Transacted prices of luxury condos in the prime Orchard Road belt have fallen by a big margin from their peaks in 2H 2007 to the 1Q of 2009. This article seeks to examine the extent of the price fall by analysing some past transactions of mid-market to high-end private homes across the island.

 

Both sales volume and prices of luxury apartments, such as St Regis Residences and Ardmore II have been heavily battered in Q1 2009.

 

Reportedly, sale prices of St Regis Residences has fallen 38 per cent from S$3,411 per sq ft in 2H 2007 to S$2,099 per sq ft in Q1 2009. It was likewise at Ardmore II as the average transacted price has slipped 43 per cent from S$3,073 per sq ft in 2H 2007 to S$1,761 per sq ft in Q1 2009.

 

According to the data from SISVRealink, the transaction volume of luxury apartments had also receded. In 2H 2007, there were 15 sub-sale deals in St Regis. However, in Q1 2009, only four sub-sale deals were done at St Regis.

 

The situation in Ardmore II is similar with 28 sub-sale deals in 2H 2007 but only six deals in Q1 2009.

 

Over the same period, Cairnhill Crest’s average price declined 36 per cent to S$1,430 per sq ft in Q1 2009, while resale transactions fell to only three in Q1 2009.

 

The transactions of two similar 1,733 sq ft apartment units at Cairnhill Crest have been used to determine the difference in prices between the two time periods, in between Nov 2007 and March 2009.

 

Table below: Price comparison between units in Cairnhill Crest between 2H 2007 and Q1 2009

Unit Level

Floor Area (sq ft)

Floor Rate (S$ per sq ft)

Contract Date

Sale Price (S$)

05

1,733

2,279

Nov 2007

3,950,000

11

1,733

1,373

Mar 2009

2,380,000

Source: SISVRealink

 

Though the latest transaction involved a higher floor unit (as there were very few transactions in the price range), the sale price was still about 40 per cent cheaper last month (in March 2009) when compared with the transacted price more than a year ago in November 2007.

 

On average, condo prices in Sentosa Cove in Q1 2009 were about 30 per cent lower in 2H 2007. For example, a third-storey 1,701 sq ft unit at the Azure bought in Febuary 2009 was 29.56 per cent cheaper than another second-storey unit at the same condo project which was bought in July 2007.

 

 Table below: Price comparison between units in The Azure between 2H 2007 and Q1 2009

Unit Level

Floor Area (sq ft)

Floor Rate (S$ per sq ft)

Contract Date

Sale Price (S$)

02

1,701

2,070

Jul 2007

3,521,070

03

1,711

1,449

Feb 2009

2,480,000

Source: SISVRealink

 

Likewise, a 1,658 sq ft apartment unit at The Berth at Sentosa Cove was transacted at S$2 million in January 2009, while a similar unit was sold for S$3,191,650 in late 2007. This is a 37.33 per cent drop in capital value.

  

Units at other popular projects were also taken as samples to determine the differences in price.

 

Continued in Part 2: Examples of transactions then and now

 

Prepared by Sam Gian, Independent Real Estate Sales Consultant. Article was first published in the Singapore Property Market Review, April 2009.

 

Related Categories: Daily Property News and Updates, Market Reviews & Market Outlooks

Tags: Sam Gian

Bookmark:

Current Rating: (0) (0)

Is this article helpful?
OPINION