Kovan Residences (D19, 99 years Leasehold, Duchess Development)

[2824]

It looks like with so many developments going to TOP in the next few years, the "feel" at Kovan will change. to me KR and KM will definitely benefit most as they are nearest (literally on top of the MRT).

I think there will also be more niche developments as more of the landed owners move out of the area as the area loses its "feel"

[fclim]

It looks like with so many developments going to TOP in the next few years, the "feel" at Kovan will change. to me KR and KM will definitely benefit most as they are nearest (literally on top of the MRT).

I think there will also be more niche developments as more of the landed owners move out of the area as the area loses its "feel"

Perhaps. Take a look at these latest transactions:

Transacted Price.JPG

A 4-bedder in 99 year LH KR was sold in Feb 10 for $1.41M (1,765 sqft). A few FreeHold Landed properties about the same size in terms of land (but bigger in terms of built up) were sold for less or at about the same price.

Can anyone explain this illogical situation? Landed owners desperate to get out of the area? How can a 99 year LH condo cost more than a FH Landed property?

[Condorich]

Easy, consider these

1. No MRT (Secret)
2. Newer versus older
3. Condo with facilities versus without
4. Landed is in poor condition
5. High maintence and cannot rent out versus the other
6. Desperate sellers
7. Bad neighbours
8. Lack of amenites and public transport
9. Next to power stations, rubbish center, graveyards or mortuaries.
10. Related sale from father to son etc.
11. Auction or fire sales
12. Lay long lay long sales.
13. Haunted hee hee

LH99 Sail, MBR etc cost more than most FH landed of the same size in different location... go figure why.

[moneyspinner]

Easy, consider these

1. No MRT (Secret)
2. Newer versus older
3. Condo with facilities versus without
4. Landed is in poor condition
5. High maintence and cannot rent out versus the other
6. Desperate sellers
7. Bad neighbours
8. Lack of amenites and public transport
9. Next to power stations, rubbish center, graveyards or mortuaries.
10. Related sale from father to son etc.
11. Auction or fire sales
12. Lay long lay long sales.
13. Haunted hee hee

LH99 Sail, MBR etc cost more than most FH landed of the same size in different location... go figure why.

Direct and simple. A matter of demand and supply!!!!!!!!!

[fclim]

Direct and simple. A matter of demand and supply!!!!!!!!!

So the perception that Freehold is better than Leasehold is not always true? Even for landed Freehold...

It is all about Location, Location and Location. And Good Location is the one that creates the demand and is always in short supply.

[moneyspinner]

So the perception that Freehold is better than Leasehold is not always true? Even for landed Freehold...

It is all about Location, Location and Location. And Good Location is the one that creates the demand and is always in short supply.

And the question is what is GOOD LOCATION? Good location for one property may not be good location for another depending on the perception and need of the buyer!

[Squall8888]

No need same size. A studio in MBR or Sail can easily buy one Semi-D. If same size, can buy the whole stretch of terrace house

Easy, consider these

1. No MRT (Secret)
2. Newer versus older
3. Condo with facilities versus without
4. Landed is in poor condition
5. High maintence and cannot rent out versus the other
6. Desperate sellers
7. Bad neighbours
8. Lack of amenites and public transport
9. Next to power stations, rubbish center, graveyards or mortuaries.
10. Related sale from father to son etc.
11. Auction or fire sales
12. Lay long lay long sales.
13. Haunted hee hee

LH99 Sail, MBR etc cost more than most FH landed of the same size in different location... go figure why.

[Squall8888]

But of course. Location is always king. Despite many years of debate, FH has never show that it is the main determinant factor. Rather, location is what differentiate the pricing.

Ask yourself this - FH condo in Yishun or LH99 in Orchard, which one costs more?

So the perception that Freehold is better than Leasehold is not always true? Even for landed Freehold...

It is all about Location, Location and Location. And Good Location is the one that creates the demand and is always in short supply.

[Squall8888]

As long as more people think that location is good, it is enough to drive up the prices. There are some factors, eg: IR, CBD, shopping centre, rental, accessibility, sea or even bay view. These are the usual factors.

And the question is what is GOOD LOCATION? Good location for one property may not be good location for another depending on the perception and need of the buyer!

[stanchan]

Well, not surprising. Property buying can be such an emotionally driven task - some people think that you should just trust the first instinct that you walk into a house.

I tend to think that the terrace houses in Paya Lebar/MacPherson/Bartley has potential longer term. Once the MacPherson tunnel interchange is completed, the traffic jams should ease up. But seriously, if you drive around that area now, it does not appeal to me as a desirable residential area - heavy traffic, close to industries, very old and small inter-terrace houses... 1 or 2 along the main road are even used as temples.

