Sky Vue vs. Sky Habitat: Why one condo has seen greater price appreciation
By Elizabeth Choong
/ EdgeProp Singapore |
Sky Habitat and Sky Vue are located adjacent to one another in Bishan
Singapore (EDGEPROP) – Sky Vue and Sky Habitat are located beside each other along Bishan Street 15. Additionally, both condos are 99-year leasehold developments that were developed by CapitaLand. Sky Vue obtained its temporary occupation permit (TOP) in 2016, making it newer than Sky Habitat by a year. Due to numerous similarities, most would assume that the two developments have similar average prices. Furthermore, there are no other condos within a 500m radius.
Contrary to expectations, the current average price of Sky Vue, on a psf basis, is significantly higher than Sky Habitat. In fact, Sky Vue recently achieved a new high of $2,174 psf. This article will examine the possible reasons for this phenomenon, especially considering that Sky Habitat was designed by the world-renowned architect Moshe Safdie. The unique step-pyramid architecture of Sky Habitat makes it a landmark in the Bishan neighbourhood. Furthermore, Sky Habitat boasts three sky bridges with common facilities, including sky gardens, a gym, and lounges. The link bridge on the 38th storey features a lap pool with a breathtaking view. In contrast, the two 37-storey towers of Sky Vue have a more conventional design.
Sky Vue and Sky Habitat are well-located condos with many similarities
Both developments are well-located in the popular neighbourhood of Bishan and within walking distance of the dual-line Bishan MRT Station. Other nearby amenities include Bishan Stadium, Sports Centre and Swimming Complex, Kallang River, Junction 8, Bishan Bus Interchange, and Bishan Public Library. The developments also have several reputable schools within a 1km radius, namely, Catholic High School (Primary and Secondary), Kuo Chuan Presbyterian School (Primary and Secondary), and Raffles Institution (Secondary).
Read also: Jadescape records new high of $2,286 psf
Significant price difference despite many similarities
The current average price for Sky Vue ($1,980 psf) is $250 psf higher than Sky Habitat ($1,730 psf). Furthermore, the current average price for Sky Habitat is lower than the overall average price of $1,786 psf for leasehold condos in Bishan.
Since 2013, the average price for Sky Vue has grown by 38%, which is significantly higher than the growth of 14% for Sky Habitat but on par with the 40% growth for leasehold condos in Bishan.
Sky Vue appears to be more popular with buyers, as indicated by the 121 sales transactions for the development from 2021 to this year, compared to the 70 sales transactions for Sky Habitat. This is noteworthy, considering the higher average price for Sky Vue.
Sky Vue's stronger performance in the resale market could have contributed to its popularity among buyers, thereby boosting its overall average price.
Source: EdgeProp Market Trends (as at 18 December 2023)
Sky Habitat has two unprofitable transactions this year while Sky Vue has none
Based on sales transactions for the past 36 months, Sky Habitat has had 11 unprofitable transactions, while Sky Vue has had none. Out of these 11 unprofitable transactions, two of them took place this year. Both units were purchased in 2012 or 2013 for prices exceeding $1,600 psf and were subsequently sold for approximately $1,500 psf.
This year, there were 31 profitable transactions for Sky Vue, almost double the 16 profitable transactions for Sky Habitat. Profits for Sky Vue ranged from $150,000 to $889,600, while profits for Sky Habitat ranged from $55,450 to $958,120.
Read also: Sky Vue achieves new high of $2,174 psf
It is notable that all the top three profitable transactions for both condos are for larger units with three or four bedrooms. In contrast, both unprofitable transactions for Sky Vue are for smaller units with only one or two bedrooms. This could be because Bishan is a much sought-after neighbourhood for families due to its proximity to numerous popular schools. Families typically require more space, hence the stronger demand for larger units.
Sky Habitat was relaunched at lower prices
When Sky Habitat was launched in 2012, an average price of $1,604 psf was achieved for the new units. The average price then declined to $1,383 psf in 2014 before rebounding to $1,531 psf in 2015. It is noteworthy that the average new sale price in 2015 was $73 psf lower than the initial launch price in 2012. This occurred because the developer relaunched Sky Habitat at lower prices after 2013 when the Additional Buyer’s Stamp Duty rate was increased, the loan-to-value ratio was lowered, and the total debt servicing ratio was introduced.
The average price for new units in Sky Vue has been on a steady upward trajectory, with an initial launch price of $1,432 psf in 2013, growing by 14% to $1,636 psf in 2016. In contrast, the average price for new units in Sky Habitat inched down by 5% from 2012 to 2015.
The sellers from the two unprofitable transactions for Sky Habitat bought the units before the relaunch. The higher purchase prices could explain the losses suffered by the sellers.
Source: EdgeProp Market Trends (as at 18 December 2023)
Unit mix of development affects average psf
The psf price for a small condo unit is generally higher than that of its larger counterparts to keep the total price for large units at a palatable level for buyers. Consequently, the unit mix of a condo can affect its overall average price on a per square foot basis.
About 26% of the units in Sky Vue are above 1,000 sq ft, significantly fewer than Sky Habitat (77%). This would exert downward pressure on the overall average per square foot price for Sky Habitat. The current average price for small units (1,000 sq ft and below) in Sky Habitat is $1,782 psf, while larger units (above 1,000 sq ft) are fetching $1,706 psf.
The distinct unit mix in both developments implies that they would appeal to different types of buyers. Sky Vue, with its abundance of smaller units, is expected to attract investors or young couples without children. Conversely, Sky Habitat, featuring more spacious units, is anticipated to appeal to owner-occupiers with children and multi-generational families.
