Freehold condo in District 9 selling below $1,900 psf

By Tan Chee Yuen / The Edge Property | December 12, 2015 9:00 AM SGT
A five-bedroom unit at The Trillium is being put up for sale on TheEdgeProperty.com for $4.5 million. The asking price works out to $1,883 psf over its strata area of 2,390 sq ft.
The Edge Fair Value, a valuation tool on TheEdgeProperty.com, puts the indicative value of the property at slightly above $1,900 psf. In October, another 2,390 sq ft unit on the eighth floor fetched $4.6 million, or $1,925 psf.
Based on historical transactions, the subject property’s asking price of $1,883 psf falls below 2010 prices. In July 2011, a 2,390 sq ft unit on the second floor was sold for $4.77 million, or $1,996 psf. In April 2010, another 2,390 sq ft unit on the seventh floor was sold for $4.9 million, or $2,050 psf. Notably, prices of similar-sized units have never dipped below the $1,900 psf mark since 2008.
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The Trillium is a freehold condominium project on Kim Seng Road developed by Lippo Land Corp and completed in 2010. It is located within 500m of the upcoming Great World MRT station of the Thomson East Coast Line. Schools within 1km include River Valley Primary School.
The five-bedroom unit at Trillium has an asking price of $1,883 psf
According to URA, prices of high-end, non-landed homes have fallen 9% since the peak in 1Q2013 and have returned to 2010 levels.
There were six rental contracts involving five-bedroom units measuring 2,300 to 2,400 sq ft at The Trillium in 2015. Rents for these units averaged $10,000 a month. Based on the listing price of $4.5 million, the average rent translates into a potential gross rental yield of 2.7%.
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This article appeared in The Edge Property Pullout, Issue 706 (December 14, 2015) of The Edge Singapore.