“Newton Imperial presents a rare opportunity to acquire freehold apartment units in District 11 at an attractive price point."
Savills has been mandated on the bulk sale of 21 freehold apartment units at Newton Imperial, 24 Newton Road, totalling 38,201 sq ft. Newton Imperial comprises of 36 high end apartment units, each unit coming with its own private lift lobby. Two layouts are available within the development with eleven 1,711 sq ft apartments and ten 1,938 sq ft apartments available for sale.
Arun Sugumaran, Senior Manager Savills Regional Capital Markets said, “Newton Imperial presents a rare opportunity to acquire freehold apartment units in District 11 at an attractive price point. Despite the current cooling measures in place, such as the 15% Additional Buyer’s Stamp Duty, gross yields between 3.0% to 3.25% are still achievable for this project as a result of its attractive price point. This gives investors something to think about as current commercial yields are at compressed levels partly due to the buoyancy of the commercial market in recent times and a low interest rate environment. Furthermore, with capital values of commercial strata title properties at historical highs, Newton Imperial offers investors potentially higher capital appreciation in the medium to long term, and being strata-titled, the units can be traded readily.”
Steven Ming, Deputy Managing Director and Head of Investment and Sales at Savills added, “Prime development sites are rarely available for sale and if they were, prices would generally be priced north of S$1500 to S$2000 per square foot per plot ratio. With anticipated rise in construction costs, projects will breakeven above S$2300 psf. Hence, there is a compelling proposition now to invest in prime residential today where prices are at below replacement value levels.”
Projects in the vicinity such as Wing Tai’s L’Viv and Novelty Group’s 26 Newton have achieved sales in the $2,100 - $2,600 per square foot range albeit the projects comprising smaller units. Recent sale prices of new launches in the Newton vicinity have been at levels north of $2,000 per square foot. This is mainly due to the excellent location that Newton offers with Orchard road being five minutes away and the convenience of shopping malls such as United Square, Velocity@Novena Square and Novena and Newton MRT Stations in the vicinity.
Steven Ming adds, “Districts 9, 10 and 11 remain locations that most aspire to own and with a limited supply of freehold land in these districts, prices of residential property in these locations will trend upwards in the medium to long term.”
The 21 apartment units are available for bulk sale via private treaty.