Hot in the suburbs

Hot in the suburbs

CITY fringe and eastern suburban estates have broken new home price records in the past six months as clear pricing hot spots emerge across Singapore.

Once considered sky-high outside upscale precincts, the $1,500 per sq ft (psf) mark is fast becoming the norm in some hot spots - most dominant in the east.

Many new mass market projects eclipsing the $1,500 psf mark are tied to "titillating new lifestyle concepts" to attract buyer interest, experts say.

The hotter areas include a ring just outside the city and waterfront estates, both on the east coast and north-east coast, said Mr Colin Tan, research head at Chesterton Suntec International.

But the eastern suburban estates, with their ample, appealing lifestyle amenities, have surged ahead of the western districts in terms of prices.

One reason could be that the east was one of the first parts of Singapore outside the city centre to be developed, experts add.

That means many of the commercial and residential developments there have some history behind them, said Savills Singapore research head Alan Cheong.

"In fact, before Bukit Timah took off as a prime residential address, Katong and Siglap were addresses where the rich would reside," he added.

"Owing to an already established density of development there, it has a natural draw for people wishing to reside in such an agglomerated area."

Another factor is the substantial number of government land sale sites in eastern towns where developers have launched new projects at benchmark prices.

This has driven up other prices in the vicinity in tandem.

R'ST Research director Ong Kah Seng noted that freehold homes on the city fringe and suburban planning areas of Bukit Timah, Geylang, Marine Parade and Bedok have recorded the most transactions surpassing $1,500 psf so far this year.

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