DEAL WATCH: Third unit at Ardmore II sold below $2,500 psf this year

DEAL WATCH: Third unit at Ardmore II sold below $2,500 psf this year
By Tan Chee Yuen / The Edge Property | October 20, 2015 4:00 PM MYT
A 2,024 sq ft high-floor unit in ArdmoreII was sold for $5.05 million ($2,496 psf) in September, based on caveats listed by the Urban Redevelopment Authority (URA). The price was slightly below The Edge Fair Value of $2,530 psf.

The sale represented the third value deal in the project this year. In September, a mid-floor unit changed hands for the same price as the subject property. Another mid-floor unit was sold for $4.7 million ($2,323 psf) in March.

Based on URA caveats, prices last touched the $2,500 psf level in December 2011 and March 2012 when comparable units were sold at $2,574 psf and $2,570 psf respectively. Ardmore II is a luxury freehold development in District 10 that was completed in 2010. Prices in the 118-unit project hovered between $2,800psf and $3,000 psf in 2013 (see Table 1). No caveat was lodged in 2014.

According to flash estimates by the URA, prices of non-landed homes in the high-end segment, or Core Central Region, softened by another 1.3% q-o-q in 3Q2015, putting it at 9% below their peak in 1Q2013.

A location scan of properties within 500m of Ardmore II shows potential value deals at below $2,000 psf, or just over $2,000 psf. Gross rental yields were generally between 2.2% and 2.6% (see Table 2).