Investors looking for rental properties might be interested in this listing. A 689 sq ft two-bedroom unit at Dorsett Residences is put up for sale on TheEdgeProperty.com at $1.35 million, or $1,959 psf. The Edge Fair Value, a valuation tool on TheEdgeProperty.com, puts the indicative value of the property at above $2,100 psf.
The unit is understood to be tenanted at $4,200 a month, which works out to a gross rental yield of 3.7% based on the asking price of $1.35 million.
There were six rental contracts involving 600 to 700 sq ft two-bedroom units in the project. Monthly rents generally hovered in the $4,100 to $4,400 region, although one unit was let for $5,300 a month.
Dorsett Residences is a 68-unit residential project located next to Outram Park MRT station and Dorsett Singapore Hotel. Its immediate vicinity comprises historic shophouses along Bukit Pasoh Road housing a boutique hotel and F&B outlets. Schools within 2km from the property include CHIJ (Kellock) and River Valley Primary School.
Dorsett Residences and Dorsett Hotel. The listed property is understood to be tenanted at $4,200 a month
Prices at the project appear to be returning to 2011 levels. The listed price of $1,959 psf bears resemblance a transaction in October 2011 when a comparable unit was sold for $1,989 psf. In April 2015, another comparable unit changed hands at $1,894 psf.
Separately, prices in the property have also breached the $2,000 psf mark. A 689 sq ft unit on the fifth floor found buyer at $2,250 psf back in October 2012.
Historical transactions for 689 sq ft units at Dorsett Residences
Rental contracts for 600 to 700 sq ft units at Dorsett Residences in 2H2015
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This article appeared in The Edge Property Pullout, Issue 712 (January 25, 2016) of The Edge Singapore.