The five units sold at The Montana at prices ranging from $1,852 psf to $1,980 psf were said to have been purchased by a group of investors
THE EDGE SINGAPORE, OCTOBER 21, 2013
|BY AMY TAN |
Located along Jalan Mutiara off River Valley Road, the freehold The Montana developed by listed construction and property group, Koh Brothers, has seen a flurry of buying activity in recent weeks. Sitting on a land area of 37,846 sq ft, the condominium project comprises an 11-storey block and a 12-storey block with 108 one- to three-bedroom apartments and penthouses. Sizes range from 560 sq ft for a one-bedroom unit to 2,390 sq ft for a penthouse. Each penthouse has a private rooftop terrace and jacuzzi. Interestingly, it’s not a new development.
The Montana was completed 11 years ago, and last month, it saw nine units change hands. Four of the units sold, with caveats lodged from Sept 13 to Sept 19 were at prices ranging from $1,866 psf to $2,251 psf. The price of $2,251 psf is considered an all-time-high for the development, and it was for the sale of a 549 sq ft one-bedroom unit that went for $1.235 million.
The recent five deals, transacted between Sept 26 and 30, were said to be a bulk purchase by a group of private individual investors comprising both locals and foreigners, according to sources. The prices achieved for the units ranged from $1,852 psf to $1,980 psf. “The units sold recently were all from the same block, where units had been refurbished, with some of them already tenanted,” says a property agent who declined to be named.
The entire block is currently owned by a private investment group which had purchased the 64 units last year, and then proceeded to refurbish some of them for lease. The previous owner was a Middle Eastern investor who had bought the entire block from the developer, even before the project was launched in November 1999. The Middle Eastern investor’s purchase price back then was $66 million, or an average price of $1,085 psf, and he had been holding on to the units for investment until last year.
When the project was launched, Koh Brothers gave away a Mercedes Benz in a lucky draw to entice buyers. Units were sold at prices ranging from $668,000 for a one-bedroom unit to $2.15 million for a penthouse, with average prices of $1,150 psf.The private investment group is continuing with refurbishment of the remaining units in the block, which it then intends to lease out.
Jacqueline Wong, senior director of residential leasing and ad-hoc sales at Savills, who was engaged by the owner to lease out some of the units, says rental rates for a refurbished one-bedroom unit at The Montana are as high as $6 psf per month. Meanwhile, units that haven’t been refurbished are being rented out at $4.39 psf to $4.73 psf per month. Prices of the units sold recently at The Montana are comparable to new launches in the neighbourhood, such as RV Residences and Stellar RV.
For instance, at the 248-unit RV Residences by developer Allgreen Properties, 53 out of 83 units released in the first phase have been sold at a median price of $2,038 psf as at end September. The 999-year leasehold project located along River Valley Road has one- to four-bedroom apartments and duplex penthouses of between 419 sq ft and 1,539 sq ft. The project is currently under construction and is expected to be completed in the first half of 2014.
Meanwhile, Stellar RV, launched in mid-2012, saw all its 120 units sold at prices in the $2,000 psf range. Developed by Alliance Land, the project has a mix of one-bedroom plus study, two-bedroom units and two-bedroom penthouses ranging from 452 sq ft to 990 sq ft. The project is expected to be completed in 2017.