Recently local and expatriate buyers who find prime location homes expensive are turning to city fringe location like Balestier as substitute as it may be 20% lower in price than nearby city centre home. Furthermore, Balestier is now undergoing a rejuvenation to shed the messy image while retaining the rich heritage.
During the past year, new condominiums have sprung up and about 1,400 new homes will be ready by 2015. New property launches are very well received. There are only 8 units of 4 bedroom penthouses available at the Vista Residences at Jalan Datoh. These are priced at about $1,800 psf or about $4.3 million for a 2,390 sq ft unit.
Skysuites 17 has only one penthouse left. The other units were sold at an average $1,400 psf where a three-bed unit was about $1.4 million.
In contrast, new properties at nearby district 11 Novena area were sold at about $2,000 psf.
The rental yield of 3.3% to 4% is achieved in the 2 areas while rent in Balestier appears to be edging higher this year. A 2 bedroom unit at Casa Fortuna was rented for $3,600 a month and it is expected to be increased after the current lease expire.
There seems to be more compact size apartments at the new properties launched for the Balestier area which tends to attract investors like the mixed development project at Okio Residences and Skysuites 17, where 40% of units are under 500 sq ft.
Another development, The Interweave is getting good response from buyers and investors alike due to its affordable pricing which starts from $5xxk for a 1 bedroom unit which is getting very rare for a new city fringe apartment.
Balestier's old world charm, good food and attractions like Zhongshan Park are pulling factors for buyers and tourists enhancing its city fringe convenience appeal.
16 Jul 2012