Alexandra gaining ground as property hotspot

The Alexandra area is set to become a hotspot for expatriates on the lookout for rental properties, noted a report in The Straits Times.

According to Steven Tan, Managing Director of OrangeTee, the area has evolved in recent years. While housing used to be limited to HDB flats, more private properties have mushroomed within the area, including Alexis, Metropolitan and the newly-launched Echelon.

Sited on the fringe of District 10, Alexandra offers easy accessibility to Orchard Road, the central business district and public transportation. It is within a “mature estate that offers a lot of amenities like schools, retail shops and entertainment areas”.

Tan noted that expatriates will “find it easy to fit in, and thus provide a good catchment (audience) for the rental market”.

Meanwhile, the rise in demand for rental housing has pushed up home prices in the area. Data from OrangeTee revealed that average prices of new homes range between S$1,600 and S$1,800 psf.

The 508-unit Echelon condo project recently sold 200 units at an average price of S$1,700 psf.

Tan also noted that areas close to the city like Alexandra are set to become “more attractive, particularly to investors”.

“Land in prime areas is scarce. Therefore, future purchasers who are keen to invest in the traditional prime areas such as District 9, 10 and 11 may consider alternative choices in the fringe areas.”

With more private homes being completed, Alexandra could be revived and that could spur greater interest in the segment, Tan added.

Source : PropertyGuru – 7 Jan 2013