Flurry of activity as One-North Residences nears TOP

The 427-unit One-North Residences, jointly developed by UOL Group, privately held sister company Kheng
Leong and construction group, Low Kheng Huat, will be getting its temporary occupation permit (TOP) in the coming months.

Typical of most projects that are close to completion, transactions here have spiked up.The 99-year leasehold project was launched in March 2007, when the market was still red hot. As the first residential project to be launched within One-North, a master planned development with work- live-play components located near Buona Vista, it naturally set a new price benchmark for the area. Two years ago, units were sold at an average price of $900 psf, with a number of units crossing the $1,000 psf mark, hitting a high of $1,238 psf. As at Dec 31, 2008, UOL reported that 99.3% of the units had been snapped up.

According to caveats lodged with URA Realis, three units ranging from 980 to 1,109 sq ft changed hands in the subsale market at $800,000 to $950,000. One owner of a 14th floor unit sold his 1,001 sq ft apartment for $860,256 or $859 psf in March. He had purchased the unit from the developer in December last year for $780,780 ($780 psf), hence making a handsome 10% gain in just a few months.

A seventh floor, 980 sq ft unit changed hands in the subsale market for $800,000 or $817 psf, which was 17.4% below the $969,052 ($989 psf) paid by the seller in April 2007. The third deal, a 1,001 sq ft ninth floor unit, changed hands in a subsale at $950,000 or $857 psf, slightly above the original purchase price of the seller of $915,098 or $825 psf.

Meanwhile, three neighbouring apartments on the fourth floor of the second block were put up for auction sale by Knight Frank on behalf of an owner in late February. Based on caveats lodged for the units, the owner had purchased all three studio apartments, from 570 to 614 sq ft, at $647,235 to $675,830. The purchase prices translate to an average of $1,055 to $1,159 psf. The opening prices for the three units at the auction were from $580,000 to $620,000. According to market sources, buyers were looking at prices closer to the $500,000 to $550,000 price range.

Rather than selling, the owner can lease the apartments when the project is completed, says Mary Sai, director of auction at Knight Frank. The market rent for studio apartments in the area is hovering around $2,500 a month, and based on the purchase price, rental yield works out to around 4.4% to 4.5%, she says. Given the location, which is within walking distance of two MRT stations — One-North and Buona Vista — potential tenants are those working in One-North, Science Parks, National University Hospital and the National University of Singapore, she says.

Source : The Edge – 13 Apr 2009

Join The Discussion

Compare listings