Singapore real estate agency Savills has revealed details for the bulk sale of 21 freehold apartment units at Newton Imperial, located at 24 Newton Road.
Arun Sugumaran, Senior Manager Savills Regional Capital Markets, said: “Newton Imperial presents a rare opportunity to acquire freehold apartment units in District 11 at an attractive price point.
“Despite the current cooling measures in place, such as the 15 percent Additional Buyer’s Stamp Duty, gross yields between 3 perdent to 3.25 percent are still achievable for this project as a result of its attractive price point. This gives investors something to think about as current commercial yields are at compressed levels partly due to the buoyancy of the commercial market in recent times and a low interest rate environment.
“Furthermore, with capital values of commercial strata title properties at historical highs, Newton Imperial offers investors potentially higher capital appreciation in the medium to long term, and being strata-titled, the units can be traded readily.”
Steven Ming, Deputy Managing Director and Head of Investment and Sales at Savills added: “Prime development sites are rarely available for sale and if they were, prices would generally be priced north of S$1,500 to S$2,000 per psf per plot ratio.
“With anticipated rise in construction costs, projects will breakeven above S$2,300 psf. Hence, there is a compelling proposition now to invest in prime residential today where prices are at below replacement value levels.”
Projects in the vicinity such as Wing Tai’s L’Viv and Novelty Group’s 26 Newton have achieved sales in the S$2,100 to S$2,600 psf range, albeit the projects comprising smaller units.
“Recent sale prices of new launches in the Newton vicinity have been at levels north of S$2,000 psf, mainly due to the excellent location that Newton offers with Orchard road being five minutes away and the convenience of shopping malls such as United Square, Velocity@Novena Square and Novena and Newton MRT Stations in the vicinity.
Steven Ming added: “Districts 9, 10 and 11 remain locations that most aspire to own and with a limited supply of freehold land in these districts, prices of residential property in these locations will trend upwards in the medium to long term.”
The 21 apartments are available for bulk sale via private treaty.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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