Newton Road, Farrer Road draw bargain hunters

A 1,959 sq ft, three-bedroom unit on the 21st floor at Miro changed hands at $3.9 million or $1,995 psf

A 1,281 sq ft, three-bedroom unit on the seventh floor at Linc was sold for $2.05 million or $1,600 psf

THEEDGE SINGAPORE | OCTOBER 14, 2013 • |

|BY ADELE TEO |

There were a few transactions in the Newton area over the week of Sept 20 to 27. At Miro, a 1,959 sq ft, three-bedroom unit on the 21st floor changed hands at $3.9 million or $1,995 psf. According to Chris Wong, the associate marketing director of Propnex, when Miro was first launched, about 70% of the buyers were foreigners, many of whom were Indonesians. The 85-unit freehold Miro by developer Far East Organization was completed in 2012 and is located off Newton oad, not far from Newton Circus and the Newton MRT station.

Transactions have slowed dramatically since the introduction of the Total Debt Servicing Ratio (TDSR) loan framework at end-June, on the back of a series of property cooling measures — with the seventh round imposed in January. However, prices seem to be holding steady.

For instance, at Miro, prior to the recent sale of the three-bedroom unit on the 21st level in September, the previous transaction took place in April, when a 1,324 sq ft, two-bedroom loft unit on the 27th level changed hands for $2.75 million ($2,077 psf), according to caveats lodged with URA Realis.

Prior to the hike in Additional Buyer’s Stamp Duty to 15% for foreign buyers of residential property in January, about three out of five buyers in the Newton area were foreigners, observes Wong. “Today, it’s more like one in five,” he adds.

Next to Miro is The Linc, a boutique 51-unit condo project by Keppel land. The freehold development is a 20-storey block with a mix of one- to three-bedroom apartments with sizes ranging from 646 to 1,293 sq ft. There are also four duplex apartments sized from 1,410 to 1,851 sq ft. The project was completed in 2006. Last month, a 1,281 sq ft, three-bedroom unit on the seventh floor at The Linc was sold for $2.05 million or $1,600 psf. Prior to that, the previous transaction in the condo took place in April when a similar sized unit on the 11th floor was sold for the same price. Most of the buyers at The Linc are Singaporeans who are buying for their own stay, says Wong.

Expatriate tenants tend to be drawn to newer condo developments such as Miro and the 99-unit freehold Lincoln Residences by Sim Lian Group. Lincoln Residences is located on Surrey Road, and was completed last year.

Lincoln Residences

The units at Miro, in particular, have been popular owing to the layout of the loft units. In the past three to four months, two-bedroom units at Miro have been rented out at $5,300 to $5,500 per month. While some owners have increased their asking rents to $6,500 a month for such two-bedroom units, Wong reckons most expatriates’ rental budget threshold for a two bedroom unit is about 6,000 a month in that area. Consequently, given budget constraints of expatriate tenants these days, the Newton area is more popular than Orchard Road, where asking rents tend to be higher

A 1,755 sq ft, three-bedroom unit on the second floor at Gallop Gables was sold for $2.98 million or $1,698 psf

A 980 sq ft, two-bedroom unit on the eighth floor at The Levelz was transacted for $1.5 million, or $1,531 psf

Over at Farrer Road in prime District 10, the successful re-launch of the massive 1,715-unit D’Leedon a CapitaLand-led consortium at the start of the year has revived investor interest in the area. Even older freehold condos are seeing renewed buying interest, according to Samuel Eyo, director of Savills Prestige Homes. “There are some buyers who’ve been looking at some of these older freehold condos they are seen as value for money compared with D’Leedon, which commands similar sking prices owing to its significance as a large landmark project, despite its 99-year lease.”

D’Leedon

For instance, based on caveats lodged at D’Leedon from July to September, prices of units sold were in the $1,513 to $1,761 psf range.

Located across the road is the 126-unit freehold The Levelz, also by CapitaLand. The private condo was completed in 2004, and the project had seen handful of transactions in the last three months well, where units had changed hands at prices of $1,531 to $1,709 psf, which is similar to those at D’Leedon, notes Eyo.

The most recent transaction at The Levelz took place last month when a 980 sq ft, two-bedroom unit on the eighth floor was sold for $1.5 million or $1,531 psf. The previous owner had purchased it 12 years ago for $889,200 ($908 psf), according to a caveat lodged in October 2001. The seller saw prices appreciate 68.6% over the 12-year period.

The other transaction in the Farrer Road area was at Gallop Gables, a 102-unit freehold development by Straits Trading. Completed in 1997, the most recent transaction there was for a 1,755 sq ft, three-bedroom unit on the second floor that changed hands for $2.98 million ($1,698 psf) last month. The unit was last sold in 1997 when it went for $2.028 million ($1,156 psf). So, the seller realised a price appreciation of close to 47%. Prior to the sale of the 1,755 sq ft unit in September, the last transaction in Gallop Gables was in May when a 1,141 sq ft unit was sold for $2.1 million ($1,841 psf).

The prime district 10 neighbourhood of Farrer Road and Holland Road have traditionally been popular with professionals and executives owing to its proximity to Orchard Road and the CBD. A rejuvenation is taking place in Farrer Road, given the greater accessibility provided by the new MRT stations in the area, says Eyo. Hence, he sees long term investors continuing to hunt for opportunities in the neighbourhood.