http://www.straitstimes.com/archive/...takes-20130824
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Ardmore still resilient in luxury condo stakes
Despite market's doldrums, prices are holding up in prestigious area
Published on Aug 24, 2013
By Melissa Tan
ONE of the most prestigious residential locations in Singapore, the Ardmore Park area in prime District 10, has largely managed to retain its cachet despite luxury market doldrums, consultants say.
Resale activity in the area has slowed significantly in the past couple of years but prices are still fairly resilient because of home owners' holding power, they add.
The most prominent development there is the freehold Ardmore Park condominium, which was completed in 2001.
All 330 units at the development are a gargantuan 2,885 sq ft each.
The median resale price at the project was $3,311 per sq ft in the second quarter of this year.
This was slightly lower than the $3,484 psf median price recorded in the first quarter of the year, but still higher than the median price of $2,877 psf in the corresponding period last year.
This is testament to the resilience of the Ardmore Park project, said R'ST research director Ong Kah Seng, adding that what sets the Ardmore Park area apart from other high-end residential districts in Singapore is its "purely luxury" positioning.
"It's very different from new high-end residential areas like Marina Bay and Sentosa Cove, where each condominium project there has a wide mix of very small to average-sized units and has a more diverse resident profile."
Still, resale activity has significantly slowed in the surrounding area due to global macroeconomic headwinds.
There were 28 resale transactions in the area last year and 44 in 2011, but only eight so far this year.
The only new project in the Ardmore area completed within the past five years is the freehold 118-unit Ardmore II condominium, which received its Temporary Occupation Permit (TOP) in 2010.
Under construction are the 35-unit Sculptura Ardmore, 43-unit Le Nouvel Ardmore and 84-unit Ardmore 3.
Le Nouvel Ardmore has sold two units so far while Ardmore 3 has moved out three of the 12 units launched since its sales began around October last year.
The Ardmore 3 units have been sold at between $3,160 psf for a 1,798 sq ft unit and $3,485 psf for a 1,776 sq ft unit.
Mr Ong said that any future developments in the Ardmore area would have to happen through collective sales, but these have virtually ground to a halt because many unsold new units remain in the area and home owners have high asking prices.
Said Knight Frank Singapore executive director for residential services Tan Tee Khoon: "Most of the property owners at the Ardmore area are well-heeled and not in any hurry to sell."
They also take into consideration the likelihood that they are not able to get a like-for-like replacement in the same area for the same price, especially given that transaction costs are now higher due to additional buyer's stamp duty, Dr Tan said.
On the rental front, the Ardmore Park condo has also seen a dip in rental prices year on year in the second quarter of this year, though the number of rental contracts has gone up.
The monthly median rental price was $6.28 psf in the second quarter of last year, out of 14 rental contracts, which works out to $18,118 per month.
The monthly median rent fell to $5.78 psf in the second quarter of this year, which translates to $16,675 per month, out of 27 rental contracts.
"Existing home owners are likely to hold on to their properties as they continue to enjoy stable rental returns," Dr Tan said.
"While affluent buyers are likely to stay on the sidelines for now, interest is likely to remain strong should the opportunity to buy return."
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