One-bedroom unit at Citylights hits $1,753 psf

| BY CHERYL CHEAH | THEEDGE SINGAPORE | JULY 30, 2012

There has been buying interest in the 99-year leasehold Citylights recently

Located on the fringes of the CBD, the Lavender Road neighbourhood has traditionally been popular with property investors. They especially like Citylights on Jellicoe Road, which is just across the road from the Lavender MRT station, says Jacqueline Koh, senior sales manager of UPG International. “Buyers tend to prefer places where there is convenient access to public transportation and amenities. Furthermore, there are also several renowned schools nearby that might appeal to families who wish to relocate in the neighbourhood.”

There has been buying interest in the area. The 99-year leasehold Citylights by CapitaLand saw three units changing hands during the week of July 6 to 12, based on the latest caveats lodged and downloaded from URA Realisas at July 24.

One was a one-bedroom, 570 sq ft unit on the 28th level, which changed hands for $1 million ($1,753 psf). That was the third time the unit has changed hands so far. The previous transaction was two years ago, when the unit was sold for $835,000 ($1,464 psf). Prior to that, the unit was purchased in July 2007 for $680,000 ($1,192 psf) when it was newly completed.

A 3+1 bedroom unit on the 40th floor was recently sold for $2.65 million ($1,440 psf). The original owner had purchased the 1,841 sq ft apartment in May 2007 for $1.85 million ($1,005 psf), thus enjoying a price gain of 43.3% in almost half a decade.

Another recent transaction was the resale of a 678 sq ft, onebedroom unit on the seventh floor that changed hands for $1.04 million ($1,534 psf), according to a July 9 caveat lodged with URA Realis. The seller had paid $760,000 ($1,121 psf) for the apartment in November 2009, thus making a 36.8% gain.

Prior to the recent transactions, resale prices at Citylights have hovered at prices ranging from $1,364 to $1,765 psf in 1H2012, according to caveats lodged with URA Realis. While the transacted price does not mark a new high, the three units sold in July at a median price of $1,576 psf are close to the record high of $1,822 psf achieved last October, says Koh, who is currently marketing a four-bedroom, 2,530 sq ft unit at Citylights, which is listed with an asking price of more than $4.17 million ($1,650 psf).

The 600-unit Citylights was completed in 2007, and units on the top floors of the 42-storey towers enjoy unobstructed views of the city skyline as well as the Kallang Basin and even Marina Bay. Although the project is already five years old, the condo offers good value for buyers today. “An increasing number of investors is looking at buying some of the older condos. Citylights  may already be five years old, but the units have better layouts than some of the newer condos,” says UPG’s Koh.

The condo is also well maintained and has good landscaping. Because of its ambience, location right on the city fringe and proximity to the MRT station, it is also sought after by expatriates. The monthly rental for a three bedroom unit at Citylights  is about $5,600, according to Propnex’s senior associate marketing director, Derrick Chng. “But, of course, better-furnished units on the high floors tend to fetch higher rents,” he says.

A 560 sq ft studio unit can fetch up to $4,000 to $4,500 a month, and an 872 sq ft, two-bedroom unit can command up to $5,000 a month. Investors of the development are a mix of locals and foreigners, he says. “Most of the investors are looking at Citylights  for long-term investment. Many of them also own properties elsewhere and this is just to add to their portfolio,” he adds.

Also in district 8 is the 910-unit City Square Residences, which is located nearby on Kitchener Link, next to City Square Mall and a stone’s throw away from Farrer Park MRT station. The most recent transaction was for a 1,206 sq ft, three-bedroom unit on the 16th floor that changed hands for $1.77 million ($1,468 psf).

As City Square Residences is a slightly newer development and has freehold tenure, investors do tend to favour the condo over Citylights. “Prices at City Square Residencess have also gone up about 70% in the past three to four years and, currently, there are still investors who are looking at buying units in the condo project,” says aproperty agent who declined to be named. The property agent is marketing a two-bedroom, 840 sq ft unit for $1.46 million ($1,738 psf), according to a listing on Propertyguru. com.

“Apartments at City Square Residences also fetch decent rental yields. Based on the price tag of the two-bedroom apartment, the rental yield will work out to 3.8%,” he says.