V on Shenton sees prices hit $2,852 psf

By Tan Chee Yuen

/ The Edge Property |

October 28, 2016 11:00 AM SGT

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Transactions in the CBD area in District 1 have picked up in recent weeks. The development that has seen the most transactions in the week of Oct 11 to 18 was V on Shenton, where five units were sold over the seven-day period. V on Shenton is a redevelopment of the former UIC Building by listed property group United Industrial Corp. The mixed-use development comprises a single 54-storey condominium tower with 510 units and a 23-storey Grade-A office tower. The two towers are linked by a seven-storey podium. The first two storeys will house a mix of retail and F&B outlets, and the five storeys above will be the car park.

The residential component at V on Shenton has a variety of unit sizes, ranging from studios that start from 441 sq ft, one-bedroom units from 484 sq ft, two-bedders from 883 sq ft, two-bedroom-plus-study units from 1,055 sq ft and three-bedders from 1,356 sq ft. Penthouses start from 3,315 sq ft.

The units sold in the week of Oct 11 to 18 ranged from $1.15 million ($2,537 psf) for a 452 sq ft studio on the 31st floor to $3.82 million ($2,164 psf) for a 1,765 sq ft, three-bedroom unit on the 50th floor. Unit prices ranged from $1,907 psf to $2,852 psf.

V on Shenton is expected to be completed next year

About 80% of the 510 units at V on Shenton have been sold so far. The project is expected to be completed next year. “V on Shenton is not the only condo that has seen a surge in interest,” says Bruce Lye, managing partner of realtor SRI.

One Shenton, located nearby, has also seen a renewal of interest. Three units at One Shenton were sold in August and September. A 581 sq ft, one-bedroom unit on the 20th floor fetched $1.08 million ($1,858 psf), another similar-sized unit on the 41st floor was sold for close to $1.2 million ($2,058 psf) and a 1,130 sq ft, two-bedroom unit on the 22nd floor changed hands for $1.73 million ($1,531 psf).

Completed in 2011, One Shenton is a redevelopment of a former office block called Robina House by listed property group City Developments. The 99-year leasehold twin-tower One Shenton contains 341 units.

Since 3Q2016, interest in the CBD/Marina Bay area (District 1) has picked up, in line with the rest of the Core Central Region (CCR), namely districts 9, 10 and 11, says SRI’s Lye.

Interest in the CBD/Marina Bay area has also revived with the upcoming completion of four major mixed-use schemes: V on Shenton, OUE Downtown, Marina One and Tanjong Pagar Centre, says Lye.

Located directly across the road from V on Shenton is OUE Downtown, a refurbishment of the former DBS Towers into a mixed development with offices and a 268-unit serviced residence project called Oakwood Premier OUE Singapore, to be managed by Oakwood Asia Pacific. There will also be a 160,000 sq ft mall called Downtown Gallery, which will have a variety of retail, dining and entertainment outlets. Future residents at V on Shenton will benefit as well when OUE Downtown opens in the middle of next year.

Tanjong Pagar Centre, developed by Guoco Land, is being completed progressively. About 80% of the office space (Guoco Tower) is already pre-leased. The 181-unit Wallich Residence, which will sit on top of the office tower (Guoco Tower), is expected to be launched for sale after completion.

Marina One is developed by M+S, a joint-venture company set up by Malaysia’s Khazanah Nasional and Singapore’s Temasek Holdings. The residential component comprises two residential towers (Marina One Residences) with a total of 1,042 units. So far, only one tower of 521 units has been released. A handful of units were sold in September at a median price of $2,195 psf. This brings the total units sold as at end-September to 380 out of 401 units launched to date.

Both local and foreign investors will continue to buy selectively. “For foreigners, Singapore — recently ranked the third-largest financial centre in the world after London and New York — looks like the best place to park their wealth,” says SRI’s Lye. “The political stability is also a draw amid the global market uncertainty.”

This article appeared in The Edge Property Pullout, Issue 752 (Oct 31, 2016) of The Edge Singapore.

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