DEAL WATCH: Unit at Dorsett Residences selling at 2011 price level

By Tan Chee Yuen / The Edge Property | January 23, 2016 9:00 AM SGT
Investors looking for rental properties might be interested in this listing. A 689 sq ft two-bedroom unit at Dorsett Residences is put up for sale on TheEdgeProperty.com at $1.35 million, or $1,959 psf. The Edge Fair Value, a valuation tool on TheEdgeProperty.com, puts the indicative value of the property at above $2,100 psf.
The unit is understood to be tenanted at $4,200 a month, which works out to a gross rental yield of 3.7% based on the asking price of $1.35 million.
There were six rental contracts involving 600 to 700 sq ft two-bedroom units in the project. Monthly rents generally hovered in the $4,100 to $4,400 region, although one unit was let for $5,300 a month.
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Dorsett Residences is a 68-unit residential project located next to Outram Park MRT station and Dorsett Singapore Hotel. Its immediate vicinity comprises historic shophouses along Bukit Pasoh Road housing a boutique hotel and F&B outlets. Schools within 2km from the property include CHIJ (Kellock) and River Valley Primary School.
Dorsett Residences and Dorsett Hotel. The listed property is understood to be tenanted at $4,200 a month
Prices at the project appear to be returning to 2011 levels. The listed price of $1,959 psf bears resemblance a transaction in October 2011 when a comparable unit was sold for $1,989 psf. In April 2015, another comparable unit changed hands at $1,894 psf.
Separately, prices in the property have also breached the $2,000 psf mark. A 689 sq ft unit on the fifth floor found buyer at $2,250 psf back in October 2012.
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Historical transactions for 689 sq ft units at Dorsett Residences
Contract date
Floor
Price ($)
Price ($ psf)
27-Apr-15
Low
1,305,000
1,894
31-Oct-12
Low
1,550,250
2,250
11-Oct-11
Low
1,370,000
1,989
8-Apr-11
Low
1,208,000
1,754
8-Apr-11
Low
1,208,000
1,754
21-Jan-11
Low
1,208,000
1,754

*Low floors: L1 to 7, Mid floors: L8 to 15, High floors: L16 & above

Source: URA, The Edge Property

Rental contracts for 600 to 700 sq ft units at Dorsett Residences in 2H2015
Lease date
Monthly rent
($)
($psf)
Dec-15
4,400
7
Dec-15
4,100
6
Nov-15
5,300
8
Oct-15
4,400
7
Sep-15
4,300
7
Jul-15
4,300
7

Source: URA, The Edge Property

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This article appeared in The Edge Property Pullout, Issue 712 (January 25, 2016) of The Edge Singapore.