Location plays a pivotal role in real estate investment, especially in the vibrant city of Singapore. In this bustling metropolis, condos located in central areas or in close proximity to essential amenities like schools, shopping malls, and public transportation hubs are highly sought after and tend to appreciate in value over time. Prominent areas such as Orchard Road, Marina Bay, and the Central Business District (CBD) are considered prime locations where property values have consistently shown an upward trend. Families looking for a Singapore Condo are particularly drawn to these areas due to their excellent education opportunities, making these condos even more desirable and increasing their potential as a sound investment.
Located in Singapore’s prime District 10, Draycott Eight was launched in late 2005 and is a 136-unit luxury private condo. One of the first buyers of the project was Hong Kong-based Mr Chua and his family. They purchased a 14th-floor, four-bedroom unit of 2,896 sq ft for $5.1 million ($1,762 psf) in June 2006. Drawn by the prime location of Draycott Eight at Draycott Park, just off Scotts Road and Orchard Road, the Chua family also liked the fact that close family members had purchased units in the same area. They were impressed by the condo’s amenities and peaceful surroundings, which led them to also purchase the adjoining four-bedroom unit for $5.65 million ($1,973 psf) in November 2006. The plan was to hold the unit as an investment property and rent it out.
Developed by Wing Tai Holdings, Draycott Eight is a 99-year leasehold condo spread across a 153,000 sq ft site. Its three 24-storey blocks contain a mix of four-bedroom and two-bedroom units. The project’s key feature is a two-storey, black-and-white conservation bungalow on the site, which was the former home of the British Air Marshall before becoming the École Française de Singapour (Singapore French School) for 30 years from 1967.
The condo boasts a range of facilities, including a clubhouse, library, business centre, theatre, multi-purpose hall, jacuzzi, sauna, gym, games room, and billiards room. Outside, residents can enjoy a 50m swimming pool, tennis courts, barbeque area, and landscaped grounds. The condos and grounds are well-maintained and have an excellent concierge team. The Chuas loved the views of Ardmore Park and the Goodwood Hill Estate from their living room and bedrooms, which feature black-and-white bungalows amidst sprawling gardens.
Due to their family’s move abroad, the Chuas no longer had to maintain both apartments in Singapore and have decided to sell. The units have been recently renovated and include marble flooring in the living and dining area, kitchen and bathroom fittings, and timber flooring in the bedrooms. The selling price for each unit is $7.18 million ($2,508 psf) and $14 million ($2,431 psf) if a buyer purchases both. List Sotheby’s International Realty Senior Associate Vice President Nancy Tey is the appointed sales agent and expects the units to appeal to owner-occupiers who may wish to purchase adjacent units to create an eight-bedroom home.
Draycott Eight has a 99-year lease from 1997, giving it a remaining lease of 72 years. In 2007, two Morgan Stanley funds purchased an entire block of four-bedroom units in the project, and several other institutional investors have since made purchases. Based on listings, the monthly asking rent for a four-bedroom apartment at Draycott Eight ranges from $18,000 to $26,000. In comparison, a similar-sized unit at the freehold Ardmore Park, considered the bellwether for luxury condos, sold for $12 million ($4,160 psf) in July. Units there hit a high of $14.08 million or $4,881 psf in July 2022 with transactions this year between $4,108 and $4,472 psf. Properties at Ardmore Park today range from $11 million for a low-floor unit to $14 million for a high-floor unit. In comparison, four-bedroom units at Draycott Eight sell for between $6.5 million and $7 million. -/TISG