Ground-floor unit at Kovan Residences selling for $1.78 mil
A three-bedroom unit on the ground floor of Kovan Residences will be put up for auction for the second time by PropNex Realty on Feb 27. The 1,701 sq ft unit is an owner’s sale, and was first put up for auction by PropNex last month. The opening price then was $1.78 million ($1,046 psf). The guide price in the upcoming auction is likely to remain unchanged.
Kovan Residences is a 521-unit private condo located adjacent to the Kovan MRT Station on the North East Line. The project was developed by a joint venture between Centurion Corp and Lian Beng Group, and completed in 2011.
The 99-year leasehold Kovan Residences comprises 521 units, and was completed in 2011 (Credit: Samuel Isaac Chua/The Edge Singapore)
The current owner purchased the unit in a sub-sale in December 2010 for $1.28 million ($753 psf). The unit was most recently leased until 4Q2018, says Leonard Lee, associate group director of auction services at PropNex Realty. According to URA data, three-bedroom units at Kovan Residences have been leased at an average rate of $5,000 a month.
After holding the property for eight years, the owner has decided that it’s time to “realise the current value of the asset”, according to Lee.
Since the unit was first listed for auction last month, at least five prospective buyers have visited the unit and have expressed interest in buying it, he says. “Considering that last month was between two festive periods – Christmas and Chinese New Year – the response from buyers hasn’t been too bad.”
The pool at Kovan Residences (Credit: EdgeProp SG)
Some potential buyers would need time to settle the necessary finances before making a bid, reckons Lee. He expects more buyers to throw their hat in the ring soon. Most of the interested buyers are looking to purchase the unit for their own stay, and some are already living in the Serangoon neighbourhood, he adds.
There are only two units on the ground floor of each of the eight blocks at Kovan Residences. This particular unit faces Simon Road and the main entrance of the development. The living room and master bedroom open out to an L-shaped patio. “Those who like to entertain will appreciate having the outdoor patio space which is only available for ground floor units,” says Lee.
Besides its exclusivity, the unit has been well-received because of its relatively attractive absolute price. “The asking psf price is quite reasonable compared to recent transactions at Kovan Residences,” he says.
The three-bedroom unit features a ground-floor patio accessible through the living room and master bedroom (Credit: PropNex Realty)
The most recent sale of a three-bedroom unit on the ground floor was on Jan 25 last year, when a 1,442 sq ft unit changed hands for $1.6 million ($1,109 psf). Another 1,496 sq ft unit fetched $1.48 million ($989 psf) when it was sold in June 2016. According to Lee, the owner of the subject unit is open to negotiating the price from $1,000 psf.
“There has been more interest in private properties in District 19 – comprising Serangoon, Hougang and Punggol – as buyers consider it one of the few underdeveloped areas in the Central Region,” says Lee.
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