Kevin Tan
28-12-15, 10:55
http://www.theedgeproperty.com.sg/content/alexis-%E2%80%98shoebox%E2%80%99-appeal-sustained
Alexis ‘shoebox’ appeal sustained
By Tay Hock Meng / The Edge Property | December 11, 2015 10:00 AM MYT
Tags: Done DealsAlexisshoebox
Alexis — one of the first and biggest shoebox developments, with 293 residential units sitting on top of 21 strata shops — was completed in 2012. When it was launched in 2009, all the units were snapped up within the first weekend of preview. The project was developed jointly by Yi Kai Group and Fission Group and its successful launch was the catalyst that sparked a wave of shoebox units in mixed-use developments.
A freehold development, Alexis contains a mix of one- and two-bedroom units. The one-bedroom units measure 366 to 527 sq ft; one-bedroom-plus-study units measure 474 to 764 sq ft. Meanwhile, two-bedroom units are from 527 to 1,033 sq ft while two-bedroom-plus-study units are from 657 to 1,055 sq ft. There are also penthouses which are sized from 764 to 1,518 sq ft. Prices back then averaged $1,046 psf.
All 21 shops at Alexis are leased now, and the one-bedroom units continue to draw
investors with its still-attractive gross yield of about 4%
From January to October this year, seven apartments at Alexis have changed hands, compared with just five last year and 10 in 2013, based on caveats lodged. Those who bought their apartments when the development was launched six years ago and sold them at today’s prices can still see a significant upside.
This was evident in the most recent transaction: A 398 sq ft, one-bedroom unit on the fifth floor changed hands for $700,000 ($1,758 psf), according to a caveat lodged with URA Realis on Oct 26. The sale price was 53% higher than the original purchase price of $458,000 ($1,150 psf), which the seller paid in 2009.
One-bedroom units at Alexis can still command monthly rental rates of $2,500, says Spencer Ng, senior marketing director at ERA Realty Network. “The small units at Alexis remain attractive because the rents are more than enough to cover the investors’ monthly loan repayments even at today’s prices,” he explains.
Based on a monthly rental rate of $2,500, the buyer of the one-bedroom unit for $700,000 will have a gross rental yield of 4.2%. Assuming the buyer is an investor and it is his second property, the borrowing limit is 50%, or $350,000. Based on an interest rate of 1.5% and a 30-year loan period, Ng estimates that the monthly mortgage payment translates into $1,208.Thus, the monthly rental rate of $2,500 is enough to cover the mortgage and other expenses as well as earn an income for the investor, he adds.
http://www.theedgeproperty.com.sg/content/alexis-%E2%80%98shoebox%E2%80%99-appeal-sustained
Alexis ‘shoebox’ appeal sustained
By Tay Hock Meng / The Edge Property | December 11, 2015 10:00 AM MYT
Tags: Done DealsAlexisshoebox
Alexis — one of the first and biggest shoebox developments, with 293 residential units sitting on top of 21 strata shops — was completed in 2012. When it was launched in 2009, all the units were snapped up within the first weekend of preview. The project was developed jointly by Yi Kai Group and Fission Group and its successful launch was the catalyst that sparked a wave of shoebox units in mixed-use developments.
A freehold development, Alexis contains a mix of one- and two-bedroom units. The one-bedroom units measure 366 to 527 sq ft; one-bedroom-plus-study units measure 474 to 764 sq ft. Meanwhile, two-bedroom units are from 527 to 1,033 sq ft while two-bedroom-plus-study units are from 657 to 1,055 sq ft. There are also penthouses which are sized from 764 to 1,518 sq ft. Prices back then averaged $1,046 psf.
All 21 shops at Alexis are leased now, and the one-bedroom units continue to draw
investors with its still-attractive gross yield of about 4%
From January to October this year, seven apartments at Alexis have changed hands, compared with just five last year and 10 in 2013, based on caveats lodged. Those who bought their apartments when the development was launched six years ago and sold them at today’s prices can still see a significant upside.
This was evident in the most recent transaction: A 398 sq ft, one-bedroom unit on the fifth floor changed hands for $700,000 ($1,758 psf), according to a caveat lodged with URA Realis on Oct 26. The sale price was 53% higher than the original purchase price of $458,000 ($1,150 psf), which the seller paid in 2009.
One-bedroom units at Alexis can still command monthly rental rates of $2,500, says Spencer Ng, senior marketing director at ERA Realty Network. “The small units at Alexis remain attractive because the rents are more than enough to cover the investors’ monthly loan repayments even at today’s prices,” he explains.
Based on a monthly rental rate of $2,500, the buyer of the one-bedroom unit for $700,000 will have a gross rental yield of 4.2%. Assuming the buyer is an investor and it is his second property, the borrowing limit is 50%, or $350,000. Based on an interest rate of 1.5% and a 30-year loan period, Ng estimates that the monthly mortgage payment translates into $1,208.Thus, the monthly rental rate of $2,500 is enough to cover the mortgage and other expenses as well as earn an income for the investor, he adds.
http://www.theedgeproperty.com.sg/content/alexis-%E2%80%98shoebox%E2%80%99-appeal-sustained