Competition heats up on Farrer Road-Leedon Road
By Amy Tan
The seven 36-storey towers of d’Leedon are an imposing sight on Farrer Road. Designed by Pritzker Architecture Prize winner Zaha Hadid, the development is expected to be completed in the coming months. The completion of the 99-year leasehold condominium with 1,715 units on a sprawling 840,049 sq ft site will have a major impact on the existing developments in the Farrer Road-Leedon Road neighbourhood.
A total of 255 units at d’Leedon, developed by a CapitaLand-led consortium that includes Hotel Properties Ltd, remained unsold as at end-August, according to URA data. Five units were sold in August at a median price of $1,827 psf. The latest caveat lodged for a unit at d’Leedon was for a 1,496 sq ft, three-bedroom apartment on the 30th floor that was sold for $2.62 million, or $1,749 psf, on Sept 2.
Next door to d’Leedon is GuocoLand’s Leedon Residence, where construction is still underway. A redevelopment of the former Leedon Heights, the 381-unit freehold Leedon Residence was designed by Chan Soo Khian of SCDA Architects. In August, six units were sold at a median price of $1,837 psf. According to URA data, 143 units have been sold to date.
The latest caveat lodged at Leedon Residence was for a 2,131 sq ft, three-bedroom unit on the sixth floor of one of the blocks that was sold for $5.4 million ($2,534 psf). Three other low-floor units of identical sizes were sold in August at prices ranging from $1,942 to $2,097 psf, according to caveats lodged with URA Realis. The project is expected to be completed in 2015.
Samuel Eyo, director of Savills Prestige Homes, reckons the completion of d’Leedon will revive interest in Leedon Residence. However, given the size of d’Leedon, it will keep the resale prices of older condo developments in the area such as Tulip Garden, Sommerville Park, Sommerville Grandeur, Gallop Gables and Spanish Village relatively competitive.
In 3Q2014, three units at Sommerville Park changed hands at prices ranging from $1.95 million ($1,497 psf) to $2.8 million ($1,453 psf). While the freehold Sommerville Park was completed in 1985, Sommerville Grandeur was completed in 1996. The most recent transaction at the latter project was for a unit sold at $2.76 million ($1,500 psf) last month. At Spanish Village, the most recent transaction was for a unit that changed hands for $1.95 million ($1,216 psf) in September.
Savills’ Eyo predicts that there will be a flight to the newest condo with the latest facilities in the neighbourhood, hence d’Leedon will see interest from potential tenants. Having the new Farrer Road MRT station at its doorstep is also a bonus. While Leedon Residence is freehold, unlike d’Leedon, he reckons the two projects will fetch a similar rental rate of around $4.50 psf, as they are both relatively close to the MRT station.
Further down Leedon Road, and located closer to the Holland Village MRT station is Leedon 2, a 72-unit freehold private condo that was completed 17 years ago. An 840 sq ft unit changed hands for $1.2 million ($1,429 psf) on Sept 12. The seller had purchased the unit in October 1996 for about $1.05 million ($1,247 psf), hence seeing a capital appreciation of 14% in 18 years.
Eyo says owners of older condos in the Leedon and Farrer Road area will have to adjust the asking prices and rents of their units in view of the upcoming completion of d’Leedon.
This article appeared in the City & Country of Issue 646 (Oct 6) of The Edge Singapore.
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