Living in the city is catching on
City living is taking off, with thousands of new apartments downtown and thousands more in the pipeline. One key factor is the exponential growth of office space in the Central Business District (CBD) - specifically the Marina Bay, Shenton Way, Cecil Street and Robinson Road areas.
Office space in these areas has jumped 38 per cent to 17 million sq ft over the last five years and that demand for homes is likely to spike in tandem.
Moreover, another 1.425 million sq ft of office space is expected to be completed by 2015, which will likely bring another 16,000 professionals to work there.
Moreover, another 1.425 million sq ft of office space is expected to be completed by 2015, which will likely bring another 16,000 professionals to work there.
This increase will fuel demand for more homes, especially after the Government's push to cultivate an area where professionals can "live, work and play".
Housing stock is set to grow sharply from the 3,000 to 3,500 completed apartments now, with an estimated 17,000 people already living in the area.
Already, a further 3,400 homes are expected to be built in the city from now to 2018.
Ever since the 646-unit Icon and mega 1,111-unit The Sail @ Marina Bay were completed about four years ago, new residential projects such as One Shenton and Marina Bay Residences have mushroomed in the district.
Newer projects such as EON Shenton, V on Shenton and Marina One, which are all still under construction, have followed.
And both investors and tenants seem to have remained keen on the area, with recently launched projects seeing positive interest.
Median rents at the existing projects in Marina Bay and Shenton Way have risen from $5.50 psf in the third quarter of 2010 to $6 psf in the first three months of the year.
Yields at the Icon near Tanjong Pagar MRT station were about 4.6 per cent in the second quarter, The Clift in McCallum Street pulled in 4 per cent and The Sail @ Marina Bay, 3.5 per cent.
Yields at Marina Bay Residences, however, were lower at 2.7 per cent while those at One Shenton were 2.95 per cent.
F&B outlets and retail and hotel establishments being planned will ensure that life in the CBD carries on well into the night.
Source: The Straits Times – 25 August 2012