Kovan Residences sees prices hit $1,267 psf

The newly completed Kovan Residences saw an increase in transactions from Aug 1 to 8, with three units at the suburban condominium changing hands in that period. Prices achieved were in the range of $1,085 to $1,267 psf.

The fully sold 512-unit Kovan Residences was developed jointly by Centurion Properties, the majority stakeholder, in collaboration with construction group Lian Beng, which held a 19% stake. The 99-year leasehold Kovan Residences is located across the street from Kovan MRT station on the North East Line. Nearby amenities include the Heartland Mall shopping centre, the Chomp Chomp Food Centre, as well as primary schools Paya Lebar Methodist Girls and Xinghua Primary. International schools such as The Australian International School and The French School are also within a short driving distance.

There is a mix of unit sizes within the project, with the smallest being two-bedroom apartments of 883 sq ft, three-bedroom apartments from 1,259 sq ft, four-bedroom units from 1,173 sq ft and penthouses from 2,400 sq ft. At its launch, more than 50 units were sold prices of $2 million to $3 million.

Matthew Chan, associate branch director at Propnex Realty, says Kovan Residences’ convenient location, large units and proximity to schools attract mostly families with children. “It’s also in a landed housing enclave, hence some of the high-floor units enjoy unobstructed views,” says Chan. “Another convenience for residents is NEX mall, which is just one MRT stop away.”

As such, 80% of buyers of units at Kovan Residences are said to be Singaporeans, while the remainder are made up of Indonesians, Malaysians and mainland Chinese. The project attracts mainly owner-occupiers, observes Chan, who brokered the sale of seven units in the development.

The property is also popular among French and Australian expatriates, given the proximity to their respective international schools, adds Chan. According to listings on propertyguru.com.sg, rental rates of three-bedroom units are hitting $4,300 per month, while larger four-bedroom units can command as much as $7,000 a month. Based on current transaction prices and rental rates, gross yields are estimated at an average of 4%, says Chan.

He reckons Kovan Residences’ larger units compared with neighbouring condos offer better value for money for buyers. As the latest condo to be completed in the immediate neighbourhood, Kovan Residences will also likely generate greater interest. The neighbouring condo, Kovan Melody, was completed five years ago.

The 778 unit, 99-year leasehold Kovan Melody was launched back in 2004 at an average of $520 psf. Based on the latest resale transactions captured by URA Realis, units changed hands at record highs for the project, hitting $1,148 psf last month.

Based on the latest transactions recorded in early August for Kovan Residences, a 947 sq ft, sixth-floor, two-bedroom unit changed hands for $1.2 million ($1,267 psf). The seller had purchased the unit in July 2008, when the project was first launched for close to $807,000 ($852 psf). The seller enjoyed a 48.7% capital gain in three years.

Meanwhile, a 1,442 sq ft, three-bedroom plus study unit on the ninth floor was recently sold for $1.62 million ($1,123 psf). The seller had purchased it in May 2009 for $981,000 ($680 psf). Hence, the seller enjoyed a 65% appreciation in two years.

A third unit, an eighth-floor apartment measuring 1,862 sq ft and with four bedrooms, was recently transacted at $2.02 million ($1,085 psf).

Source : The Edge –  29 Aug 2011

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