Source: EdgeProp Market Trends (as at 18 December 2023)
Three-bedroom units in Sky Vue are more popular despite being smaller
Most of the three-bedroom units in Sky Vue are 1,141 sq ft, while the smallest three-bedroom units in Sky Habitat are 1,216 sq ft. The layouts for both types of units are similar, with the main door opening into a small foyer before leading into the living and dining areas and a balcony. The kitchen and yard are adjacent to the main door, while the bedrooms and bathrooms are located on the other side of the unit. A second balcony is accessible via the master bedroom.
The main difference in both layouts is the shape of the balconies. The balconies in Sky Vue are regular rectangles, whereas those in Sky Habitat are slanted at an angle due to the unique façade of the development.
An examination of sales transactions indicates that three-bedroom units in Sky Vue are more popular among buyers. Sky Vue has had six sales transactions this year, while Sky Habitat has had none.
Last year, the average prices for 1,141-sq ft units in Sky Vue and 1,216-sq ft units in Sky Habitat were $1,867 psf and $1,907 psf, respectively. This translated to an average of $2.13 million for Sky Vue and $2.32 million for Sky Habitat. Despite being smaller by 75 sq ft, the lower price point of Sky Vue likely increased its appeal to buyers. Additionally, buyers may prefer the balconies of Sky Vue due to their regular shape, which makes them more user-friendly.
Buyers unwilling to pay for balconies
The smallest two-bedroom units for Sky Vue and Sky Habitat are 678 sq ft and 872 sq ft, respectively. Despite the difference in size, the two-bedroom units in both developments share a similar floor layout, with the main door opening into an open kitchen, followed by the living and dining area, and a balcony. The bedrooms and bathrooms are clustered together on the other side of the units. The main difference is the additional balcony accessible from the master bedroom in Sky Habitat.
Source: EdgeProp Research
An examination of sales transactions indicates that there have been no transactions for the 872-sq ft units in Sky Habitat in 2022 and 2023. The last transaction took place in November 2021 for $1.4 million ($1,606 psf ). In contrast, there were 24 sales transactions for the 678-sq ft units in Sky Vue this year, at an average price of $1,978 psf or $1.34 million. The absence of recent sales transactions for Sky Habitat seems to indicate that buyers are less willing to pay for balcony space.
Source: EdgeProp Market Trends (as at 18 December 2023)
Deep dive into one-bedders
The majority of the one-bedroom units in Sky Habitat are 710 sq ft, whereas the largest one-bedroom units in Sky Vue are 495 sq ft. The one-bedroom units in Sky Habitat are larger because they include a study and a balcony, unlike those in Sky Vue.
Source: EdgeProp Research
The current average prices for 495-sq ft units in Sky Vue and 710-sq ft units in Sky Habitat are $1,970 psf and $1,765 psf, respectively. This translates to an average price of $975,150 for Sky Vue and $1.25 million for Sky Habitat. Despite the price difference, both unit types have had approximately the same number of sales transactions in the past three years, indicating similar levels of demand among buyers. From 2021 to 2023, there were 12 sales transactions for the 495-sq ft units in Sky Vue and 14 sales transactions for the 710-sq ft units in Sky Habitat.
However, the one-bedroom units in Sky Vue have achieved a stronger price growth of 12% since 2018, compared to the price growth of 7% for their counterparts in Sky Habitat.
Sky Vue attracts higher rental volume and rents
Sky Vue is currently fetching a higher average monthly rent at $6.39 psf compared to Sky Habitat at $4.84 psf and other condos in Bishan at $4.22 psf. Additionally, the rental growth for Sky Vue, at 42% since 2016, is much stronger than that of Sky Habitat, which stands at 30%. However, the rental growth for both condos is weaker compared to their counterparts in Bishan (55%).
Despite having a higher average rent, Sky Vue achieved 166 rental transactions this year, compared to 94 transactions for Sky Habitat. The higher rental volume for Sky Vue is a good indication of the condo’s popularity among tenants. Sky Vue’s strong performance in the rental market makes it appealing to investors and, hence, gives a boost to its resale price.
A deep dive into rental trends for the one-bedroom units in both developments indicates that Sky Vue consistently commands a higher average monthly rent than Sky Habitat. The current average monthly rents for Sky Vue and Sky Habitat are $7.91 psf and $5.08 psf, respectively. Furthermore, Sky Vue has experienced a more robust rental growth of 48% since 2016 compared to the 25% rental growth for Sky Habitat.
Despite the higher rent and smaller size, Sky Vue had 36 rental transactions this year compared to 22 rental transactions for Sky Habitat, which is a strong indicator of Sky Vue’s popularity among tenants.
Conclusion
Sky Vue and Sky Habitat share many similarities as they are developed by CapitaLand and are located beside each other. Additionally, both developments are leasehold condos that obtained their TOP within a year of each other. Hence, it is noteworthy for Sky Vue to command a significantly higher price than Sky Habitat.
Our analysis reveals that possible reasons include the relaunch of Sky Habitat at lower prices after the introduction of a series of cooling measures in 2013. Buyers should take note that sometimes it does not pay to be the first to purchase a new condo unit.
Additionally, Sky Vue has a higher percentage of small units compared to Sky Habitat, allowing Sky Vue to achieve a higher overall average price on a psf basis. When comparing sales transactions for three-bedroom units of similar sizes and layouts, the units in Sky Vue are more popular which could be attributed to its lower price point.
This year, there are no unprofitable sales transactions for Sky Vue, while Sky Habitat has two such transactions. Moreover, Sky Vue has more profitable transactions compared to Sky Habitat. The stronger performance of Sky Vue, in terms of profitability, would make Sky Vue more attractive to investors. Furthermore, Sky Vue has achieved higher average rents and rental volume, which adds to appeal as an investment property.
Check out the latest listings for Sky Vue, Sky Habitat properties
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