Buyer activity returns to District 15 and Scotts Square in District 9
By Michael Lim,
Tay Hock Meng
District 15 in the East Coast is considered the most prestigious residential neighbourhood after Orchard Road’s prime Districts 9, 10 and 11 as well as Sentosa Cove and Marina Bay. It appears that the East Coast has been on the radar of value hunters with at least a dozen resale transactions in District 15 over the week of Sept 13 to 20, based on caveats lodged with URA Realis. Eight of these transactions were centred around the Tanjong Rhu and Meyer Road enclave, and the rest in the Siglap-Marine Parade area.
“The Tanjong Rhu/Amber/Meyer area remains a top draw for homebuyers as it is considered the prime private residential area within District 15,” says Samuel Eyo, managing director of Singapore Christie’s Homes. “The neighbourhood is just a 10-minute drive to the CBD and is also near East Coast Park, with some units offering ‘million-dollar sea views’.”
However, if there are competitively priced options within these three enclaves, buyers will choose the Amber/Meyer Road neighbourhood, which is viewed as more prestigious, and for the simple reason that most of the private condominiums there tend to be freehold, whereas Tanjong Rhu has mainly 99-year leasehold condos, adds Eyo.
A 904 sq ft unit on the fifth floor of Meyer Residence was sold for $1.49 million ($1,646 psf). The seller bought the unit in March 2006 for $700,000 ($774 psf), realising a profit of 113% after owning the unit for nine years. The 68-unit freehold condo was developed by Sing Holdings and completed in 2009.
It was also good news for the owner of a unit at the freehold The Atria at Meyer whore cognised a capital gain of 69% on the sale of his 2,949 sq ft four-bedroom unit on the 24th floor for $3.55 million ($1,204 psf). The seller purchased the unit for $2.1 million ($712 psf) in 2003. The 157-unit condo was developed by Hong Leong Holdings and completed in 1996.
However, it was a contrasting fortune for the owner of a unit at The Seafront on Meyer. The seller of the 1,604 sq ft three-bedroom unit on the fourth floor booked a 8.7% loss when it was sold for $2.1 million ($1,309 psf) recently. The unit was purchased eight years ago when the project was first launched, and at the time, it fetched $2.3 million ($1,433 psf). Developed by CapitaLand, the 327-unit freehold condo was completed in 2011.
There has also been a revival of interest in the Marine Parade-Siglap area at the other end of District 15. Since early 2015, a total of 29 units changed hands at three neighbouring condo projects, namely Fernwood Towers, Mandarin Gardens and Neptune Court.
The 1,000-unit, 99-year leasehold Mandarin Gardens was completed in 1986. Many of the high-floor units at the condo boast unblocked sea views. It is one of the most actively traded condos in the neighbourhood and contributed 16 of the 29 transactions this year.
A 1,528 sq ft unit on the 12th floor of one of the
blocks at Mandarin Gardens was sold for $1.48 million
Next door is the 752-unit, 99-year leasehold Neptune Court, a former HUDC estate that was completed in 1975 but has yet to be privatised. Meanwhile, the 214-unit freehold Fernwood Towers is located across the road from Mandarin Gardens and was completed in 1994.
According to Eyo, one of the reasons these three condos continue to be popular with buyers despite their age is that the units are priced under $1,000 psf. They are also spacious, and the grounds are well-maintained, he adds.
Based on recent caveats lodged with URA Realis, a 1,528 sq ft unit on the 12th floor of one of the blocks at Mandarin Gardens was sold for $1.48 million ($968 psf). The unit did not have any prior transactions as the seller could have bought it before January 1995. URA Realis only provides caveats lodged from January 1995 onwards.
The other transaction at Mandarin Gardens was for a 1,572 sq ft three-bedroom unit on the19th floor of a neighbouring block that fetched $1.56 million ($993 psf). The seller realised a profit of 60%, having purchased the unit for $975,000 ($620 psf) in 2009.
Being close to Changi Business Park and Global Indian International School also plays a part in generating rental demand in the neighbourhood, says Andrew Tang, senior marketing director at ERA Realty Network. At Mandarin Gardens, three-bedroom units on the higher floors with sea views generally command rental rates of $4,500 a month, while those on the lower floors are likely to fetch about $3,900, he says.
List of projects in District 15 with the highest sales volume
Project Name | Tenure | Completion | Avg Price (S$ psf) | Sales Volume | Avg Rent (S$ psf pm) | Rental Volume | Rental Yield (%) |
|---|---|---|---|---|---|---|---|
99 years | 1986 | 970 | 12 | 3 | 94 | 3.7 | |
99 years | 1975 | 740 | 9 | 2.2 | 35 | 3.5 | |
Freehold | 2009 | 1,007 | 5 | 2.8 | 6 | 3.4 | |
Freehold | 2004 | 966 | 3 | 3.2 | 3 | 3.9 | |
THE HACIENDA | Freehold | 1986 | 1,000 | 3 | 2.8 | 9 | 3.3 |
99 years | Unknown | 771 | 3 | 2 | 25 | 3.2 |
Source: URA, The Edge Property
On Scotts Road in prime District 9, Wheelock Properties’ Scotts Square has likewise seen renewed interest. A freehold mixed-use development completed in 2011, the project contains two high-rise residential towers with a total of 338 units sitting on top of a shopping mall.
Based on the latest caveats lodged, 11 units have been sold since May, compared with just one in 2014 and five in 2013. According to Christie’s Eyo, this year saw nine units — all one-bedroom apartments — snapped up by Hong Kong buyers at a series of weekend property exhibitions in the city since May.
However, the two most recent transactions at Scotts Square are resale units by individual owners and not from the developer. One of the units that changed hands was a 1,227 sq ft three-bedroom unit on the 21st floor of one of the towers, which fetched $4.04 million ($3,291 psf). The unit was first purchased in 2007 from the developer for $4.77 million ($3,890 psf) and flipped a year later for $3.74 million, or 21% lower.
The second resale unit was a 947 sq ft unit on the 34th floor. It fetched $3.45 million ($3,642 psf), according to a caveat lodged on Sept 16. The previous owner paid $3.93 million ($4,154 psf) for the unit in 2007.
This article appeared in the City & Country of Issue 697 (Oct 5, 2015) of The Edge Singapore.
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