City-fringe estate set for rejuvenation Public housing to boost potential of area near King Georges Avenue Source: Straits Times | Money Melissa Tan THE mature estate near King Georges Avenue in Jalan Besar will get a new lease of life now that a plot of land there has been earmarked for public housing, consultants said. They added that although resale activity in the ageing district has slowed in recent years, that could mean more opportunities to find a bargain ahead of the areas rejuvenation. A 1.23ha site at the junction of Syed Alwi Road and King Georges Avenue was gazetted earlier this week to be developed into Housing Board flats. The parcel at 16 King Georges Avenue consists of vacant state land and a piece of private industrial property that the Government will acquire under the Land Acquisition Act. No official details are out yet concerning the HDB flats to be built but consultants said that high-density public housing will bring more buzz to the city-fringe estate. Consultants say the number of completed private homes changing hands in the district has fallen since tough home loan curbs kicked in last year. Rents for private homes have also softened, which RST Research director Ong Kah Seng said was in line with islandwide weakness in the rental market. However, he said the areas investment outlook was still bright, pointing to its connectivity and amenities. In particular, it is served by the mega City Square, which has a gross retail space of about 700,000 sq ft, about twice the size of a typical suburban mall. Mr Ong added that the nearby array of old shops, workshops... will be interesting for tenants who like to be near nostalgic neighbourhoods, which are fast-dwindling today as new malls and residential skyscrapers take centre stage in most estate rejuvenations. Projects under construction in the district include The Citron Residences in Marne Road, which is a freehold development comprising 54 apartments ranging from one- to three-bedders as well as 36 shops. The completed private projects include City Square Residences, which is opposite City Square mall, Kerrisdale and Parc Somme. City Square Residences condominium in Kitchener Link, also a freehold property, has 910 units and was completed in 2009. Resale prices have averaged $1,505 per sq ft (psf) over the past six months according to caveats lodged with the Urban Redevelopment Authority. The 99-year leasehold Kerrisdale condominium in Sturdee Road is slightly older, having been completed in 2005. It has 481 units and has averaged resale prices of $1,104 psf over the past six months according to caveats. Resale prices at the small 30-unit Parc Somme in Somme Road averaged $1,388 psf over the past six months. The project was completed in 2012 and has a 99-year lease term. PropNex Realty chief Mohamed Ismail said yesterday that the private projects in the area command relatively high rental yields, with smaller units able to fetch returns of around 4 per cent or more. The very rich neighbourhood of business communities in the estate was a draw, he said. However, consultants said that possible disadvantages of the area would be heavy traffic during peak hours. [email protected]
Posted on: Sat, 19 Jul 2014 02:35:10 +0000