PASIR Panjang has long been associated with container ports and warehouses but that image is changing, consultants say.
Private apartments, mostly low-rise and freehold, now line the western stretch of Pasir Panjang Road close to Clementi Road.
Consultants said that although this area may not be at the top of investors’ priority lists now, its star will rise as the Urban Redevelopment Authority’s Draft Master Plan last year sparks further development in the area.
The port at Pasir Panjang will be relocated to Tuas after its lease expires in 2027.
That stretch of Pasir Panjang Road is not within walking distance of an MRT station, so investor interest there has lagged behind that in nearby areas such as Buona Vista, said Chesterton Singapore research head Elaine Chow.
However, homebuyers can find bargains there, she said.
The newest condominium along that stretch of road is the freehold Village @ Pasir Panjang, the only project in the vicinity that is still under construction.
On the other side is the 83-unit Villa de West, completed in 1995. All are freehold.
Being the newest, the 148-unit Village @ Pasir Panjang commands the highest prices among all. Its units sold at $1,437 per sq ft (psf) on average over the past six months.
This was above the historical highs recorded for the rest, which were $1,117 psf for The Spectrum in June 2012, $1,091 psf for Palm Green in April last year and $1,103 psf at Villa de West in February last year.
However, Village @ Pasir Panjang’s prices may be easing amid a softening market.
Ms Chow noted that the median price at the development was $1,627 psf in the fourth quarter of 2012 but that has dropped to $1,404 psf for the first three months of this year.
Delving into transactions within this development, an 829 sq ft unit on the third floor was sold for $1,616 psf in December 2012 while another 829 sq ft unit on the same floor was sold for $1,536 psf in October last year, she said.
In February this year, another 829 sq ft unit also on the third floor was sold for $1,496 psf.
Agents have recently been advertising discounts at Village @ Pasir Panjang as well.
One claimed to be marketing a three-bedroom penthouse at the project for less than $2 million in total, or over $1,300 psf, but declined to give further details.
Relatively low prices can also be found across the street at the 28-unit freehold Pasir Panjang Court. A 1,335 sq ft unit there was sold in February this year at $928 psf or $1.24 million.
“This is a rarity in today’s market where new launches in the suburbs, on 99-year leasehold, are commanding average prices in excess of $1,300 psf,” Ms Chow said. Tenants in the district are generally those who work at the nearby science parks or the National University of Singapore.
PropNex chief executive Mohamed Ismail said that the area is likely to be “well sought after” in future as the population grows. “With the Master Plan, the belt will be transformed.”