No longer new kids on block, but still on A-list

May 13, 2007

No longer new kids on block, but still on A-list

Top condos of times past that are still popular tend to be those in prime spots and which are well-maintained

By Joyce Teo, Property Correspondent


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LOCATION IS KEY TO A CONDO'S VALUATION, as shown by premium rentals that Ardmore Park (above) behind Orchard Road, Four Seasons Park in Cuscaden Walk and The Colonnade in Grange Road command.


http://img178.imageshack.us/img178/4...ntmnyfowo0.jpg
LOCATION IS KEY TO A CONDO'S VALUATION, as shown by premium rentals that Ardmore Park behind Orchard Road, Four Seasons Park (above) in Cuscaden Walk and The Colonnade in Grange Road command.


http://img112.imageshack.us/img112/6...ntmnycopl1.jpg
LOCATION IS KEY TO A CONDO'S VALUATION, as shown by premium rentals that Ardmore Park behind Orchard Road, Four Seasons Park in Cuscaden Walk and The Colonnade (above) in Grange Road command.


THEY were top of the heap a few years ago, the ever so hip and grand condominiums that Singaporeans and expats were keen to call home.

Any roll call would include The Colonnade, Paterson Edge, Four Seasons Park and Ardmore Park.

Go outside the Orchard Road area and you have The Bayshore, once coveted for its sea views before Costa Del Sol was plonked in front of it.

But even though many of them have fallen out of favour, a select few, mostly those in prime locations, have stood the test of time.

Singapore's first condominium, Beverly Mai, which was built in 1974, was sold en bloc in April last year for $238 million, or about $1,184 per sq ft (psf) of potential gross floor area. Its selling point was not nostalgia but its position in ever-so-prime Tomlinson Road.

Other such condos in coveted districts 9 and 10 would also have kept their value well, property consultants say.

A condo with unique design features and layout can command a rental premium but location is a prerequisite, says Chesterton International's head of research and consultancy, Mr Colin Tan. And if expats like the condo, its value will also stay buoyant, he added.

With time and changing trends, those unique features or frills that wowed buyers in days past tend to matter less and less when it comes to determining price, says Savills Singapore's director of marketing and business development, Mr Ku Swee Yong.

'If your condo's features are unique, they are usually very quickly copied anyway,' he says, pointing out that the key to good valuation is the upkeep of the place. 'Whether or not it has unique designs or features, a property's value will be sustained if it is well-maintained.'

Certainly, prime developments such as Four Seasons Park in Cuscaden Walk and Ardmore Park just behind Orchard Road are still very much in demand. Sales at Ardmore Park have been steady, with four recent transactions done at $7 million or more for a 2,885 sq ft unit. That translates to at least $2,426 psf.

And The Colonnade in Grange Road, which features a unique columnar structure designed by the late New York architect Paul Rudolph, has maintained its rental levels, largely because they are controlled by the developer and the building is well-maintained, says an agent.

Developer Pontiac Land has kept the 90-unit block, completed in 1987, for investment.

The project has very large units, ranging from 2,700 sq ft two-bedders to 12,700 sq ft penthouses, for lease. A two-bedder costs about $11,000 a month while a three-bedder costs between $16,000 and $16,500.

'It is the budget that drives what tenants can choose,' says Ms Kavita Borglin, an agent with Premiere Realty. But a unique building such as The Colonnade can help in attracting tenants, she adds.

Otherwise, the upkeep of an apartment is more important than whatever design the developer has graced - or inflicted - the exterior with.

Take Arcadia Gardens in Adam Road - its spacious 3,800 sq ft units can command $14,000 to $15,000 a month if renovated, but just $9,000 to $10,000 otherwise, says Ms Borglin.

She adds that potential tenants do not bother to view units in a development if they do not like the exterior.

Some estates get a chance at a second lease of life. The ageing Pandan Valley, for instance, which created a splash many years ago for its then-unique features such as maisonette units, full facilities and retail shops, has seen prices rise amid the collective sale fever.

Caveats lodged in March showed that two units were sold - one at $574 psf and the other at $612 psf. But a 2,239 sq ft unit was sold at a higher $750 psf or $1.68 million in February.

Four caveats lodged in May last year showed that sales for units ranging from 1,690 sq ft to 3,089 sq ft were done at just $474 psf to $518 psf.

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