Median price of Pasir Panjang new launches go beyond $1,600 psf

INTEREST in Pasir Panjang has been revived with the launches of new projects such as Village @ Pasir Panjang and SeaSuites last month. The project that has seen a pick-up in resale activity is The [email protected], which is located at the top of Balmeg Hill, and was completed in 2011.

A 180-unit freehold condominium development, The [email protected] was previewed by developer MCL Land in 4Q2008. Back then, prices averaged $1,000 psf. There were three resale transactions at The [email protected] in January after the launch of SeaSuites.

The most recent transaction at The [email protected] was for a 1,679 sq ft, three-bedroom unit located on the first floor that changed hands at $2.5 million ($1,489 psf). The original owner bought the unit from the developer in July 2009 for $1.68 million ($1,002 psf), hence seeing a price appreciation of 48.6% in just over three years.

Prior to that, there were two transactions in The [email protected] One was for a 1,507 sq ft, three-bedroom unit on the third floor that was sold for $2.1 million ($1,394 psf). The previous owner had purchased the unit from the developer in September 2009 for $1.485 million ($985 psf). The previous owner therefore saw a capital appreciation of 41.5% in over three years.

A two-bedroom, 990 sq ft unit at The [email protected] also changed hands in January at $1.5 million ($1,515 psf). It last changed hands at $1.23 million ($1,242 psf) in January 2010. The unit was first purchased from the developer in 4Q2008 for $1.047 million ($1,057 psf).

SeaSuites, a 52-unit apartment block, is located at the bottom of Balmeg Hill at the junction with Pasir Panjang Road. It is also located next to the Haw Par Villa MRT station on the Circle Line. The project was launched on Jan 5, and as at the end of last month, 42 units had been sold at a median price of $1,665 psf. The project is niche developer Link (THM) Holdings' first condo project. Since 2004, Link (THM) has made a name for itself in the bungalow segment in the prime districts, especially the Bukit Timah and Holland Road neighbourhoods.

According to Donald Han, special adviser, HSR Property Group, the marketing agent for SeaSuites, the project enjoys a 5% to 8% premium compared with other developments in the area because of its proximity to the Haw Par Villa MRT station.

Despite the property cooling measures announced on Jan 11, buyers continue to show interest in new launches, adds Han. Pasir Panjang is attractive as the residential projects are freehold and given its city fringe location, as well as its proximity to HarbourFront, Mapletree Business City, the Science Parks and National University of Singapore. Smaller units tend to fetch higher rental yields of 4% to 5%, he estimates. "The area is popular among the expatriate community, and couples who are just starting a family," observes Han. "There is also a constant tenant pool from those who work nearby."

Further up on Pasir Panjang Road is the upcoming freehold Village @ Pasir Panjang. The 148-unit, low-rise condo project is by Champsworth Development, an associate company of SDB International, the wholly-owned subsidiary of Malaysian-listed Selangor Dredging Bhd.

As at end-January, about 75 units, or 50% of the units, at Village @ Pasir Panjang have been sold at a median price of $1,626 psf, according to URA data. The marketing agent for the project is Huttons Real Estate. According to a property agent who declined to be named, units at Village @ Pasir Panjang appeal to families buying mainly for their own use.

This story first appeared in The Edge Singapore weekly edition of Feb 25-Mar03, 2013.

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