Unit at The Sea View fetches $1,900 psf

By Timothy Tay
/ EdgeProp

March 11, 2019

The URA Realis caveats lodged for the week of Feb 19-26 have thrown up some interesting transactions, particularly of older condos in prime District 15.

One such transaction was at The Sea View, which was also the most profitable deal for Feb 19-26 (see Gains & Losses Table on EP15). This was for a 1,410 sq ft, three-bedroom unit on the 21st level of one of the 23-storey blocks in the condo project on Amber Road. It fetched $2.68 million ($1,900 psf).

The previous owner had purchased the unit when the project was first launched in 2005, and paid just $1.22 million ($867 psf), according to a caveat lodged then. Hence, the owner had seen the price of the property more than double over the past 14 years.

Another unit at The Sea View also changed hands in February: It was for a 1,647 sq ft, four-bedroom unit on the sixth floor of a neighbouring block that went for $3.05 million ($1,852 psf). The previous owner had purchased it in a resale for $2.8 million ($1,700 psf) in April 2011. Hence, the capital appreciation was just 8.9% over the eight-year holding period.

The 546-unit project was developed by Wheelock Properties and completed in 2008. When The Sea View was first launched in mid-2005, units were sold at an average of $773 psf, based on caveats of transactions from June to September 2005.

In the Amber Road neighbourhood today, new, freehold projects include the 92-unit boutique development, Nyon at 12 Amber Road, which features units priced in the $2,300 to $2,400 psf range, and was launched over the weekend of March 2-3. Another upcoming high-end condo in the vicinity is the redevelopment of the former Amber Park condo by City Developments Ltd.

“The private resale condos in the Amber Road and Meyer Road area in District 15 are likely beneficiaries of the stiff competition among expected new launches this year,” says Eugene Lim, key executive officer of ERA Realty. “There are usually some spillover effects from new launches which tend to draw attention to the area.”

Meanwhile at Hawaii Tower on Meyer Road, a 2,239 sq ft, three-bedroom unit on the sixth floor of one of the blocks changed hands for $2.7 million ($1,206 psf), based on a caveat lodged on Feb 21. The previous owner bought it in 1995 for $1.39 million ($621 psf). He had seen the property double in value over the past 24 years.

Completed in 1984, Hawaii Tower is a 135-unit private condo sitting on a sprawling freehold site of 192,340 sq ft. The condo had made a third collective sale attempt in 2010, with an asking price of $700 million. Owners at Hawaii Tower had made a fourth collective sale attempt in 2017, but it did not materialise.

The units at Hawaii Tower are large, with typical units ranging from 2,230 to 2,250 sq ft. There are also six penthouses of 4,390 sq ft each. Owners enjoy views of either the quiet bungalow neighbourhood on one side or unobstructed views of the sea and Marina Bay on the other.

In the Meyer Road neighbourhood, several condos were successfully sold en bloc in the area in 2017. They were the former Albracca, which was launched recently as One Meyer by Sustained Land. The 66-unit new condo features compact two- and three-bedroom units of 614 to 1,033 sq ft with indicative prices in the $2,500 to $2,700 psf range.

Meanwhile, UOL Group and Kheng Leong Co, which purchased the former Nanak Mansion en bloc, are planning to launch the new luxury, 56-unit project called MeyerHouse, sometime in 2Q2019. The project will feature large units, with three-bedroom apartments from 1,850 sq ft; four-bedroom apartments above 3,000 sq ft; and penthouses from 5,200 sq ft. Prices have yet to be disclosed. However, UOL has indicated that it will be positioned as a luxury project, equivalent to its Nassim Park Residences.

“Buyers today have to consider factors like the relatively higher selling prices at new projects - a consequence of competitive land bids in 2017 and 2018,” observes ERA’s Lim. “Some property hunters have turned to older properties in the area because the older developments have larger unit sizes. As they are buying these units at a lower price psf, and as the units are intended for their own stay, they have also budgeted in renovation costs."