Residential Market news Extract - 23 October 2012

Sales begin at Eden Residences Capitol

A low-key by-appointment-only private preview has begun for Eden Residences Capitol, a high-end residential development just across the street from St Andrew's Cathedral.

BT understands that options have been granted for the first few of the development's 39 units, at between $2,900 and $3,100 per square foot (psf); this works out to $6.5 million to $10.4 million per apartment.

The buyers are a mix of Singaporeans and mainland Chinese, disclosed Pua Seck Guan, vice-chairman and president of Perennial Real Estate Holdings, which owns a 24 per cent stake in Capitol Investment Holdings, the consortium developing the Capitol project.

The 99-year leasehold mixed development will incorporate a hotel, retail and entertainment components.

Chesham Properties, a member of Pontiac Land Group, owns a 50 per cent stake in the consortium, and OSIM International founder and chief executive Ron Sim - in his personal capacity - 26 per cent.

Eden Residences Capitol, the project's residential component, includes two garden villas and five penthouses, which have not been released.

The penthouses are all duplexes in three-, four- and five-bedroom configurations, and run from 4,080 sq ft to 6,470 sq ft in size. Each has a swimming pool and a study.

The two garden villas on the third level, each with three bedrooms and a plunge pool, will be between 2,723 sq ft and 3,520 sq ft in size.

The remaining 32 apartments will comprise three bedders, three bedroom-plus-study and four bedroom-plus-study units and range from around 2,100 sq ft to 3,380 sq ft.

All 39 homes will have views of Marina Bay, said Mr Pua.

In a recent interview with BT, he said the goal is to sell no more than a third of Eden Residences Capitol's units this year.

The market is also abuzz about how the nearby South Beach project will stack up. The talk is that a City Developments-IOI tie-up is planning to price the units there at around $4,000 psf on average.

A property agent suggested that, with units in South Beach starting from two-bedders, the project-average psf price would be higher.

Mr Pua, when asked whether the Capitol tie-up may be underselling its project, said: "We're happy to transact the initial units in our project to establish a pricing level. We'll release the next batch of units next year, after the concepts for the hotel and retail components have been launched. Buyers will then be able to better appreciate the potential value of this project."

He added: "Residents will experience an unprecedented lifestyle in Singapore's first integrated development comprising residential, hotel, retail and entertainment components in Singapore's Civic District."

Indeed, residents of Eden Residences Capitol will be in a neighbourhood of restored historical, art and cultural buildings, landmarks and monuments.

The historic Capitol Theatre, Capitol Building and Stamford House are being conserved and restored for adaptive re-use in the mixed development project.

Beyond St Andrew's Cathedral just across the road stand the former City Hall and Supreme Court buildings, which will house the National Art Gallery from 2015.

With Eden Residences Capitol housed from levels three to 12 of a new tower, Basement 2 to Level 2 will be for retail units. B3 to B6 will offer 350 car park spaces, with each apartment allotted two spaces in B4.

Residents will be able to tap into a suite of tailored hospitality services from the luxury hotel within the Capitol development. Marc Dardenne, CEO of Chesham Properties, said residents can choose to engage "lifestyle managers" to fulfil their every need - be it to cook up a meal, do housekeeping or other errands.

An additional draw for buyers is that they may use the services of the hotel to lease out their apartments for one month or longer.

The apartments come kitted with designer mod cons: Each kitchen will be fitted with Poggenpohl cabinets, a Sub-Zero refrigerator and Miele kitchen equipment, including both gas and induction hob and hood.

The bedrooms will have Poliform wardrobes, and the washrooms, Hansgrohe, Duravit and other fittings.

The hotel will have about 160 rooms on Levels 2 to 4 of Capitol Building and Stamford House. Room sizes will be 40, 45 and 65 sq m. The hotel's lobby and all-day dining restaurant will be on the ground level of Stamford House.

As for the project's retail component, Mr Pua says it has received interest from luxury brands with rental offers in excess of $40 psf a month for street-front heritage shops on the ground floor of Capitol Building. "We've also received interest from Michelin-starred and new-to-market restaurants."

Some of these dining concepts will be located in the project's Galleria section, an air-conditioned area below a glass canopy behind Capitol Building/Theatre and Stamford House.

Mr Pua said: "With over 200,000 sq ft of retail and entertainment space featuring an exquisite selection of Michelin-starred restaurants, luxury brands and flagship concept stores, as well as special access to international performances, movie premieres and red carpet events at the Capitol theatre, residents can indulge in life's finer pleasures at their doorstep."

The development is slated for completion in 2014.

Source: Business Times – 23 October 2012

 

Yishun executive condo sold for a record $1.61m

A double-storey penthouse at 1 Canberra in Yishun was sold for $1.61 million, setting a record for new executive condominiums (ECs) and prompting one property consultancy to warn about the affordability of high-priced units.

More than half of the 343 new units that fetched more than $1 million since the EC scheme was relaunched in late 2010 were sold this year.

A growing number of young and affluent buyers are going for bigger and more high-end units that offer perks, such as spacious balconies and unobstructed views.

The rising trend for such luxurious buys could have been triggered by rock-bottom interest rates, rising incomes and many EC buyers escaping unscathed from the latest rounds of property curbs..

The rising prices of resale flats have also deepened the pockets of many HDB dwellers, who saw ECs as the next step in upgrading.

To be sure, the higher prices are largely due to the size of some of these new ECs, analysts said.

For example, the unit price for the 1 Canberra unit, which stands at 2,716 sq ft, was $595 per square foot (psf). A 2,476 sq ft unit at The Rainforest in Choa Chu Kang, which held the previous record price of $1.58 million, has a unit price of $637 psf.

"Nowadays, to meet a variety of needs, EC's come in different sizes," said ERA Realty key executive officer Eugene Lim. "There are larger units as well as smaller units. The larger units sell at about $1 million."

While current interest rates are low, they are likely to go up in the future. Based on calculations, owners who purchased a unit that cost more than $1.1 million may need to top up in cash upwards of $1,400 a month once interest rates rise above 3 per cent.

This assumes a couple earning a combined $12,000 a month, with a monthly repayment based on a 30-year loan at 80 per cent loan-to-value (LTV) ratio and a current interest rate of 1.5 per cent.

But ERA's Mr Lim said that this is a risk that applied to all forms of housing and was not unique to ECs.

Furthermore, interest rate hikes are gradual, he said, so owners have time to make adjustments.

High-priced ECs faced price pressures with more supply coming onto market and competition from new condos in the suburban areas.

Comparatively, there could be value in similarly priced private residences that could be smaller in area but are not subjected to selling or leasing restrictions.

Source: Business Times – 23 October 2012