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SG Balestier a new haven for property hunters

Property Here - Monday, March 25, 2013

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By Shabnam Muzammil:

The Balestier area (pictured) is shedding its image as a red-light district and is attracting home buyers with several upcoming launches, reported The Straits Times.

Notable enhancements include the revamp of Sun Yat Sen Memorial Hall and the launch of an integrated project comprising Zhongshan Park, Zhongshan Mall, and the Days and Ramada hotels.

The area is in proximity to several good amenities which draws many home buyers, said Elaine Chow, Research Head at HSR Property Consultants.

Buyers, including foreigners on a limited budget see Balestier as an alternative to the city centre, and neighbouring Novena / Toa Payoh due to location and more affordable pricing.

However, “buying interest for homes in Balestier is very much focused on new projects, instead of completed homes”, said Ong Kah Seng, Director at R’ST Research.

Last year, average prices of new homes smaller than 700 sq ft were between S$1,400 and S$1,530 psf. Comparatively, home prices in Novena stood at around S$2,000 psf.

“Investors prefer the new, smaller apartments with lower price quantums, which can be easily rented out to young expatriates who are on limited housing allowances,” explained Ong.

Moreover, resale home prices have been rising over the past two years. In 2012 alone, they climbed between four and seven percent following 2011’s hike of five to 10 percent.

“Prices have held up well (despite the limited number of resale transactions), reflecting the fact that owners who are selling pushed for higher prices in the light of the long-term investment potential of Balestier,” Ong added.

Image Source: jitokun.wordpress.com

 

Shabnam Muzammil, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email shabnam@allproperty.com.sg