Ardmore Park in District 10, has largely retained its luxury status despite market doldrums. Though resale activity for the couple of years has ebbed significantly in the area, prices remain fairly resilient because of home owners’ holding power, consultants say.
Completed in 2001, Ardmore Park Condominium is the most prominent development there is. All 330 units at the freehold condo are a colossal 2,885 sq ft each.
The median resale price for the project in the second quarter of 2013 was $3,311 per sq ft, a tad lower than the $3,484 psf median price recorded in Q1, but still higher than the median price of $2,877 psf for the corresponding quarter of 2012.
This is testament to the resilience of the Ardmore Park project, said R’ST research director Ong Kah Seng, adding that what sets the Ardmore Park area apart from other high-end residential districts in Singapore is its “purely luxury” positioning.
“It’s very different from new high-end residential areas like Marina Bay and Sentosa Cove, where each condominium project there has a wide mix of very small to average-sized units and has a more diverse resident profile.”
Still, resale activity has significantly slowed in the surrounding area due to global macroeconomic headwinds.
There were 28 resale transactions in the area in 2012 and 44 in 2011, but only eight as of Aug 2013.
The only new project in the Ardmore area completed within the past five years is the freehold 118-unit Ardmore II condominium, which received its Temporary Occupation Permit (TOP) in 2010.
Under construction are the 35-unit Sculptura Ardmore, 43-unit Le Nouvel Ardmore and 84-unit Ardmore 3.
Le Nouvel Ardmore has sold two units so far while Ardmore 3 has moved out three of the 12 units launched since its sales began around October 2012.
The Ardmore 3 units have been sold at between $3,160 psf for a 1,798 sq ft unit and $3,485 psf for a 1,776 sq ft unit.
Mr Ong said that any future developments in the Ardmore area would have to happen through collective sales, but these have virtually ground to a halt because many unsold new units remain in the area and home owners have high asking prices.
Said Knight Frank Singapore executive director for residential services Tan Tee Khoon: “Most of the property owners at the Ardmore area are well-heeled and not in any hurry to sell.”
They also take into consideration the likelihood that they are not able to get a like-for-like replacement in the same area for the same price, especially given that transaction costs are now higher due to additional buyer’s stamp duty, Dr Tan said.
“Existing home owners are likely to hold on to their properties as they continue to enjoy stable rental returns,” Dr Tan said.
“While affluent buyers are likely to stay on the sidelines for now, interest is likely to remain strong should the opportunity to buy return.”