The up and coming high end residential enclave at the fringe of Balestier- Part 1
Do you know how much will a developer has to pump into a showflat for its launch? Depending on the size of the showflat, the cost will run up to few millions including the steel structure and interior fit out works. After all, the success of the launch relies very much on the Wow effect of the showflat that it is able to stir up the purchaser’s desire to put down the downpayment and sign the S&P. Therefore all developer are not stingy in spending on showflat in order to get a sales figure.
368 Thomson Showflat along Thomson Road
In this case, CDL has been diligent in its showflat along Thomson Road. This Thomson showflat envelop has been used twice. The existing showflat at the location of old Concorde Thomson is currently used for the project 368 Thomson. Just months back, the same old carcass of the structure is being used for the adjacent project Cube 8. Though is housed in an old envelop, CDL has been careful in creating a different feel and atmosphere for the 2 projects.
368 Thomson is the last piece of landbank that CDL is having in Balestier and Thomson area. CDL further rides its success by launching 368 Thomson soon after the successful launch of the Arte & Cube 8. The Arte was first launched last year during the downtime at an average pricing of $800psf. As for now, there are transactions going as high as $1250 psf with the project obtained TOP. It is then followed up Cube 8, which was also sold out. As to date, 368 Thomson has been receiving good sales report too.
CDL's residential enclave at Thomson/Balestier with Vista Residence by Far East
With the final piece of landbank by CDL released for development, a complete site plan of the Thomson & balestier fringe can be visualized. Many queries have been raised on how each development view will be blocked by the other, any Macritchie reservoir view left for certain units for the Arte or Vista as what they have marketed?
Through the overall site plan, it seems that each individual block have been carefully crafted and orientated to minimize the impact. You can see it from the superimposed masterplan I tried to overlay. I am not so worried if the area will appear to cluttered, as each development is made up of high rise residential tower with large open space dedicated to landscaping and facilities. The area has somehow become an enclave for these good class condominium developments, which is expected to be pretty cool and hip. As I have always been saying: If I am a good sense business man with much money, I will be looking to exotic F&B or grocery or special services as in Holland Village in the area to cater for the daily needs of the affluent group when the developments are completed.
To Continued
Hi Keith
I visited the Vista residence showflat last week and the developer is still selling their high floor units at a price which is much higher than their launch price last year. What a difference in fate between Far East and CDL. CDL seems to have the ingredients to provide sell-out projects while Far East seems to be taking their time to sell with ever increasing prices. But a good thing for this area as Far East may set even newer benchmarks for prices over this part of Balestier.
What are your thoughts on getting a unit in the older apartments in the vicinity such as Global Ville which you marketing a unit currently?
Still a good buy compared to the new projects around?
Michael
Hi Micheal,
Comparatively, all the resale units appear to be a steal with the good pricing of all new launches are getting. Just take a look at Scala Project of 99 year leasehold is selling at $1150 psf:)
So what is your view on this?
Keith Yip
Hi Keith
Yes if I compare Scala with Global Ville for example which is freehold and closer to town, it seems like a steal, though it is an older apartment and not a full condominium.
And perhaps there is enbloc potential but the land seems pretty small to attract developers unless it is combined with the adjacent land which has already been purchased by Popular Land. What’s your view of the enbloc potential?
Michael
@ Micheal,
Maybe just a secret to share with all the readers: Global ville is already in talks on enbloc. Should be able to see some news in near future:)
Hi Keith
The enbloc fever seems to be rising again. But if there is a chance for enbloc why are there still owners who want to sell their unit?
Michael
Hi Keith
The enbloc fever seems back. But why are there owners selling when they know it is going to be enbloc ?
Michael
@ Michael,
There are still owners willing to sell irregardless of the enbloc is in talk:
1. Enbloc in an way is an opportunistic activity. If there is any small hindrance in terms of more than 80% concurrence in residents, or anticipated pricing, or any legal encumbrance, the enbloc transation could be easily jeopardized.
2. Enbloc takes more than 2 years duration. Some people just do not want to wait through it.
3. It is pretty cumbersome to sit through all the enbloc process. If the owner is able to dispose at a decent price close to the targetted pricing, yet lessen all the trouble, why not?
Hope that answer your query:)
Hi Keith
You mentioned Scala in your comparison above. It led me to think if we get any property that is near MRT will never go wrong, even better if it is freehold but I do not think there are many of such properties which are freehold and near MRT.
I was actually looking at Novena Court apartment just beside the Novena church along Thomson road. It is near to the MRT and freehold but not sure about the potential for enbloc for this more than 30 years project. I notice all the buildings along the stretch of Thomson road after Balestier are all low rise buildings. I reckon their plot ratio is low and there may be height restrictions. Any views on getting an old apartment in the Novena vicinity? But would not be cheap as well compared to Balestier side.
Michael
Hi Keith
Can you shed some light on the difference between psf and psf ppr?
I was looking at the computation of enbloc prices and see that most of the time psf ppr is quoted but how does that translate to the selling price of the enbloc? Does it mean the owner of the apartment under enbloc will get (psf ppr multiply by plot ratio) as the payment?
Michael
@ Micheal,
Novena Court is having 1.4 plot ratio and building ht 5 storey. Most buildings facing the main road like Amanida and Novena Lodge are subject to the same restriction. Therefore the incentives for developers to acquire and develop are not as high compared to others plot with the bonus plot ratio.
@ Michael,
In the usual unit transaction, we will use the price per sq foot as an indicative average price per area.
In an enbloc, the price psf per plot ratio (ppr) will act as a more accurate indicator in the following scenario if the exisitng GFA is not equal to the future one:
1. the total GFA in the development has not be optimised
2. the plot ratio has been increased with the latest Master plan
Therefore the price pst ppr will be more useful in the feasibility study for development. However the figure is an average, therefore it does not imply to all units in the enbloc. Each unit will vary according to its level and condition, and sometimes the unit’s negotiation skill with the agent rep.
Hope that answer your query.
Leave your response!
keithyip
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