The Clift hits $2,311 psf

Standing at 43 storeys, the 312-unit The Clift residential tower stands out on the corner of McCallum Street and Telok Ayer Street. It is taller than every other building in its immediate neighbourhood, which comprises mainly conservation shophouses and older office buildings.

Developed by property giant, Far East Organization (FEO), the project was completed in 1Q2011. The ground floor shop units have also opened in recent months, with eateries, a Guardian pharmacy and a restaurant-cum-pub.

Apartment sizes start from 495 sq ft for a onebedroom unit, with the largest being a two-bedroom loft unit of 1,076 sq ft.

There has been a pick-up in transactions since its completion, with a marked increase in sub-sales, especially of 527 sq ft one-bedroom units.

Prices ranged from $1.15 million ($2,180 psf) to $1.22 million ($2,311 psf), based on caveats lodged with URA Realis over the period of June 21 to 28. Three of the transactions were the highest subsale prices achieved at The Clift so far.

The highest was $2,311 psf, or $1.22 million, for a 527 sq ft one-bedroom unit on the 30th floor. The seller had purchased the unit from the developer in July 2007 for just under $1.15 million ($2,180 psf).

A 527 sq ft unit on the 24th floor was sold for $1.15 million ($2,180 psf) and last changed hands in December 2006, when the seller purchased it from the developer for $874,820 ($1,659 psf). The seller realised a capital appreciation of 31.4% over the last five years.

A 506 sq ft one-bedroom unit on the 15th floor sold for a third time recently. It was transacted for $1.1 million ($2,194 psf), according to a caveat lodged on June 22. The previous owner had purchased the unit in September 2008 for $1.15 million (2,269 psf). The original buyer bought it from the developer in August 2006 for only $579,970 ($1,146 psf).

James Gan, senior associate district director at PropNex, attributes the increase in transactions to the attractive entry-level price of $1.2 million for a one-bedroom unit, with attractive rental yields in the range of 3.6% to 4%.

Gan has also seen foreign investors jumping in, including those from China, Indonesia and even the US.

“The high rental yield will allow buyers to pay their mortgage instalments and make some additional income,” he says. “Buyers are also coming in now, as they can choose either to move in or lease the unit out immediately.”

According to rental listings on propertygu, rents at The Clift range between $3,400 for a one-bedroom unit to $8,500 for a two-bedroom loft unit.

While most of the transactions so far have been for one-bedroom units, Gan believes there will be strong interest in the two-bedroom loft units.

“Currently, there is no other project that has brand-new two-bedroom lofts in the Tanjong Pagar area,” he notes. “Icon at Gopeng Street also has two-bedroom loft units but was completed in 2006.”

The 646-unit Icon was also developed by FEO and is widely considered the first innercity residential project to be launched in Singapore. According to FEO, all the one- and two-bedroom units up to the 30th level are fully sold.

After the project was fully completed, the developer recently released all 72 two-bedroom loft units from the 32nd to 42nd levels for sale and lease.

According to a price list, prior to discount, prices of the loft units start from about $3,200 psf for units on the 32nd level. They measure 753 to 1,076 sq ft. FEO sold a 775 sq ft two-bedroom loft unit on the 32nd level in June for $2.12 million ($2,730 psf), setting a new record for the project in terms of average price.

Source : The Edge – 18 Jul 2011

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