Tag Archives: Tanjong Pagar Centre

CBD living set to pick up momentum

LIVING in the bustling Central Business District has caught on, with plenty of property launches in the area in recent years.

Many people love the convenience of being just five minutes from work, but some have grumbled at a lack of amenities. There are no schools, supermarkets and shopping centres in close proximity, they say.

But this is set to change with more mixed developments in the pipeline, experts say.

Take, for instance, GuocoLand’s 1.7 million sq ft mixed-use development, Tanjong Pagar Centre.

It will boast a tower of Grade A office space, 181 luxury serviced apartments called Clermont Residence and shops. The project will be linked to the 202-room Clermont Singapore hotel.

So far, 14 out of 54 units launched have been sold, at an average price of $3,055 per sq ft (psf).

Over at Marina Bay, all eyes are on the 3.67 million sq ft integrated project Marina One, jointly developed by Singapore’s sovereign wealth fund Temasek Holdings and its Malaysian counterpart Khazanah Nasional.

The 1,042-unit project is expected to go on the market in the second half of the year, priced at about $2,800 psf to $3,000 psf.

“Investors who buy small units can expect keen leasing interest from mid- to senior-level expats who might be on limited housing allowances but still want a conveniently located property,” said Mr Ong Kah Seng, director of R’ST Research.

Other new developments launched include the 202-unit 76 Shenton, which has moved units at an average price of $1,959 psf, according to data from Square Foot Research.

The 280-unit Altez in Enggor Street has sold 229 units, at an average price of $2,390 psf, while 215 homes have been snapped up at the 360-unit Skysuites@Anson for $2,603 psf on average.

Units were sold at a median price of $2,618 psf at new launches in the five months to May, rising from a median price of $2,303 psf in the same period a year ago, according to HSR Research.

This boom in downtown living has its roots back in 1995, when the Urban Redevelopment Authority (URA) singled out the lack of a residential population as the business district’s key weakness, noted DTZ’s research head Lee Lay Keng.

The URA then set about introducing city living to the area.

After that, the first residential projects completed were the 646-unit Icon by Far East Organization, which obtained its Temporary Occupation Permit in 2007; and the 168-unit Lumiere, which was completed in 2010.

Resale prices of units at these older projects have held steady, noted Mr Ong, staying flat in the past year.

“Resale prices were able to hold in 2013 due to strong leasing demand, although rents are moderating,” he said.

“Most investors feel that there is a ready pool of tenants, despite more competition than before.

At Icon, 91 leases were secured at a monthly median rent of $6.69 psf in the first quarter, while Lumiere had 17 leases at a monthly median rent of $5.90 psf.

Rental yields in the area are about 4 to 4.5 per cent, well up on the islandwide rental yields of 3.8 per cent, added Mr Ong.

“In the longer term, as plans for the Southern Waterfront City under the 2013 Masterplan are implemented, we expect that this will add further impetus to the rejuvenation of the Tanjong Pagar area,” said Ms Lee.

“As the current CBD is extended towards Tanjong Pagar, this will help to support rental and capital values in the area.”

Source : STProperty

More buzz in Tanjong Pagar Chinatown area

Excitement is building up in the Tanjong Pagar neighbourhood. Property consultants attribute it to the impending launch of TP180, the 200-unit residential development within Guoco Land’s upcoming mixed-use project, Tanjong Pagar Centre. The new development boasts Singapore’s tallest tower, at 290m.

The 67-storey skyscraper will contain a mix of offices and residences, ranging from one- to four-bedroom apartments. There will also be a luxury hotel and a six-storey retail podium within the project. According to Guoco Land, TP180 is likely to be launched in 2H2013.

Given the premium location of the residential units at TP180  on the higher floors of the skyscraper and the fact that it is part of a mixed use development as well as integrated with the Tanjong Pagar MRT interchange station, prices are expected to be above $2,500 psf.

Since GuocoLand unveiled details of its much-anticipated Tanjong Pagar Centre last month, some buyers have snapped up units in other existing residential projects in the vicinity in the hopes of riding a potential upswing in prices. “Tanjong Pagar Centre is going to transform the environment of the area, and investors and home buyers are betting that prices of residential property in the vicinity will enjoy an uplift as well,” explains Samuel Eyo, director of prestige homes at Savills Singapore.

