Prime deals in Ardmore II, The Orchard Residences

A 1,808 sq ft, three-bedroom unit on the 31st floor at The Orchard Residences changed hands at $5.99 million or $3,312 psf

| BY AMY TAN |THEEDGE SINGAPORE | JANUARY 21, 2013

It is usually a lull period during the year end holidays, but last month was an exception. Developers sold 1,410 units, a 30% m-o-m increase from November. The improved sales tally demonstrates the continued demand and strength in the private residential market, according to Colliers International’s director of research & advisory, Chia Siew Chuin.

There was a pick-up in interest in the Core Central Region (CCR) in 4Q2012, with activity concentrated in the secondary market. According to David Neubronner, national director and head of Singapore residential project sales for Jones Lang LaSalle (JLL), the highend market usually picks up during the yearend holidays. “Locals may be  away on holiday, but foreign- ers come to Singapore for their vacation, and some may decide that it is a good time to buy property,” he says. “In fact, in the month of December, one out of three foreigners shopping for a property in the high-end market was Indonesian.”

Two transactions were captured by URA Realis recently at the 175-unit The Orchard Residences, a luxury condominium sitting on top of ION Orchard shopping mall. The 99-year leasehold luxury project developed jointly by CapitaLand and Sun Hung Kai Properties was completed in 2010. One of the recent transactions there was for a 1,808 sq ft unit on the 34th floor that was sold for $6.18 million or $3,417 psf. The other was for a similar sized unit on the 31st floor, which sold for $5.99 million or $3,312 psf. While only a handful of units changed hands in The Orchard Residences last year, the transactions have been above $4,000 psf, according to Neubronner. The recent psf prices achieved at the project are considered “good buys”, as the units are on high floors, which typically command higher prices.

Meanwhile, at Ardmore II, a 2,024 sq ft, four-bedroom unit on the 20th floor of one of the twin 36-storey luxury towers, changed hands at $5.75 million or $2,841 psf. The pre- vious transaction was a sub-sale when the unit was sold for $4.86 million ($2,399 psf) in 2009. This translates to a price gain of 18.42% for the owner. The freehold Ardmore II, located in the prestigious Ardmore Park neighbourhood, has a total of 118 units, all of which are 2,024 sq ft, four-bedroom units of identical layouts. The project by Wheelock Properties was completed in 2010 and is fully sold.
The price of $2,842 psf achieved for the unit at Ardmore II is considered attractive when compared with the asking prices of other developments in the Ardmore Park area, adds Neubronner. At Wheelock Properties’ 84-unit Ardmore 3, which are exclusively 1,800 sq ft, three-bedroom units, prices start from around $3,000 psf. Meanwhile, units at the 330-unit Ardmore Park, which was also developed by Wheelock Properties and completed 12 years ago, have seen recent transactions of more than $3,000 psf. Sculptura Ardmore by SC Global Developments contains 35 luxury apartments starting from 2,800 sq ft, with units priced around $5,000 psf.

In the Cairnhill area, CapitaLand’s 165-unit Urban Suites is scheduled for completion this year. The project is fully sold and several subsales have also been recorded there. Most recently, a 1,044 sq ft, two bedroom unit on the sixth  floor of one of the three 20-storey towers changed hands in a subsale for $3.1 million or $2,969 psf. The previous owner had paid $2.63 million ($2,522 psf) for the unit in January 2010 when the project previewed. Another sub-sale at Urban Suites was for a 1,572 sq ft, three-bedroom unit on the ninth floor of the same block that was sold for $4.56 million ($2,901 psf).

At Gallop Green, a low-rise, 53-unit project located in the exclusive Woollerton Park area, two units were sold in December at an average price of $1,980 psf. This is considered the highest unit price achieved in the project to date. Since it was completed a decade ago, listed corporation Straits Trading Co had been holding Gallop Green as an investment property, and only started releasing units for sale since 2009. The project has 40 apartments and 13 townhouses. The two recent transactions were for a 3,272 sq ft, four bedroom unit that was sold for $6.47 million, and a slightly bigger four bedroom unit of 3,714 sq ft that went for $7.35 million.

Buying at the high-end segment could dry up again with the new property cooling meaures introduced on Jan 11. Additional buyer’s stamp duty (ABSD) for foreigners buying residential property has now been raised to 15%, while permanent residents are now hit by a 5% ABSD on their first property, and 10% on their second as well as third properties. Singaporean investors are not spared either —they are subject to a 7% and 10% ABSD respectively, on their second and third property purchases.

Since the introduction of the latest measures, sentiment has turned cautious and there have been fewer enquiries about residential properties, say property agents. “In times of uncertainty, people will hold back on their purchases,”  says a property consultant. “Sellers will hold on to their properties because if they sell their current properties, they will have to stump up more cash for their subsequent purchase.”

On the other hand, buyers will be looking for sellers who are willing to lower their asking prices to compensate for the additional stamp duty incurred under the new rulings, he adds. “So, we could be at a stalemate for a while.”