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Hillview to become next property hotspot?

By Wong Siew Ying

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1230799/1/.html

 


SINGAPORE: Sales of new private homes have been brisk in the past year for projects in neighbourhoods like Pasir Ris and Punggol.

And some industry players said the Hillview area, located in the western part of Singapore, could be the next up-and-coming spot with more projects lined up.

The Hillier – a mixed development project at Hillview Avenue – is one of several new offerings in the area.

It has seen strong take-up, with 96 per cent of the total number of units sold.

DWG’s senior manager for training, research and consultancy, Lee Sze Teck, said: “It is a private residential enclave, so it will attract quite a fair bit of people who want the peace and tranquility to stay there. Of course, the traffic network there is not so built-up yet but with the upcoming Downtown MRT line, it will improve the network in the area.”

Analysts predict that Hillview, along with nearby Cashew, Chestnut and Diary Farm areas, could garner more interest.

It is estimated that there would be over 2,000 new units in these areas in the next five years.

These projects include The Hillier (528 units), Eco Sanctuary (483 units), Tree House (429 units), Foresque Residences (496 units) and an upcoming condominium by Kingsford Development which could yield up to 500 units.

Market watchers said prices of new projects have climbed and could encourage developers to put in more optimistic land bids.

Knight Frank’s head of consultancy and research, Png Poh Soon, said: “For example Foresque, when it was launched, it was about S$1,200 per square foot (psf) and that set the new benchmark. When The Hillier came in, it is now on average transacting between S$1,500 psf and S$1,600 psf.”

Mr Png added: “When the market is being tested at this level and buyers are coming in, it seems to be able to support a certain selling price and thereafter, if you translate back to land bids, developers are more optimistic in their tendering in terms of whether the market is able to support at that range.”

Mr Png said prices of some units have also appreciated, looking at sub-sale transactions. For instance, a unit at Tree House at Chestnut Avenue was launched at S$835 psf, but it was sold at $945 psf in the sub-sale market. Sub-sale refers to the resale of uncompleted units and it is a key gauge of speculative activity.

Another area with bright prospects in the long term is Woodlands, located in the northern part of Singapore. Property analysts said this optimism is driven by two key factors – better connectivity and increasing commercial activities in the area.

The existing Woodlands MRT station will link up with the upcoming Thomson Line which will be fully completed in 2021.

Colliers International’s director of research and advisory, Chia Siew Chuin, said: “We’ve also seen an increase in activities across the Causeway by Singaporeans, whether it is social activities or buying of properties across the Causeway. Woodlands is actually primed to be the main conduit for this channel of commercial and social activities.”

Colliers International said the median price of non-landed private homes in Woodlands rose by 6.9 per cent in the third quarter this year from the first quarter of 2011.

This is slightly lower than the 7.2 per cent increase in overall median price of similar homes in the mass market segment over the same period.

And there should be more upside ahead when the potential of the area is realised.

Colliers International also earmarked Jurong East as a property hot spot in the next 10 to 15 years, as the area is slated to be a new commercial hub under the Urban Redevelopment Authority’s Masterplan 2008.

Ms Chia said median prices of non-landed private homes in Jurong East rose 7.7 per cent in Q3 2012 from Q1 2011.

– CNA/fa