Resale prices at Icon, The Clift hover above $2,000 ps

Icon

Icon’s success spurred the development of other loft-style apartments such as The Clift

 

The Clift

THE EDGE SINGAPORE, | AUGUST 19, 2013

| BY JO-ANN HUANG 

The owners of some condominiums in the Tanjong Pagar neighbourhood are
putting their units up for sale in the secondary market. Kelvin Lau,
associate branch director of Prop-Nex Realty, is marketing four units
at Icon on behalf of individual owners. The 646-unit Icon was completed
in 2007. When it was launched for sale in 2003, it was one of the first innercity, high-rise residential blocks in the heart of the CBD, and
many of the units were snapped up at prices in the range of $650 psf.

Today, owners are asking for prices in the $2,000 psf range. “Some
of them who bought in early are looking to sell, as they stand to
gain from their units’ significant price appreciation over the past
few years,” explains Lau. “Other owners are choosing to exit for
fear of further property cooling measures ahead.” The eighth and
latest measure was the total debt servicing ratio (TDSR) loan
framework,which capped the total debt of new home loan applicants
at 60% of monthly income, affecting sentiment in the property market.

On top of that, secondary market transactions have been hit by the
seller’s stamp duty (SSD) introduced in January 2011, which
affects those who sell within the first four years of purchase.

The SSD will not affect owners of Icon who had purchased their units
before January 2011. A recent transaction towards end-July was that
of a 581 sq ft one-bedroom unit on the 12th floor that changed hands
for $1.18 million ($2,030 psf). The unit was last transacted in a
sub-sale in September 2007, and fetched $860,000 ($1,480 psf).

Since the successful launch of Icon a decade ago, other residential
projects have followed in the Tanjong Pagar area. Far East Organization, developer of Icon and one of the largest stakeholders in Tanjong Pagar,
has two other residential developments in the area. One is the
312-unit The Clift, which was launched in July 2006 and completed in
2011. The other is the 280-unit Altez, which was launched in January
2010 and is scheduled for completion in 2015. So far, 228 units have
been sold, with the latest median price achieved of $2,345 psf.

Next door to Altez is Allgreen Properties’ 360-unit Skysuites@Anson,
where private previews started in March 2011. As at end-June, 207
of the 284 units released have been sold. The most recent transaction
was a sub-sale in June, when a 366 sq ft unit on the 25th floor
changed hands for $825,000, or $2,254 psf. The previous owner had
purchased the unit two years ago for $735,300, or $2,009 psf,
according to a caveat lodged with URA Realis.

Altez

The more recent launches have seen prices in the $2,200 to $2,300 psf
range. Meanwhile, TP180 @ Tanjong Pagar, a 200- unit residential tower
in GuocoLand’s landmark mixed-use scheme called Tanjong Pagar Centre
is expected to be launched in 3Q to 4Q this year. Some market sources
expect prices to be in the vicinity of $2,500 psf. With new launches
pitched at such prices, Lau reckons some buyers are seeing value in
buying units in existing residential projects from the secondary market.

Skysuites@Anson

For instance, a recent transaction at the Icon was for a 969 sqft
two-bedroom penthouse on the 46th floor (the topmost level).
The penthouse changed hands for $1.78 million ($1,837 psf). It
last traded at $1.96 million ($2,022 psf), in November 2009.

Meanwhile, a 527 sq ft unit on the 16th floor of The Clift
changed hands for $1.19 million ($2,256 psf) towards end-July.
It was first sold in May 2010 for $964,410 ($1,828 psf)。