Hot Pick: Upper Thomson Road

Source : Property Report "October 2007"

Savills Singapore predicts and reasons for its latest ‘Hot Pick’

Predictions
Within 18 months, we predict that the following prices will be achieved for condominiums on Upper Thomson Road:

* S$1,000-$1,400psf from the traffic junction of Sin Ming Avenue and Venus Drive, to the junction of Braddell Road and Lornie Road

* S$800-$1,200psf from Yio Chu Kang Road to Sin Min Avenue junction

* S$600-900psf for the stretch between Mandai Road junction and SpringLeaf area to the junction of Yio Chu Kang Road

Reasons
Prices for developments along the Marymount Road and the Shun Fu Road areas, like Thomson 800 and Thomson V Two, have already surpassed the key S$1,000psf psychological mark. We’ve also noticed that units at Sky@Eleven, which exceeded the S$1,200psf mark during its launch, are now transacting between S$1,400-$1,600psf in the sub-sale market. We believe the current price gap between condominiums along the 6-8km stretch of the Upper Thomson Road is not tenable. We believe the gap will soon start to narrow. The main contributing factor will be the opening of the Marymount MRT Station when it’s completed after 2010. Another plus, the area is also home to many top tier schools, including the Raffles family of schools including Ai Tong and Catholic High.

Prices in the middle stretch, between Yio Chu Kang Road and Sin Min Avenue, which is just 2km away from Ang Mo Kio Central, will appreciate in due course. The opening of AMK Hub has added vibrancy and prestige to the aging Ang Mo Kio Central. This has also led to Far East Organization paying S$601psf per plot ratio for the adjacent plot of condominium land. FEO could launch the condominium for sale sometime in the second half of 2008 at a minimum price of S$1,100 psf. The higher-floor units could enjoy panoramic of golf courses, reservoirs and the city skyline in the distance.

Values at the northern tip of Upper Thomson Road, around the Mandai Road and SpringLeaf area, will grow as home owners realise the price differential and start pushing up north. The quiet beauty – serenity of the greenery, early morning mists, fresh air and gentle rolling slopes – are often overlooked by urbanised Singaporeans.. By the end of 2008, new prices from several small project launches, including land sales in Sembawang, will re-rate the base price of this stretch upwards.

This area is attractive because it offers a slightly different lifestyle where space and landed properties are still abundant. And the area has undergone a complete 360-degree facelift since the early 1990s for upcoming boutique landed developments which are not in any way inferior in design compared to its counterparts in Districts 8, 9 and 10. For all the ‘greenies’ out there, this area is perfect.