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'Good value' Loyang draws home buyers

Published on Jul 30, 2012

By Amanda Tan


DESPITE being in the far-flung area of Loyang and not close to an MRT station or other amenities, home buyers are turning to the area for its value for money.

New launches around Flora Drive, including Palm Isles and Parc Olympia, for instance, are averaging between $820 per sq ft (psf) and $880 psf.

That is markedly cheaper than homes in nearby Pasir Ris, which has more amenities, experts said. Pasir Ris' Ripple Bay and The Palette - both also 99-year leasehold projects - were both sold at an average of $900 psf.

Koh Brothers' Parc Olympia has moved over 180 out of 234 units released since its launch a fortnight ago. One-bedders at the 486-unit condominium start at $440,000.

Frasers Centrepoint's Palm Isles is around 70 per cent sold; one-bedders start from $530,000.

The 99-year leasehold Hedges Park, developed by Tripartite Developers - a joint venture between Hong Leong Holdings, City Developments and TID, is more than 75 per cent sold, with an average selling price of $880 psf.

A 1,001 sq ft three-bedder, for example, is going for $840,000.

The Gale is fully sold, after hitting the market in 2009.

In all, more than 2,570 new units are set to be built in the Flora Drive area in the next few years, bringing the total tally of homes there to more than 5,000, said Mr Lee Sze Teck, Dennis Wee Group's senior manager of research and consultancy.

He said the area is dominated by Tripartite Developers, which has launched projects every few years from 1993, starting with Azalea Park.

Besides lower launch prices, resale prices in the area also appear to be more attractive than those of Pasir Ris and Tampines, Mr Lee said.

The freehold Azalea Park, on Flora Drive, achieved a median resale price of $704 psf, while freehold Ris Grandeur in Pasir Ris fetched $898 psf as of this year's second quarter.

In Tampines, 99-year leasehold The Tropica returned a median resale price of $832 psf.

But Flora Drive projects lose out in terms of rental yields, which hover from 3.8 per cent to 4.1 per cent.

Mr Ooi Yi Tung, director of Square Foot Research, cited median monthly rents of $2.80 psf, going up to $3.20 psf for Ferraria Park, the latest project completed there. "This is slightly lower than the other nearby areas... because the condos are generally older, and face competition from others in the cluster. There is also no MRT station near Flora Drive."

Still, rental demand is buoyed by the nearby airport, Tampines Regional Centre, Changi Business Park and Japanese School, consultants said.

Ms Betsy Chng, head of sales and marketing at Hong Leong Holdings, said that Flora Drive's appeal is in being a "quiet estate that allows residents to be away from the hustle and bustle of the city, while still being conveniently connected to comforts of city living".

Ms Emily Chan, 42, a property investor, recently bought a two-bedder at Parc Olympia for $567,000. "It is very cheap, and I see potential in the area... it can serve those who work at the airport and students at the Japanese School," she said.

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