Return of big-ticket purchases in Districts 9 and 10
By Tay Hock Meng
/ The Edge Property |
Despite concerns over the global stock market rout, economic uncertainty and interest rate hikes, investors have continued to snap up “value buys” in luxury condos in the traditional prime districts of 9 and 10. Some of these transactions were even done at prices above $3,000 psf.
At the Ritz-Carlton Residences on Cairnhill Road, two 3,057 sq ft, four-bedroom units on the 26th and 33rd floors were sold for $10.6 million ($3,467 psf) and $11.6 million ($3,795 psf) respectively, according to caveats lodged on Feb 5. Both units were said to have been purchased by a mainland Chinese national whose offer prices were even above the developer’s asking prices, says Lydia Wu, associate district director of OrangeTee. “Mainland Chinese buyers tend to be less price-conscious than local buyers, and this particular buyer wanted the units for its lifestyle and prestige,” she adds.
At the 58-unit Ritz-Carlton Residences, two 3,057 sq ft, four-bedroom units were sold at an average price of $3,631 psf.
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Last November, a four-bedroom unit on the 29th floor of Ritz-Carlton Residences was sold for $8.56 million ($2,800 psf) in a resale, which is the lowest price psf in the project so far. The recent prices achieved for the two units on the 26th and 33rd floors early this month are therefore on a par with levels in 2013, when the developer sold units at prices ranging from $3,533 to $3,956 psf. The luxury condo project was developed by Hayden Properties, a subsidiary of KOP Properties, and was completed in 2011.
At Twenty-One Anguilla Park in District 9, a 3,348 sq ft, four-bedroom unit on the 24th floor was snapped up for $12.05 million ($3,600 psf), according to a caveat lodged on Feb 4. The 54-unit luxury condo tower, which sits at the junction of Paterson Road and Orchard Boulevard, was completed in April 2014. The last transaction in the building was in August 2013, when a 3,154 sq ft, four-bedroom unit on the 30th floor was sold for $14.8 million ($4,704 psf).
According to agents, asking prices were still pegged at $4,500 psf last year. Developer China Sonangol International has since lowered its asking prices in an effort to move units in the 36-storey tower.
In District 10, four units at the 73-unit Goodwood Grand by Tong Eng Group were sold, according to caveats lodged on Feb 3. The four units on the ninth floor are said to have been purchased by a single buyer in a bulk purchase. Two of the units are 1,044 sq ft, three-bedroom apartments sold for $2.59 million ($2,478 psf) and $2.54 million ($2,428 psf) respectively. The other two are 775 sq ft, two-bedroom-plus-study units that fetched $1.89 million ($2,442 psf) and $1.93 million ($2,490 psf) respectively. The total purchase came up to $8.95 million.
This is not the first time an investor has swooped in to purchase units in bulk at the freehold Goodwood Grand. In December 2013, a buyer picked up three penthouses for a total of $13.01 million ($2,226 psf). The penthouses are duplexes located on the 11th and 12th floors.
Goodwood Grand includes eight strata bungalow units within the development and is scheduled for completion in 2018. As at end-January, 27 units —including two strata bungalows — had been sold. The strata bungalows fetched $6.63 million ($1,283 psf) and $7 million ($1,278 psf) apiece. “Goodwood Grand is still highly favoured by many investors for its good location near Orchard Road, the CBD and,most importantly, top schools,” says Samuel Eyo, managing director of Singapore Christie’s Homes.
Across Balmoral Road, Tong Eng Group is developing Three Balmoral, another boutique residential development. Nine of the 40 units in the freehold development had been sold as at end-January, according to URA data. The average price of units sold is $2,408 psf.
At Bishopsgate Residences, a freehold luxury condo development by Kajima Overseas Asia, a 3,143 sq ft, four-bedroom unit on the second floor of the five-storey block was sold for $10.46 million ($3,329 psf). Since the 31-unit project was completed in 2012, at least half a dozen units have beensold, based on caveats lodged.
At The Ladyhill, a 55-unit boutique freehold condominium located next to Shangri-La Residences, a3,843 sq ft, four-bedroom penthouse was snapped up for $7.4 million ($1,926 psf), according to a caveat lodged on Feb 4. The seller had purchased the 3,843 sq ft unit for $7.3 million ($1,900 psf) in 2010. Prior to that, the unit had changed hands twice in the secondary market — in August 2005 for $6.12million ($1,593 psf) and in 2002 for $5.6 million($1,457 psf). In 2000, the first buyer paid $5.35 million ($1,391 psf) for the unit.
Last month, an adjacent 3,843 sq ft penthouse fetched $7 million ($1,822 psf), according to a caveat lodged on Jan 29. The buyer is believed to be a Singapore citizen. The Ladyhill was developed by luxury developer Simon Cheong of SC Global Developments and completed in 2002.
“The increase in the number of transactions involving big-ticket luxury apartments since the start of 2016 could be a sign of a turnaround in the luxury residential space,” says Alan Cheong, head of research at Savills Singapore.
This article appeared in the City & Country of Issue 716 (Feb 22, 2016) of The Edge Singapore.
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