Some investors are zooming in on older freehold apartment blocks with collective sale potential and that offer a viable alternative to 99-year leasehold properties such as TP180 and most of the newer residential developments in the area, which will be completed in the next year or two. They include the 360-unit Skysuites@Anson and the 280-unit Altez on Enggor Street.

At Skysuites@Anson, the most recent transaction was that of a 1,012 sq ft unit on the 63rd level sold for close to $2.63 million ($2,596 psf) in April. At Altez, an 840 sq ft unit on the 36th level was sold for $1.96 million ($2,335 psf) also in April.

At the 10-storey 63-unit The Arris on Yan Kit Road, off Cantonment Road and Hoe Chiang Road, a 990 sq ft unit on the sixth level was sold for $1.7 million ($1,717 psf) in a transaction with a caveat lodged with URA Realis on May 28. The sixth-storey unit had been transacted three times in the past decade. It was previously bought in 2007 for $1.02 million ($1,030 psf). The unit was first sold in 2003, for $792,000 ($800 psf). The freehold apartment block was completed in 2002, and contains predominantly studio and two-bedroom units measuring 667 to 1,120 sq ft.

There have been few transactions at The Arris. The last time a unit changed hands this year was in January, when a three-bedroom unit on the 10th floor was sold for $1.7 million ($1,736 psf). Shaun Boey, an agent from ERA Realty, who is marketing a unit there, has been receiving more inquiries of late. He recently conducted three viewings in a day for the unit at The Arris. Boey says the interested buyers are a good mix of locals and foreigners, given the convenience of the location at the CBD fringe and Chinatown. “Many of them are looking to buy with the intention of occupying the unit themselves,” he observes. “However, like all homebuyers, they also want to en- sure that they will enjoy capital gains in the future.”

Farther up, in the Spottiswoode area, is the 175- unit freehold Spottiswoode Suites, a 50:50 joint venture between Lian Beng Group and Centurion Properites. The 36-storey condominium tower’s preview in mid January coincided with the government’s seventh round of property cooling measures. Yet, units have generally sold for $1,684 to $2,714 psf, the most recent transaction price at the development. It was for a 452 sq ft unit on the 28th floor, sold for more than $1.2 million at end April.

In the heart of Chinatown, ageing mixed-use development People’s Park Complex, completed in 1972, has seen four units change hands since April. What is the reason for the flurry of transactions? With only 54 years left on the 99-year lease and given that the development is old, some people believe there is potential for an en-bloc sale, says Savills’ Eyo.

“Developments such as People’s Park Complex are very old, so buyers always think there is potential for an en-bloc sale, especially given the location near the Chinatown MRT station,” says Eyo. “In the current market, where the entry level for properties in the CBD is above $2,000 psf, these older developments offer a lower price psf. Investors can collect rent while waiting for a potential en-bloc sale in the future.”

In the week of May 23 to 31, two 1,119 sq ft units at People’s Park Complex changed hands. A unit on the 26th floor was sold for $1.01 million ($902 psf); the other, located on the 22nd floor, fetched $960,000 ($858 psf).

Farther up on Eu Tong Sen Street is Pearls Centre, which was gazetted for compulsory acquisition last August to make way for the Thomson MRT Line. Owners and tenants at Pearls Centre will receive a reported compensation package of $450 million ($1,400 psf) on average. Pearls Centre was in the early stages of exploring a collective sale last August when the government’s acquisition was announced. With the upcoming Thomson Line, the Outram Park MRT station is set to become an interchange station serving three MRT lines, including the East-West and North-East Lines, which will improve the connectivity of developments in the vicinity.

According to the Singapore Real Estate Exchange, a 1,119 sq ft unit at People’s Park Complex can fetch median rentals of $4,299 a month, with a recent transaction of $4,500 a month in December. Rental rates at the complex have remained relatively steady, owing to its location next to the Chinatown MRT station, and just one stop from the Outram Park MRT station, says Aric Lim, a senior marketing director at Huttons, who is marketing a three-bed- room residential unit there.

Units at People’s Park Complex tend to be popular with mainland Chinese businessmen, as it is in the heart of Chinatown. “While the units may be pretty old, the appeal is its location,” says Lim. “The units are also easy to rent out, especially to mainland Chinese.”

Source – The Edge – 21 Jun 2013