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Sleepy waterfront estate set to transform

New condo launch seen as catalyst to development of Kampong Bugis area

Published on May 3, 2014 1:23 AM

By Melissa Tan


A TRANSFORMATION is under way in sleepy Kampong Bugis, a piece of waterfront land next to Kallang River and once home to the Kallang Gas Works.

The upcoming launch of a new condominium could provide the catalyst and kickstart the district's development into a high-density waterfront residential estate, analysts say.

The freehold 212-unit Kallang Riverside condominium, which sits on the site of the old Singapore Johore Factories building at 51 Kampong Bugis, is being developed by a company called The Singapore-Johore Express.

Its launch date has not been announced but it is expected to go on sale at around $1,500 to $1,700 per sq ft (psf) as the district is still a relatively untested market for private homes.

The project's neighbours are few and far between and resale activity in what developments there are has been fairly muted.

However, analysts said sales could pick up as the area develops further.

The area's city fringe location means there will continue to be strong demand for homes, said PropNex chief Mohamed Ismail, who added that the rental yields will likely remain "relatively stable" even if there was an ample supply of homes.

SLP International research head Nicholas Mak noted that investors "will need to be more patient to wait for its full potential to be realised".

One project in the vicinity is Wing Tai's freehold The Riverine By The Park in Kallang Road, a 96-unit apartment development completed in late 2010.

Resale prices have ranged from $1,447 psf for a 1,776 sq ft home in December 2010 to the most recent deal - a 1,776 sq ft unit that went for $3.2 million or $1,802 psf in June last year, according to caveats lodged with the Urban Redevelopment Authority (URA).

Rental leases that began in March ranged from an estimated $3.40 to $4.20 psf per month.

Across the Rochor River, there is the 99-year leasehold Southbank in North Bridge Road with 197 homes.

The mixed development by UOL was completed in 2010 and includes so-called Soho (small office, home office) commercial units.

There has been only one resale transaction at Southbank this year, according to caveats - the sale of a 958 sq ft unit for nearly $1.6 million, or $1,634 psf, in March.

The project also posted only three resales last year, at prices between $1,639 psf for a 958 sq ft unit and $1,940 psf for a 614 sq ft unit.

Rents for leases that started in March this year were about $5.30 to $5.40 psf a month.

CapitaLand's 600-unit Citylights condo completed in Jellicoe Road in 2007 is another private residential project not too far from Kampong Bugis

The average resale price at the 99-year leasehold project was $1,629 psf over the past six months, according to caveats lodged.

Its most recent resale was just last month, at $1.7 million for a 1,356 sq ft unit or $1,276 psf. A unit of 689 sq ft was resold for $1,684 psf in March.

Kampong Bugis, bounded by Kallang Road and Crawford Street, was earmarked under the URA's masterplan last year to be turned into a residential and lifestyle district.

About 18ha in Kampong Bugis will be developed after 2016 and could yield about 4,000 private homes as well as commercial developments and even a school.

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