Despite a recent increase in average prices, homebuyers still prefer suburban condominium projects located within the proximity of schools and other amenities like shopping centres, eateries and public transportation, with newly completed developments commanding a premium.
For instance, four units at the 659-unit The Parc Condominium were sold on the resale market at prices ranging from $965 psf to $1,085 psf during the period of July 20 to 27.
To date, the highest psf price transacted at the condo was reached in April, when a 667-sq-ft unit located on the 24th floor was sold for $800,400 or about $1,199 psf.
The Parc, which was jointly developed by Lehman Brothers’ real estate equity fund and Chip Eng Seng, was launched in September 2007 at the peak of the earlier property boom, with all units sold at an average selling price of $880 psf.
Since it got its temporary occupation permit (TOP) early in July, eight units at the development have gone for $860 psf to $1,085 psf.
“Prices have gone up a fair bit since TOP,” said Kia Ng, an ERA real estate agent specialising in The Parc. “Sellers are now asking for $1,050 to $1,100 psf, instead of $1,000 psf previously,” he said, adding that the asking prices remain “reasonable” considering that the development is in a good location and of freehold tenure.
Situated in District 5 at West Coast Walk, the condo is a 10-minute walk from Clementi MRT station. Ng also said that “there is still room for price appreciation” since it is accessible to amenities like Clementi Town Centre and West Coast Drive Market.
The most popular units at the development are the three-room apartments, taken up by landlords and owner-occupiers, said Ng. A typical two-room unit commands an asking rental rate of $3,000 to $3,500; and a three-room unit could be rented out for $4,500.
An apartment with three-bedroom-plus study could fetch $4,500 to $4,800 per month, while four bedrooms and more space could fetch between $5,000 and $6,000.
“Some parents are purchasing units at The Parc because the condo is [only one km from] the reputable Nan Hua Secondary School, while Tanglin Secondary School is also a short drive from there,” said Ng.