Completed condos near new launches in OCR present buying opportunities

Completed condos near new launches in OCR present buying opportunities

The launch of The Wisteria in Yishun in March and Cheung Kong Properties’ Stars of Kovan in May has stirred interest in completed condominiums in these two suburban neighbourhoods, which are located in the Outside Central Region (OCR), according to the top 50 property searches in The Edge Property website.

“Buyers who are looking for a home in the vicinity will zoom in on projects that were recently completed or other comparable projects,” says Alice Tan, head of research at Knight Frank Singapore. Some are of the view that projects that were launched earlier are likely to be priced lower, providing higher capital appreciation in the future, she explains.

For instance, in Yishun, a consortium led by BBR Holdings launched The Wisteria at an average price of $1,100 psf. Meanwhile, th e 608-unit The Estuary by MCL Land, which was completed in 2013, has seen resale prices averaging $904 psf over the past six months. This represents a discount of about 18% on average compared with The Wisteria, points out Knight Frank’s Tan.

The 608-unit The Estuary by MCL Land, which was completed in 2013, has seen resale prices averaging $904 psf over the past six months

The price premium could also be due to the fact that The Wisteria is a mixed-use development with a retail mall. “Buyers in the OCR are more price-sensitive, especially in the current uncertain economic situation,” says Tan. “They prefer a completed development as they can move in immediately or lease it out for rental income even though the rental market is relatively challenging.”

A similar scenario is taking place in the Kovan area. The launch of Stars of Kovan in May has created a buzz, and 80 units have been sold to date, based on caveats lodged on URA Realis. The average transacted price was $1,400 psf.

At Kovan Residences, the average price of units sold over the last six months was $1,167 psf

Two neighbouring completed condos have benefited from the launch of Stars of Kovan. One is the 521-unit Kovan Residences, which was completed in 2011 and jointly developed by Centurion Properties and Lian Beng Group. The average price of units sold at the development over the last six months was $1,167 psf. The other condo is the 393-unit Kovan Regency by Hoi Hup, which is expected to be completed later this year.

A 550 sq ft unit at Kovan Regency was sold in November 2015 at $770,000 ($1,300 psf)

The most recent transaction at Kovan Regency was for a 550 sq ft, one-bedroom unit for $770,000 ($1,300 psf) in November 2015. Meanwhile, a 506 sq ft studio at Stars of Kovan was sold for $864,580 (1,314 psf). The very slight price premium for Stars of Kovan over Kovan Regency could be due to the fact that the latter will only be completed later this year, says Knight Frank’s Tan.

With more value-buy opportunities surfacing in the OCR as new projects are being completed, buyers will have to do their homework, says Tan.

Top 50 searches in Outside Central Region from Jan 1 to June 19

A TREASURE TROVE	Condominium	99 Yrs From 09/03/2011	2015	882
ARCHIPELAGO	Condominium	99 Yrs From 01/06/2011	2015	553
BARTLEY RESIDENCES	Apartment	99 Yrs From 29/06/2011	2015	702
BAYSHORE PARK	Condominium	99 Yrs From 17/03/1982	1986	1,083
BEDOK RESIDENCES	Apartment	99 Yrs From 21/11/2011	2015	583
BOTANIQUE AT BARTLEY	Condominium	99 Yrs From 14/04/2014	Uncompleted	797
CASA ESPANIA	Apartment	Freehold	1991	19
CASA MERAH	Apartment	99 Yrs From 11/07/2006	2009	556
CHILTERN PARK	Condominium	99 Yrs From 01/03/1991	1995	500
COMPASS HEIGHTS	Apartment	99 Yrs From 30/04/2000	2002	536
COSTA DEL SOL	Condominium	99 Yrs From 05/05/1997	2004	906
GLENDALE PARK	Condominium	Freehold	2000	448
GUILIN VIEW	Condominium	99 Yrs From 24/04/1996	2000	655
HILLVIEW GREEN	Condominium	999 Yrs From 19/05/1883	1998	400
KINGSFORD . HILLVIEW PEAK	Condominium	99 Yrs From 04/06/2012	Uncompleted	512
KINGSFORD WATERBAY	Apartment	99 Yrs From 03/03/2014	Uncompleted	1,165
LAKEVILLE	Condominium	99 Yrs From 30/04/2013	Uncompleted	696
MARTIA RESIDENCE	Apartment	Freehold	2006	20
MEADOWS @ PEIRCE	Condominium	Freehold	2012	479
MELVILLE PARK	Apartment	99 Yrs From 01/09/1992	1996	1,232
NORTH PARK RESIDENCES	Apartment	N.A.	Uncompleted	920
NV RESIDENCES	Condominium	99 Yrs From 07/01/2008	2013	642
PALM GARDENS	Condominium	99 Yrs From 12/08/1996	2000	694
PARC OASIS	Condominium	99 Yrs From 01/12/1991	1994	950
PARC OLYMPIA	Condominium	99 Yrs From 25/01/2012	2015	486
RIPPLE BAY	Condominium	99 Yrs From 10/08/2011	2015	679
RIVER ISLES	Condominium	99 Yrs From 06/02/2012	2015	610
RIVERSAILS	Condominium	99 Yrs From 07/12/2011	2016	921
SELETAR PARK RESIDENCE	Condominium	99 Yrs From 15/03/2011	2015	276
STARS OF KOVAN	Apartment	99 Years Leasehold	Uncompleted	395
STRATUM	Condominium	99 Yrs From 11/07/2012	Uncompleted	380
SYMPHONY SUITES	Condominium	99 Yrs From 10/06/2014	Uncompleted	660
THE AMORE	Executive Condominium	99 Yrs From 30/10/2013	Uncompleted	378
THE BROWNSTONE	Executive Condominium	99 Years Leasehold	Uncompleted	638
THE CENTRIS	Apartment	99 Yrs From 21/06/2006	2009	610
THE GLADES	Condominium	99 Yrs From 21/01/2013	Uncompleted	726
THE LUXURIE	Condominium	99 Yrs From 15/06/2011	2015	622
THE MINTON	Condominium	99 Yrs From 27/07/2007	2013	1,145
THE PALETTE	Condominium	99 Yrs From 20/10/2010	2015	892
THE PANORAMA	Condominium	99 Yrs From 08/04/2013	Uncompleted	698
THE SCALA	Apartment	99 Yrs From 06/01/2010	2013	468
THE SPRINGBLOOM	Condominium	99 Yrs From 01/03/1995	1999	372
THE TRILINQ	Condominium	99 Yrs From 16/04/2012	Uncompleted	755
THE VALES	Executive Condominium	99 Years Leasehold	Uncompleted	517
THE VISIONAIRE	Executive Condominium	99 Years Leasehold	Uncompleted	632
THE WISTERIA	Apartment	99 Years Leasehold	Uncompleted	216
URBAN VISTA	Condominium	99 Yrs From 05/11/2012	Uncompleted	582
VUE 8 RESIDENCE	Condominium	99 Yrs From 10/09/2012	Uncompleted	463
WANDERVALE	Executive Condominium	99 Years Leasehold	Uncompleted	534
WATERTOWN	Apartment	99 Yrs From 18/05/2011	Uncompleted	992

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