Suburban condominium developments with good accessibility and in close proximity to popular schools and amenities like public transport, shopping and eateries continue to stay at the top of homebuyers’ wish lists, despite a recent runup in average prices.
Newly completed projects continue to command a premium. For instance, at the recently completed 659-unit The Parc Condominium — a massive development with seven 24-storey blocks — four units changed hands on the resale market at prices between $965 and $1,085 psf in the period of July 20 to 27. The highest psf price transacted to date at The Parc was achieved in April, when a 667 sq ft unit on the 24th floor went for $800,400 ($1,199 psf).
Jointly developed by Chip Eng Seng and the real estate equity fund of Lehman Brothers, the project was launched pretty much at the peak of the previous property boom in September 2007, with all units sold within a fortnight. The average selling price was $880 psf and the highest, $1,040 psf.
Since it obtained its temporary occupation permit (TOP) early last month, eight units at The Parc have changed hands at $860 to $1,085 psf, which is back to the peak levels, if not higher.
“Prices have gone up a fair bit since TOP,” agrees Kia Ng, an ERA property agent who specialises in The Parc. “Sellers are now asking for $1,050 to $1,100 psf, instead of $1,000 psf previously.” According to Ng, the asking prices are still “reasonable”, given that the project is of freehold tenure and in a good location. Even Clementiwoods, a 99-year leasehold, 240-unit condo along West Coast Road, which also obtained its TOP this year, commanded prices of $1,000 psf recently. When it was launched in January 2007, units were sold at an average price of just above $525 psf.
Located in District 5 at West Coast Walk, The Parc is only a 10-minute walk from Clementi MRT station. Ng says “there is still room for price appreciation”, given The Parc’s accessibility to amenities, such as West Coast Drive Market and Clementi Town Centre as well as public transportation. Meanwhile, The Parc is also a 15-minute drive to the city and Orchard via the Ayer Rajah Expressway and Holland Road.
According to Ng, the most popular units at The Parc are the three-bedroom apartments, taken up by both owner-occupiers and landlords. The monthly asking rental rate for a typical two-bedroom unit ranges from $3,000 to $3,500, while a three-bedroom unit could fetch up to $4,500. Meanwhile, a three plus study apartment could be rented out for between $4,500 and $4,800 a month. For four bedrooms and more space, tenants could be looking at paying $5,000 to $6,000.
“Some parents are purchasing units at The Parc because the condo is [only one km from] the reputable Nan Hua Secondary School, while Tanglin Secondary School is also a short drive from there,” says Ng.
Based on caveats lodged with URA Realis for July 20 to 27, a three-bedroom, fourth floor unit at The Parc was sold for $1.17 million ($965 psf), representing a 9% gain for the seller, who bought it firsthand from the developer for $1.07 million ($883 psf) when it was launched in September 2007. In the same block, a three-bedroom unit on the 18th floor was transacted at $1.32 million ($1,085 psf). The seller, who had bought the unit for $1.02 million ($835 psf) from the developer, reaped a gain of about 30%.
In another block, a three-bedroom unit on the ninth floor went for $1.32 million ($1,022 psf), representing a 10% gain for the seller, who bought the unit for $1.2 million ($930 psf) from the developer in September 2007.
The fourth transaction was for a 1,464 sq ft unit on the 17th floor, which changed hands for $1.43 million ($977 psf). The seller, who purchased the unit at launch from the developer for $1.28 million ($875 psf), made a 12% gain.
Meanwhile, OrangeTee associate manager Sherine Chua, who also specialises in The Parc, says the condo is also sought-after for its unblocked views from high-floor units, as it towers above the other residential developments in the vicinity.
Chua notes that the gap between prices at new suburban condos like The Parc and those of projects on the city fringes is narrowing. While the latest transacted prices for units at The Parc may be hovering around $1,000 psf, the asking prices for units above the 15th level are at the $1,200 psf mark, she says.
Source : The Edge – 16 Aug 2010