26-11-2012: Renewed interest in prime districts

A 3,089 sq ft five-bedroom terraced unit at Hillcrest Villa was recently sold for $3.11 million ($1,007 psf)

BY AMY TAN |THEEDGE SINGAPORE | NOVEMBER 26, 2012
Alba
Buyer interest has returned to the luxury segment in the prime districts of 9, 10 and 11, with transactions seen in condominiums such as Alba, 8 Napier, St Regis Residences and Volari. The freehold Alba by developer Far East Organization comprises just 50 luxury units and is located in Cairnhill Rise. As at end-October, 28 units had been sold. Most recently, according to caveats lodged with URA Realis, a 2,056 sq ft fourbedroom unit on the 16th floor was sold for $7.01 million ($3,410 psf). This is also the highest psf price achieved so far for a unit at Alba.
8 Napier
Meanwhile, two units at 8 Napier were sold last month: a 2,777 sq ft four-bedroom unit on the fourth level for $9.5 million ($3,421psf); and a similar-sized unit on the eighth floor for $9.3 million ($3,349 psf). The 46-unit luxury condo located next to Gleneagles Hospital and within walking distance to the Botanic Gardens was completed two years ago.
Volari
At St Regis Residences, located at the junction of Cuscaden Road and Tomlinson Road, a 2,756 sq ft four-bedroom unit on the ninth floor was sold for $7.4 million ($2,695 psf) on Oct 31. The original owner had bought it in June 2006 for $7.02 million ($2,549 psf). Located next to the 299-room St Regis Singapore, the 173-unit, 999-year leasehold luxury residences developed jointly by City Developments Ltd (CDL), parent company Hong Leong Holdings and TID Pte Ltd (Hong Leong’s joint venture with Mitsui Fudosan) was considered the first hotel branded residence in Singapore and was completed in 2008.

St Regis Residences

Volari, also developed by CDL, is located on the site of the former Garden Hotel on Balmoral Road. The 85-unit condo was completed just two months ago, and all units have direct views of the greenery and black-andwhite colonial homes of Goodwood Hill Estate. Most recently, a 2,174 sq ft four bedroom unit on the ninth floor was sold for $5.44 million ($2,500 psf), the highest psf price achieved since the project was launched in 2009. The original buyer had paid $4.78 million ($2,198 psf) for the unit three years ago.

Sales activity at newer luxury developments usually pick up towards completion or just after. Foreign buyers have also re-entered the market, especially those from the UK and elsewhere in Europe, especially Russia. “They prefer newly completed luxury condos, as they are buying for their own use,” says Jacqueline Wong, head of corporate residential solutions at HSR Property Group.

The Hillcrest Villa, a 163-unit cluster housing development completed by MCL Land two years ago, has also seen a spike in activity. A 3,089 sq ft five-bedroom terraced unit was recently sold for $3.11 million ($1,007 psf). The original owner had bought it from the developer in October 2007 for $2.6 million ($839 psf). The other unit sold was a 3,111 sq ft five-bedroom unit, which changed hands at $3.05 million ($980 psf).

According to Phylicia Ang, Savills’ executive director of residential services at Savills Singapore, Hillcrest Villa appeals to homebuyers because of its proximity to the Raffles Girls’ Primary School. “This area has always enjoyed stable demand from locals because it is a landed-housing neighbourhood and there are many good schools nearby,” she says. In addition to locals, Hillcrest Villa is attractive to foreigners with young families. Expatriates who want a landed home with space and condo facilities will prefer a cluster housing development, observes HSR’s Wong. For investors, rental yields of such cluster homes are around 4%, which can be more attractive than those of private condos.