Unit at The Bayshore hits $838 psf, Costa del Sol at $937 psf

After all these years, condominiums along Bayshore Road off the East Coast Park Expressway (ECP) in District 16 continue to be sought after by homebuyers and investors.

“There is robust demand for properties in this area, the biggest draw being their proximity to East Coast beach and park,” says Huttons senior marketing associate Mervin Tan, who specialises in marketing the properties in the neighbourhood.

The 1,038-unit The Bayshore, for instance, is just a 10-minute walk via an underpass to the East Coast Park and beach, offering a wide variety of eateries, recreational activity and entertainment. In October, there were four transactions at prices ranging from $796 to $929 psf, according to caveats lodged with URA.

Early last month, a 1,012 sq ft two-bedroom at The Bayshore was sold for $940,000 ($929 psf). Most recently, a 926 sq ft two-bedroom unit on the seventh floor was sold for $750,000 ($810 psf). In another block, a 1,432 sq ft unit was sold for $1.2 million ($838 psf), representing a capital gain of about 22% for the seller, who had bought the unit for $983,000 ($687 psf) in the resale market two years ago. The fourth unit that changed hands was a 1,238 sq ft three-bedroom 16th floor apartment that went for $985,000 ($796 psf), slightly lower than the $1.03 million ($832 psf) paid by the original owner in November 1996.

However, average prices today have yet to surpass the record high of $1,097 psf achieved in the previous boom in February 1997, just before the Asian financial crisis, when a 1,012 sq ft unit on the 24th floor of one of the blocks was sold for $1.1 million.

Developed by Far East Organization, The Bayshore is a 99-year leasehold condominium completed in 1997. The project contains four 30-storey towers, with a mix of two-, three- and four-bedroom apartments as well as penthouses measuring 926 to 2,067 sq ft.

Prices of units at The Bayshore are more affordable than those at two other neighbouring 99-year leasehold condos: the 1,093-unit Bayshore Park, also by Far East Organization and completed in 1986; and the 906-unit Costa Del Sol, developed by Cheung Kong (Holdings) and completed in 2003.

Since the completion of Costa Del Sol, prices for some units at The Bayshore have fallen as much as 25%, says Tan. The reason is that Costa Del Sol, with seven 30-storey towers rising directly in front of The Bayshore, has completely blocked off the sea views of higher- floor units at The Bayshore.

While the asking prices for a unit at The Bayshore range from $739 to $865 psf, says Tan, those at Costa Del Sol are from $929 to $1,095 psf. He adds that asking prices are $785 to $961 psf at the 24-year-old Bayshore Park, which has four 32-storey towers and three low-rise, 10-floor blocks. Units in the project range from 624 sq ft studio apartments and 936 sq ft two bedroom units to 3,780 sq ft penthouses.

On Oct 13, a 1,227 sq ft, three-bedroom on the sixth floor at Costa Del Sol was sold for $1.15 million ($937 sq ft), representing a gain of about 20% for the seller, who bought it for $960,000 ($782 psf) in the resale market in June 2007. Four months earlier, the unit was transacted at $792,570 ($646 psf).

Over the period of Oct 8 to 15, two units at Bayshore Park changed hands at $886 psf and $914 psf. One was a 1,292 sq ft three-bedroom unit on the 11th floor that was sold for $1.18 million ($914 psf), representing a 33% gain for the seller, who had bought it for $890,000 ($689 psf) in the resale market in February 1997. The unit had also changed hands in October 1996 for $895,000 ($693 psf).

The second transaction was for a 936 sq ft two-bedroom unit on the 18th floor that was sold for $830,000 ($886 psf). The seller made a 27% gain, as he had purchased the unit for $655,000 ($699 psf) in the resale market in January 1997.

Owing to the proximity of these three developments to the popular East Coast beach and park, they can command higher prices than some of the freehold condos along Upper East Coast Road, notes Tan.

Source : The Edge – 8 Nov 2010

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