Prices hit $856 psf at The Calrose and $718 psf at Seasons Park

luxuryasiahome on October 10, 2010 

Lately, there has been a surge in transactions at The Calrose and Seasons Park along Yio Chu Kang Road. The reason? Property agents like Benjamin Tan of C&H Group note that upgraders see value in the competitively priced condominiums, which are located in a good neighbourhhod.

The Yio Chu Kang/Ang Mo Kio area has become an attractive residential enclave as it is just a few bus stops away from the Yio Chu Kang MRT station and close to good schools like Nanyang Polytechnic, Anderson Junior College, CHIJ St Nicholas Girls’ School as well as James Cook University. The area is near the sprawling Ang Mo Kio Industrial Park and amenities are also available at the Ang Mo Kio Hub. Upcoming condominiums like the fully sold 479- unit Meadows@Peirce by UOL Group along Upper Thomson, and Far East Organization (FEO)’s 329- unit Centro Residences at Ang Mo Kio are also generating interest in the neighbourhood. These two new projects are expected to be completed only in 2012 and 2013, respectively.

The Calrose and Seasons Park are separated by another condo project, Far Horizon Gardens, a 23-year-old 99-year leasehold development. The Calrose, a 421-unit freehold development completed by MCL Land two years ago, has six five-storey blocks. Prices had been on an uptrend prior to the introduction of measures to cool the property market at end-August, and had hit a high of $953 psf in January 2010, when a 1,237 sq ft unit on the fourth floor was sold for $1.18 million.

C&H’s Tan, for instance, closed a number of deals, selling units at an average price of $850 to $950 psf in the last three months. He says buyers were mainly those who lived in the vicinity and wanted to upgrade to a freehold condo as the tenure of their 99- year leasehold condo shortened.

From Sept 7 to 14, there were three transactions at The Calrose, with prices ranging from $667 to $856 psf. A 2,023 sq ft unit on the fifth floor of one of the blocks was sold for $1.35 million ($667 psf). That’s a 70.8% gain for the seller, who purchased it for $790,000 ($390 psf) during the launch in 2005.

At another block, a 2,185 sq ft four-bedroom unit on the fifth floor was sold for $1.52 million ($696 psf). The apartment was bought for $986,000 ($451 psf) in 2006, translating into a 54% gain. The third transaction was for a 1,388 sq ft three-bedroom unit on the first floor that went for $1.188 million ($856 psf), reaping a 19% gain for the seller, who purchased it at $1 million ($720 psf) in 2009. Before this, the unit changed hands for $980,000 ($706 psf) in 2008 and $769,888 ($554 psf) in 2005.

Another condo that has seen a spike in transactions lately is Seasons Park, a 390-unit 99-year leasehold development completed in 1997 by Pidemco Land (now CapitaLand). The project is located opposite landed properties, including Banyan Villas, a cluster of three-storey terraced houses leased by FEO.

“There is strong demand for [Seasons Park],” says Alvin Wee, senior marketing manager at ERA. “Some owners are taking the opportunity to cash out at a profit as age is catching up with the leasehold development.” He says buying interest is due to the competitive pricing at the condo, and also the strong rental demand. Asking rent is about $2,700 a month for a two-bedroom unit. This year, prices came close to surpassing the peak of $823 psf in March 1996. A 1,248 sq ft unit on the eighth floor was sold for $930,000 ($745 psf) on June 18.

From Sept 7 to 14, there were three transactions at Seasons Park, with prices ranging from $569 to $718 psf. A 1,108 sq ft unit on the second floor was sold for $740,000 ($667 psf). That’s a 12.9% gain for the owner, who bought it for $655,500 ($591 psf) during the launch in 1997. In another block, a 1,065 sq ft unit on the 16th floor changed hands for $765,000 ($718 psf). The seller, who purchased it for $550,000 ($516 psf) in January 2003, enjoyed a capital appreciation of 39%. The unit changed hands for $780,296 ($732 psf) in March 1996.

The third unit that was sold between Sept 7 and 14 was a 1,442 sq ft apartment on the first floor of another block that went for $820,000 ($569 psf). It was purchased at $450,000 ($312 psf) in January 2006, representing an 82% gain. At the launch in 1997, the unit was sold for $645,000 ($447 psf).

Source : Today – 4 Oct 2010