Interest in Farrer Park area ignited

Two two-bedroom units at City Square Residences changed hands recently for $1,667 psf and $1,684 psf

| JO-ANN HUANG |THE EDGE | OCTOBER 8, 2012

The Farrer Park neighbourhood, which has been popular among home buyers in recent years because of its city-fringe location and the opening of the Farrer Park MRT station, has seen a surge in renewed interest over the past month. Property agents attribute the rise in popularity to the upcoming Connexion, where the Farrer Park Hospital, Medical Centre, hotel and spa are coming up right next to the Farrer Park MRT station.

“Connexion should be completed by next year and it will definitely add buzz to the Farrer Park area,” says Brandan Lim, a senior team director at HSR International Realtors.The private hospital’s retail section called Owen Link, which offers F&B, shopping and lifestyle options, is also attractive to buyers,he adds. Connexion comprises a medical centre with 189 medical suites, a hospital as well as a luxury hotel and spa. Built above Farrer Park MRT Station, the sprawling property has two 20- storey wings atop a six-storey podium. Connexion is built by The Farrer Park Partners, a group of private medical and hospitality specialists as well as investors. More than 80% of the strata medical suites have been sold. Most of the investors at City Square Residences are foreigners, who were attracted to its location and the many amenities at their convenience, says Lim.

The biggest beneficiaries are the owners of the 910-unit City Square Residences by giant property developer, City Developments Ltd (CDL). Resale transactions have picked up over the past month, and buyers who have enjoyed the biggest gains are those who purchased when the freehold project was launched in 2005 and who have held their units until now. For instance, the most recent transaction was for an 840 sq ft, two-bedroom unit on the 19th floor that was sold for $1.4 million ($1,667 psf). The unit was purchased by the previous owner in May 2005 for $537,300 ($640 psf). Thus, the seller enjoyed a prices gain of 2.6 times. Another unit that changed hands in a resale was a slightly larger 860 sq ft, two-bedroom unit on the 28th floor. It was sold for $1.45 million ($1,684 psf). The previous owner paid just $586,800 ($681 psf) when the project was launched in 2005, thus prices have since jumped 2.4 times.

Another recent resale at City Square Residences was that of a 1,206 sq ft three-bedroom unit on the 14th level. The unit, which was sold for $1.78 million ($1,476 psf), had changed hands twice before this transaction.It last changed hands in January 2010,for $1.35 million ($1,120 psf). Prior to that,it was sold for $878,000 ($728 psf) in April 2007. The original buyer paid just $675,000 ($560 psf) for the unit at launch in 2005.

Located on Kitchener Link, City Square Residences is adjacent to the City Square Mall, which is linked directly to the Farrer Park MRT station. The condo is in the heart of the Little India cultural enclave, and late night shopping can be done at the nearby Mustafa Centre. Units on the high floors enjoy views of the city.

Tyrwhitt 139

Meanwhile, Tyrwhitt 139, a boutique freehold condo with just 48 units has seen an increase in resale activity as well. Sitting on Tyrwhitt Road, off Kitchener Road, the freehold project was developed by Oxley Holdings and completed in 2009. A 517 sq ft, one-bedroom unit changed hands recently for $728,000 ($1,409 psf). The unit was purchased for $467,593 ($905 psf) when it was launched in 2007, thus the owner enjoyed a 55.7% price gain. Another 484 sq ft one-bedroom unit changed hands for $745,000 ($1,538 psf) recently. The last time the unit changed hands was in March 2010,when it went for $600,000 ($1,239 psf). The original owner paid just $472,803 ($976 psf) for the unit in 2007.

Even though Tyrwhitt 139 is a 10-minute walk from the Lavender and Farrer Park MRT stations, the project has seen demand from buyers, says Andrew Tan, a vice-president at Dennis Wee Realty. “It’s close to the city,” he says. “When prices of condos in the city area go up, demand spills over to the city fringes,and this is most noticeable in the Farrer Park and Lavender area.” The shoebox apartments,which measure less than 500 sq ft, are the most popular, notes Tan.

Kentish Court

Other properties in the area that have also seen some activity include Kentish Court, The Merlot  and Southbank. At Far East Organization’s 99-year leasehold Kentish Court on Oxford Road, a 1,055 sq ft, two-bedroom unit on the first floor was sold for $1 million ($948 psf). At Fragrance Group’s freehold The Merlot on Keng Lee Road, a 1,098 sq ft, three bedroom unit was sold for $1.2 million ($1,093 psf) on Sept 17. Both Kentish Court and The Merlot are near Farrer Park MRT Station.

Southbank

At UOL Group and Low Keng Huat’s 99-year leasehold Southbank, prices have soared to the $1,900 psf level. The condo is located on North Bridge Road, across the Kallang River from Lavender MRT Station. Most recently,a 1,313 sq ft three-bedroom unit was sold for $2.15 million ($1,637 psf). In August, a 614 sq ft one-bedroom SOHO-style unit was sold for $1.17 million ($1,904 psf).

The Merlot