Few people associate the leafy suburbs of Siglap with high property prices. However, one unit there has been sold for about $1,634 psf – a surprising price for a project that is not situated in the central area.
According to data by the Urban Redevelopment Authority (URA), the Siglap V freehold project at East Coast Road also recorded a soaring median price of $1,508 psf for the 50 units sold in January.
In general, properties located in the Outside Central Region (OCR) usually have prices below $1,000 psf.
But the eye-popping prices for units at Siglap V have not discouraged home buyers, as most of the units there are relatively small. The 114-unit project includes one-room apartments with a size area starting from 366 sq ft and one-room-plus-study units from 463 sq ft.
This means that the price of these small units would be fairly affordable. Assuming that a one-room unit with a size of 366 sq ft went for $1,634 psf, the buyer would have to spend about $598,000 for the unit.
“The psf price may raise eyebrows but if you look at the total quantum, it’s very affordable,” said Donald Han, managing director of Cushman & Wakefield Singapore.
Edmond Pak, senior marketing associate from Huttons, said that the location of Siglap V is a selling point. It is near to schools and other amenities, and next to Siglap Centre.
From his experience, Mr. Pak observed that some buyers would purchase one-room units as an investment. He also said that several buyers were residents of landed properties in the area.
The Siglap V development is not the only project in the OCR with a high psf price. In July 2009, the Centro Residences project at Ang Mo Kio made headlines for having a $1,100 psf price tag. According to URA, about seven units at that project changed hands last month for about $1,164 psf to $1,233 psf.