Tags: ardmore 3 / ardmore park / marina bay suites / nassim park residences

Property spotlight: Luxury segment stirring again

- October 7, 2012 5 Comments

The luxury segment of the market is starting to see a return of investor interest. Mr Seah, an avid Singaporean property investor and the owner of a freight forwarding business, recently signed the option to purchase a four-bedroom unit on the 62nd level of the 66-storey Marina Bay Suites. He paid close to $6.7 million ($3,258psf) for the 2,056sqft unit in mid-September. "Marina Bay Suites is the last piece of land with views of the bay," says Seah. "I prefer this to Ardmore Park area because of views."

As the 22-unit luxury condominium is projected to be completed sometime next year, he's looking for an interior designer to help him with the furnishing. Seah intends to move into the apartment when it's completed. He currently lives in a bungalow in the Siglap area.

There are more Singaporeans shopping in the luxury condo market right now, unlike in the past, when this top end of the residential market was dominated by overseas buyers. At the freehold 330-unit Ardmore Park, developed by Wheelock Properties, a 2,885sqft, four-bedroom apartment on the 10th floor of one of the three towers was sold for $9.05 million ($3,137psf) on Sep 10.

The last time the unit was sold was at the previous peak in mid-2007, when it went for $7.95 million ($2,756psf). It had changed hands just three months earlier, in March 2007, for $6.3 million ($2,184psf). Prior to that, it was sold in a sub-sale in July 1998, during the Asian financial crisis, for $4.1 million ($1,421psf). This was 19.3% below the buyer's original purchase price of $5.08 million ($1,761psf) in August 1996, at the peak of the mid-1990s property boom.

The latest transaction price for the unit is the second-highest psf price achieved at Ardmore Park this year since the additional buyer's stamp duty (ABSD) kicked in last December. The highest price was set in February, when a 2,885sqft, four-bedroom apartment on the 27th level was sold for $10.5 million ($3,460psf). In January 2010, that same unit went for $10.64 million, which, at $3,688psf, was considered an all-time high for Ardmore Park. Hence, the price of $3,137psf shows that prices in Ardmore Park are still holding steady, points out Jacqueline Wong, director and head of corporate residential solutions at HSR Property Consultants.

The freehold Nassim Park Residences saw its first sub-sale this year, according to caveats lodged with URA Realis. The 100-unit luxury condo is fully sold and obtained its temporary occupation permit just last year. The project is developed jointly by UOL Group, Kheng Leong and Orix Corp. The unit that changed hands in the sub-sale was a 3,466sqft, four-bedroom apartment on the fourth floor that was transacted at $11.3 million ($3,260psf). The seller had purchased the unit directly from the developer in July 2008 for $10.16 million ($2,932psf), thus seeing a capital appreciation of 11.2% in four years. As Nissam Park Residences is only a year old, transaction prices are usually pegged to the market rate for new units, says Wong. There are very few secondary transactions in Nassim Park Residences as most of the buyers had purchased units for their own use, she adds.

 

Do these transactions indicate a return of buying interest in the high-end market? Wong is cautiously optimistic. "The high-end market has been affected by the introduction of the ABSD on Dec 8 as most of the buyers in this segment have traditionally been foreigners," she says. Foreigners have to pay a 10% ABSD on all their residential property purchases, while Permanent Residents are required to fork out a 3% ABSD on their second and subsequent purchases, and Singaporeans, a 3% ABSD on their third and subsequent purchases

Most buyers in the luxury segment today tend to be owner-occupied rather than investors, says a property consultant who declines to be named. This is because rental yields at the luxury segment tend to be relatively low, with gross rental yields in prime district 10 generally hovering at 2% to 2.5% gross, he estimates.

Ardmore Park has remained a popular choice among buyers, as the area is an established residential address for the rich. "The area is well known among foreigners, especially Indonesian buyers," notes Wong.

