Opportunistic buying at the high end

Property consultants have noted that there has been some opportunistic buying at the top end of the market. Many of those on the hunt are looking for condominium units for their own stay, and therefore prefer completed projects with spacious units. With the ongoing European debt crisis, and global market uncertainty, people prefer not to flash their wealth and adopt a more conservative outlook.

One such condo that has seen a pick-up in interest is the 164-unit freehold Grange Residences, which was completed in 2004. Older condos that have seen transactions of late are the 39-unit Nassim Jade in Nassim Road, which was completed in 1999 and the 72-unit Nassim Mansion on Nassim Hill that was completed 34 years ago.

Even though these transactions are at their near record-highs, they are still lower than the prices achieved at new luxury condos in the same neighbourhood as these tend to command a premium.

Further up along Nassim Road is the newly completed, fully-sold, 100-unit Nassim Park Residences. Buyers don't mind the older condos in prime locations as these tend to have spacious units. Those who value space but who may not wish to stretch their budgets beyond $10 million for the new offerings in the market tend to look at the three- and four-bedroom units in the older estates, which are generally priced in the $5 million to $10 million range. And they are not necessarily going for the high-profile condos either.

These older condos also represent value as developers of new luxury projects that are completing or recently completed are holding on to their asking prices. Some of these were launched at the peak of the market before the global financial crisis and generally, prices at the top-end of the market are still slightly below the peak in late 2007. Hence, older condos in the same neighbourhood that are priced below these new condos are attracting value-for-money buyers.

Analysts sees more "opportunistic buying interest" in the top-end of the market. Some buyers are hunting for 'fire sales', but most owners are holding on to their asking prices, and that's why there are few transactions.

New condos that are realistically priced are also attracting buyers. One of the newly completed luxury projects that is seeing some buying interest is The Orange Grove with just 72 exclusive units located in Orange Grove Road, just off Stevens Road.

The 120-unit, 999-year leasehold Duchess Residences located in Duchess Avenue was completed recently. It is located within a quiet and established housing estate with mainly semi-detached and detached houses, off Bukit Timah Road. The condo saw two units change hands in sub-sales recently.

Units at Duchess Residences are sought after because of their proximity to good schools such as Chinese High School, Hwa Chong Institution, Nanyang Primary School and National Junior College. It is in a quiet location surrounded by landed homes. Most of the condos in the area tend to be in the main road and are older. So, as the newest development there, Duchess Residences stands out.

Source: The Edge – 21 November 2011