DEAL WATCH: Third unit at Ardmore II sold below $2,500 psf this year

By Tan Chee Yuen / The Edge Property | October 20, 2015 4:00 PM SGT
A 2,024 sq ft high-floor unit in ArdmoreII was sold for $5.05 million ($2,496 psf) in September, based on caveats listed by the Urban Redevelopment Authority (URA). The price was slightly below The Edge Fair Value of $2,530 psf.
The sale represented the third value deal in the project this year. In September, a mid-floor unit changed hands for the same price as the subject property. Another mid-floor unit was sold for $4.7 million ($2,323 psf) in March.
Based on URA caveats, prices last touched the $2,500 psf level in December 2011 and March 2012 when comparable units were sold at $2,574 psf and $2,570 psf respectively. Ardmore II is a luxury freehold development in District 10 that was completed in 2010. Prices in the 118-unit project hovered between $2,800psf and $3,000 psf in 2013 (see Table 1). No caveat was lodged in 2014.
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According to flash estimates by the URA, prices of non-landed homes in the high-end segment, or Core Central Region, softened by another 1.3% q-o-q in 3Q2015, putting it at 9% below their peak in 1Q2013.
A location scan of properties within 500m of Ardmore II shows potential value deals at below $2,000 psf, or just over $2,000 psf. Gross rental yields were generally between 2.2% and 2.6% (see Table 2).
Table 1: Transaction volume and prices in Ardmore II (2011 to 2015)
Year
Sales volume (units)
Price range ($psf)
2011
9
2,574 – 2,940
2012
6
2,520 – 2,841
2013
2
2,841 – 2,950
2014
-
-
2015
4
2,323 – 2,866

Source: URA, The Edge Property

Table 2: Location scan of properties within 500m of Ardmore II
Project Name
Tenure
Completion
Average Price (S$ psf)
Sales Volume
Average Rent (S$ psf pm)
Rental Volume
Rental Yield (%)
Freehold
1980
1,729
2
3.1
20
2.2
Freehold
2000
1,900
1
-
-
-
Freehold
2008
1,913
1
5.1
11
3.2
ST REGIS RESIDENCES SINGAPORE
999 years
2008
2,152
3
4.6
26
2.6
Freehold
2008
2,269
1
4.2
9
2.2
Freehold
1985
2,539
1
3.8
24
1.8
Freehold
2010
2,619
3
4.8
23
2.2
Freehold
2001
2,957
5
5.5
62
2.3

Source: URA, The Edge Property

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This article appeared in The Edge Property Pullout, Issue 699 (October 19, 2015) of The Edge Singapore.