Homes in suburbs such as Simei and Buangkok are enjoying a resurgence of interest owing to their affordability and accessibility as new malls and MRT lines are built. The appreciation in the prices of such property is prompting some homeowners to cash out at a profit.
In Buangkok, prices at the 99-year leasehold Hougang Green recently hit a peak of $837 psf in February when a 764 sq ft unit on the 10th floor was sold for $640,000. This comes after the launch of a new executive condominium development a few streets away — the 573-unit Esparina Residences was the first executive condo project to be launched after a five-year hiatus. Executive condos are available to families earning up to $10,000 a month.
Across the road from Esparina Residences is The Quartz, a 99-year leasehold condo with 625 units. Completed in 2009, it is located along Compassvale Bow Road, also just across the road from the Buangkok MRT Station. As such, prices hit $903 psf recently when a 1,162 sq ft unit on the eighth floor changed hands for $1.05 million on March 14. During the peak in November 2010, prices hit a high of $948 psf when a 1,044 sq ft unit on the 19th floor was sold for $990,000.
Meanwhile, older developments in the area such as the 13-year-old Hougang Green are also enjoying a rise in prices. The 90-unit condo developed by Hiap Hoe is located next to Hougang Green Shopping Mall, where there is a supermarket and a number of eateries. The condo is also a 10-minute walk to the Buangkok MRT Station, which is one station away from the Sengkang MRT Station, where the Compass Point shopping mall is located.
In the week of March 15 to 22, three units at Hougang Green changed hands at prices ranging from $646 to $809 psf. A 764 sq ft unit on the third floor was sold for $618,000 ($809 psf), representing a 36% gain for the seller, who purchased the unit for $455,000 ($595 psf) in 2008. Before this, the unit was sold for $498,000 ($652 psf) during the launch in 1997.
On the fourth floor, a 1,130 sq ft unit was sold for $730,000 ($646 psf). The unit was purchased for $555,000 ($491 psf) during the launch in 1998, representing a 32% gain for the seller.
On the eighth floor, a 1,141 sq ft unit was sold for $740,000 ($649 psf), representing a 27% gain for the seller, who purchased the unit for $580,000 ($508 psf) last October. Before that, the unit was sold for $690,800 ($605 psf) during the launch in 1996. In the east, in the neighbourhood of Simei, prices at Changi Rise Condominium hit a high of $789 psf in February when a 1,496 sq ft four-bedroom unit was sold for $1.18 million.
Heng Song Heng, an agent with DTZ, says the main reason for the rise in prices is due to a steeper price increase at the 648-unit Savannah Condo Park, which is adjacent to Changi Rise.
The latest transaction at the eight-year-old, 648-unit Savannah was for a 1,205 sq ft unit on the second floor for $910,000 ($755 psf). Prices in the condo hit a high of $812 psf in January when a 1,453 sq ft unit on the eighth floor was sold for $1.18 million.
There were four transactions at Changi Rise, with prices ranging from $636 to $768 psf for the period of March 15 to 22, according to caveats lodged with URA Realis. A 1,657 sq ft four-bedroom unit on the first floor was sold for $1.055 million ($636 psf) on March 21. That’s a 48% gain for the seller, who purchased the unit for $712,000 ($430 psf) in 2007. Before this, the unit was bought for $660,000 ($398 psf) from the developer in 2004.
On the second floor, a 1,259 sq ft three-bedroom unit was sold for $940,001 ($746 psf) on March 18, representing a 54% gain for the previous owner, who bought the unit for $610,200 ($485 psf) from the developer in 2002.
On the sixth floor, another three-bedroom unit was sold for $925,000 ($734 psf) on March 18, representing a 25% premium over the transacted price of $738,000 ($586 psf) in 2008. Before this, the unit was sold for $635,400 ($505 psf) in 2002.
A neighbouring unit on the same floor, with a floor area of 1,496 sq ft, was sold for $1.15 million ($768 psf) on March 16, representing a premium of 48% over the previous transacted price of $778,100 ($520 psf) in 2001.
Source : Channel NewsAsia – 11 Apr 2011