The Tate residences unit sold for close to $3,000 psf

It’s starting to look like a self-fulfilling prophecy, as far as prices in the high-end residential segment in Singapore are concerned. Anecdotally, there’s evidence that some cash-rich speculators are also back in the market, according to some property consultants.

Notable secondary market transactions in the week of Jan 8 to 15 at The Tate Residences, Ardmore II and Scotts Square have seen a spike in prices.

One was the sale of a 2,207 sq ft, 27th storey apartment at The Tate Residences on Claymore Road, developed by Hong Leong Holdings. The 85- unit luxury condo has two 36-storey towers, and is very close to completion.

The unit changed hands for $6.5 million ($2,946 psf). The seller purchased the apartment when it was launched in September 2006 at $5.046 million ($2,287 psf), and enjoyed a capital appreciation of 29% in about three years. This price is pretty close to the levels seen in the heady days of August to September 2007, when a 3,229 sq ft unit on the 27th floor changed hands in a sub-sale for $11.3 million or $3,500 psf.

There’s been a lot of excitement along Claymore Road, particularly as the rumour mill is once again rife with speculation of The Claymore’s “en bloc potential”. Located next to The Tate Residences, the 146-unit luxury freehold condominium was completed in 1985 and is still considered a landmark luxury condo in that location. As early as 2007, owners of The Claymore had flirted with the possibility of an en-bloc sale, going as far as appointing CB Richard Ellis and DTZ as joint marketing agents. According to sources, it did not achieve the 80% consensus needed for a collective sale to take place.

“The Claymore definitely has en bloc potential,” says a property consultant who declined to be named. “But, the owners are reluctant to sell, because when looking at replacement units, it’s hard to find something comparable in the same location.” Unit sizes at The Claymore are large. The smallest are three-bedroom apartments 2,680 sq ft in size. Four-bedroom apartments measure 3,348 sq ft while the penthouses are 4,919 sq ft each.

The most recent transaction at The Claymore was in November last year, when a three-bedroom, 13th floor apartment changed hands for $8.38 million ($2,503 psf). The previous owner had purchased the property in March 1996 for $5.2 million ($1,553 psf), and enjoyed a 61% capital appreciation over the last 14 years.

The last time an apartment at The Claymore crossed the $2,500 psf barrier was during the most recent peak in May 2008, when a three-bedroom apartment on the 17th floor was sold for $6.8 million ($2,537 psf).

Further up Claymore Road is the prestigious Ardmore Park enclave, where the 303-unit Ardmore Park developed by Wheelock Properties epitomised the height of luxury in the mid-1990s. Even today, it’s the yardstick for luxury property prices. Riding on its success, the developer launched the 118-unit Ardmore II in September 2006 and, to date, the project is 100% sold and close to completion. After it was launched, prices ranged from $2,087 psf to a high of $3,208 psf in May 2007 at the peak of the market. At that time, Ardmore Park apartments were changing hands in the resale market at $1,837 to $2,773 psf.

With anticipation of the private preview of Ardmore III mounting, at prices said to be $3,500 psf or higher, an apartment on the 24th floor of Ardmore II was sold for $5.566 million ($2,751 psf) in a sub-sale. The seller bought the unit when it was launched in October 2006 for $4.833 million ($2,389 psf). The last time an apartment at Ardmore II breached the $2,700 psf mark was February 2008, when an 11th floor apartment sold for $5.675 million ($2,804 psf).

Meanwhile, at the 338-unit Scotts Square located on Scotts Road, also by Wheelock Properties, an apartment on the 25th floor was sold for $3.35 million ($3,537 psf), according to a caveat lodged last month. The seller purchased the 947 sq ft apartment in August 2007, when the project was launched, for $3.735 million ($3,944 psf). At the peak of the market, a 1,249 sq ft apartment on the 28th floor had changed hands in a sub-sale at $5.558 million or a high of $4,451 psf.

The 45-storey tower is expected to be completed in 2011, and will house luxury retail and commercial space on the first five levels.

Source : The Edge – 8 Feb 2010

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