LIV @ MB PRICE
LIV @ MB Prices:
Just 200 meters from Katong Park MRT, Liv @ MB sits on a spacious land plot with an area of 140,758 square feet. Formerly occupied by Katong Park Towers, the land is located at the intersection of Mountbatten Road and Arthur Road where residents can enjoy great transport convenience with major bus services along Mountbatten Road and Katong Park MRT.
The collective sale of Katong Park Towers in 2018 attracted 10 bidders vying for the rare land parcel in Mountbatten. It was a rare opportunity to lay hold of a large leasehold site in Mountbatten. At the close of the sale, Bukit Sembawang Estates Limited (BSEL) won the bid at $345 million. This sale price translates to $1,280 per square foot (PSF), accounting for the upgrading premium of $60 million for the leasehold land. The land cost is the largest component in the Liv @ MB Price.
In addition to land cost, the transaction prices of new homes in the vicinity play a major role in determining the Liv @ MB Price. Based on official data, prices of strata properties (99-year leasehold) in District 15 have been growing at 120% for the past 15 years from 2006 to 2021, at an annual growth of more than 5%. An uncompleted 99-year leasehold development near Eunos MRT is transacting at an average of $1730 PSF and to date, almost all the units have been taken up. The highest PSF record for this development is $2,050 PSF for a 1-bedder transacted in May 2021.
Despite the Covid-19 pandemic, the Singapore property market is experiencing strong demand for new homes. New developments along Sims Drive sold over 60% of its units just within its launch weekend in September 2020. The average transaction price for the development is approximately $1,600 and the highest closing price recorded was $1,856 PSF for a 1-bedroom unit.
Besides current transaction prices, an important factor to take into account would be the future prices to come. A recent government land sale that grabbed the headlines is a 99-year leasehold plot at Tanah Merah Kechil Link zoned for mixed-use comprising commercial space on the ground floor with 256 residential units. The site, next to Tanah Merah MRT, was hotly contested by 15 bidders with the winning bid closing at $248.99 million which translates to a land rate of $930.3 psf per plot ratio.
Based on analysis by PropNex Realty (March 2021), this land rate is much higher than residential sites at the city fringe which is the Rest of Central Region (RCR). Based on the transacted land cost, the market expects new homes at Tanah Merah to transact between $1,700 to $1,800 PSF in the future. In view of the new price level projected at Tanah Merah, homebuyers may be able to enjoy the Liv @ MB Price at the “old price tag” as the land was sold in 2018.
Lastly, an important benchmark for Liv @ MB Price would be the newly completed leasehold development, Seaside Residences, which is within a few minutes’ walk to Siglap MRT and the East Coast Park. Based on EdgeProp (August 2021), the average transaction price for the development stands at $,1969 PSF. Given Liv @ MB Location is closer to the city, its average pricing would exceed Seaside Residences.