Transactions pick up at The Crest

By Charlene Chin

/ EdgeProp |

May 13, 2018 7:30 AM SGT

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Developers of residential projects in the Alexandra neighbourhood in District 3 have been reaping benefits from the property market upcycle.

Transactions have been picking up at The Crest, a 99-year leasehold development on Prince Charles Crescent, off Alexandra Road. The 469-unit condominium in District 3 was completed in late 2017 and, so far, 267 units, or 57% of the project, have been
sold, according to caveats lodged. The project was jointly developed by Wing Tai Holdings, Metro Australia Holdings and Maxdin, a unit of UE E&C, and designed by renowned Japanese architect Toyo Ito.

Sales have been strong this year. In just the first four months of 2018, a total of 51 units were sold, compared with 73 units in 2017 and 52 units the previous year.

Selling prices have gone up 8.4% to an average of $1,947 psf in the first four months of this year compared with $1,796 psf in the first three months of launch from July to September 2014, according to caveats lodged.

To entice buyers, The Crest rolled out a deferred payment scheme for the three- and four-bedroom units last September. Buyers opting for these units need only pay a 1% booking fee upon signing the option to purchase. They have to exercise the option to purchase and pay another 4% as well as buyer’s stamp duty a fortnight later, according to marketing agents. Another 5% will be payable a year later, and the remainder is due only two years later.

Within a month of signing the option to purchase, the buyers of these units can choose to either move in or lease out the unit.

The developer has also upgraded the fittings in two of the the four, 5-storey villa blocks, including using Miele kitchen appliances and installing high-end Bang & Olufsen television sets in the living rooms. The buyers of units in the villa blocks are offered another deferred payment scheme.

The efforts have paid off. Of the 51 units sold in the first four months of 2018, 11 were villa units, at prices ranging from $2,015 to $2,190 psf. The highest psf price achieved for all unit types was for a 1,604 sq ft, four-bedroom villa unit on the second storey of one of the villa blocks. At $3.5 million, this was also the second-highest price fetched in the development so far.

In the vicinity is the 400-unit leasehold Artra on Alexandra View, which will be linked to the Redhill MRT station when completed. The mixed-use 99-year development, a joint venture between two listed Hong Kong developers — Far East Consortium International and New World Development Co — has seen sustained demand.

As the inventory of unsold units in neighbouring projects dried up, the developers of Artra and The Crest started to adjust their selling prices as well. Average psf price at Artra rose 4.8%, from $1,728 in February to $1,810 in March. In April, the average psf price edged up slightly to $1,837.

Since the project’s launch in April last year, prices have risen 11.3%, from $1,650 to $1,837 psf, over the past 12 months. The highest average psf price was achieved on April 7, when a buyer purchased a two-bedroom unit on the 38th floor for $1.7 million ($2,093 psf).

So far, Artra is 70% sold, according to George Tan, executive director of Savills Residential, which is jointly marketing the project with Knight Frank and PropNex Realty. There are a wide range of unit types at Artra, from two-bedroom units of 786 sq ft to five-bedroom apartments of 2,583 sq ft.

The residential blocks sit on top of a commercial podium that will have a Fairprice Finest supermarket, a childcare centre and 16 retail shops.

According to Savills’ Tan, the majority of homebuyers at Artra are locals, with a good mix of investors and owner-occupiers. He attributes the strong sales to the positive market sentiment. “People feel that if they don’t buy now, prices may go up further,” he says.

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