New Reporter
20-12-23, 14:32
Sky Vue vs. Sky Habitat: Why one condo has seen greater price appreciation
By Elizabeth Choong
December 19, 2023
Sky Vue and Sky Habitat are located beside each other along Bishan Street 15. Additionally, both condos are 99-year leasehold developments that were developed by CapitaLand. Sky Vue obtained its temporary occupation permit (TOP) in 2016, making it newer than Sky Habitat by a year. Due to numerous similarities, most would assume that the two developments have similar average prices. Furthermore, there are no other condos within a 500m radius.
Contrary to expectations, the current average price of Sky Vue, on a psf basis, is significantly higher than Sky Habitat. In fact, Sky Vue recently achieved a new high of $2,174 psf. This article will examine the possible reasons for this phenomenon, especially considering that Sky Habitat was designed by the world-renowned architect Moshe Safdie. The unique step-pyramid architecture of Sky Habitat makes it a landmark in the Bishan neighbourhood. Furthermore, Sky Habitat boasts three sky bridges with common facilities, including sky gardens, a gym, and lounges. The link bridge on the 38th storey features a lap pool with a breathtaking view. In contrast, the two 37-storey towers of Sky Vue have a more conventional design.
Sky Vue and Sky Habitat are well-located condos with many similarities
Both developments are well-located in the popular neighbourhood of Bishan and within walking distance of the dual-line Bishan MRT Station. Other nearby amenities include Bishan Stadium, Sports Centre and Swimming Complex, Kallang River, Junction 8, Bishan Bus Interchange, and Bishan Public Library. The developments also have several reputable schools within a 1km radius, namely, Catholic High School (Primary and Secondary), Kuo Chuan Presbyterian School (Primary and Secondary), and Raffles Institution (Secondary).
Significant price difference despite many similarities
The current average price for Sky Vue ($1,980 psf) is $250 psf higher than Sky Habitat ($1,730 psf). Furthermore, the current average price for Sky Habitat is lower than the overall average price of $1,786 psf for leasehold condos in Bishan.
Since 2013, the average price for Sky Vue has grown by 38%, which is significantly higher than the growth of 14% for Sky Habitat but on par with the 40% growth for leasehold condos in Bishan.
Sky Vue appears to be more popular with buyers, as indicated by the 121 sales transactions for the development from 2021 to this year, compared to the 70 sales transactions for Sky Habitat. This is noteworthy, considering the higher average price for Sky Vue.
Sky Vue's stronger performance in the resale market could have contributed to its popularity among buyers, thereby boosting its overall average price.
Sky Habitat has two unprofitable transactions this year while Sky Vue has none
Based on sales transactions for the past 36 months, Sky Habitat has had 11 unprofitable transactions, while Sky Vue has had none. Out of these 11 unprofitable transactions, two of them took place this year. Both units were purchased in 2012 or 2013 for prices exceeding $1,600 psf and were subsequently sold for approximately $1,500 psf.
This year, there were 31 profitable transactions for Sky Vue, almost double the 16 profitable transactions for Sky Habitat. Profits for Sky Vue ranged from $150,000 to $889,600, while profits for Sky Habitat ranged from $55,450 to $958,120.
It is notable that all the top three profitable transactions for both condos are for larger units with three or four bedrooms. In contrast, both unprofitable transactions for Sky Vue are for smaller units with only one or two bedrooms. This could be because Bishan is a much sought-after neighbourhood for families due to its proximity to numerous popular schools. Families typically require more space, hence the stronger demand for larger units.
Sky Habitat was relaunched at lower prices
When Sky Habitat was launched in 2012, an average price of $1,604 psf was achieved for the new units. The average price then declined to $1,383 psf in 2014 before rebounding to $1,531 psf in 2015. It is noteworthy that the average new sale price in 2015 was $73 psf lower than the initial launch price in 2012. This occurred because the developer relaunched Sky Habitat at lower prices after 2013 when the Additional Buyer’s Stamp Duty rate was increased, the loan-to-value ratio was lowered, and the total debt servicing ratio was introduced.
The average price for new units in Sky Vue has been on a steady upward trajectory, with an initial launch price of $1,432 psf in 2013, growing by 14% to $1,636 psf in 2016. In contrast, the average price for new units in Sky Habitat inched down by 5% from 2012 to 2015.
The sellers from the two unprofitable transactions for Sky Habitat bought the units before the relaunch. The higher purchase prices could explain the losses suffered by the sellers.
Unit mix of development affects average psf
The psf price for a small condo unit is generally higher than that of its larger counterparts to keep the total price for large units at a palatable level for buyers. Consequently, the unit mix of a condo can affect its overall average price on a per square foot basis.
About 26% of the units in Sky Vue are above 1,000 sq ft, significantly fewer than Sky Habitat (77%). This would exert downward pressure on the overall average per square foot price for Sky Habitat. The current average price for small units (1,000 sq ft and below) in Sky Habitat is $1,782 psf, while larger units (above 1,000 sq ft) are fetching $1,706 psf.
The distinct unit mix in both developments implies that they would appeal to different types of buyers. Sky Vue, with its abundance of smaller units, is expected to attract investors or young couples without children. Conversely, Sky Habitat, featuring more spacious units, is anticipated to appeal to owner-occupiers with children and multi-generational families.
