Are you a property investor looking for a bargain in the upmarket resale market? This year, condominiums in the exclusive Balmoral area at District 10 have been seeing reduced psf prices.
According to the latest property news from EdgeProp Singapore (last updated in July 2015), the resale of a 1,335 sq ft condo unit located on the ninth floor of Belmond Green, a luxury condominium located in Balmoral Road, changed hands on June 8. The three-bedroom property was sold for a transaction price of $2.35 million or $1,723 psf. The seller previously purchased the unit in 2006 for a lower cost of $1.3 million or $995 psf.
Belmond Green is a freehold property that consists of 211 units spread across five 12-storey blocks. Completed in 2004, it was one of CapitaLand’s upmarket residential projects located in the exclusive District 10.
According to Aldric Tan, the senior associate director of CBRE Realty Associates, Belmond Green’s lower resale prices were partly due to the latest transactions from the neighbouring Hallmark Residences. The recently completed residential project by MCL Land is located right behind Belmond Green, on Ewe Boon Road.
Hallmark Residences saw two transactions in recent months. Two ground floor units were resold for $3.13 million, or $1773 psf, and $2.92 million, $1,739 psf. CBRE’s Tan believes that the lower resale prices for both units were due to the developer’s willingness to offer reduced prices to clear out the last few unsold units. Only three out of the 75 units at Hallmark Residences were left unsold as of May.
Hallmark Residences’ lower psf prices directly affected Belmond Green’s. Four units at the Belmond Green were resold at transaction prices ranging from $1,635 psf to $1,723 psf. This is good news to homebuyers and property investors looking to get a bargain in the resale market.
Belmond Green was only completed in 2004; therefore, it’s not as old as other real estate properties in the exclusive Balmoral area. Older condominiums in the vicinity built in the 1970s to 1990s include Palm Spring, Ewe Boon Regent, and Crystal Tower. In comparison to these properties, Belmond Green is a relatively newer development. According to Bruce Lye, a managing partner at SLP Realty, “units at Belmond Green seem more affordable than units at Hallmark Residences which are larger in size and have a higher psf price given that the development is new.”
Diagonally opposite of Belmond green is Goodwood Grand, a freehold condominium developed by Tong Eng Group. The luxury property, which consists of 65 units and eight bungalows, was recently launched in December 2013. Of the 31 units put for sale, 26 have been sold at a median price of $2,563 psf.
Similar to Belmond Green, Goodwood Grand’s lower psf prices were due to the recent transactions from a neighbouring condominium, Goodwood Residence. The 210-unit luxury property is located off Bukit Timah Road. It was also just recently completed in 2013 by GuocoLand. The developer was able to sell 27 units in total so far. Three-bedroom units measuring 1,948 sq ft to 2,142 sq ft fetched prices ranging from $2,181 psf to $2,614 psf; whereas, four-bedroom units measuring 2,454 sq ft to 2,928 sq ft were sold at prices ranging from $2,413 psf to $2,678 psf.
According to CBRE’s Tan, the psf price range of Goodwood Residence, which is currently at $2,400 psf to $2,600 psf, serves as the ballpark price range for some of the newer developments in the Balmoral area. Many of these developments have similarly-sized units, with larger configurations of three and four bedders.
Three Balmoral, a 40-unit freehold property by Tong Eng Group, also reduced its psf price range. The residential project was recently launched in the property market in October 2011. However, only seven have been sold out of the 20 units put up for sale. The latest recorded transaction occurred on June 15 of this year for a three-bedroom unit that fetched a price of $3.4 million or $2,209 psf. This psf price is the lowest seen in Three Balmoral to date, as previous transactions had prices ranging from $2,388 to $2,608 psf.
This is likely due to its neighbouring condominium, Treasure on Balmoral, owned by Hiap Hoe Limited. The developer was pressured to sell all the units within two years of completion—a condition dictated by the Qualifying Certificate (QC) for foreign real estate companies.