Word on the street is that Wheelock Properties held a VIP preview of the freehold Ardmore3, located next to Ardmore II, over the weekend of Sep 22 and 23. Ardmore 3 is a departure from Wheelock's well-honed formula for luxury apartments, as seen in Ardmore Parkcondo, Ardmore II, as well as Grange Residences and Orchard View, where typical apartments are four-bedroom units of more than 2,000sqft.

In Ardmore3, typical units are three-bedroom apartments of 1,800sqft. Industry observers reckon that the developer is appealing to a different segment of the well-heeled - the younger set who may not want a huge apartment. This will also bring down the overall absolute price. Prices are said to start from $3,100psf, according to sources, and this means quantum prices will be from around $5.5 million, according to sources.

Most buyers who purchase units in the luxury segment today are also hoping for future capital gain, says a property agent in the luxury market. "With the strong Singaporedollar and a generally stable economy set against a landscape of global economic slowdown, many foreigners still view the country as a safe haven to park their money," she adds.

Source: THEEDGE SINGAPORE

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Tags: ardmore park / four seasons park / St Regis Residences

Projects Spotlight: Ardmore Park, St. Regis Residences & Four Seasons Park

- March 4, 2012 No Comments

The luxury segment of the market started to see some activity in February and, based on a few of the transactions, it looks like some owners are willing to sell below purchase price.

At the 11-year-old, 330-unit Ardmore Park, for example, the apartment that hit a record price two years ago has changed hands again, albeit at a slightly reduced price. In early 2010, the 2,884sqft, four-bedroom apartment on the 27th level of one of the three towers was sold for $10.64 million, or $3,688psf, an all-time high for Ardmore Park. The unit recently changed hands again at $10.5 million ($3,640psf), which is still the second-highest unit price achieved at Ardmore Park condominium.

"That unit has the best view," says Samuel Eyo, director of Savills Prestige Homes. "The draw of Ardmore Park is that it sits on one of the largest freehold plots in a prestigious address in the prime district, and it's the only condominium that boasts two tennis courts and an Olympic-sized swimming pool. In addition, the condo's design is classic."

Prior to the transaction in February, there were two others last November. They were those of two lower-floor units in another tower, which are said to overlook a construction site, according to agents familiar with the location. As such, the units changed hands for $8 million ($2,773psf) and $8.3 million ($2,877psf) respectively.

At the 173-unit St Regis Residences on Tanglin Road, a 5,543sqft unit on the 20th level was transacted at $11.7 million ($2,111psf), or 24% lower than the seller's purchase price of $15.4 million ($2,781psf) in 2006. According to property agents familiar with the deal, the owner was willing to let go of the unit at a lower price because the apartment was in need of renovation. "This is likely to be a one-off deal," say an agent who declined to be named.

Whether this is likely to be a trend in the luxury segment is difficult to say as yet, concedes Savills' Eyo. "It really depends on the individual owner's holding power, and his or her perception of the market. Some owners may be willing to lower their price to facilitate a sale because they have spotted another investment opportunity or want to upgrade to a bigger place, and are therefore more prepared to cash out now," he says.

At the 202-unit, freehold Four Seasons Park on Cuscaden Walk, a 2,260sqft unit on the 12th level of one of the three towers fetched $5.7 million ($2,522psf) in the resale market recently. There is no prior caveat lodged for this unit. In January, however, a 2,874sqft apartment on the sixth floor of another tower was sold for $7.1 million ($2,470psf). The price achieved is 9.3% higher than the previous transaction in 2009, when the same unit changed hands for $6.5 million ($2,262psf). Prior to that, the unit had changed hands in 1998 for $4.28 million ($1,489psf).

Since the government's announcement of the additional buyer's stamp duty (ABSD) on Dec 8, 2011, Eyo has seen a drop in demand from foreigners for condominiums in the prime districts. The fall has been offset to a certain extent by Singaporeans on the lookout for bargains.

"There is a lot of uncertainty in the market, so some sellers may want to cut losses and exit now because they are afraid that the bank interest rate may increase later on," says an agent who declined to be named. "On the other hand, there are also buyers who want to enter at this point in the hope of seeing future capital upside."

