A LACK of new launches in District 12 in recent years has held back price growth, and made areas such as Balestier and Toa Payoh among the most undervalued on the city fringe.

Last month, prices of homes sold in this district averaged $741 per sq ft (psf), according to caveats lodged. This is a far cry from other fringe areas such as nearby Bukit Timah, where prices are hitting $2,000 psf.

But this might change soon. 

Demand for nearby District 11 homes in Newton and Chancery Road could spill over to this area, while new upcoming projects might further pull up prices, property consultants said.

Already, the launch earlier this year of the Sky@eleven condominium, on the border of Districts 11 and 12, saw an enthusiastic response that prompted home sellers in Balestier and Thomson to raise their asking prices.

A major force in this area is property group City Developments, which has snapped up several collective sale sites within a stone's throw of each other.

It bought adjoining estates The Albany, Lock Cho Apartments, Comfort Mansion and a four-storey walk-up block, all at the junction of Balestier  Road and Thomson Road.

Then, it went on to pick up three more sites down the road: Concorde Residences, Balestier Court and Bright Building.

When these sites are redeveloped and launched, whether individually or collectively, they could serve as a much-needed shot in the arm for home prices in this low-profile district.

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