Mr Chua, a Hong Kong-based investor, and his family were among the first 25 buyers at Draycott Eight, a luxury condominium with 136 units in Singapore. The condo was launched in late 2005 and the Chua family purchased a four-bedroom unit on the 14th floor in June 2006. The unit, which spans 2,896 sq ft, was purchased for $5.1 million ($1,762 psf). One of the main reasons for the purchase was the prime location of Draycott Eight, which is situated at Draycott Park, just off Scotts Road and Orchard Road. Additionally, the Chua family was also drawn to the fact that close family members had purchased units in the same area. They were happy with their purchase and later decided to buy an adjoining four-bedroom unit in the same condo. This second unit, which is slightly smaller at 2,863 sq ft, was purchased for $5.65 million ($1,973 psf) in November 2006. The plan was to hold this second unit as an investment property and rent it out. Developed by Wing Tai Holdings, a listed property developer, Draycott Eight is located in the exclusive neighbourhood of Draycott Drive-Draycott Park in prime District 10. The condo has three 24-storey blocks spread across a 153,000 sq ft, 99-year leasehold site. Two of the blocks have four-bedroom apartments, while the third block is made up of two-bedroom apartments. A key feature of the condo is the two-storey, black-and-white conservation bungalow on the site, built in the 1920s, which was formerly home to the British Air Marshall and later used as a school. The condo boasts facilities such as a library, business centre, theatre, multi-purpose hall, jacuzzi and sauna, gym, games and billiards room, dining room, swimming pool, tennis courts, barbeque area, and extensive landscaped grounds. The Chua family loved living in Draycott Eight so much that they found it easy to rent out their second unit to senior management of Singapore or foreign companies. Over the years, the rental amount progressively increased from $11,700 in December 2020 to $17,000 in December 2022. However, since the family now lives abroad, they have decided to sell both units, which have been newly renovated this year. Nancy Tey, senior associate vice president of List Sotheby’s International Realty, is the appointed sales agent. In 2007, two Morgan Stanley funds bought an entire block of four-bedroom units in Draycott Eight. In 2010, Keppel Fund Management purchased a stack of 22 units from one of the Morgan Stanley funds, while, in 2015, Far East Consortium International purchased the other stack of 23 units. In 2017, Angelo Gordon (now TPG Angelo Gordon since it was acquired by TPG in 2023) purchased the 22 units from Keppel Fund Management. The monthly rent for a four-bedroom unit at Draycott Eight ranges from $18,000 to $22,000 and can go as high as $26,000. In comparison to freehold projects with similar four-bedroom unit sizes, the prices at Draycott Eight are relatively lower. The average price of a four-bedroom unit at Ardmore Park, a freehold condo in the same area, is $2,300 psf. According to List Sotheby’s Tey, asking prices for units at Ardmore Park range from $11 million to $14 million, while units at Draycott Eight are available for sale from $6.5 million to $7 million.
Choosing the perfect location is crucial when investing in real estate, particularly in a bustling city like Singapore. The location of a condo can significantly impact its long-term value. In Singapore, condos situated in central areas or in close proximity to vital amenities such as schools, shopping centers, and public transportation hubs are highly coveted and tend to appreciate in value. Premier locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently shown growth in property values.