Investors are turning their attention again
to developments in District 4, especially the Telok Blangah and Keppel Bay
neighborhoods. With the construction of the 1,040-unit The Interlace at an
advanced stage, buying interest has also picked up. Developed by a
CapitaLand-led consortium and designed by world-class architect Ole Scheeren,
the project is a redevelopment of the former Gillman Heights,
a privatized HUDC estate in Telok Blangah. The project is pitched at the mid-
to upper-end of the condominium market, and contains a mix of two- to
four-bedroom apartments and penthouses. The 99-year leasehold condo is
scheduled for completion sometime next year.
Only mainly large units are left for sale
at The Interlace, according to David Neubronner, head of residential project
sales at Jones Lang LaSalle (JLL), and the developer is pricing them at an
average of $1,500psf. As at end-October, 737 units or 70,9% of the units have
been sold by the developer, with the latest median price achieved at $1,294psf.
Meanwhile, those who bought units when the
project was launched in late-2009/early 2010 at prices from $900 to $1,000psf
are offloading them on the secondary market as it approaches completion. Sub-sale
prices achieved over the last two months have ranged from $1,096to $1,353psf,
according to caveats lodged in October and November. For instance, a 1,464sqft,
three-bedroom unit on the seventh floor was sold in a sub-sale for $1.98
million ($1,353psf). according to a caveat lodged with URA Realis in November.
The original owner purchased it from the developer in April 2010 for $1.5
million ($1,024psf), thus realizing a capital appreciation of 32%.
Meanwhile, a 1,550sqft, three-bedroom unit
on the eighth floor in another block recently changed hands in a sub-sale for
$1.89 million ($1,218psf). The seller purchased it for just $1,003psf two years
ago, thus enjoying a capital appreciation of 21.4%. Owners who bought their
units two years ago are now putting them on the secondary market with price
tags of $1,300 to $1,400psf, says Neubronner. At such prices, they still get a
capital upside of 20% to 30%, he estimates.
However, for those who plan to hold on to
their units at The Interlace, Neubronner reckons that, based on an estimated
rental rate of $4psf per month, they are likely to achieve rental yields of
about 5%, relative to the more recent buyers where the yields for their units
will likely be 3% to 4%.
Meanwhile, at the 969-unit Caribbean at Keppel Bay,
a handful of units have been sold in November at prices ranging from $1,561 to
$1,735psf based on caveats lodged to date. The 99-year leasehold condo project
was completed in 2004.
The most recent caveat registered with URA
Realis was for the sale of an 893sqft, two-bedroom unit on the sixth floor of
one of the blocks for $1.55 million ($1,735psf). The previous owner paid just
$671,175 ($751psf) for the unit seven year ago, hence seeing its price increase
by 2.3 times over that period. 
Elsewhere at Caribbean at Keppel Bay,
a 1,227sqft, three-bedroom unit on the eighth floor of another tower recently changed
hands for $1.86 million ($1,516psf). Three years ago, the same unit was sold
for $1.73 million ($1,410psf), according to a caveat lodged with URA Realis.
Caribbean at Keppel Bay
is popular with expatriate tenants and investors, with rental rates hovering
from $5 to $6psf per month, according to JLL's Neubronner. This means, based on
today's selling prices, the gross rental yield is likely to be compressed to 3%
to 3.5% per annum.
Meanwhile, also in the Telok Blangah
neighborhood, Bukit Sembawang Estates has substantially sold its freehold
Skyline Residences, which is still under construction. To date, around 80% of
the 283 units at the high-end condo project have been sold at an average price
of $2,000psf. The last recorded transaction captured by URA Realis was in
August - a 1,346sqft, three-bedroom unit on the 22nd level was sold for $2.82
million, or $2,096psf. "Skyline Residences stands out for its freehold
status and hence it commands a premium," says Neubronner.
Source: THEEDGE SINGAPORE
The wife and I first visited The Interlace's sales gallery around this time of the year back in 2009, when the average price for this project was around $1,000psf. We were not particularly impressed by the furnishing (homogenous-tile flooring for a supposedly upper-end project) and the fully-enclosed bathroom (no ventilation). But looking at the current median price of about $1,300psf, what a difference 3 years make!
Click on links below to read our review of The Interlace:
http://sgproptalk.blogspot.sg/2010/04/interlace-showflat-review.html
http://sgproptalk.blogspot.sg/2009/12/interlace-1st-preview_1348.html
Click on link below to read our previous review of Skyline Residences:
http://sgproptalk.blogspot.sg/2011/07/skyline-residences-review.html
