Meyer Road sees increase in buying interest

A 1,152 sq ft, three-bedroom unit on the 13th floor of Meyer Residence was sold for $1.76 million ($1,528 psf)

| BY AMY TAN | The Edge, Wednesday, 30 May 2012

The Meyer Road enclave is widely regarded as “the Ardmore Park of the east”. Recently, condominiums in the neighbourhood are seeing a return of buyer interest. The district 15 neighbourhood is considered the most prestigious condo area beyond the traditional prime Orchard Road districts of 9, 10 and 11. Four units in various condos in the neighbourhood have changed hands, according to caveats downloaded from URA Realis on May 23.

The first unit was a 1,238 sq ft, three-bedroom apartment on the 23rd floor of the freehold The Belvedere. Developed by Keppel Land, the 167-unit project was completed in 2008. Since completion, the unit has changed
hands three times. The first owner purchased the unit from the developer in April 2006 at $979,505 ($791 psf). It was later sold in August 2009 for $1.73 million ($1,399 psf). The latest transaction on May 7 saw the apartment change hands at $1.79 million ($1,450 psf). The highest psf price recorded for a unit at The Belvedere was in June 2007, when a 2,616 sq ft, four-bedroom apartment on the 24th floor was sold for $4.9 million ($1,873 psf).

The second unit was a 1,259 sq ft, three bedroom apartment on the 9th floor that was sold for $1.8 million ($1,429 psf) on May 10. The original owner bought the unit in June 2006 from the developer for $939,465 ($746 psf).

The Belvedere sits on the site of the former Viewpoint Condominium along Meyer Road, which Keppel Land had purchased en bloc for $598 psf in 2000. The new Belvedere condo has twin 25-storey towers and consists of two, three and four-bedroom units. It is located within walking distance to East Coast Park and East Coast Beach. Parkway Parade Mall is also within the vicinity. “The Belvedere is attractive to buyers as it offers spectacular views of the sea and is just a 10-minute drive to the CBD,” says a senior marketing director at ERA Realty.

Down the road at the freehold Hawaii Tower, a 2,239 sq ft, three-bedroom apartment on the 16th floor was sold for $2.96 million ($1,322 psf). Completed in 1984, the condo comprises 135 units of three-bedroom apartments and penthouses. It was developed by Gmg Realties Pte Ltd and was unsuccessful in three collective sale attempts. The most recent attempt was in December 2010, at a reserve price of $700 million or $1,401 psf per plot ratio.

Another transaction was also seen in the nearby Meyer Place. It was a unit at niche listed developer Sing Holdings’ freehold Meyer Residence. The 68-unit, boutique development has a mix of two and three-bedroom units in a 19-storey block. A 1,152 sq ft, three-bedroom unit on the 13th floor was sold for $1.76 million ($1,528 psf) on  May 7. There were three other transactions for the unit prior to its recent sale. The first owner purchased the unit from the developer in September 2006 at $878,000 ($762 psf). The unit was later sold in August 2009 at $1.38 million ($1,198 psf). Two months later, the unit changed hands at $1.6 million ($1,389 psf).

The price recorded on May 7 is considered the third-highest psf price for Meyer Residence. The highest price of $1,585 psf was recorded in January 2011, when a 1,152 sq ft, three bedroom unit on the 15th floor was sold for
$1.82 million. Meyer Residence is located near the Mountbatten MRT station and Old Airport Road Market and Food Centre. Like The Belvedere, Meyer Residence is also located close to Nicoll Highway and East Coast Parkway.

According to Francis Teo, associate team director, Propnex Realty Pte Ltd, Meyer Residence is attractive to buyers as it is located near many amenities and the beach. Teo, who is currently marketing a unit at Meyer Residence, says buying interest has come from a good mix of locals and foreigners. Properties in district 15 generally fetch a rental yield of 3% to 4%, he says.

The increase in buying interest in condos along Meyer Road could stem from the introduction of the additional buyer’s stamp duty (ABSD) on Dec 8. For foreigners, the ABSD is 10%, and that means the total buyer’s stamp duty is 13%. He observes that prices in the prime Orchard Road districts have been quite stagnant over the last few months because of the ABSD. Consequently, buyers are looking east for their next investment property, he reckons. Prices of high-end condos in the traditional prime districts have been hovering at $1,800 to $2,000 psf whereas similar condos in district 15 in the east see prices in the $1,400 to $1,600 psf range. “Prices in the Orchard prime district have remained relatively high and with the ABSD, more people are looking at more affordable units in  district 15,” adds Teo.