Kallang property prices set to go up

Desmond Ng
Mon, May 26, 2008
The New Paper

Kallang property prices set to go up?

A BUSTLING beachfront precinct with waterfront homes, offices, hotels, shopping malls and entertainment outlets.

Think Sentosa Cove, but on a smaller scale. And perhaps, not so pricey.

That will be the new face of Kallang Basin in years to come.

This makeover is one of the initiatives of the Draft Master Plan 2008, launched by Minister of National Development Mah Bow Tan yesterday.

For property speculators and homeowners in that area, this makeover can spell only one thing -higher property prices.

The one thing some residents want to know is: how much is the value of my place expected to rise?

There are two small Housing Board (HDB) estates with less than 20 blocks in that area, and both overlook Kallang Basin.

The Riverine, a 96-unit apartment project which was launched a year ago, will be the first private residential project to be completed in Kallang Riverside.

Auditor Justin Lee, who lives in a four-room HDB flat there, said: 'The redevelopment sounds exciting. At last, they're going to spruce up this area. I think this place has potential, since there's a beach here and it's near to town.

'It'll be a while before the whole place is revitalised and, by then, I'm sure the value of my place would have gone up.'

Mr Lee, who is in his 30s, paid more than $200,000 for his place some two years ago.

Property-watchers we spoke to agreed that property prices in that area will certainly head up once construction there starts.

But it's still early days yet, especially for those hoping to cash in now.

PropNex's chief executive Mohamed Ismail said: 'There won't be any immediate impact on prices today. If anything, the value of homes there will hold well now because of the news.

STILL EARLY

'We may not see the price increase today, tomorrow or a few months to come. But in a few years' time, this place will command a premium because of the transformation.'

He reckoned that when construction begins, buyers can be expected to pay a premium of 10 to 15 per cent above its usual price.

The proximity to town, the Marina Bay Sands integrated resort, and the new Sports Hub will bode well for homeowners there, he said.

'People who want to invest in that place now will not be wrong in the long run. When things start coming up, such as the Sports Hub, the new MRT station and basic infrastructure, rentals and prices in that area will go up too,' he added.

Mr Eugene Lim, an assistant vice-president with ERA Realty Network, also believes that one can expect a run-up in terms of property prices there.

But don't expect a 10-per-cent increase in price now because nothing is concrete yet, he said.

'It's a 10 to 15 years' project and will not happen straightaway.

'But when plans are more concrete, land parcels are sold and developers start to announce their projects, prices in that area will increase. In 15 years' time, prices there could even double what it is today.'

The Kallang Riverside area today is a quiet neighbourhood, home to a few flatted factories and a hangout for wakeboard enthusiasts.

While some are relishing the thought of a mini Sentosa Cove by their doorstep, others are not so hot about it.

Fishball noodle seller Tan Boey Khim, who lives in a four-room HDB flat just opposite the Kallang Basin, would prefer the area to remain status quo.

Mr Tan has been selling his noodles in a market there for the last 30 years.

The 66-year-old paid about $190,000 for his flat two years ago.

Right now, he enjoys an unblocked, picturesque view of the Kallang Basin all the way to Tanjong Rhu, the Marina Bay area, East Coast Park and even the Singapore Flyer.

For him, redevelopment means more noise, dust and traffic inconveniences from the construction.

Mr Tan said in Mandarin: 'The plans don't matter to me. I don't even know if I will still be around when this whole area is redeveloped. Anyway, it's still too early for me to think about selling this place for a profit.

'I like the area, the view and proximity to town. I just hope it doesn't become too crowded.'

(Source :http://business.asiaone.com/Business/My%2BMoney/Property/Story/A1Story20080525-66970.html)