http://www.straitstimes.com/archive/...drive-20131102
HOT SPOT
Affordable units bloom in Flora Drive
Published on Nov 02, 2013
THE residential enclave around Flora Drive in Changi is fairly built up but its long-term prospects remain positive, consultants say.
The area is dominated by private condominiums, many of them named after flowers.
The most recent launch to blossom in the area was the 99-year leasehold The Inflora by Hong Leong Holdings.
Buyers grabbed at least 250 of the 396 units when sales opened last week, drawn by low prices under $1,000 per sq ft (psf).
Most of the condos in the Flora Drive area have been developed by Hong Leong or its listed arm, City Developments, as Hong Leong bought a huge tract of land in the vicinity in the 1970s.
Apart from Inflora, Hong Leong has been involved in the development of eight large condos there - Azalea Park, Ballota Park, Carissa Park, Dahlia Park, Edelweiss Park, Ferraria Park, The Gale and Hedges Park.
Azalea Park is on a 999-year leasehold and Hedges Park is on a 99-year leasehold.
The remaining six are freehold.
Other new condos under construction in the district include Palm Isles by Frasers Centrepoint and Parc Olympia by Koh Brothers. Both are on 99-year leaseholds.
R'ST Research director Ong Kah Seng said that the area's main draw would be its relatively cheap pricing.
This area is "probably the only locality in the well-positioned east" with projects with average prices below $1,000 psf, he said.
He said while newer freehold projects such as Ferraria Park and The Gale have seen average prices creep above $1,000 psf since late last year or the start of this year, many others can be bought at about $900 psf on average.
Mr Ong added that leasing demand is expected to be high due to foreign professionals working in Tampines, Changi Business Park and Changi Airport.
Rents at older condos such as Azalea Park, Ballota Park, Carissa Park and Dahlia Park average $2.40 psf to $2.80 psf per month. Edelweiss Park and condos newer than that command $2.70 psf to $3.10 psf per month.
"Tenants who rent properties in other eastern locations have to pay at least 10 per cent or even up to 30 per cent more," Mr Ong said.
SLP International research head Nicholas Mak said that engineering firms that support the airline industry are also located nearby along with quite a number of logistics firms because of the area's proximity to the airport.
However, he added, residents may have to bear with noise pollution from the airport.
Mr Mak said that as Singapore's population grows and if the plot ratio in the area is increased, there could be potential for sales en bloc in the area in the long term.
"But this would probably only take place in 20 years," he said.
MELISSA TAN
Additional reporting by Cheryl Ong
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