New price benchmarks at The Berth, Ritz-Carlton Residences
By Tay Hock Meng
/ The Edge Property |
A penthouse at The Berth by the Cove was recently sold for $3.2 million ($1,047 psf) according to a caveat lodged on Dec 1.The 3,057 sq ft, four-bedroom penthouse was purchased for $2.4 million ($784 psf) in February 2005. Even at $1,047 psf — the lowest in nine years — the seller still saw a capital gain of 33.5% over the past decade.
A penthouse at The Berth by the Cove was sold recently at $1,047 psf,
the lowest psf price in the project in eight years
“This was an urgent sale as the seller had an opportunity to invest elsewhere,” says a property agent who declined to be named. “But it’s not a distressed sale.” The lower per square foot (psf) price is because of the size of the unit, as it is a penthouse. The seller is believed to be a foreigner, while the buyer is said to be a Singapore permanent resident.
The penthouse, which has views of the waterway is currently tenanted at $9,000 per month, which translates to a gross rental yield of about 3.38%, based on the latest purchase price. The lease is said to expire at end-August, 2016.
When the 200-unit The Berth first hit the market in November 2004, it was the first seafront condominium development offered for sale at Sentosa Cove. The developer was Ho Bee Land, a first mover in the waterfront enclave. Units at The Berth were sold at prices ranging from as low as $680 psf (for a 3,089 sq ft penthouse) to $1,212 psf for a 1,625 sq ft second-floor unit. Average prices were around $850 psf. Many of the owners who had bought units at The Berth when the project was first launched made money when they sold them subsequently in both the sub-sale and resale market.
In line with the price correction in Sentosa Cove, other units at The Berth have changed hands at prices ranging from $1,259 to $1,492 psf this year. At the peak of the market in the last property boom, a third floor, 1,905 sq ft, four-bedroom unit had changed hands for $4.19 million or a high of $2,200 psf in November 2007. Completed in 2006, The Berth is now considered the oldest private condo in Sentosa Cove.
At The Ritz-Carlton Residences on Cairnhill Road, a unit was recently sold after a two-year lull. The 3,057 sq ft, four-bedroom unit on the 29th floor of the 36-storey luxury condo tower fetched $8.56million ($2,800 psf), according to a caveat lodged on Nov 30. In terms of price psf, it’s an all-time low for the property. The price is a far cry from the lofty levels of $4,515 to $5,146 psf that a handful of units had transacted at when the project first previewed in December 2007. The buyer of the unit is believed to be a Singapore PR or citizen, given the HDB address. The four-bedroom unit is currently leased at $25,000 a month, which translates to a gross rental yield of 3.5% for the buyer.
A unit at The Ritz-Carlton Residences changed hands for $2,800 psf at end-November,
the lowest since the luxury condo previewed in December 2007
The seller is said to be a Singapore-based UAE property fund, which also owns the other four-bedroom unit on the same floor of Ritz-Carlton Residences. The other unit was sold several years ago for $10 million, according to the agent who brokered the sale. As the transaction was done in cash, no caveat was lodged then.
The 58-unit Ritz-Carlton Residences was developed by KOP Properties, the property arm of listed KOP Group. The project was completed in 2011 and is considered the second hotel-branded luxury residential development in Singapore, after St Regis Residences.
The developer still has unsold units, but is not offloading them at a discount. According to property agents, premium units above the 27th floor with views of Marina Bay are said to have price tags of $4,000 psf, while those facing Botanic Gardens are priced in the range of $3,000 to $3,200 psf.
Freehold projects near Cairnhill Road completed after 2010
Project Name | Tenure | Completion | Avg Price ($ psf) | Sales Volume | Avg Rent ($ psf pm) | Rental Volume | Rental Yield (%) |
|---|---|---|---|---|---|---|---|
Freehold | 2013 | 2,484 | 3 | 6.1 | 28 | 2.9 | |
The Ritz-Carlton Residences Singapore Cairnhill | Freehold | 2011 | 2,800 | 1 | 5.4 | 6 | 2.3 |
Freehold | 2011 | 3,189 | 6 | 7.3 | 41 | 2.7 |
Source: URA, The Edge Property
Start browsing for listings at The Berth and The Ritz-Carlton Residences.
This article appeared in the City & Country of Issue 708 (Dec 21, 2015) of The Edge Singapore.
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