Price divide at prime districts

By Bong Xin Ying / EdgeProp | June 18, 2018 6:00 AM SGT
At 120 Grange, 37 out of a total of 56 units have been sold since the launch on June 1 (Source: Roxy-Pacific)
Roxy-Pacific Holdings’ 56-unit boutique development 120 Grange saw a total of 37 units sold over the launch weekend on June 1 and 2. Given its prime District 10 location and freehold tenure, the average price of units sold was $3,148 psf, according to caveats lodged.
The units are compact, with one-bedroom lofts of 420 sq ft, two-bedroom units of 570 sq ft, and dual-key, two-bedroom units of 678 sq ft. The absolute prices of units sold therefore ranged from $1.35 million ($3,213 psf) for a unit on the second level to $2.18 million for a dual-key, two-bedroom unit on a high floor.
“We’re not seeking premium prices,” says Teo Hong Lim, executive chairman and CEO of Roxy-Pacific. In the Core Central Region, unlike the suburban areas of Outside Central Region, developers are not constrained by the rule requiring average unit sizes in a development to be at least 70 sq m (753.5 sq ft), he adds.
As such, Roxy-Pacific is developing compact sizes that appeal to investors and young couples who want a prime District 10 address but whose budget is $2 million and below, says Teo. In terms of absolute prices, units at 120 Grange are also affordable. Therefore, the majority of buyers — about 70% — at 120 Grange are locals, he adds.
Units at 120 Grange are compact, with two-bedroom dual key units at 678 sq ft (Source: Roxy-Pacific)
Anecdotal evidence shows there was a bulk purchase by an Indonesian buyer, who scooped up four units of compact two-bedroom apartments — one for each of his four children. These 570 sq ft, two-bedroom units were sold at prices ranging from $1.73 million ($3,031 psf) for a low-floor unit to $1.84 million ($3,232 psf), according to caveats lodged. This brings total sales of these two-bedroom compact apartments to 18 out of 24 units.
Dominic Lee, PropNex Realty’s head of luxury team who is the marketing agent for 120 Grange, says the profile of buyers is different from those at other luxury condominiums in the prime districts, such as Le Nouvel Ardmore, New Futura and The Nassim. As the unit sizes in these projects are larger with higher psf prices, they command higher absolute prices. These developments attract predominantly high-net-worth foreign homebuyers and investors, he adds.
Recently, at the 43-unit Le Nouvel Ardmore in the prestigious Ardmore Park, for instance, a 3,907 sq ft unit on the 13th floor was sold for $16.8 million ($4,300 psf); and a 4,133 sq ft unit on the 20th floor was sold for $16.04 million ($3,880 psf), according to caveats lodged last month.
At the 124-unit New Futura, four-bedroom units of 2,250 to 2,691 sq ft on high floors were sold from $8.5 million ($3,765 psf) to $10.15 million ($3,772 psf).
At The Nassim, a 55-unit upscale condo with a Nassim Hill address, two units were recently sold. One of the 1,927 sq ft, three-bedroom apartments fetched $7.08 million ($3,673 psf), according to a caveat lodged on May 25. The other unit went for $7.64 million ($3,964 psf), according to a caveat lodged on June 1.
According to Lee, buyers at New Futura, The Nassim and Le Nouvel Ardmore are “a different pedigree” from the mainstream. This is in contrast to singles and young couples who do not mind compact apartments but value a strategically located condo in a prime neighbourhood, he adds.