Source: THEEDGE SINGAPORE

When an apartment changes hands at a slightly reduced price a few years later, one will usually hear the seller's lament about the "loss" he/she has incurred in the sale. Singaporeans are so used to the notion of "recouping all costs + making a profit" on their properties that they tend to conveniently forget about the rental that they will have to fork out if they do not own the property that they stay in, or the rental income that they have already enjoyed over the past years of leasing out the apartment.

So unless the apartment concerned had been left vacant all those years, one should really re-look at the concept of "loss" when selling below purchase price...
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Tags: 8 napier / ardmore park / d10 / Tanglin Park

THE EDGE: High-end condos in district 10 see buyer interest

- December 2, 2011 4 Comments

There have been some transactions in the high-end condominium segment in district 10.

In the Tanglin area is the 46-unit luxurious 8 Napier, located next to Gleneagles Hospital and Medical Centre and the Singapore Botanic Gardens. According to URA, as at end-October, 27 units in the luxury condo have been sold. The project was completed last year. The developer of 8 Napier is Hasetrale Holdings. In late 2007, 19 units were sold to private equity real estate investment fund MGPA's Asia Fund III at an average price of $3,550psf. The fund sold the units in July last year for an undisclosed price.

Last year, some units purchased for $3,550psf four years ago were sold on the secondary market at an average of $3,200psf. From last December to September this year, units sold in the low-rise development ranged from $3,000psf for second-floor units to $3,527psf for higher-floor units. Most recently, a 2,013sqft three-bedroom unit on the fifth level was sold for $6.5 million ($3,229psf). The buyer is said to be a Permanent Resident who is buying for her own use, says Nancy Hawkes of Jones Lang LaSalle, who brokered the sale.

There seems to be interest in old condos with spacious apartments. At the 274-unit freehold Tanglin Park condo developed by City Developments Ltd (CDL) 22 years ago, there were two transactions in the week of Nov 1 to 8, based on caveats downloaded from URA Realis as at Nov 23. A 1,593sqft three-bedroom apartment on the eighth level was sold for $3.2 million ($2,009psf). This is the fifth time the unit has changed hands in the last 16 years (URA's database of caveats go back only to January 1995).

One can trace the ups and downs of the property market from the transaction history of this unit. The very first recorded resale was in April 1995, when the unit was sold for $1.83 million ($1,146psf) <1,149psf>. It changed hands three years later for $1.53 <$1.23> million ($772psf), in December 1998, at the height of the Asian financial crisis. The unit was subsequently resold in January 2007 for $2 million ($1,255psf). The buyer sold the apartment six months later, at the peak of the last property boom, for $3 million ($1,883psf), enjoying a 50% gain in that short period of time.

The second transaction at Tanglin Park in the week of Nov 1 to 8 was for a 1,109sqft two-bedroom apartment that changed hands for $2.1 million ($1,858psf) <$1,894psf>. The seller paid $1.15 million ($1,037psf) for the apartment in a resale in 1995, hence seeing an 83% gain in 16 years.

"Tanglin Park's main attraction is its location; being in a quiet and exclusive neighbourhood is definitely an advantage," says Andy Goh, a property agent and president of AG Prestige Home.

Another condo that is known for its luxurious and spacious apartments is the 330-unit Ardmore Park by Wheelock Properties that was completed 10 years ago. The development comprises three 30-storey towers and typical units are 2,885sqft four-bedroom apartments. There are four penthouses of 8,740sqft. A four-bedroom unit on the eighth floor of one of the towers changed hands recently for $9 million ($3,120psf). Based on caveats lodged, the seller had purchased it for $5.03 million ($1,742psf) <$1,744psf> when the project was launched in July 1996, and hence saw a 79% capital appreciation. "Ardmore Park is a perennial favourite not only because of its spacious units but also its facilities and landscaping," says Goh. "The condo attracts a good mix of investors and occupiers, although these days, most of the buyers are looking to buy for their own occupation."

Source: THEEDGE SINGAPORE

THE EDGE should really double check their figures before they go to print...

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