Room for good buys in completed mass market condos

April 22, 2007

Room for good buys in completed mass market condos

Mass market condominiums are back in the news with near-sellout launches in areas such as Tanah Merah and Buona Vista. But are they good investments?

Fiona Chan scours the market for unsold units in completed projects and, using published sales and rental figures, tells you what they are potentially worth

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Sanctuary Green

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Hillview Regency

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Edelweiss Park

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Le Crescendo

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Dunman View

Kovan Melody (Kovan Road)

Developer: Wing Tai

Tenure: 99-year leasehold from January 2004

When it obtained temporary occupation permit (TOP): Last year

How big: 778 units

How many units left: Over 30 in the current phase. Only three-bedroom units, some with family rooms, are left.

Price gains: Prices now start from $710,000 for a three-bedroom apartment, or $600 per sq ft (psf). This is up from $520 psf when the first phase was launched in 2004.

Good buy? The brand-new project is conveniently located right next to Kovan MRT Station. Prices of unsold units have been increasing ever since the project was launched, with one property agent claiming that prices rise almost every week.

Asking rentals are now about $3,000 a month, giving an annual rental yield of 4.8 per cent, says Savills Singapore. This is compared to the typical residential yield of around 3 per cent in Singapore.

Hillview Regency (Bukit Batok)

Developer: Far East Organization

Tenure: 99-year leasehold from June 2000

When it obtained TOP: 2005

How big: 572 units

How many units left: 10 or so, all of which are three-bedroom apartments.

Price gains: About 30 per cent. It was first launched at $460 psf on average in 2002. Now units are going for $680,000 onwards, or about $600 psf.

Good buy? The project is sited on the edge of the established Hillview residential area, well-known as a quiet district dotted with private properties.

A three-bedroom unit has an asking rental of about $3,000 a month, giving an annual yield of more than 5 per cent.

Edelweiss Park (Flora Road)

Developer: Tripartite (venture between Hong Leong Group, City Developments and TID)

Tenure: Freehold

When it obtained TOP: Last year

How big: 517 units

How many units left: Fewer than 50

Price gains: None. In fact, prices have dropped to about $400 psf now, from $513 psf when the project was first launched in 2002, according to Savills.

A three-bedroom unit now goes for $540,000 upwards.

Good buy? Part of a series of Tripartite condos in the area launched in alphabetical order (starting with Azalea Park and Ballota Park), Edelweiss Park faces competition from these other projects as well as Ferraria Park, the newest addition to the series.

Ferraria Park's 472 units are priced at $530 psf on average.

Asking rentals are about $2,600 a month for a three-bedroom apartment, which gives an annual rental yield of between 5 per cent and 6 per cent.

Le Crescendo (Paya Lebar Road)

Developer: GuocoLand

Tenure: Freehold

When it obtained TOP: Last year

How big: 228 units

How many units left: 76. A wide range of units are still available, including two-bedroom, three-bedroom, three-bedroom plus study, four-bedroom and penthouse apartments.

Price gains: Up at least 6 per cent in four years. A three-bedroom unit is now going for about $890,000, or $650 to $700 psf on average, according to GuocoLand. This is up from $610 psf when it was launched in June 2002. Average price of units sold so far is about $635 psf, says GuocoLand.

Good buy? Although take-up was slow initially, demand is growing, says GuocoLand. The condo now stands out against the nearby Ubi and Paya Lebar industrial estates but is set to benefit from their prospective expansion, as well as the upcoming MacPherson MRT Station on the Circle Line.

With current asking rentals from $2,600 per month for a three-bedroom apartment, the rental yield is about 3.5 per cent.

Sanctuary Green (Tanjong Rhu)

Developer: GuocoLand

Tenure: 99-year leasehold from March 1997

When it obtained TOP: 2004

How big: 522 units

How many units left: 14. There are two-bedroom, three-bedroom and penthouse units available.

Price gain: Prices slipped after the project was launched in 2000 at about $700 psf on average. They fell below $600 psf during the downturn but have since bounced back to cross $650 psf this year, with one small unit going for $775 psf.

Good buy? Offers waterfront living. But several condos are coming up next to it as well as nearby in Meyer and Amber roads. Values and rentals of homes in the expat-friendly district are rising quickly. At asking rentals of $4,000 a month, yields can go up to 6.3 per cent, says Savills.

Dunman View (Haig Road)

Developer: Far East Organization

Tenure: 99-year leasehold from October 1997

When it obtained TOP: 2005

How big: 148 units

How many units left: 'Only a few', says the sales office. There are three-bedroom units on low and high floors still available.

Price gains: Slightly up. Launched at $650,000 to $780,860 per unit, or about $720 psf on average. Now going for about $800,000 for the three-bedroom units ($680 psf) on low floors and $900,000 for those on higher floors ($750 psf).

Good buy? It is set to catch the spillover from estates in the area that have gone for collective sales. Some owners are asking for $3,300 per month for a three-bedroom, giving a yield of under 5 per cent. But one high-floor three-bedroom unit was recently rented out at $7,000 a month.

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