Since Victoria Park Villas previewed on July 16, at least four semi-detached houses have been sold at prices ranging from $4.39 million to $4.9 million, according to caveats lodged over the week of July 19 to 26. The 99-year leasehold landed housing project by CapitaLand comprises 106 semi-detached houses and three bungalows. The project is scheduled for completion in early 2018.

The semi-detached houses at Victoria Park Villas are priced from $4.3 million, or about $2,000 psf. According to marketing agents, CapitaLand is currently offering an early-bird discount of 12%, with an additional 3% for those who live within the same district; an education discount for families whose children are studying in nearby schools; an upgrader discount for those making the transition from non-landed to landed housing; a loyalty discount for those who currently own a residential property developed by CapitaLand in Singapore; a multi-purchase discount for those who buy more than one unit; and a multi-family discount for families who purchase two or more units. The total discount granted will be capped at 15%.

Most of the purchasers at Victoria Park Villas are said to be Singaporeans, who are either buying for their own use or for their children, say agents.

Victoria Park Villas, where the entry price for a 99-year leasehold semi-detached house is $4.3 million

“$4.3 million is a great entry price for a new house in a desirable, prime District 10 location such as Coronation Road and Victoria Park Road,” says Grace Ng, deputy managing director of Colliers International.

Nearby on Coronation Road West, a freehold semi-detached house changed hands for $6 million last month. The property sits on a land area of 4,510 sq ft, which translates to a land price of $1,330 psf. However, the new owner would need to spend another $1.2 million to $1.5 million to tear it down and rebuild a new 2½-storey house with a basement and attic, Ng reckons. “Victoria Park Villas therefore appeals to people who want a new property that they can move into immediately as they find it too troublesome to fix up an old house,” she says.

CapitaLand purchased the 403,012 sq ft, 99-year leasehold site bounded by Coronation Road and Victoria Park Road for $366 million in June 2013. This translated to a land price of $908 psf per plot ratio. Assuming construction cost of about $300 to $400 psf, the breakeven price for Victoria Park Villas is estimated to be about $1,400 to $1,500 psf, Ng says.

The houses at Victoria Park Villas are said to have built-up areas from 4,155 sq ft and feature contemporary architecture. Each house contains four levels, including basement and attic, five bedrooms, a private lift, fully-fitted kitchens and bathrooms. The houses come equipped with biometric digital door lock and home automation features that enable the home owners to control air conditioning and lighting remotely.

According to Ng, the last time a leasehold landed housing development was launched in the prime District 10 neighbourhood was two decades ago. It was Kingsville, a 106-unit semi-detached housing project on King’s Drive, by developer Tuan Sing Holdings. The project has a 102-year lease with effect from 1996. It was launched for sale in March 1997 and completed in 1999. The project is sought after by families as it is adjacent to Nanyang Primary School.

The semi-detached houses at Kingsville also contain five bedrooms, with built-up areas ranging from 2,800 to 3,400 sq ft. The land area of the units is from 2,325 to 3,843 sq ft. In 1997, units were sold at prices ranging from $1.99 million ($855 psf) to $2.75 million ($808 psf), according to caveats lodged then.

The latest transaction at Kingsville was for a semi-detached house sitting on a land area of 2,756 sq ft that changed hands for $3.85 million ($1,395 psf) in May. The 17-year old house is sitting on a site that has 82 years left on its lease, says Ng.

This article appeared in The Edge Property pullout, Issue 740 (Aug 8, 2016) of The Edge Singapore.