http://www.straitstimes.com/archive/...-road-20130511
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Condo launches revitalise quaint St Michael's Road
Analysts upbeat on outlook due to its city fringe locale which is lifting prices
Published on May 11, 2013
By Melissa Tan
THE small, predominantly private residential enclave around St Michael's Road, near Bendeemer, is undergoing a rejuvenation.
Described by some as quaint, the estate is just across Kallang River from the dilapidated former National Aerated Water factory along Serangoon Road, which used to churn out soft drinks such as Sinalco and Kickapoo Joy Juice from the 1950s to the early 1990s. The factory was at the centre of a legal tussle in 2011 between the descendants of its founders and now lies unused.
Despite this, a revitalisation of St Michael's Road has been sparked by recent new residential projects that will add about 470 homes in the next few years.
Analysts said prices have been gradually increasing owing to the area's city fringe location. They are upbeat on the area's outlook.
Average resale prices of 999-year and freehold homes reached $1,077 psf in January through to April this year, up from $983 psf last year.
The homes there generally cater to buyers looking for a no-frills investment property, said R'ST Research director Ong Kah Seng.
"The strong resale pricing here in 2012 reflected keen buyers' interest in the area, especially investor-occupiers who see that units in this vicinity are centrally located, have both strong leasing fundamentals and are suitable for family or individual living."
Developments in St Michael's Road tend to be on the small side.
Landmark projects there include the freehold 131-unit One St Michael's, the freehold 132-unit The Aberdeen and the 212-unit Beacon Heights which is on a 999-year leasehold.
There has been only one resale at One St Michael's so far this year, at $1,261 psf. Resale prices at the project ranged from $1,064 to $1,228 psf last year.
At The Aberdeen, resale prices ranged from $1,044 to $1,158 psf this year, while no units have been resold at Beacon Heights which received its Temporary Occupation Permit (TOP) last year.
Analysts said the area has decent rental potential thanks to its city fringe location.
Rents at One St Michael's in the first quarter of this year were $3.50 to $4 psf per month. Units there are mostly three-bedders.
As for The Aberdeen, which is also predominantly made up of three-bedders, rents were around $2.85 psf per month in the first three months of the year.
The most recent launch in the area was the 999-year leasehold RiverBay, which went on the market last month. The 147-unit project by Allgreen Properties was launched at between $1,200 and $1,300 psf. RiverBay is expected to get its TOP in September 2018.
Other launches in the past two years include the 102-unit Riviera 38 - on a 999-year lease, and selling for about $1,144 psf on average - and the 180-unit Regent Residences where homes are going for around $1,458 psf on average. Both were launched in October 2011. Also, the freehold 41-unit Riverside Melodies is expected to get its TOP this year.
Mr Ong said the gradual upward price potential of the area will suit investors who prefer a "safe, sustainable platform" compared with properties in places set for radical overhaul which may see price spikes in the short term and buyer resistance to high prices thereafter.
However, SLP International research head Nicholas Mak noted that it is not very close to an MRT station - the nearest, which is Potong Pasir, is around 1.5 km away.
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