13-08-12: Holland Rd/Robertson Quay areas on the radar of buyers

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At the 83-unit Holland Residences, which was completed in March, recent transactions hit a high of $1,983 psf

BY JO-ANN HUANG |THEEDGE SINGAPORE | AUGUST 13, 2012

Newly or soon-to-be-completed condominiums in the prime districts such as Holland Residences and The Wharf Residence have seen an uptick in transactions lately, attracting buyers who want to move in, or investors who want to lease them out for immediate rental income.

The 83-unit Holland Residences in Taman Warna, off Holland Road, was developed by Allgreen Properties and obtained its temporary occupation permit (TOP) in March. There were two recent secondary-market transactions at the five-storey freehold condo located in prime district 10, according to caveats lodged with URA Realis. One was for a 958 sq ft, two-bedroom unit on the first floor that changed hands in a subsale at $1.9 million ($1,983 psf). The original owner purchased the unit in February 2010 for $1.71 million ($1,786 psf), a month after it was launched. This translates into a price increase of about 11% since its initial sale.

Just two floors up, a 1,356 sq ft, three-bedroom unit was transactedat $2.67 million ($1,969 psf). The unit was first sold at $2.38 million($1,755 psf), which means the first owner saw a price increase of 12.2%.

Both these transactions were sub-sales, and were not brokered by CBRE, the sole marketing agent for Holland Residences. Since the project was launched in 2010, 78 units, or 94%, have been sold. The resort-style condo offers a mix of one- to four-bedroom units, as well as three-bedroom lofts and penthouses. Sizes range from 602 sq ft for a one-bedroom unit to 1,872 sq ft for a four-bedroom apartment and 1,614 to 2,787 sq ft for penthouses. Only four 2-bedroom penthouses and a three-bedroom loft unit are available for sale in the project,according to CBRE. The asking price for the two-bedroom penthouses is $2.48 million to $2.7 million.

Taman Warna is next to the landed housing enclave of Chip Bee Gardens. Allgreen Properties had purchased the site in an en bloc sale in 1997.

The buyers at Holland Residences are a mix of locals and expatriates.According to Benson Koh, senior group division director at SLP Realty, the development is popular among expatriates and owner-occupiers,given its convenient location.

“There are many good schools in the Bukit Timah area nearby, such as Hwa Chong and Nanyang Girls’ School,” he says. “Parents are buying the property for its address. And Holland Village is just a few minutes’ walk away. The developer did not compromise on space, so the condo has large common areas and a wide range of facilities. With only 83 units, it is low density and has an exclusive feel.”

The Wharf Residence, which comprises a row of 13 conservation terraced housesand four high-rise blocks on Tong Watt Road, has seen an increase insub-sales ahead of its completion in September

Listings posted on propertyguru. com.sg show asking monthly rental rates of about $4,000 for a one-bedroom unit, $5,000 for a two-bedroom apartment and $7,000 to $8,000 for a three-bedroom unit.

Another newly completed property that has seen an increase in transactions is the The Wharf Residence by CapitaLand, located on Tong Watt Road, off Mohamed Sultan Road. The 999-year leasehold project comprises 173 apartments in four high-rise blocks and a row of 13 conservation terraced houses, similar to its City lights project in Lavender. The Wharf Residence is scheduled to receive its TOP by September.

When units were first sold at The Wharf Residence in 3Q2008,prices ranged from $1,429 to $1,708 psf, according to caveats lodged with URA Realis. When it was re-launched in May 2009, units were snapped up at prices ranging from $1,300 to $1,600 psf, according to CapitaLand, in a press release at that time.

The condo is close to fully sold, with less than five penthouses left on the market, according to property agents. Some owners have already listed units for rent on propertyguru. com.sg, with asking rents of about $6,000 a month for a two bedroom unit. The project comprises two- to four-bedroom apartments and penthouses,with sizes from 1,033 to 5,339 sq ft. The 13 conservation terraced houses are fully sold.

The Wharf Residence’s location near Robertson Quay, Mohamed Sultan and the CBD area makes it attractive to owner-occupiers and investors, according to Doris Ong, senior vice-president of ERA Realty Network, the marketing agent for the project when it was launched. Even Ong herself purchased a two-bedroom apartment at the development. “The conservation terraced houses give the condo a classic, rustic feel, which makes it stand out,” she says.

There were three recent sub-sales at The Wharf Residence towards end-July, according to caveats lodged with URA Realis. One was for a 2,207 sq ft, four-bedroom unit on the 19th floor that changed hands for $3.95 million ($1,790 psf). The unit was first transacted at $3.24 million ($1,469 psf) in November 2009, hence there was a 22% price appreciation.

Another unit, a 1,410 sq ft, three-bedroom apartment on the seventh floor, was transacted at $2.34 million ($1,660 psf),marking a price increase of 39% over its original sale price of $1.68 million ($1,191 psf). The third transaction was for a 1,033 sq ft, two-bedroom apartment on the fourth floor that changed hands for $1.52 million ($1,471 psf). The unit was first sold in June 2009 for $1 million ($968 psf), translating into a price increase of 52%.

Agents say the rash of sub-sales at The Wharf Residence recently is due to the fact that the project is about to obtain TOP, as this usually attracts both owner- occupiers and potential tenants. The spike in deals could also be due to the fact that sub-sale prices achieved at the project are attractive relative to those at other condos in the Robertson Quay neighbourhood, which have been in the $1,800 to $2,200 psf range in recent months. For instance, at CapitaLand and Hwa Hong Corp’s 545-unit freehold condo, River Gate, the most recent transaction was for a 1,776 sq ft unit on the 20th floor that changed hands for $3.9 million ($2,196 psf) last month. Meanwhile, at the 302-unit freehold Martin Place Residences, which was completed last year, a 1,722 sq ft unit was sold for $3.45 million ($2,003 psf) in July. Even Watermark @ Robertson Quay, which was completed four years ago, saw an 893 sq ft unit change hands for more than $1.6 million ($1,800 psf) in June.

The latest project to be rolled out in the area is Up @ Robertson Quay, a mixed-use development comprising a 70-unit residential block, a hotel and F&B and retail outlets. The project overlooks the picturesque Singapore River. Selected units feature loft-style living with a ceiling height of 7.2m. Asking prices for the 463 sq ft, one bedroom units start from $1.15 million. Of the 20 units released as at end-June, 15 have been sold, with the latest median price achieved being $2,228 psf.