Oxley announced on the morning of 12 Dec that they have acquired 8 units at 21 Meyappa Chettiar Road for S$21.5m. The name of the development is Apartment 8.
Each unit works out be S$2.7m on average.
Apartment 8 was completed in 1995 and has a total of 8 units, hence, well, its name.
By buyer profile status, approximately 78% are Singaporeans with the remaining evenly split 11% each to PRs and Foreigners.
Based on an average unit size of 1,500 sqft, pricing works out to approximately S$1,780. Compared to pricing in the the district, this appears to be on the higher side, though Oxley may have have to pay a premium for the choice location near Potong Pasir MRT and potential upside from the Kallang rejuvenation plans.
According to SRX X-value, most units are valued at approximately S$1.6m. Therefore, the premium paid by Oxley is about 69%. The owners must be really happy!
In hindsight, one would have known to buy Apartment 8, but before the fact, nobody would have known. Furthermore, Apartment 8 is such a small project and would not be on the radar of most investors.
Matching the caveats lodged in the past against the transacted price backed out from Oxley’s announcements, most owners stand to reap two to three times their original purchase price.
For example, a buyer paid approximately S$820,000 in 1998 while another paid S$570,000 in 2003 during the trough of the Singapore market.
The property is freehold with a land area of approximately 898.1 square metres that is zoned for residential use.
Located in District 13, 21 Meyappa Chettiar is near St Andrews Secondary School, about 3 mins walk from Potong Pasir MRT and near Toa Payoh hub.
The group intends to redevelop the Property, subject to obtaining all the necessary approvals from the relevant authorities.
Amenitis near Apartment 8 include childcare centres such as My First Skool, Cherie Hearts Little Angels and Ascension Kindergarten.
The acquisition will be funded by internal resources and bank borrowings, and is not expected to have a material impact on the earnings per share or net tangible assets per share of the company for the current financial year ending 30 June 2018.
The last transaction in Apartment 8 before this acquisition by Oxley was in Feb 2012 where a HDB buyer purchased a unit at S$843 psf or $1.28m.
Near 21 Meyappa Chettiar are projects such as Leicester Suites, The Poiz Residences, Ridge Court, Meya Logde, Casa Meya, Platinum Edge, Saint Ritz, Sennett Residence, Moonstone Royale, Moonstone Residences, Nin Residence and Moon Mansion.
These projects on average have rental yields of 2.6% to 4.1%. Average prices are in the range of S$1,022 to $1,611 psf.
At the lower end are properties such as Moonstone Residences which was completed in 2004 and the higher end have properties such as Leicester Suites which was completed in 2013.
In district 13 where the property is located, latest prices in Nov 2017 from Squarefoot show that non-landed units were transacting for $1,300 psf. There were 20 non-landed units transacted in November 2017, down from 30 in the same month last year.
Per square foot prices were also down from $1,358 the same month last year.
In terms of 5 year capital gains, Vaughan Garden, Serangoon Park, Nin Residence are the top 3 with gains of 53%, 26% and 15% respectively.
Projects that has capital losses include Sennett Estate, The Acacias and Macpherson Garden Estate at -36%, -19% and -10% respectively.
Sennett Residence and Sennett Estate command the highest rental yields of 4.2% and 3.7% respectively.
The latest transactions in district 13 are Bartley Ridge at a price of $1,361 psf, E Maison at $1,318 psf and Blossons @ Woodleigh at $1,097 psf.