District 7 is getting a lot of buzz recently. The impending launch of the City Gate mixed development in Jalan Sultan is drawing attention back to the Kampong Glam district.
Its charm as a historical and cultural zone may give it a head start over many areas but it is its location – on the edge of the city centre and close to retail and entertainment amenities – that is its strongest suit, property consultants said.
Plans to develop the surrounding Beach Road and Ophir-Rochor corridor into a district of mixed- use projects will underpin the investment outlook in the mid- to long term, they said.
“The location on the city fringe translates into easy convenience when commuting to the premier shopping belt of Orchard Road or the central business district,” said Ms Chia Siew Chuin, director for research and advisory at Colliers International.
The 30-storey City Gate is on the site of the former Keypoint, which was acquired by World Class Land for S$360 million from Frasers Commercial Trust in 2012.
The 99-year leasehold project in Beach Road will feature 311 flats – one- and two-bedroom units of 431 to 570 sq ft, two-bedroom and three-bedroom dual-key units of 678 to 1,066 sq ft and one- to four-bedroom penthouses that range from 484 to 1,819 sq ft.
It will also have 188 commercial units, ranging from 280 to 3,735 sq ft.
Residential units are expected to go for S$1,900 to S$2,000 per sq ft (psf) and commercial units could sell for S$4,000 to S$5,000 psf, marketing materials show.
This makes it cheaper than the mixed development DUO in Ophir Road, which was launched by developer M+S at an average selling price of S$2,000 psf last November. DUO is in the city centre, unlike City Gate, noted R’ST Research director Ong Kah Seng.
Two 829 sq ft units at the 360-unit Concourse Skyline, developed by Hong Fok Land, went for S$1,810 to S$2,075 psf in the fourth quarter last year. But 101 units remain unsold since the completed project was launched at about S$1,590 psf in 2008.
Ms Christine Li, research head at OrangeTee, said the new supply of homes from City Gate could place pressure on the developer to lower prices at Concourse Skyline to shift units, especially with the cooling measures in place.
Older developments in the area include the 132-unit Textile Centre, where four units have sold at median prices ranging from S$911 to S$926 psf over the past year.
At The Plaza – a strata-titled 32-storey mixed-use building owned by UOL Group – two units changed hands at a median price of S$1,257 psf a year ago.
In this year’s first quarter, 13 leases were signed at The Plaza at a median rent of S$4.06 psf, said Mr Ong. He felt that owners of units in the new developments can expect strong rental demand, saying “this is a convenient location”.
The location on the city fringe translates into easy convenience when commuting to the premier shopping belt of Orchard Road or the central business district. – Ms Chia Siew Chuin, of Colliers International