Condos at Flora Road testing $700 psf level

Even as demand for private homes tapers off, there continues to be a strong take-up for condominium units in the Flora Road area off Loyang Avenue, with 11 transactions of between $550 and $715 psf between Oct 2 and 9, according to caveats lodged by URA Realis. Though it may be about a 20-minute drive from the CBD, this area is being transformed by the growing number of companies moving to Changi and Tampines. Homeowners in this district will appreciate the low traffic levels along this road away from the Tampines Expressway.

There’s been a lot of interest surrounding Singapore’s fourth university, which is scheduled to open its doors in 2011. Last week, it was announced that the institution of higher learning will be named the Singapore University of Technology and Design. It will be located next to Changi Business Park, which houses the campus-style complexes of giant financial institutions like DBS Asia Hub, Standard Chartered and Citibank as well as MNCs like Honeywell, IBM and Invensys.

The successful launch of The Gale, the latest project by Hong Leong Holdings’ Tripartite Developers, in July, has also boosted interest and transaction prices in the area. Close to 300 ofthe 329-unit condominium have been snapped up at an average price of $720 psf to date. Most recently, a 1,259 sq ft first-floor unit was sold for $709,700 ($564 psf) by the developer.

All the projects in the Flora Road and Upper Changi Road North area are developed by Tripartite, with names of the developments in alphabetical order and the most recent being “G” (The Gale). Other projects in the area include the recently completed Ferraria Park Condo, Edelweiss Park Condo, Dahlia Park Condo and Ballota Park Condo. The developer has several more development land parcels in the area.

At the newly completed 475-unit freehold Ferraria Park Condo, two units changed hands recently in the secondary market. A 1,173 sq ft apartment on the fourth floor of one of the blocks was sold for $793,000, or $676 psf. The owner had purchased the property when it was first launched three years ago, for $588,000, or $501 psf, hence, enjoying a 35% price appreciation. Another unit, slightly larger but on the second floor of another block and measuring 1,249 sq ft, was sold for $780,000 ($625 psf), according to a caveat lodged on Oct 2. The owner had purchased the unit in April 2007 for $612,000, or $490 psf, hence seeing a 27.5% gain over the past 2½ years.

Other condominium units in the same neighbourhood have also changed hands in the resale market in the past month. For instance, a 936 sq ft unit on the third floor of one of the blocks at Estella Gardens, completed a decade ago, was sold for $600,000 ($641 psf). It last changed hands in 2001, when the vendor purchased it for $510,000 ($545 psf) in a resale. The previous owner had purchased it in 1999 for $652,000 ($696 psf).

Another 936 sq ft apartment on the fifth floor of another block at Estella Gardens was sold for $670,000, or $715 psf. The last time the unit changed hands was in March 2008, for $638,000 ($681 psf). Prior to that, the last transaction was 10 years ago, when it changed hands for $590,000, or $630 psf.

Source: The Edge, 2 Nov 2009