The property boom in Kallang is gaining momentum, supported by the area’s city-fringe location and proximity to the central business district, according to Alice Tan, Research Head at Knight Frank Singapore.
The precinct is also easily accessible via major roads and expressways such as Nicoll Highway and the ECP, while iconic landmarks such as the Singapore Flyer and Marina Bay Sands are nearby.
In addition, the Singapore Sports Hub located on the site of the former National Stadium will bring a higher catchment of tourists and workers into the area once it is completed later this year. The project is tipped to become a world-class avenue for sports and entertainment.
“Similarly, under the URA Draft Master Plan 2013, more housing in Kampong Bugis is expected with attractive waterfront living that will be expanded into the Kallang area, bringing more vibrancy and therefore enhancing the asset value of properties in the medium term,” said Tan.
At the same time, Kallang which comes under the Rest of Central Region (RCR), has seen a much faster increase in rental demand, Tan revealed.
In the last three months of 2013, Singapore’s average rental index for non-landed properties stood at 164.3 points, while the RCR’s index was 165.6. Compared to the same period in 2012, this means the island-wide index rose by 0.67 percent, while the RCR climbed 0.73 percent.
With so much buzz surrounding Kallang, it’s no wonder that many property developers are embarking on a building spree there. Recent projects include Riverbay, Riviera 38, M66 and Eight Riversuites. The first two are expected to TOP next year, while the others are scheduled to be ready by 2016.
Based on caveats lodged in 2013 and during the first quarter this year, the average prices at M66 and Riviera 38 were at $1,192 psf and $1,199 psf respectively. Eight Riversuites posted a higher average of $1,335 psf, while Riverbay was pegged at $1,345 psf, noted Tan.
There is also an upcoming launch in the area. Situated near the Kallang and Lavender MRT stations, the freehold Kallang Riverside will comprise 212 apartments and seven commercial units.
Tan feels that given the current market conditions combined with Kallang Riverside’s location attributes, average prices for the project could be in the range of $1,600 to $1,850 psf.
Credits: Property Guru