Handy Road-Mount Sophia area could get a lift from CDL’s future launch

When the tender for the 51,626 sq ft Handy Road government land sales (GLS) site closed at the end of January, City Developments (CDL) trumped nine other bidders and won with the top bid of $212.2 million, or $1,722 psf per plot ratio (psf ppr). In its 2QFY2018 results released on Aug 8, CDL announced that it would launch the new project of 188 units in 1QFY2019.
Tricia Song, Colliers International head of research for Singapore, estimates CDL’s breakeven for the project at $2,300 psf.
Lee Nai Jia, Knight Frank Singapore senior director and head of research, says: “CDL’s new project on the Handy Road GLS site is expected to set a new benchmark price for the neighbourhood, and this will have a positive impact on prices of surrounding condos.”
Located nearby is the 313-unit 8 @ Mount Sophia condo by Frasers Property completed in 2007. When it was launched in March 2005, the average price of units sold in the 103-year leasehold project averaged $728 psf.
Located in the Mount Sophia area, which has seen a marked rejuvenation in the past decade, 8 @ Mount Sophia is regarded as attractive to investors and owner-occupiers (Credit: The Edge Singapore)
Resale prices at 8 @ Mount Sophia have doubled from the time of launch to range from $1,311 to $1,659 psf over the past four months (from April to August). In April, a 1,356 sq ft, three-bedroom unit on the sixth floor fetched $2.25 million ($1,659 psf). Meanwhile, the latest recorded sale was that of a 1,453 sq ft, three-bedroom unit on the sixth floor of another block. It was sold for $2.11 million ($1,452 psf), according to a caveat lodged on Aug 6.
The attraction of the Handy RoadMount Sophia neighbourhood is its proximity to Plaza Singapura shopping mall, which is linked to the Dhoby Ghaut MRT interchange station; The Cathay, a mixed-use development with a cinema, a mall and residences; as well as School of the Arts (SOTA).
“Location-wise, 8 @ Mount Sophia is very attractive,” says Eugene Lim, key executive officer at ERA Realty Network. “The rental demand is also quite strong, as there were 33 rental transactions in 2Q2018 alone.” Gross rental yield for units at 8 @ Mount Sophia is holding at 3.3%, according to EdgeProp data.