http://www.straitstimes.com/archive/...ict-4-20131109

HOT SPOT

Waterfront living draws buyers to District 4

Published on Nov 09, 2013

By Cheryl Ong


THE lure of waterfront living and sweeping views of the Strait of Singapore have made District 4 a coveted residential enclave.

The area, which encompasses Keppel Bay, Mount Faber, Sentosa and Telok Blangah, is also popular with buyers due to its central location and accessibility to entertainment offerings such as Resorts World Sentosa and the VivoCity mall.

There are about 6,300 units in the vicinity, with prime homes on Sentosa Island and HarbourFront comprising 60 per cent of the total, said Mr Ong Teck Hui, Jones Lang LaSalle's national director of research and consultancy.

The proximity of projects in Sentosa and HarbourFront to the sea means they command a price premium over other developments in the vicinity, said Mr Ong. For example, average prices of homes at the Marina Collection on Sentosa are about $2,900 per sq ft (psf), while units at Corals at Keppel Bay go for about $2,000 psf.

Mr Ong added that homes farther inland fetch significantly lower prices. Units at The Interlace in Depot Road go for about $1,100 psf, for example.

However, property cooling measures and the Total Debt Servicing Ratio framework introduced in late June have whittled down demand for homes on Sentosa.

Developers are responding by holding back on launches in the hope of a recovery in the luxury homes sector, according to property consultancy Colliers International.

Developers IOI and Ho Bee have decided to rent out units at the recently completed Cape Royale on Sentosa instead of selling them.

This comes on the back of healthy leasing demand in the area, with gross rental yields ranging from 2.5 per cent for older freehold developments to 4 per cent for newer 99-year leasehold condos, said SLP International research head Nicholas Mak.

Based on the number of page views on property portal STProperty from April to September, The Interlace emerged as the most popular project, while Reflections at Keppel Bay and Caribbean at Keppel Bay came close.

Mr Ong added that more investors will be attracted to the district with the upcoming Southern Waterfront City that will stretch from the Keppel Channel to Pasir Panjang Terminal.

"The lifestyle arising from this is expected to appeal to investors so the long-term outlook for waterfront developments in District 4 appears promising," he said.

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