One has to buy into its future value and potential - for one day, the area should rejuvenate. Those buyers will be glad that they get to own a piece of Singapore for 1.5 mil. But if you have a young family with kids, you would certainly want the convenience, assessibility, proximity to schools, condo facilities and a comfortable surrounding.

Perhaps. Take a look at these latest transactions:

Transacted Price.JPG

A 4-bedder in 99 year LH KR was sold in Feb 10 for $1.41M (1,765 sqft). A few FreeHold Landed properties about the same size in terms of land (but bigger in terms of built up) were sold for less or at about the same price.

Can anyone explain this illogical situation? Landed owners desperate to get out of the area? How can a 99 year LH condo cost more than a FH Landed property?

[Condorich]

No need same size. A studio in MBR or Sail can easily buy one Semi-D. If same size, can buy the whole stretch of terrace house

spot on... just trying to be correct and therefore the general statement. In case I kanna attacked

Find the heart of the city and stay close to it, best to have bulls eye... you will not go wrong unless there's a heart attack. In a big country... there can be many hearts... Find the Ace of hearts.

The pricing of everything is about demand and supply. 1 joker super man comic book sold in US at obsene price, why? Lots of demand and no supply. We just need to master the art of finding those limited in supply and unlimited in demand EARLY. That's the success formula...Studios are limited in supply in Yishun... but will it be rewarding as an investment? We will all find out later.

[fclim]

And the question is what is GOOD LOCATION? Good location for one property may not be good location for another depending on the perception and need of the buyer!

True. Beauty is in the eyes of the beholder. However, Good Locations are generally understood to be one or a combination of the following:

1.In CCR or RCR.
2.Within 5 mins walking distance to MRT. Better still if next to or on top of MRT. Much better still if MRT is underground.
3.Near amenities such as markets, food stalls, shopping malls.
4.Excellent sea view or reservoir view.
5.Near good schools.
6.Near international schools.

etc, etc...

Someone buying Meadows@Pierce will say it is a good location because he/she puts mother nature as first priority. However, if you will remember, when the condo was first launched, the developer's adverts showed a "yet to be confirmed" MRT station; only to have it removed when the authorities stepped in. Why? Because they were trying to show that it is also a convenient place to live. Noticed how many condo brochures will show the MRT as much nearer than it actually is?

Ultimately, the best test is the amount of rental that the unit can fetch. The higher the rental, the better the location. Same here, same everywhere else.

[Sea]

developer will be adjusting price upwards upon the relaunch for Kovan Residences on 6 March 10 (coming Saturday)

Ultra Spacious 4, 4+study & 5-bedroom apartments (1765 to 1862 sq ft) & Penthouses available

*

LIMITED units of 3-bedroom, 3+study & compact 4-bedroom apartments (1259 to 1442 sq ft) also available!

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[Reporter]

My goodness!
UOB-Kay Hian stockbroker pair (Han Seng-Juan and David Loh) has decided to increase Kovan Residences' price from 6 March onwards?

I thought FEO is the only one to increase the prices of their properties from 1 March onwards due to the recent DC hike by the government.
Why are they following FEO's footsteps?

I heard FEO is upping the price of The Shore ... Is this true ?
Any agents here to shed some light ?

Heard that price is going to increase on 1st March, anyone to confirm?

[fclim]

My goodness!
UOB-Kay Hian stockbroker pair (Han Seng-Juan and David Loh) has decided to increase Kovan Residences' price from 6 March onwards?

I thought FEO is the only one to increase the prices of their properties from 1 March onwards due to the recent DC hike by the government.
Why are they following FEO's footsteps?

With even The Estuary going for >$750psf and selling like hot cakes, why shouldn't the developer increase prices for Kovan Residences?

[stanchan]

Thank goodness I stopped waiting and hoping that the price will drop. I have gven up on KR even though it is a nice development but it is just beyond my affordability. We got a resale unit next door so I am more than happy if KRs price goes up so KM may benefit from it.

I thougt they are not sold out so if they increase prices, will units move?!

Think the guy runnng the development must be trying to learn from FEO but without the vast land banks to leverage though.

With even The Estuary going for >$750psf and selling like hot cakes, why shouldn't the developer increase prices for Kovan Residences?

[fclim]

Thank goodness I stopped waiting and hoping that the price will drop. I have gven up on KR even though it is a nice development but it is just beyond my affordability. We got a resale unit next door so I am more than happy if KRs price goes up so KM may benefit from it.

I thougt they are not sold out so if they increase prices, will units move?!

