Tanah Merah sees good demand

PHOTO: Tanah Merah sees good demand

A spate of new developments in Tanah Merah has turned the area into a popular hunting ground for buyers. There have been three new projects in the past years, with developers focusing on the site surrounding the MRT station.

Tanah Merah's housing stock received a major boost in 2009 when Casa Merah, a 556-unit condominium jointly developed by NTUC Choice Homes and Wing Tai Holdings, was completed.

Optima@Tanah Merah, developed by TID, was finished last year, while Urban Vista, next to the MRT station, is expected to launch as early as next week.

PropNex Realty chief executive Mohamed Ismail expects demand for the project by World Class Land and Fragrance Group to be strong given its location.

And there is more to come. Keppel Land unit Sherwood Development bought a site at the corner of New Upper Changi and Bedok roads for $434.6 million last October. It is expected to build 700 units on the land.

Market watchers expect Urban Vista prices to range from $1,500 to $1,600 per sq ft (psf) - higher than the median condominium prices in neighbouring Bedok.

Knight Frank research manager Alice Tan said launch prices at eCO, a condo developed by Far East Organisation, ranged from $1,300 to $1,450 psf, while those at mixed-project Bedok Residence were from $1,050 to $1,550 psf.

While prices of flats there have risen, rents are rising at a slower pace, compressing yields between 3.5 per cent and 4 per cent as of the first quarter, said DWG senior manager Lee Sze Teck.

But leasing demand and rental income stability from residential properties in the area will be strong, with a growing catchment of working expatriates, students and families there, noted Ms Tan.