City&Country: Singapore-- The Viridian in Balestier previews at S$1,500 psf

June 1 marked the debut of boutique developer Global Orion Properties’ maiden condominium project, The Viridian at Balestier, in Singapore. The 23-storey tower comprising 108 apartments was designed by renowned local architectural firm, Ong & Ong Architects, and sits on a 27,839 sq ft freehold site.

The site is a redevelopment of a former three-storey industrial terrace building at 6 Jalan Ampas off Balestier Road, which Global Orion purchased in early 2010 for S$27.5 million.

Satia Narjadin, Global Orion’s director, was quick to see the redevelopment potential of the Balestier site located behind Shaw Plaza. Since Global Orion ventured into the Singapore property scene five years ago, it has successfully launched and fully sold strata-titled units in its industrial buildings, including Northstar@AMK, The Crescent@Kallang and Meissa in Pasir Panjang.

Narjadin sees potential for growth in the city fringes. “The trend is that more people are moving to the city fringes as they find living in the city centre too expensive,” he says. “Given our location, our development will appeal to urban professionals, young couples as well as HDB upgraders.”

To cater to its target audience and, given its location in the city fringe, 76% of the units are made up of one-bedroom and one-bedroom-plus-study units measuring 506 to 527 sq ft. There are also 14 one-bedroom loft units sized at 883 sq ft with double-volume ceiling heights of up to 5.7m. There are 22 two-bedroom apartments averaging 893 sq ft, and two three-bedroom units of 1,033 sq ft. There are also two duplex penthouses, each measuring 3,326 sq ft, with three bedrooms and a private swimming pool.

The Viridian previewed at an ave­rage of S$1,500 psf, with prices starting from S$785,000 for a one-bedroom unit. “The smallest apartment is about 500 sq ft, which we think is an ideal size for both singles and newly married couples,” says Narjadin.

The first five levels of the building will contain car parks, and the sky deck on the seventh level houses facilities such as the gym and swimming pool and is effectively three-storeys high. As such, the apartments start from the 10th level, says Narjadin, and every unit is assured of unobstructed views of the surroundings.

Balestier is just one street away from the prime District 11 of Newton and Novena as well as the Thomson Road neighbourhood. It is also just a five-minute drive to Orchard Road, and 10 minutes to the CBD via the Pan Island Expressway. “In terms of location, it’s actually very central,” says Narjadin.

Rejuvenation of an old industrial area
Developments such as The Viridian are bringing a buzz to an old industrial area that is being rejuvenated, with many of the factory areas being rezoned for residential use. Even the old apartment blocks are being torn down and redeveloped into condo towers.

They include Goodwill Mansion along Balestier Road, which was sold for S$20 million, and Melrose Court on Lorong Limau, off Kim Keat Road, which was sold to a boutique developer for S$44 million. Many of these new residential towers are also pitched at the mid-tier segment; as such, the whole neighbourhood is undergoing a renewal.

In April, boutique developer EL Development launched its 115-unit condo SkySuites 17 on Jalan Rajah, at the former Diamond Tower site, which it purchased en bloc for S$49.6 million a year ago. Units in the 30-storey tower SkySuites 17 range from one-bedroom apartments of 366 sq ft to a four-bedroom penthouse of 3,132 sq ft that comes with a private pool. So far, 107 units have been sold at an average price of S$1,500 psf, according to Lim Yew Soon, managing director of EL Development.

Another boutique developer, BS Capital, bought the former industrial Colourscan Building, on the corner of Kim Keat Road and Lorong Ampas, in mid-2010. It paid S$36 million for the 32,544 sq ft freehold site, which will be redeveloped into a 21-storey condo with 169 units called The Interweave at Kim Keat. The majority (110 units) are one-bedroom types measuring 344 to 441 sq ft; another 57 units are two-bedroom apartments of 676 to 764 sq ft; and two three-bedroom penthouses of 1,119 and 1,141 sq ft each. BS Capital started private previews recently, and The Interweave is scheduled for official launch in the middle of this month. According to sources, average prices are “just below S$1,400 psf”.

The biggest change is happening at the junction of Balestier Road and Thomson Road, where giant developer City Developments Ltd (CDL) snapped up eight old apartment blocks in en bloc purchases in 2006 and 2007, and successfully launched and fully sold new condo projects over the last two years. The former Albany and Thomson Mansion have been torn down to make way for Cube 8, which was launched early last year at an average price of S$1,250 psf.