More at: https://www.edgeprop.sg/property-news/sky-vue-vs-sky-habitat-why-one-condo-has-seen-greater-price-appreciation
By Elizabeth Choong
December 19, 2023
Sky Vue and Sky Habitat are located beside each other along Bishan Street 15. Additionally, both condos are 99-year leasehold developments that were developed by CapitaLand. Sky Vue obtained its temporary occupation permit (TOP) in 2016, making it newer than Sky Habitat by a year. Due to numerous similarities, most would assume that the two developments have similar average prices. Furthermore, there are no other condos within a 500m radius.
Contrary to expectations, the current average price of Sky Vue, on a psf basis, is significantly higher than Sky Habitat. In fact, Sky Vue recently achieved a new high of $2,174 psf. This article will examine the possible reasons for this phenomenon, especially considering that Sky Habitat was designed by the world-renowned architect Moshe Safdie. The unique step-pyramid architecture of Sky Habitat makes it a landmark in the Bishan neighbourhood. Furthermore, Sky Habitat boasts three sky bridges with common facilities, including sky gardens, a gym, and lounges. The link bridge on the 38th storey features a lap pool with a breathtaking view. In contrast, the two 37-storey towers of Sky Vue have a more conventional design.
Sky Vue and Sky Habitat are well-located condos with many similarities
Both developments are well-located in the popular neighbourhood of Bishan and within walking distance of the dual-line Bishan MRT Station. Other nearby amenities include Bishan Stadium, Sports Centre and Swimming Complex, Kallang River, Junction 8, Bishan Bus Interchange, and Bishan Public Library. The developments also have several reputable schools within a 1km radius, namely, Catholic High School (Primary and Secondary), Kuo Chuan Presbyterian School (Primary and Secondary), and Raffles Institution (Secondary).
Significant price difference despite many similarities
The current average price for Sky Vue ($1,980 psf) is $250 psf higher than Sky Habitat ($1,730 psf). Furthermore, the current average price for Sky Habitat is lower than the overall average price of $1,786 psf for leasehold condos in Bishan.
Since 2013, the average price for Sky Vue has grown by 38%, which is significantly higher than the growth of 14% for Sky Habitat but on par with the 40% growth for leasehold condos in Bishan.
Sky Vue appears to be more popular with buyers, as indicated by the 121 sales transactions for the development from 2021 to this year, compared to the 70 sales transactions for Sky Habitat. This is noteworthy, considering the higher average price for Sky Vue.
Sky Vue's stronger performance in the resale market could have contributed to its popularity among buyers, thereby boosting its overall average price.
Sky Habitat has two unprofitable transactions this year while Sky Vue has none
Based on sales transactions for the past 36 months, Sky Habitat has had 11 unprofitable transactions, while Sky Vue has had none. Out of these 11 unprofitable transactions, two of them took place this year. Both units were purchased in 2012 or 2013 for prices exceeding $1,600 psf and were subsequently sold for approximately $1,500 psf.
This year, there were 31 profitable transactions for Sky Vue, almost double the 16 profitable transactions for Sky Habitat. Profits for Sky Vue ranged from $150,000 to $889,600, while profits for Sky Habitat ranged from $55,450 to $958,120.
It is notable that all the top three profitable transactions for both condos are for larger units with three or four bedrooms. In contrast, both unprofitable transactions for Sky Vue are for smaller units with only one or two bedrooms. This could be because Bishan is a much sought-after neighbourhood for families due to its proximity to numerous popular schools. Families typically require more space, hence the stronger demand for larger units.
Sky Habitat was relaunched at lower prices
When Sky Habitat was launched in 2012, an average price of $1,604 psf was achieved for the new units. The average price then declined to $1,383 psf in 2014 before rebounding to $1,531 psf in 2015. It is noteworthy that the average new sale price in 2015 was $73 psf lower than the initial launch price in 2012. This occurred because the developer relaunched Sky Habitat at lower prices after 2013 when the Additional Buyer’s Stamp Duty rate was increased, the loan-to-value ratio was lowered, and the total debt servicing ratio was introduced.
The average price for new units in Sky Vue has been on a steady upward trajectory, with an initial launch price of $1,432 psf in 2013, growing by 14% to $1,636 psf in 2016. In contrast, the average price for new units in Sky Habitat inched down by 5% from 2012 to 2015.
The sellers from the two unprofitable transactions for Sky Habitat bought the units before the relaunch. The higher purchase prices could explain the losses suffered by the sellers.
Unit mix of development affects average psf
The psf price for a small condo unit is generally higher than that of its larger counterparts to keep the total price for large units at a palatable level for buyers. Consequently, the unit mix of a condo can affect its overall average price on a per square foot basis.
About 26% of the units in Sky Vue are above 1,000 sq ft, significantly fewer than Sky Habitat (77%). This would exert downward pressure on the overall average per square foot price for Sky Habitat. The current average price for small units (1,000 sq ft and below) in Sky Habitat is $1,782 psf, while larger units (above 1,000 sq ft) are fetching $1,706 psf.
The distinct unit mix in both developments implies that they would appeal to different types of buyers. Sky Vue, with its abundance of smaller units, is expected to attract investors or young couples without children. Conversely, Sky Habitat, featuring more spacious units, is anticipated to appeal to owner-occupiers with children and multi-generational families.
More at: https://www.edgeprop.sg/property-news/sky-vue-vs-sky-habitat-why-one-condo-has-seen-greater-price-appreciation