Think the guy runnng the development must be trying to learn from FEO but without the vast land banks to leverage though.

That's why I find their marketing strategy unusual. It's the same tactic they used last year. When the units were relaunched in Jan/Feb 09, the prices went up by 5% after 3 months.

If you read today's Straits Times, a number of developments will be launched in the next few weeks, namely, Waterscape At Cavenagh, Aalto, The Vision, Coralis, The Laurels etc.., all easily $1,200psf and above. The developer is hoping to ride on the current buying wave.

Certainly, KM will benefit from this knock-on effect.

[2824]

When your development has been on the market for sometime and u introduce a new lower pricing and then you get hordes of pple in your showroom, it is a sign of underpricing and pple sensing a bargain.

Guess that is what happen for them last year.

[stanchan]

An advert on PropertyGuru by Centurion mentioned that KR is more than 80% sold. Is this 80% of the total 521 units? Which seems unlikely cos the URA caveats showed 151 units not launched yet + 16 launched units not sold at beginning of Jan '10 unless Jan-Feb sales moved more than 50 units - which is pretty good. If that is true, no wonder the developer is raising prices for the remaining stacks.

Does anyone know if the reserved stacks will be thrown into the market?

[Condorich]

When your development has been on the market for sometime and u introduce a new lower pricing and then you get hordes of pple in your showroom, it is a sign of underpricing and pple sensing a bargain.

Guess that is what happen for them last year.

I will stay clear from these kind of developer with such tactics if I am buying for investment. I would not mind if it is for self stay. Just have to get it lower from the previous owners or at a mid point... good enough.

Bargain Hunters or Bargain_Hunter should be interested in looking at this project. They will buy only if a bargain appears again..

[fclim]

Understand that the increase in price is 1% for those who opt for the Interest Absorption Scheme.

[stanchan]

Hi fclim, any idea how the sales went over the weekend?

Drove past and the showsuite entrance had quite a number of agents and ppl.

Btw, stack 1 was partially revealed as some parts of the construction netti g were removed, giving the impression that it is to be completed soon. The facde is pretty nice.

Understand that the increase in price is 1% for those who opt for the Interest Absorption Scheme.

[fclim]

Hi Stanchan,

I do not have the sales figures. But, it looks like the developer is going all out to woo buyers, with the full page advertisement in the Straits Times on Saturday and new large posters being put up at the site. Yes, it appears that the showsuites were more crowded than usual although huge crowd does not equal huge sales.

My agent did not call me. She must have been busy entertaining crowds over the weekend....

[KovanResident]

As the construction progresses fast and furious, I've created a forum for us to share the updates leading to T.O.P.

Feel free to browse or post!

http://kovanresidences.freeforums.org/index.php

[2824]

passed by this development, and noticed that some of the balconies have railing while others are glass for the stacks which are painted.

Just wondering and curious whether owners chose their railing choice and paid for the additional cost or provided by the developer?

[greenhorn]

The different types of railings for different stacks/floors are part the architectural design of the development. Can't choose.

Hey, any forumer here has any opinions or views on Kovan Residences? Heard now left with about 60 units out of 521 total units. TOP in Sep 11. Heard from friends that the prices were raised a few times this year. Now about $1000psf for higher floors? Main selling point is its very convenient location with all amenities around it. Is KR a good buy?.....OR good bye?

passed by this development, and noticed that some of the balconies have railing while others are glass for the stacks which are painted.

Just wondering and curious whether owners chose their railing choice and paid for the additional cost or provided by the developer?

[fclim]

Owners were told whether the balconies came with railings or glass at the point of booking. There is no option to choose between the two. Maybe it is due to cost or archi design though I prefer all to be glass like One Amber.

[devilplate]

The different types of railings for different stacks/floors are part the architectural design of the development. Can't choose.

Hey, any forumer here has any opinions or views on Kovan Residences? Heard now left with about 60 units out of 521 total units. TOP in Sep 11. Heard from friends that the prices were raised a few times this year. Now about $1000psf for higher floors? Main selling point is its very convenient location with all amenities around it. Is KR a good buy?.....OR good bye?

left with very big units rite...i heard all 3bedders r oredi gone
i like the facade though...

it is still a better buy compared to scala...haha

[DC33_2008]

Another development with plenty of investors for rental and sales upon TOP.

[2824]

I half-guessed it so, because it was so evenly distributed, 1 floor with railing followed by 2 with railings. Overally i think either all railing or all glass would provide a better consistency.

Owners were told whether the balconies came with railings or glass at the point of booking. There is no option to choose between the two. Maybe it is due to cost or archi design though I prefer all to be glass like One Amber.