Unit at Seletar Springs fetches $652 psf

The surge in resale prices and number of transactions at Seletar Springs Condominium in December reflects the rising popularity of the quiet neighbourhood. Located on Gerald Drive, off Yio Chu Kang Road, the condo is in the vicinity of landed property, with Summer Villas strata terraced development across the road and Mugliston Park Estate next door.

Developed by MCL Land, Seletar Springs is a 362-unit, 99-year leasehold condo built 10 years ago. Since August, units there have been hitting the $600 to $700 psf price band. The highest psf price achieved was $771 in September, when a 980 sq ft unit was sold for $755,000.

The mixed-residential development is made up of six four-storey blocks containing mainly two- and three-bedroom apartments sized 947 to 1,657 sq ft. There are also 980 sq ft studio units and maisonettes measuring 1,399 to 2,200 sq ft. When it was first launched in 1998, prices were at $300 to $400 psf, according to caveats lodged with URA.

The main appeal of the property is the resort lifestyle and tranquility of the neighbourhood compared with high-rise condos in the city, says Daphne Phua of ERA Realty Network, who specialises in Seletar Springs. “Buyers are mainly locals purchasing for their own stay, and the majority of recent buyers are those in their 30s and 40s, with young families.”

However, she observes, there have been a few investors and there is a small but growing expatriate community residing in the estate. Another attraction could be its pricing relative to new launches. For instance, Far East Organization’s 319-unit, low-rise The Greenwich sold out its first phase of 174 units in August at an average price of $1,025 psf. The development also contains a 45,000 sq ft retail podium called Greenwich Village.

“Seletar Springs is considered a value buy, with average asking prices in the $700 psf range,” says Bruce Lee, senior group district partner at SLP Empire Real Estate. “As we expect more incoming expats working at Seletar Aerospace Park to seek units within this vicinity, we believe the rental in this area would also be trending upwards.”

In the week of Dec 14 to 21, Seletar Springs saw three transactions at $603 to $652 psf, according to caveats lodged with URA Realis. On Dec 17, a 1,658 sq ft unit on the first floor was sold for $1.08 million ($652 psf). This represents a whopping 86.3% capital gain for the seller, who bought the unit for $580,000 ($350 psf) from the developer during its launch some 12 years ago.

On the same floor of the block, the owner of a 1,335 sq ft unit made a 72.8% profit when he sold the property for $805,000 ($603 psf). He purchased it from the developer for $466,000 ($349 psf) in late 1998. In another block, a third-floor, 1,302 sq ft unit went for $808,000 ($620 psf), representing a 44.5% gain for the owner, who bought the unit at $559,000 ($429 psf) a year before completion.

The latest asking prices at Seletar Springs range from $765 psf for a two-bedroom unit to $730 psf for a three-bedroom unit, says Phua. Just this month, Phua sealed a deal for a 1,335 sq ft, three-bedroom apartment for $930,000 ($696 psf). The indicative asking prices for a 1,561 sq ft maisonette range from $1.05 million ($672 psf) to $1.3 million ($629 psf) for a bigger, 2,066 sq ft unit.

For now, owners at Seletar Springs could fetch monthly rental of between $3,000 and $3,500 for a two-bedroom unit and between $3,600 and $4,100 for three bedrooms. Based on current selling price, rental yield works out to around 4.5%.

Source : The Edge – 10 Jan 2011

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