoint Homes and built a decade ago, was considered the first condo in Singapore to be part of an integrated development linked to a shopping mall (Compass Point) and an MRT station (Sengkang MRT station).
According to URA Realis, from July 15 to 22, four units above 1,000 sq ft at Compass Heights were transacted at prices ranging from $763 to $886 psf, or at a quantum of $935,000 to $1.09 million each. About 60% of buyers at the 99-year leasehold condo have HDB addresses, an indication of strong upgrader demand.
On July 18, a three-bedroom, 1,324 sq ft unit on the fourth floor was sold for $1.01 million ($763 psf). This is the second time the unit has changed hands in the secondary market. The last time was three years ago, at $700,000 ($529 psf). The original buyer purchased the unit in March 2001 for just $553,350 ($418 psf).
Another unit, a 1,055 sq ft, 13th-floor apartment, changed hands for $935,000 ($886 psf). The seller had purchased the two-bedroom unit in April 2001 for $514,250 ($487 psf). This represents a price appreciation of 82% over the last 10 years.
A 1,292 sq ft unit on the 10th floor was sold for $1.05 million ($813 psf). The seller had purchased the three-bedroom unit in March 2001 for $638,350 ($494 psf), hence, seeing a capital appreciation of 64.5%.
And on July 21, another 1,292 sq ft unit on the seventh floor was sold for $1.09 million ($840 psf). It had changed hands in May 2009 for $700,000 ($542 psf). The original owner had purchased the unit in March 2001 for $624,000 ($487 psf) and sold it in July 2004 for $580,000 ($449 psf).
Compass Heights is popular with HDB upgraders from the Sengkang area, as well as young couples who have been priced out of the HDB market, says ERA’s Lim. “Many HDB flats in Sengkang were purchased in 2005, when prices were relatively low. As such, the HDB upgraders would have enjoyed a hefty price appreciation over the last few years. And since they are already familiar with Sengkang, they want to continue staying in the area.”
Compass Heights also has a full range of facilities, comprising a large swimming pool, tennis court, fitness station, gym and barbecue pits. Besides its location next to the Sengkang MRT station and Compass Point, the condo is also near well-known educational institutions such as Nan Chiau Primary School and Nan Chiau High School, which makes it popular with young families, says Lim.
Source : The Edge – 15 Aug 2011