A strong resurgence of homebuyers allows resale transactions in Aspen Heights, a massive 606-unit condominium located in District 9, to peak at $1,450. According to property news by EdgeProp Singapore (last updated January 2010), there were three resale deals in the property market where the units were sold at a range of $1,250 to $1,450 psf.
In the first half of 2009, there were 15 total transactions at the $1,000 psf level. Later in the year, more than 30 units were sold, with prices hovering over $1,400 psf. However, it was only in December of that year when it finally hit the $1,450 mark.
A financial crisis hit Singapore in late 2008. Because of this, property investment prices sank below $1,000 pdf, and it was only able to rebound a year later, together with the rest of the local real estate market. The upturn in prices is most likely due to the strong sales of new developments around the area. Nearby residential projects completed were The Wharf Residence in Tong Watt Road and Martin Place Residences at Martin Place off Kim Yam Road. These two projects were relaunched in mid-2009 with prices that were 20% cheaper than the year before.
In mid-May of 2009, CapitaLand priced the remaining units of The Wharf Residence at $1,200 to $1,500 psf. This was much lower compared to its 2008 prices which ranged from $1,500 to $1,900. Developer Frasers Centrepoint Ltd also relaunched Martin Place Residences with an equally low range of prices, from $1,260 to $1,700 psf. The year before, 28 units were sold between prices ranging from $1,700 and $2,000 psf.
However, it recently started enjoying a price uplift. Last October of 2009, a condo unit at The Wharf Residence was sold for $3.3 million, and this roughly translates to a new price high of $1,496 psf. The condo for sale was a spacious 2,206 sq ft and is expected to be available once the apartment was completed in 2013.
Similarly, Martin Place Residence also started to enjoy an uplift in prices. The 302-unit luxury condominium saw a pick-up in sales since May of 2009. A spacious 1,044 sq ft unit earned a resale value of $1.88 million, or $1,800 psf. The deal achieved a 13.7% profit for the seller who bought the unit from Frasers Centrepoint Homes and put it up for sale in the local market after a short holding period of six months.
The high real estate demand for luxury properties located in the River Valley Road may also be due to opening new shopping malls along Orchard Road in 2009. Some newly launched retail centers include Orchard Central, Ion Orchard, 313@Somerset, and Triple one Somerset. This may also be because these properties are situated at a prime real estate location where various amenities and attractions are close at hand. Different entertainment spaces, transportation hubs, elite schools, hospitals, supermarkets, and food joints are just around the vicinity. In addition, good schools such as River Valley Primary School and Singapore Management University make properties in this area very attractive to families with school-age children. There are also plenty of cafes and restaurants in the Robertson Quay area that residents can easily visit.
There is also a long list of new developments under construction around the area, drawing much interest from home buyers and property investors.
The largest residential development in River Valley Road is easily Aspen Heights, a massive luxury condominium developed by DBS Realty Pte Ltd in 1998. The residential project has 606 condo units housed in 16-storey residential blocks. Four unit types are available: a two-bedroom unit (85 – 105 sqm), a three-bedroom unit (122 – 142 sqm), a four-bedroom unit (146 – 149 sqm), and a penthouse unit (250 – 292 sqm).
The steady uptrend in prices makes 2010 a good time for homeowners to sell their properties to profitable resale value. For example, last December, a 1,324 sq ft unit on the fifth floor of one of Aspen Height’s residential blocks could get a reasonable price of $1.67 million, or $1,260 psf. This roughly translates to a 23% yield for the seller.
Another example of the recent uptick in property prices for this condominium was when a 2,691 sq ft penthouse fetched $3.9 million, or $1,450 psf. The seller was able to earn a 19% profit from this transaction.