Home buyers are making their move, as property consultants are projecting prices to rise 8% to 15% this year. New projects already in the market have seen a surge in buying demand.
At 38 Jervois, the maiden condominium project by Prominent Land, eight units were sold in the past three weeks. The 27-unit freehold development is located on Jervois Road in prime District 10.
The buying momentum began on March 22, when three units were sold: a 646 sq ft, two-bedroom unit, for $1.53 million ($2,367 psf); and two 474 sq ft, one-bedroom units, for $1.17 million ($2,465 psf) each. Five more units have been sold in the two weeks since, and all of the one- and two-bedroom units are fully sold, says Bruce Lye, managing partner of SRI, who is marketing the development.
Lye expects the remaining 17 units at 38 Jervois to be snapped up by mid-2019 (Picture: Prominent Land)
Most of the buyers are Singaporeans who live in the surrounding area, says Lye. The freehold tenure is a strong draw. There is also strong interest from families with children, as well as HDB upgraders, for the three-bedroom and penthouse units, he adds.
Buyers can expect to move into the new development by mid-2019, says Joni Lim, managing director of Prominent Land.
Across the road from 38 Jervois is Singapore Land’s Mon Jervois. The 109-unit private condo was completed in 2016 and is 84% sold. Transaction prices have also inched up. When the 99- year leasehold project was launched in 2013, the average price of units sold was $2,008 psf. Since last year, the average transacted price has increased to $2,134 psf. The most recent transaction at Mon Jervois was the sale of a 1,561 sq ft, three-bedroom unit on the ground floor that went for $3.25 million ($2,081 psf) on March 9.
The average transacted price at Mon Jervois has increased to $2,134 psf since last year (Picture: Samuel Issac Chua/The Edge Singapore)
The Jervois area has also seen a burst of en bloc deals. Last September, the former Jervois Gardens was sold to SC Global for $72 million ($1,373 psf per plot ratio). Jervois Green was reportedly purchased by a group of investors led by Mike Ho, the third-generation owner of Spring Court restaurant. The price tag for Jervois Green was $52.9 million ($1,601 psf ppr).
Last month, Lotus @ Jervois was sold to Fragrance Group for $46.3 million ($1,684 psf ppr). The new launches on these en bloc sites are likely to take place only next year, says SRI’s Lye. Meanwhile, 38 Jervois is scheduled to be completed by mid-2019. Lye is thus confident that the remaining 17 units at 38 Jervois will be sold before these new redevelopment projects are launched.
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This article appeared in the EdgeProp Pullout, Issue #825 (April 9, 2018)