Pebble Bay units see new highs at $1,400 psf

| BY JO-ANN HUANG | THE EDGE SINGAPORE | JULY 11 2011

Condominium units in the Tanjong Rhu water front district are in the spotlight. There were eight transactions for apartments in the area, according to caveats lodged between June 14 and 21, with deals generally in the $1,160 to$1,400 psf range.

The most actively traded condo seems to be the 510-unit Pebble Bay, developed by DBS Land (now known as CapitaLand). The 99-year leasehold condo was completed in 1998 and overlooks the Kallang Basin. It is probably the first condo that can boast of water views.

Three units at Pebble Bay changed hands from June 14 to 21. Prices achieved were between $1,225 and $1,400 psf. The unit that was sold for $1,400 psf was a2,626 sq ft four-bedroom apartment on the 12thlevel with unobstructed views of the Kallang River as well as the Singapore Indoor Stadium, says Clinton Lim, a specialist in Pebble Bay and associate marketing director at PropNex.The unit fetched $3.68 million. The$1,400 psf is close to the highest price achieved to date in the 13-year old development. The record was for a 2,766 sq ft four-bedroom apartment, which sold for $4.13 million ($1,493 psf)in January. “The price reflects the premium given to the views as well as the fact that there are very few four-bedroom units on the market,” Lim says, adding that in the first six months of the year, only two other four-bedroom units were sold.

The other two units that were sold at Pebble Bay were three-bedroom units of 1,894 sq ft. One was sold for$2.54 million ($1,341 psf), while the other went for $2.32 million ($1,225 psf). The $2.54million unit that was sold recently was purchased for $1.535 million ($810 psf) in May 1996 when the condo was first launched, according to caveats lodged with URA. This means that prices have appreciated close to 66% in the last 15 years.

Other condominium units in the Tanjong Rhu neighbourhood that changed hands over the same period were two units at Sanctuary Green, at$1,227 and $1,231 psf, respectively.

At Water Place, a unit was sold at $1,160 psf, and at Costa Rhu, a 2,551 sq ft unit on the first floor was sold for $3.018 million ($1,183 psf).

At the 502-unit The Waterside,a 2,411 sq ft unit on the 11thfloor was sold for $3.6 million ($1,493 psf). The project has only three and four-bed room apartments, with sizes above 2,142 sq ft. While the other condos in Tanjong Rhu are of 99-year leasehold, The Waterside is freehold, with some of the high floor units having sea views.

The Tanjong Rhu area is sought-after as it is near the upcoming Sports Hub at Kallang and the Gardens by the Bay. Under the URA Master Plan 2008, the Kallang Riverside will be transformed into a commercial and waterfront residential hub with about 300,000 sq m (3.2 million sq ft)of land zoned for commercial, retail and hotel use and for 4,000 new homes.

There’s been abuzz in the area since the Kallang Riverside(Land Parcel B) designated for hotel development was launched for application last month. Monthly rental rates in the Tanjong Rhu area are currently in the $3.50 to $4.20 psf range, with gross rental yields generally between 3% and 3.5%, says Ku Swee Yong, CEO of  international Property Advisor.

Some owners of three-bed room apartments at Pebble Bay are already asking for rental rates of $10,000 a month, while a recent listing on Propertyguru.com showed a four-bedroom apartment of 2,811 sq ft with asking rental of $13,000. Units at Pebble Bay are popular with home buyers and expatriate tenants because of the spacious units, says PropNex’s Lim. Its accessibility to the CBD and Marina Bay via the East Coast Parkway Expressway is also an attraction.