Interest in GuocoLand’s Paterson Residence has been creeping up recently as three units in the development were sold in June for as much as $2,200 per sq ft (psf). On June 7, a 1,658 sq ft apartment on the 14th floor was sold for nearly $3.65 million. It was bought in July 2006 for $2.45 million, or $1,477 psf, which means the owner made about $1.16 million in profit from the sale.
On June 8, a similar four-bedroomed unit located six floors lower sold for $2,081 psf, or $3.45 million. It last changed hands in February 2009 for $1,570 psf, or over $2.6 million. Separately, on June 13, a slightly smaller unit sold for $2,193 psf, or $2.88 million. The 1,313 sq ft apartment on the sixth floor had been bought from the developer for $1,412 psf in March 2006.
While there have been nine units sold so far this year (more than half of the 14 transactions recorded last year), prices have yet to touch the high of $2,775 psf for a 15th floor, four-bedroom unit recorded in October last year.
Between February and September 2007, just before the credit crunch hit, the freehold apartments at Paterson Residence sold for between $1,355 psf for a fourth-floor, 1,313 sq ft unit, and $2,500 psf for the 4,812 sq ft penthouse on the 23rd floor. When the property was launched in October 2005, GuocoLand sold the units for between $1,240 and $2,000 psf.
Other GuocoLand projects in the area include the exclusive freehold Nathan Place and the 99- year leasehold Leonie Studio, both completed in 2006. The developer also has a 40% stake in The Boulevard Residence (BLVD) on Cuscaden Walk, which is a joint-venture project with SC Global Developments. The most recent transaction at BLVD, which was completed in 2005, involved a 3,961 sq ft junior penthouse on the 32nd level that was sold in February for $13.35 million ($3,370 psf).
Property consultants note that the 24-storey Paterson Residence, which was completed in 2008, has attracted a fair mix of owner-occupiers and investors. Phylicia Ang, Savills’ executive director of residential services, thinks that at current prices of $2,200 psf, units there are value buys. “There’s a certain premium with new launches,” she adds. Indeed, SC Global’s 66-unit crown jewel nearby, The Marq on Paterson Hill, scored a price of $5,842 psf for a 3,003 sq ft, four-bedroom apartment recently, a record in the local residential market.
Across the road from Paterson Residence is the 102-unit Paterson Suites by Bukit Sembawang Estates, which was completed last year. There are only 24 units available for sale, and they are priced in the $2,600 to $3,200 psf range, according to property agents’ listings.
In the case of Paterson Residence, Ang notes that the units are decently sized, and at a lower psf pricing compared with the new launches, the total quantum is also more manageable. “The units either come with a tenancy, or are able to generate rental returns,” she adds, in reference to the buying interest in the property. Ang expects rental yields to average about 3.5%. “It has good yield, is fairly new, so I would say it’s a good buy for local investors.”
A survey of properties up for rent on propertyguru. com.sg and iproperty.com.sg shows that a fourbedroom unit on the 10th floor of Paterson Residence is available for as much as $12,500 a month. The apartment is owned by a local couple who had bought it to earn rental yield and the property agent engaged for it says she is expecting an expatriate family to take up the lease. Also available for rent is a 4,000 sq ft low-rise, poolside unit, which is being marketed for $18,000 a month. The agent says its selling point is the large patio.
Sited at the junction of Grange Road and Paterson Road in District 9, Paterson Residence is considered to be in a prime location, just minutes from the Orchard Road shopping belt. Within walking distance are international schools such as the Overseas Family School and ISS International School, as well as a Montessori pre-school and kindergarten, making the place a popular choice for expatriate families with school-going children.
Interestingly, some observers say Paterson Road wasn’t considered as prime as the other areas in the vicinity of Orchard Road, such as Ardmore Park, Draycott Drive and Claymore Road. “But Paterson Road is perceived differently now, and is gaining more interest, especially since The Marq has set a new benchmark [in prices] and China Sonangol is building a luxury development at 21 Anguilla Park,” says David Neubronner of Jones Lang LaSalle.
“But the most important thing is the development of ION Orchard and Orchard Residences,” says Neubronner. “It has changed the whole value perception of Paterson Road.” He points out that the mall, opened in 2009, is now the landmark of the area, making it the “new heart” of Orchard Road. The Orchard Residences had previously held the record for the highest transacted psf price, when a penthouse sold for $5,600 psf in October 2007. “The value has now shifted from [the area surrounding] the Paragon to ION Orchard and Paterson Road,” adds Neubronner.
Source : The Edge – 4 Jul 2011