In prime district 9, it’s not just the large three- to four-bedroom condominium units and penthouses that have been hit by a bout of losses in re-sales. Some of the more compact units in the area have been submerged as well. The enclave that has seen many high-rise condos featuring compact units completing in 2012-2013 has been in the area off River Valley Road, primarily in St Thomas Walk, Killiney Road and Devonshire Road.
One of the recent transactions was of a 560 sq ft one-bedroom unit at Espada on St Thomas Walk. The 17th floor unit was sold for $1.16 million ($2,072 psf), according to a caveat lodged on May 5. The previous owner had purchased the unit five years ago for about $1.24 million ($2,212 psf), according to an April 10 caveat. This means the seller incurred a price loss of some 6.3% in five years.
A recent transactions at Espada was for a 560 sq ft one-bedroom unit that was sold for $1.16 million ($2,072 psf)
Completed in 2013, Espada was developed by niche private developer, Novelty Group. The 232-unit freehold condo is contained in a single 32-storey tower. The project contains predominantly one bedroom units ranging in size from 344 sq ft to 657 sq ft, with one-bedroom-plus study units sized at 689 sq ft, typical two-bedroom units of 721 sq ft and a sole penthouse of 1,313 sq ft.
The latest resale price of $2,072 psf achieved at Espada in early May is also the lowest psf achieved since Feb 2010 when the 1,313 sq ft penthouse was sold by the developer for $2.62 million ($1,995 psf).
An even smaller unit of 377 sq ft on the 29th floor unit of Espada was sold for $999,000 ($2,652 psf) in March this year. The unit last changed hands for $1.055 million ($2,801 psf) in May 2010. Hence the seller saw a loss of 5.6%.
Property consultants like Alan Cheong, head of research for Savills Singapore reckon that such transactions are “one-off deals”, with some of these owners selling for various financial reasons. He reckons such sellers of shoebox units make up just a sliver of the market.
However, even the rental rates of the shoebox units at Espada have been affected, falling by some 10% since the peak to about $3,800 to $4,000 a month currently, according to a property agent with GPS Alliance who is marketing some units in the development.
Next door to Espada is Skyline 360 @ St Thomas Walk by developer Hiap Hoe Ltd. The Singapore-listed developer announced last September that it had bought the remaining five penthouse units in project for $35 million ($1,574 psf), according to a caveat lodged then. The 61-unit luxury condo contains a mix of three- and four-bedroom units and was completed in 2012.
The average price of $1,574 psf achieved for the penthouses at Skyline 360 @ St Thomas Walk could also have affected prices in the surrounding area as resale transactions have remained relatively thin, reckon property consultants.
Nearby is the 68-unit freehold Residences@Killiney by Hoi Hup Realty, which still have penthouses available for sale. Sized above 5,000 sq ft, they are priced in the range of $6.8 million to $6.9 million. Back in Sept 2009, the biggest penthouse of 6,749 sq ft was sold for $10.15 million ($1,504 psf), while a smaller penthouse of 5,059 sq ft was sold for $7.84 million ($1,550 psf) in Jan 2010.
The 10-storey Residences @ Killiney condominium project was completed in 2012, and contains a mix of two- to four-bedroom units with sizes ranging from 1,055 sq ft to 2,368 sq ft. The most recent recorded transaction at the project was for a 1,625 sq ft three-bedroom unit that changed hands for $2.88 million ($1,772 psf), according to URA Realis. The unit had been purchased in a sub-sale back in April 2013 for $3.6 million ($2,215 psf), hence the seller recognized a loss of 20%. The latest achieved price of $1,772 psf is also the lowest resale price achieved in the condo to date.
However, just across the road from Residences @ Killiney is One Devonshire, the 152-unit freehold condo by Allgreen Properties. The project was launched in June 2009, just a month before Residences @ Killiney debuted on the market. At One Devonshire, queues had built up two to three days ahead of the launch and units had to be sold by balloting on the first day. A total of 146 units were sold within the first month at prices ranging from $1,517 psf to $2.236 psf or a median price of $1,771 psf, according to URA data.
One Devonshire contains a mix of two- to four-bedroom units with the smallest unit starting from 904 sq ft. Those who bought units at One Devonshire six years ago have still been able to make a profit in the resale market. The most recent transaction at One Devonshire was for a 1,324 sq ft three-bedroom unit that changed hands for $2.8 million ($2,115 psf) at the end of March. The previous owner had purchased the unit for $2.2 million ($1,669 psf) back when the project was first launched, hence recognizing a price gain of 26.7%.
This article appeared in the City & Country of Issue 678 (May 25) of The Edge Singapore.