insight
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Investors are once again turning their attention to new developments in the Telok Blangah and Keppel Bay area in District 4. The ones that are on the radar screen of buyers are naturally the newest projects, such as the recently completed Reflections at Keppel Bay and Skyline Residences.
Designed by globally acclaimed architect Daniel Libeskind and developed by Keppel Land, the 1,129-unit Reflections at Keppel Bay has seen renewed buying interest in the past month. Completed last December, the 99-year leasehold luxury condominium contains a mix of two- to four-bedroom units. It’s located close to Keppel
Club, the Keppel Marina and is also near VivoCity shopping mall and Sentosa Island.
To date, 88% of the 950 units launched at Reflections have been sold. Most recently, the project saw the sale of three units in March. A 1,442 sq ft, three-bedroom unit on the 23rd floor was sold for $3.1 million ($2,149 psf)
in a sub-sale. And a twobedroom unit on the 13th floor changed hands for $1.89 million ($1,618 psf). Meanwhile, another twobedroom unit on the 14th floor transacted at $1.9 million ($1,650 psf). The highest unit price recorded
at Reflections at Keppel Bay was for a four-bedroom unit on the fifth floor of one of the six-storey villa towers. The unit, which is said to have unobstructed sea views, fetched $11 million ($3,256 psf) last November. The
buyer is a Singaporean.
According to Samuel Eyo, director of Savills’ Prestige Homes, the difference in unit prices can be attributed to the difference in views. “A key draw of Reflections at Keppel Bay is its waterfront views and lifestyle options,”
says Eyo. “Units with better views can sell for about $2,000 psf.” He adds that the development has seen a good mix of locals and foreigners who are buying units for personal use and investment. “Units can fetch a rental
rate of $6 to $7 psf,” says Eyo.
Keppel Land has set aside several blocks as corporate residences. The two- to fourbedroom units will be leased fully furnished for between $8,000 and $9,000 a month, depending on the size. Eyo believes that Keppel Land will hold its rental rates and set the benchmark for individual investors looking to lease out their units.
Skyline Residences also saw renewed buying interest in March, after a lull following the latest property cooling measures in December. Expected to be completed in 2015, the freehold development located at Telok Blangah saw
three transactions in March, based on caveats lodged with URA Realis. Developed by Bukit Sembawang Estates, the 231-unit condo has a mix of one- to five-bedroom units. A unit that was recently sold was a 14th-floor one-bedroom unit that went for $1.07 million ($2,224 psf). Another transaction was for a sixth-floor, three-bedroom unit that changed hands for $2.6 million ($1,967 psf). The third transaction was for a 13th-floor, two-bedroom unit that went for $1.6 million ($1,968 psf).
Skyline Residences is a redevelopment of the former Fairways Condominium and is within walking distance to the Telok Blangah MRT station. While some units at the project enjoy sea views, Skyline Residences cannot be compared with Reflections at Keppel Bay as the latter offers a whole new waterfront living lifestyle and is targeted at a different segment of the market altogether, says Savills’ Eyo.
Value hunters have also been looking at the older condos in the area. The 139-unit freehold Harbourlights, completed in 1997, saw two transactions last month. A 1,249 sq ft, three-bedroom unit on the fifth floor was
sold for $1.73 million ($1,390 psf). The previous owner had purchased the unit in a subsale in May 1996 for $1.25 million ($1,001 psf). Hence, the unit has seen a capital appreciation of 38.4% in 16 years. On the third floor,
a 721 sq ft, two-bedroom unit was sold for $998,000 ($1,384 psf). The unit had changed hands twice previously. The first owner had purchased it at $591,112 ($820 psf) from the developer in October 1995. The unit was then
sold for $583,000 ($808 psf) in a sub-sale in May 1999. The property has seen a capital appreciation of 68% in 161/2 years. Purchasers of Harbourlights are mainly end-users, says Eyo. “Telok Blangah is attractive to buyers because it is close to the city and MRT stations and there are shopping malls like Harbourfront and VivoCity located close by,” he notes.
Keppel Land’s Reflections at Keppel Bay, the developer’s iconic waterfront property, is likely to receive its temporary occupation permit (TOP) at year-end. And that may have stoked sales of late, say property experts. The 1,129-unit Reflections, designed by renowned architect Daniel Libeskind (most famous as the master planner for the rebuilding of the World Trade Center Site in New York), sits prominently at Keppel Bay and overlooks Marina @ Keppel as well as Sentosa Island. Units on high floors offer encompassing views of the sea and the city.
