When Malaysia-listed developer Selangor Dredging Bhd (SDB) announced in early December that it was buying a freehold site in Serangoon Road from National Aerated Water Company for $47 million, it brought attention to a neighbourhood off Serangoon Road that has been overlooked for some years.
The factory building formerly occupied by National Aerated Water Company fronts the Kallang River, and is located along Serangoon Road. The factory building is also next to the Montgomerie Bridge and the Kallang park connector, and an eight-minute walk from the Potong Pasir MRT station.
The property can be redeveloped into a new 117-unit private condominium with unit sizes averaging 754 sq ft, says Suzie Mok, senior director for investment sales at Savills Singapore, who brokered the sale. On top of the $47 million price tag, SDB will also have to pay an additional $22.66 million for the intensification of land use and conversion of industrial to residential purpose. The purchase price for the site with a land area of about 31,700 sq ft translates to $785 psf per plot ratio.
View of the Moonstone Lane towards Potong Pasir from Whampoa South
Redevelopment potential of old industrial buildings
According to Mok, besides National Aerated Water Company, other neighbouring industrial buildings such as Poh Leng Building, Mah Building and Ah Seng Stainless Steel are also within the residential zone under the URA Master Plan 2014. Poh Leng Building and Mah Building can be redeveloped into high-rise residential buildings, while Ah Seng Stainless Steel site can be redeveloped into a high-rise residential with commercial operations on the first level under the URA Master Plan 2014. These are also freehold sites, she adds. “The area therefore has potential to further maximise the land use.”
Selangor Dredging Bhd bought the former National Aerated Water Company site for $47 million
Adjacent to Poh Leng Building is Moonstone Residences, a freehold, 76-unit private condo by Siong Hoe Development that was completed in 2004. Launched in 2003, the project saw units sold initially at an average of $513 psf. The latest transaction was for a 1,238 sq ft three-bedroom unit that fetched $1.39 million ($1,122 psf) in February 2016.
On the opposite side of Moonstone Lane are some old shophouses whose land on which they sit have been zoned for high-rise residential use, with commercial use on the first level, adds Mok. Further down along Moonstone Lane and Topaz Road are other freehold, private condos. The latest project there is the 70-unit M66, located at the end of Moonstone Lane. Com pleted just last year, it was developed jointly by Agrow Realty, Fortune Realty and Wenul Development.
View of condominiums in the St Michael’s Road area
M66 was launched in June 2012 at an average of $1,300 psf and is fully sold to date. The latest resale there was for a 495 sq ft, one-plusstudy unit that fetched $585,000 ($1,181 psf).
Adjacent to M66 is the freehold 46-unit Suites @ Topaz by Goodland Group. The project was launched in August 2010 and completed in 2012. When it was first launched, units were sold at an average of $1,190 psf. The majority of them were one-bedroom apartments with sizes from 377 to 495 sq ft. The latest transaction was for a 958 sq ft, two-bedder that fetched $930,000 ($971 psf) in a resale last September.
The Moonstone Lane neighbourhood is at the corner of Serangoon Road just before the Woodsville Tunnel and at the turnoff from the Pan-Island Expressway, and is therefore relatively overlooked by most home buyers, notes Savills’ Mok.
M66 is a freehold, 70-unit development located at the end of Moonstone Lane and was completed last year
St Michael’s-Mar Thoma Road
On the other side of the Kallang River are the freehold and 999-year private condos in the St Michael’s neighbourhood off Mar Thoma Road. The prices of condos there are also hover ing in the $1,000 to $1,200 psf range, notes Savills Singapore’s head of research, Alan Cheong. It’s an area where one can find relatively affordable freehold and 999-year leasehold, private condos, he adds.
The latest project in the St Michael’s–Mar Thoma area is Riviera 38, a 102-unit private condo developed by Allgreen Properties and completed in 2015. The 27-storey residential tower has a 999-year lease, and is a redevelopment of the former Hup Cheong Mansion, which Allgreen purchased en bloc for $24 million in 2007. Launched for sale in October 2012, the average price was $1,150 psf. The latest transaction at Riviera 38 was for a two-bedroom penthouse of 1,636 sq ft, which sold for $1.78 million ($1,088 psf) in September 2015.
