Despite slower pre-sales activity, prices within the Ardmore Park area in District 10 remain resilient due to its “purely luxury” positioning.
R’ST Research Director Ong Kah Seng said: “It’s very different from new high-end residential areas like Marina Bay and Sentosa Cove where each condominium project there has a wide mix of very small to average-sized units and has a more diverse resident profile.”
According to media reports, the average resale price at the 330-unit Ardmore Park condominium (pictured) was at S$3,311 psf in Q2 2013. This is slightly down from S$3,484 psf in Q1, but higher than Q2 2012’s median price of S$2,877 psf.
However, global macroeconomic headwinds pulled resale activity down to just eight transactions this year compared to 28 last year and 44 in 2011.
In the last five years, the Ardmore area has only seen one new project, the freehold 118-unit Ardmore II condominium, while projects under construction include the 43-unit Le Nouvel Ardmore, 35-unit Sculptura Ardmore and 84-unit Ardmore 3.
Ong noted that future projects within the area would have to happen through collective sales, but that has been halted due to the many unsold new units and high asking prices by homeowners.
“Most of the property owners at the Ardmore area are well-heeled and not in any hurry to sell,” said Dr. Tan Tee Khoon, Executive Director for Residential Services at Knight Frank Singapore.
Meanwhile, rental prices of condo units within the area slipped in Q2, even as the number of rental contracts increased.
Out of 27 rental contracts, the monthly median rent stood at S$5.78 psf in Q2, which works out to S$16,675 per month. This is down from the previous year’s S$6.28 psf or S$18,118 per month from 14 rental contracts.
“Existing homeowners are likely to hold on to their properties as they continue to enjoy stable rental returns,” said Dr. Tan.
“While affluent buyers are likely to stay on the sidelines for now, interest is likely to remain strong should the opportunity to buy return.”
Nikki De Guzman, Junior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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