From Aug 23 to 30, two units at Reflections were transacted, according to data downloaded from URA Realis as at Sept 14. A 1,270 sq ft three-bedroom apartment on the 15th floor of one of the six high-rise glass towers at Reflections was recently sold for $2.92 million ($2,300 psf). In the same tower, two floors down, a 786 sq ft studio unit changed hands in a sub-sale for $1.8 million ($2,301 psf).
To date, developer Keppel Land has sold 821 out of the 830 units launched to date. Transaction prices at these levels are “reasonable”, given the development’s location next to the giant VivoCity mall, and Sentosa Island, where the Resorts World Sentosa integrated resort is located, says Margaret Thean, DTZ’s executive dirctor of residential. DTZ is a joint-marketing agent of Reflections with CB Richard Ellis (CBRE). “It’s for the super rich who want a different lifestyle. With its location right at the waterfront, residents can easily enjoy activities at the sea. Some of the buyers also own yachts, which they can berth at the marina.”
Interestingly, the highest price achieved for the project to date was $3,025 psf and it was for a 2,949 sq ft, four-bedroom apartment that was sold for over $8.9 million at end-July. It is also the sole transaction to date to have crossed the $3,000 psf threshold. Another similar-sized unit on the third level of the same tower was sold for close to $8.75 million, or $2,966 psf, in July. This was the next highest price psf achieved.
Libeskind, the star architect who designed Reflections Reflections has attracted local high-networth individuals and those from China, Hong Kong, and Malaysia, says Joseph Tan, executive director of residential services at CBRE. Tan adds that the project was recently showcased in an exhibition in Malaysia, and saw good response.
“An increase in transactions is expected when a property nears its TOP date,” says Tan. He says buyers who do not want to wait for construction to be completed, and who prefer to move in immediately, will likely buy a property closer to its TOP date. “Some buyers are more comfortable purchasing a property when it’s almost completed, so they know exactly what they are buying into,” he adds.
Institutional funds had also purchased block units in the development in 2007. For instance, Keppel Land sold two low-rise waterfront apartment blocks at Reflections, or 56 units, to Kuwaiti fund the Al-Nibras Islamic Real Estate Fund, for $286 million. The fund is holding the units as long-term investments.
Reflections is gaining international recognition because of Libeskind, who, besides the World Trade Center Site, is also famous for his iconic buildings such as the Jewish Museum in Berlin. “Its architecture adds to its uniqueness and that may matter to some buyers looking for a trophy asset,” says CBRE’s Tan.
However, Tan reckons Reflections’ location, amenities and spectacular views also play a key part in driving demand. It is located next to Keppel Land’s other condominium development, the 99-year leasehold 969-unit Caribbean at Keppel Bay, which was completed in 2004, and launched that same year. In August, there had been several transactions there with prices above $1,500 psf. Next to Caribbean is the Harbour Front precinct, with a mix of office towers and shopping malls including VivoCity, still the largest shopping mall in Singapore.
The mall is linked to the HarbourFront MRT Interchange and station, and is also just one train stop away from the Resorts World Sentosa integrated resort on Sentosa Island.
Positioned as an upscale condo project, Reflections has penthouses ranging from 7,000 to 13,300 sq ft. The development also contains a mix of units from studio apartments of 732 sq ft to four-bedroom units of up to 3,993 sq ft. Its six towers vary in height from 24- to 41-storeys, with each tower crowned by a sky garden. Sky bridges also connect the towers and act as communal spaces for residents. There are also another 11 low-rise apartment blocks directly fronting the bay with amazing sea views.
In neighbouring Telok Blangah, developer Bukit Sembawang Estates launched the freehold 283-unit Skyline Residences, which will sit on the site of the former Fairways Condo. The launch has also drawn home buyers and investor interest to the Telok Blangah neighbourhood. To date, about 175 units have been sold at an average price of $1,900 psf.
No doubt transactions have slowed as sentiment has been affected by the US and European debt crisis, and fears of a global recession. However, there is still home buyer interest in locations where buyers see value, and potential for future growth.
Source : The Edge – 19 Sep 2011