Across the road from Riviera 38 is another development also by Allgreen Properties called RiverBay. The 999-year leasehold condo contains 147 units in a 26-storey tower. The project was launched in May 2013, and as at end-December, about 130 units have been sold. The latest transaction was the sale of a 947 sq ft three-bedroom unit sold for $1.18 million ($1,246 psf) in December. RiverBay is a redevelopment of the former Kai Sheng Court, Shaik Mohamed Villa and a house at 23 Mar Thoma Road, which were purchased by Allgreen collectively for $15 million in 2007.
Riviera 38 was launched for sale in October 2012 at an average price of $1,150 psf. It was fully sold two years later.
Diagonally across from RiverBay is Beacon Heights by St Michael’s Development (a subsidiary of Kim Eng Group). The 999-year leasehold, private condo contains 212 units in a 28- storey tower that was completed in 2012. The latest transaction in the project was for a 667 sq ft, two-bedroom unit that fetched $838,000 ($1,256 psf) in September last year.
RiverBay is a 999-year leasehold condo with a total of 147 apartments, all in a single 26-storey tower, which sits on the sites of Kai Sheng Court, Shaik Mohamed Villa and 23 Mar Thoma Road.
Eight Riversuites effect
Savills’ Cheong reckons that the prices of the 999-year leasehold and freehold, private condos in the St Michael’s-Mar Thoma area and even Moonstone Lane could have been influenced by the prices achieved at the 862-unit Eight Riversuites, where the condo units have been sold at prices ranging from $1,235 psf to 1,355 psf, according to caveats lodged from October to December.
The 99-year leasehold Eight Riversuites developed by United Engineers Ltd is located along Whampoa East Road, bordered by Bendemeer Road on one side and Serangoon Road on the other. It fronts the Sungei Whampoa (or Whampoa River), and contains 843 high-rise condo units with a mix of one- to four-bedroom apartments sized from 441 to 2,508 sq ft. Within the development are also 19 strata terraced houses, which have been sold at prices ranging from $2 million ($676 psf) to $2.15 million ($762 psf) in November and December. The strata terraced houses have built-up areas ranging from 2,820 sq ft to 3,003 sq ft.
Airstream is a 70-unit freehold development by Meng Leong Development and was completed in 2012
St Andrew’s Village
Many families with young children are attracted to the Moonstone Lane and Mar Thoma- St Michael’s neighbourhood, given that it is within 1km of St Andrew’s Village.
In terms of public transport, the closest MRT station is Potong Pasir. However, for those who drive, given the accessibility to both the Pan-Island Expressway and Central Expressway, it’s a 15-minute drive to the CBD and 10-minute drive to Nex shopping centre, which is also linked to the Serangoon Interchange MRT station.
Interesting F&B outlets in the area include a branch of the 126 Dim Sum, and coffeeshops Tian Wai Tian Fish Head Steamboat and Melben Seafood. Interesting cafés there include the Harry Potter-themed Platform 1094, which just opened in December, and the dog-friendly Happenstance Café.
Popular Tian Wai Tian fish head steamboat and Melben Seafood are located within the Moonstone residential enclave
Happenstance Café offers meals for both pet owners and their furry friends
The park connector in the Moonstone Lane area is linked all the way to SportsHub and East Coast Park in the east, as well as to Bishan- Ang Mo Kio Park in the central region.
According to Savills’ Mok, as the former factory of National Aerated Water is redeveloped and other new developments come up in the area, it will become a vibrant and desirable residential neighbourhood.
Shops across from St Michael’s Road, where Platform 1094 and a branch of 126 Dim Sum are located
This article appeared in The Edge Property Pullout, Issue 762 (Jan 16, 2017) of The Edge Singapore.