Project Spotlight: Kerrisdale

By The Folks @PropTalk - November 23, 2011 3 Comments
Surrounded by a mix of low-rise, pre-war shophouses along Petain Road and Beatty Road, off the main Serangoon Road, is the 481-unit Kerrisdale condominium by Allgreen Properties. Completed in 2005, the 99-year leasehold Kerrisdale, comprising three 30-storey towers, was the first of three significant high-rise condos that have transformed the demographic landscape of the once-aging neighbourhood. The other large condos are the 910-unit freehold City Square Residences (completed in 2009), adjacent to the City Square Mall and the Farrer Park MRT station; as well as the 600-unit, 99-year leasehold Citylights condo (completed in 2006), adjacent to the Lavender MRT station.


Next door to Kerrisdale is a vacant lot that URA has zoned for the development of a 390-room hotel. The 99-year leasehold site is on the reserve list and waiting to be triggered. Another hotel site nearby is also on the reserve list and can yield 375 rooms.

What is attracting both owner-occupiers and investors to the area is its accessibility, with the opening of the new MRT stations, as well as amenities such as the City Square Mall, which is equivalent in size to Ngee Ann City shopping mall, and Mustafa Centre. The area is also popular with those who like the vibrant Little India and Kampong Glam neighbourhoods, with their conservation shophouses and retail-and-F&B mix, which are also a tourist draw, say property agents.

Another upcoming facility that investors are most interested in is the $800-million medical complex called Connexion, which will house the Farrer Park Medical Centre, with 189 clinics, a 220-bed Farrer Park Hospital, a 230-room hotel called One Farrer Hotel, as well as a retail and commercial podium called Owen Link. The project is expected to be completed in 2013, after a nine-month delay.

“Prices at Kerrisdale went up quite a bit when City Square Mall opened, and we’re likely to see another round of price escalations when the upcoming medical hub opens,” says Hans Chee, an associate director and realtor with L.Square Properties.

There has been a notable increase in the number of transactions at Kerrisdale in recent months. Three units changed hands over the week of Oct 19 to 24, based on the latest caveats lodged the week of Oct 18 to 25 and downloaded from URA Realis on Nov 9.

One was a three-bedroom, 1,259sqft unit on the 24th floor, which was sold for $1.37 million ($1,088psf), the third time it has changed hands so far. The original owner purchased it from the resale market in February 2007 for $661,000 ($525psf) and sold it three years later, in May 2010, for $1.07 million ($850psf), making a 62% gain. The previous owner, in turn, enjoyed a 28% price appreciation when he sold it recently for $1,088psf.

On the 22nd level of the same block, a 1,270sqft, three-bedroom apartment changed hands for $1.34 million ($1,055psf). The owner had purchased it from the developer in March 2006 for $668,000 ($526psf) and sold it last month for $1,055psf, double the amount he initially paid.

Meanwhile, at a neighbouring block within the development, a 1,270sqft, three-bedroom apartment on the 26th floor was sold at the end of last month for $1.32 million ($1,039psf).

According to URA statistics, over the last two years, home prices on the city fringes, or Rest of Central Region, have increased at a faster pace than those in the prime districts (Core Central Region) or the suburbs (Outside Central Region). For instance, from 3Q2009 to 3Q2011, based on the URA price indices, prices of non-landed properties (apartments and condos) on the city fringes have jumped 34.5%, compared with 26.8% in the prime districts and 31% in the suburbs.

According to listings on property websites such as propertyguru.com and iproperty.com, owners are asking for $1,050 to about $1,250psf. Despite having risen in the last two years, these prices are still considered “good bargains” by potential buyers, adds Chee.
Source: THEEDGE SINGAPORE

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3 comments to ''Project Spotlight: Kerrisdale"

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  1. hi prop folks,

    thanks for the review on kerrisdale as I was researching on that condo recently. however I just found out that its leasehold tenor starts from 1998, which I guess explains approx 15% discount from its freehold status. do u think its worth going in now considering that I might b selling it away after the four yr ssd? coz it will probably b an old 20 yrs lh condo by then.. thks for ur advice.

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  2. The Folks @PropTalkJanuary 2, 2012 at 3:43 PM

    Hi Ranger,

    The article that we had posted on Kerrisdale was extracted from THEEDGE SINGAPORE, i.e not our review.

    While the number of years left on the land lease is a consideration, the wife and I believe that factors such as location (key), proximity to amenities (malls, F&B, MRT etc) and general upkeep of the development are more important factors that determine how well it preserves its value.

    If you look around, you will find many examples of condos that are 20 years or older that commands better psf prices than some of its newer counterparts.

    Compared to the other newer projects around the area (e.g. City Square Residences and Citylights) , units at Kerrisdale are definitely transacting at a much lower psf. And since anything can happen in 4-year's time, the pertinent question is whether you are prepared to pay the $1,000+psf that Kerrisdale is currently asking.

    This is a judgement call that you have to make. But we reckon your downside risk should be lower compared to buying into City Square Residences or Citylights.

    Hope the above helps!

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  3. There is a lot of potential in this condo. City Square Mall is very near and it is going to get movie theaters by the end of 2012. That will bring the price of the units even higher.

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