Of the 177 units in the 36-storey tower, only two are still available. The highest price achieved at Cube 8 was S$1,444 psf for a 560 sq ft unit on the 23rd level that went for S$808,000. Concorde Residences, Balestier Court and Bright Building have also been demolished, as construction is about to start for the 36-storey, 157-unit 368 Thomson, also by CDL. The project was launched in mid-2010, and the last unit was sold in April at a median price of S$1,443 psf.

Meanwhile, the 336-unit The Arte at Thomson also by CDL was completed last year. The site is a redevelopment of the former Lok Cho Apartments, Comfort Mansion and a walk-up apartment block on Jalan Raja Udang, just off Balestier Road.

The project was launched in late March 2009, and the first phase of units was sold at an average price of S$880 psf. The project is fully sold and the most recent transaction was just last month, when a 1,625 sq ft unit on the 22nd level changed hands in the resale market for S$2.068 million (S$1,272 psf). Thus, the previous owner, who had paid S$1.4 million (S$864 psf) for the unit when the project was launched in April 2009, enjoyed a capital gain of 47% in just two years.

Popular Land, a wholly owned subsidiary of listed publishing, distribution and retail group Popular Holdings, purchased the former Shiba Apartments on Jalan Raja Udang for S$15.5 million in 2007. The site is located just behind The Arte, and construction is already underway on the new boutique condo on Jalan Datoh called 8 Raja. Half its 26 units are three-bedroom apartments of 1,560 sq ft, and the other half are larger three-bedroom units of 2,023 sq ft, with buyers given the flexibility of converting their units into dual-key apartments or adding more rooms. The project will be relaunched later this month at more than S$1,400 psf.

Across the street from 8 Raja is another major development: the 280-unit Vista Residences by Far East Organization, with twin 36-storey towers. The 120,000 sq ft freehold site is said to be a redevelopment of a row of old terraced houses. As at end-April, 263 units were sold, with 11 units sold that month at a median price of S$1,454 psf, according to URA data.

Malaysian developer SDB Asia, a wholly owned subsdiary of Selangor Dredging Bhd, bought Balestier Complex along Balestier Road for S$43 million in 2008. Early this year, it previewed the new development on the site, called OKIO, a mixed-use 18-storey development with 10 commercial and 104 residential units. The residences are a mix of one- and two-bedroom units, with typical one-bedroom apartments of 420 and 431 sq ft, and two-bedroom apartments of 570 and 592 sq ft. There are also two penthouses at 1,044 sq ft and another two at 1,098 sq ft. Of the 61 units launched at OKIO, 43 units have been sold. In April, 22 units were sold at a median price of S$1,452 psf.

City fringe — growth story
The upcoming Zhong Shan Park by listed developer Hiap Hoe and sister company, SuperBowl Holdings, is also seen as a major catalyst in the makeover of Balestier Road. The mixed-use development will include a 390-room Ramada Singapore, a 405-room Days Hotel, as well as an office block and a retail podium. The project is scheduled for completion by 2014.

Many new hotels have also opened up along Balestier Road, including the 366-room Value Hotel Thomson next to 8 Raja, which opened two years ago, and the newly opened 241-room Ibis Singapore Novena along Irrawaddy Road.

At the other end of Balestier Road is the Novena medical cluster, which comprises the upcoming Parkway Novena Hospital and Parkway Novena Specialist Centre, as well as Far East Organization’s Novena Medical Centre and Specialist Centre, with the 428-room Oasia Hotel sitting on top of the latter. The cluster will transform that end of Balestier Road and bring a buzz to the area as it caters to medical tourism.

Global Orion’s Narjadin believes that the greatest growth will be in the residential sector, given the increased accessibility via the expanding MRT network, especially with the opening of the Circle Line.

Last September, he bought his second residential development site, the former Naung Court at Hougang, for S$28 million. The freehold 32,689 sq ft site can be redeveloped into a five-storey condo with an estimated 60 units. The site is within a short walking distance of the Hougang MRT station and bus interchange, as well as Hougang Central, Hougang Plaza and Hougang Mall.

Narjadin is looking at launching the project towards year-end. “It’s still very much a work in progress but, again, it will have strong design elements and a lot of greenery,” he says. As it is located in a mature residential estate, the development at Hougang will feature mainly two- and three-bedroom apartments.

With mass-market projects in the suburbs already in the S$1,000 psf range and new condos in the Newton-Novena area now trading at S$1,900 to S$2,300 psf, Narjadin adds that, given Balestier’s location, The Viridian’s pricing of about S$1,500 psf is considered “reasonable”. — The Edge Singapore

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 864, June 27-July 3, 2011