How are property prices trending in Pasir Panjang?

STProperty conducted a profitability analysis of sales transactions of Pasir Panjang condominiums, following the two Singapore Property News articles on 7 April 2014 and the launch of the upcoming The Sorrento condominium project during the upcoming Easter weekend.

In this analysis, we decided to compare median profits and compounded returns of older condominiums, including Villa de West, The Spectrum and Palm Green in order to estimate the future profitability of newer condominiums such as The Sorrento, Seasuites Condo, Icon@ Pasir Panjang and Whiteheaven.

Our findings

Source: Singapore Property Watch (SPW)

These three apartments were highlighted in the Apr 2007 article and have freehold tenures. Completed during the mid 1990s to early 2000s, the median unit per square feet (psf) for the three apartments is $764. The upcoming launch of The Sorrento has an indicative pricing range of $1,380 and $1,600 psf. There is a good potential for price appreciation for these older apartments due to the comparative difference between their median price point of $764 psf, and The Sorrento’s median indicative pricing at $1490 psf. Given this result, we believe that existing developments are relatively undervalued in terms of pricing, and it might be worth it for property buyers to take a closer look , and do their cost-benefit analyses. The compounded return is the highest for The Spectrum at 8.9 percent, with a median profitability of approximately $300,000, and unit psf price of $837 psf. A summary of the property details showed that the historical high was $1,117.00 psf for a 1,119 sf unit in Jun 2012 and $446.00 psf for a 2,626 sf unit. Potential buyers might look at other developments, including Seahill for additional price reference points. For a unit area of between 710 sf to 861 sf, the psf price during the past twelve months worked out to be in the range of $1,617 to $1,822. This is priced higher than the indicative price range of a basic one-bedroom sized unit in The Sorrento by approximately 14 percent to 17 percent. As such, potential homebuyers might want to take a closer look at the relatively newer and competitively priced The Sorrento.

Summary
Under the current URA Masterplan, the port of Pasir Panjang will be relocated to Tuas after its lease expires in 2027, and plans are underway to bring waterfront living to the area. However, the place continues to lack amenities, including additional rail lines, apart from Haw Par Villa MRT station. We caution against higher price expectations among sellers in the wake of property cooling measures. The properties around Pasir Panjang have been priced competitively and buyers have a variety of options between these newer units and lower-priced, older units.

Source: ST Property 17th April 2014

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How are property prices trending in Pasir Panjang?

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