Tag Archives: Icon

Top rental yield projects revealed

The top five projects with the highest rental yield are mostly located in the suburbs, according to a recent report.

Square Foot Research, an independent property research firm, revealed the top five developments with at least 30 rental contracts and four sales transactions recorded in Q2 2014 and Q3 2014).

SUITES @ EASTCOAST

The freehold development in District 15 topped the chart with a median rental yield of 7.1 percent. Completed in 2012, Suites @ Eastcoast (pictured) consists of 116 units, with more than half of them measuring smaller than 500 sq ft.

A total of six sales and 31 rental contracts were transacted in the last two quarters with a median rent and price of $6 psf pm and $1,018 psf.

TAMPINES COURT

Tampines Court recorded 46 rental contracts and six sales transactions with a median price of $2.07 psf pm and $532 psf in the past two quarters. Its median rental yield is 4.7 percent.

The 560-unit development in District 18, is located near industrial buildings which may explain the demand for rental units in the vicinity, said Square Foot Research. Tampines Court was privatised in 2002, and previously failed two en-bloc attempts in 2006 and 2011.

PARK WEST

Park West rented out 48 of its 432 units in the past two quarters at a median rent of $2.90 psf pm. A total of four sales transactions were recorded during the same period at a median price of $753 psf, and median rental yield are at 4.62 percent.

It is also situated near an industrial estate in Clementi, and is currently one of the oldest and most inexpensive development available in the vicinity.

ICON

Located near Tanjong Pagar MRT station, Icon saw a total of 380 rental contracts from Q4 2013 to Q3 2014, representing 58 percent of its total units. Median rent and median price from 186 rental contracts and four sales transactions recorded in the past two quarters are $6.62 psf pm and $1,730 psf.

Rental yield for this 616-unit condo is 4.6 percent.

AQUARIUS BY THE PARK

Comprising 720 units, Aquarius by the Park in District 16 saw rental yield of 4.5 percent. 50 rental contracts and 10 sales transactions took place in the past two quarters with median rent and median price of $3.05 psf pm and $819 psf.

The project will soon benefit from the Bedok Reservoir Station (DTL), which is slated to be completed in 2017.

The report added the rental market is likely to remain competitive in the short run, due to the increased supply from completing projects launched since 2010 coupled with stricter policies for hiring foreign employees.

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New homes on the rise in the CBD

Singapore’s central business district (CBD) is evolving from a traditionally corporate location, with more buyers looking for prime residential properties in the area.

According to Savills Singapore, more than 4,600 new homes will likely be completed in the district by end-2015. A number of these homes will be located in Shenton Way, Robinson Road and Tanjong Pagar. This is expected to boost the population of the CBD by 14 times since 2007, according to Alan Cheong, Research Head at Savills.

Meanwhile, various upcoming projects are seeing strong interest from buyers despite the high prices.

For instance, Far East Organization’s The Clift has sold 250 out of the 312 units available, with the smallest unit going for around S$2 million. The condo development along McCallum Street offers one- to two-bedroom units priced at S$2,579 psf on average.

At the same time, the 62-storey Altez condo in Tanjong Pagar has sold 213 of the 280 units on offer at an average price of S$2,206 psf.

Over at 70 Shenton Way, the upcoming mixed development Eon Shenton has sold 95 units of the total 132 at a median price of S$2,400 psf. The 99-year project is jointly developed by Fission Group, Macly Group, Roxy-Pacific Holdings, Pinnacle Assets and architect-turned-developer Chee Hsian Sing.

Other notable projects such as Robinson Suites, the mixed-use Oxley Tower and Skysuites @ Anson will complement earlier developments such as Marina Bay Residences, The Lumiere and Icon.

The new projects will draw in the crowds even after office hours, in line with the government’s plan to transform the CBD into a place to work, live and play.

“The city is finally a hip place to be seen and live and no longer just a place for a quick beer after work,” said Sulian Tan-Wijaya, Senior Director for Retail and Lifestyle at Savills Singapore.

Dr Chua Yang Liang, Research Head at Jones Lang LaSalle South-east Asia, noted that downtown living could be popular, specifically with younger professionals.

“In other mature cities like New York, downtown living is part of the city fabric. In fact, in some cities in the US, the silver population will move back into the city because of the amenities.”

Source : PropertyGury -21 May 2012