- Lianhe Zaobao
Singapore’s District 7 may soon enter “unchartered territory” and unseat District 9 as the country’s most prime residential area, PropertyGuru has said.
The per square foot price of homes in the Bugis precinct is rapidly increasing, and may soon exceed Orchard precinct levels, it added.
The area is changing from a “history-rich, predominantly commercial precinct” into a “hip and vibrant civic district”.
Other promising districts are District 3 (Alexandra Road, Tiong Bahru, Queenstown) and District 19 (Punggol, Sengkang, Hougang).
Move over, Orchard Road – Singapore’s most expensive district may soon be unassuming Bugis, a new report by PropertyGuru claims.
The firm based its prediction on the asking prices of 200,000 private homes listed on its site by developers and homeowners, as well as a predicted increase in housing supply from upcoming launches.
It used these figures as a gauge of sellers’ sentiments around market demand.
The company said in its 2019 Q3 Singapore Property Market Index, published on Tuesday (Nov 12) that the asking prices of homes in District 7 (Bugis, Rochor, and Beach Road) hit an all-time high this year, driven solely by resale listings.
The median psf (per square foot) price of homes in the district was S$2,467 – a significant increase of 3.2 per cent compared to last quarter, and 10.2 per cent compared to last year.
This is close to the S$2,600 median psf price of homes in District 9 (Orchard), which is considered Singapore’s most prime residential district.
In addition, the S$2,800 psf launch price of Midtown Bay condominium on Beach Road and two more upcoming condominiums on Tan Quee Lan Street and Middle Road were likely to push the Bugis precinct into “unchartered territory” as a prime district, the report said.
“Taking into account the three new and upcoming projects, District 7 looks set to become the most expensive residential district in Singapore… possibly surpassing District 9,” it added.
PropertyGuru’s Singapore country manager, Tan Tee Khoon, added that Bugis was currently being transformed from a “history-rich, predominantly commercial precinct” into a “hip, culturally-rich and vibrant civic district”.
“This, together with developers entering the fray with upmarket and luxury offerings, will soon establish District 7 as a prime district, alongside Districts 9, 10 and 11,” he added.
Districts 10 and 11 comprise Tanglin and Newton respectively.
“District 7 has the essential attributes for a good residential property purchase – culturally rich, high rentability and potential for capital appreciation,” he added.
“Residential properties would also be sought after by buyers and tenants who appreciate an easy commute to the CBD and other parts of Singapore.”
Alexandra, Punggol to see rising house prices: PropertyGuru
Apart from Bugis, the report also identified District 3 (Alexandra Road, Tiong Bahru, Queenstown) as a popular spot for condominium buyers.
Three out of the top 10 best-selling projects in Q3 were in this district, it said.
It added that the median psf asking price also hit an all-time high of S$1,846, up 2.4 per cent from the previous quarter and 4.9 per cent from last year.
PropertyGuru’s Tan attributed this to the “allure of city fringe locations (with) room for capital appreciation” and “sought-after city views towards the East unaffected by the afternoon sun”.
Another promising district the report identified was District 19 (Punggol, Sengkang, Hougang), which saw a surge in private homes built this year.
The report predicted that the median psf asking price of homes in this area would increase in the coming quarter, due to their relative affordability, and the upcoming Cross-Island Line and Punggol Digital District.
“Young upgraders from the BTO flats in Sengkang and Punggol are inclined to remain in the area, whereas older investors who have lived most of their lives in Serangoon and Hougang will want to stay put,” Tan said. “This bodes well for real estate demand.”