A private equity real estate fund that had purchased the remaining units at The Lumos on Leonie Hill Road two years ago, is now offering the individual units for sale.
The majority of the remaining 34 units offered are three- and four-bedroom units, with sizes ranging from 1,754 to 2,432 sq ft. There are two penthouses: a duplex of 5,714 sq ft and simplex of 5,929 sq ft. Both penthouses have their own private pool. There are also a few one-bedders of 699 sq ft and two-bedders of 1,173 sq ft.
Selling prices start from $2,310 psf. "The three-bedroom units which are priced from $2,310 to $2,700 psf are a steal," remarks Tan Tee Khoon, executive director and head of residential project marketing at Knight Frank’s agency arm, KF Property Network, which is marketing the units jointly with SRI.
The 53-unit The Lumos was developed by a joint venture between Koh Brothers and Heeton Holdings and completed in 2011 (Credit: Koh Brothers/Heeton Holdings)
The private equity real estate fund had purchased the units from Buildhome Pte Ltd, the 50:50 joint venture between the subsidiaries of Singapore-listed Koh Brothers Group and Heeton Holdings, which had developed The Lumos. According to an announcement on the Singapore Exchange in July 2017, Buildhome was sold for $41.6 million, with the remaining 36 units at The Lumos valued at $185.6 million.
The Lumos is a freehold, boutique luxury development completed in 2011. It contains 53 units in a 36-storey tower located in prime District 9.
When the project was first launched in August 2007 – the peak of the last property boom – prices ranged from $3,074 psf to a high of $3,984 psf, according to caveats lodged then. This brought overall average price to $3,276 psf.
“With the latest promotion, the available units are priced at least 26% lower than the initial launch prices in 2007," notes Ken Low, managing partner at SRI. Investors can also opt to buy the tenanted units for immediate rental income, he says. The three-bedroom units have achieved monthly rental rates of $6,800 to $7,800, while the four-bedroom units have been leased for $7,800 to $9,000.
Most of the units that are up for sale are large units, made up of three- and four-bedroom apartments and duplexes (Credit: Koh Brothers/Heeton Holdings)
The developer is implementing "a proactive upgrading plan" to refresh The Lumos, adds Tan. The façade and the main entrance – from the driveway to the foyer and lift lobby – are being upgraded. The landscaping and lighting in the common areas as well as the gym are also being upgraded. “The costs will be fully borne by the developer,” he says. “This will aid in controlling the immediate and long-term costs of maintenance and thereon pass these benefits to the home owners."
Tan sees The Lumos offering “a strong value proposition” based on the prices, coupled with the developer’s proactive efforts in upgrading the exteriors and interiors. “Many other new launches are going for prices above $3,500 psf,” he adds. Based on record prices paid for collective sale and government land sale prices in 1H2018, new launches in prime District 9 are likely to be priced beyond $4,000 psf, he adds.
Meanwhile, along Leonie Hill, units sold at the freehold New Futura, have ranged from $3,384 to $3,794 psf, based on transactions for the three months from December 2018 to February to date. At OUE Twin Peaks, a 99-year leasehold luxury condo located along Leonie Hill Road, high-floor units have even crossed $3,100 psf and hit a high of $3,394 psf in 2017. The 462-unit development was completed in 2015.
Most of the high-floor units have views of Orchard Road (Credit: Koh Brothers/Heeton Holdings)
Even new, freehold condos launched in the past 12 months in the Amber Road neighbourhood in the East Coast (District 15) have been priced in the $2,300 to $2,400 psf range, notes SRI's Low.
“The Lumos, which is in prime District 9, near Orchard Road, has much potential for capital appreciation given its latest pricing package,” he says.
On top of the normal payment scheme, buyers have the option of a deferred payment scheme (DPS) at The Lumos: 20% upfront payment, with 80% due two years later. However, those buying under the DPS will be paying a price that is 4% higher than the normal payment scheme, notes Low.
The developer is progressively upgrading the entrance, driveway and the exterior of The Lumos (Credit: Koh Brothers/Heeton Holdings)
Under the normal payment scheme, a 699 sq ft, one-bedroom unit on the 10th floor will be priced at $2.06 million ($2,950 psf). Meanwhile, a two-bedroom duplex of 1,173 sq ft is priced from $3.4 million ($2,900 psf). Three-bedroom units on the low floors start from 1,754 sq ft and are priced from $4.12 million ($2,352 psf), while the high-floor three-bedroom duplexes of 2,496 sq ft are from $5.69 million ($2,281 psf). Four-bedroom units on the low floors are from 2,432 sq ft with prices from $6.45 million ($2,651 psf), while the four-bedroom duplexes on the high floors are upwards of 3,303 sq ft and priced from $8.09 million ($2,448 psf).
Compared to the initial launch prices, the "promotion prices" translate to savings from $908,000 for a one-bedder; $1.35 million for a two-bedder; and from $1.45 million to $2.84 million for the three- and four-bedroom units and duplexes, says SRI’s Low.
“Developers have built more compact units in recent years to cover escalating land and other development costs,” notes Knight Frank’s Tan. Buyers who want more spacious units and at a lower price psf will thus find The Lumos appealing, notes Tan. “The majority of the units are situated on high floors with soaring ceiling heights and generous balconies,” he adds. “These units are oriented to enjoy natural breezes and breathtaking views of Orchard Road.”
The units are therefore expected to attract "a good mix" of long-term investors and owner-occupiers, reckons SRI's Low.
The gym is one of the facilities that will be upgraded (Credit: Koh Brothers/Heeton Holdings)
The government's announcement about transforming Orchard Road and injecting more life to Singapore's premier shopping belt should also benefit buyers of The Lumos, which is located just a five-minute walk away, says Tan.
According to Knight Frank, average prices of new sale non-landed homes in the Core Central Region grew by 19% in 2018, while resale non-landed prices grew by 9.5% in the same year.
“The higher-income homebuyers appear to be less affected by the prevailing cooling measures and are continuously seeking prime-district homes in Singapore for owner occupation and investment objectives,” says Tan.