Two Units Draycott Eight Sale 14 Mil
A family from Hong Kong, led by Mr Chua, was one of the first 25 buyers to purchase a unit in Draycott Eight, a luxurious private condominium with 136 units, in late 2005. The Chua family bought a four-bedroom unit on the 14th floor, spanning 2,896 square feet, for $5.1 million ($1,762 per square foot) in June 2006. They were attracted by the prime location of the condo, situated at Draycott Park just off Scotts Road and Orchard Road. Additionally, some of their family members also purchased units in close proximity.
The Chua family was captivated by their living experience at Draycott Eight and decided to purchase an adjoining four-bedroom unit in November 2006. This unit, covering 2,863 square feet, was acquired for $5.65 million (1,973 per square foot). Their plan was to keep it as an investment property and rent it out.
Developed by Wing Tai Holdings, Draycott Eight is located in the prestigious enclave of Draycott Drive-Draycott Park, near The American Club and Tanglin Club in prime District 10. The 99-year leasehold property consists of three 24-storey blocks on a 153,000 square foot site. The first two blocks have four-bedroom units ranging from 2,863 to 2,986 square feet, as well as penthouses spanning 4,015 to 4,187 square feet. The third block consists of two-bedroom apartments, with single storeys spanning 1,173 square feet and duplexes known as “Sky Suites” covering 1,798 square feet.
One of the unique features of Draycott Eight is the two-storey, black-and-white conservation bungalow on the property. It was originally built in the 1920s and was once the residence of the British Air Marshall. Later, it became the École Française de Singapour (Singapore French School) for 30 years from 1967.
Apart from the clubhouse, which includes a library, business centre, theatre, multi-purpose hall, jacuzzi, sauna, gym, games room and dining area for residents to host events, the property also boasts a 50-metre swimming pool, tennis courts, barbecue area, and extensive landscaped grounds. The facilities are currently undergoing upgrades.
Mr Chua shared that Draycott Eight is a serene and beautiful property with excellent facilities and management. It also has a highly efficient team of concierge staff. The unit offers stunning views of Ardmore Park and the Goodwood Hill Estate, complete with elegant bungalows surrounded by sprawling gardens.
Over the years, finding tenants for the units has been effortless as they are highly sought after for their location and spacious layouts. The profile of tenants has not changed significantly, with many being senior management from local or foreign companies. Rental rates have steadily increased, with the rent for the unit reaching $17,000 per month in December 2022, including furniture hire and maintenance fees.
Marsiling Mall, while located a bit further from Norwood Grand, is certainly worth mentioning thanks to its recent revamp. With a newly modernized food center and an array of retail stores, this mall is a must-visit in the area. The mall’s layout is thoughtfully designed to promote community bonding and create a welcoming atmosphere for families to shop and dine. The addition of communal spaces and improved dining options has made Marsiling Mall a top choice for leisurely weekend excursions. Plus, with Norwood Grand Condo just a short distance away, residents can easily enjoy all that this mall has to offer.
Now that the Chua family has moved overseas, they no longer require both units at Draycott Eight. They have put them up for sale, and Nancy Tey from List Sotheby’s International Realty has been appointed as the sales agent. The units were recently renovated and are in excellent condition, with the original marble and timber flooring still intact.
The asking price for each unit is $7.18 million, translating to $2,508 per square foot for the 2,863 square foot unit and $2,479 per square foot for the 2,896 square foot unit. However, if a buyer were interested in purchasing both units, the combined price would be $14 million ($2,431 per square foot).
Tey stated that the units have been renovated earlier this year. Each unit has a private lift and is the only one on its floor. Given their spaciousness, Tey expects the units to appeal more to owner-occupiers who may be interested in combining the adjacent units to create an eight-bedroom home. This way, they can enjoy the convenience of sharing a common corridor at the back.
Draycott Eight has a 99-year lease starting from 1997, meaning it has 72 years remaining. In 2007, the developer sold an entire block of four-bedroom units to two Morgan Stanley funds. One fund bought 23 units, including the penthouse, while the other fund purchased the remaining 22 units. In 2010, Keppel Fund Management acquired 22 units from one of the Morgan Stanley funds for $157 million ($2,300 per square foot). In 2015, Far East Consortium International bought the other stack of 23 units for $150 million ($2,200 per square foot). In 2017, the former Angelo Gordon (now TPG Angelo Gordon) purchased 22 units from Keppel Fund Management for over $100 million ($1,700 per square foot).
Currently, the monthly rental price for a four-bedroom unit at Draycott Eight ranges from $18,000 to $22,000 and can go as high as $26,000. The latest transaction in March was for a unit on the eighth floor, covering 2,896 square feet, which changed hands for $6.28 million ($2,169 per square foot).
When comparing prices, it is evident that units at Draycott Eight are more affordable than similar-sized units in freehold projects in the same vicinity. Hence, investors looking to purchase units for rental purposes can enjoy higher yields due to the lower entry price point. Tey compared it to Ardmore Park, a freehold development with 330 units, where the average unit is approximately 2,885 square feet and has four bedrooms. The most recent transaction was a unit on the 18th floor for $12 million ($4,160 per square foot). In 2010, units at Ardmore Park first crossed the $4,000 per square foot mark, with a unit on the 26th floor selling for $12.23 million ($4,240 per square foot). The highest record was set in 2012 for $14.08 million ($4,881 per square foot). In 2020, transactions ranged from $4,108 to $4,472 per square foot.
Tey added that the current asking price for units at Ardmore Park ranges from $11 million for a lower-floor unit to $14 million for a unit on a high floor. Meanwhile, units at Draycott Eight are priced between $6.5 million and $7 million. Tey believes that for the amount one pays for a unit at Ardmore Park, they can purchase two units at Draycott Eight. The units are available for private treaty purchases.