Investing properties comprises an inevitable level of risk-taking considerations and an almost astronomical sum of capital. Choosing the right property that would yield an admissible return, or any at all, can be arduous for the inexperienced. The fundamental elements to most lucrative real estate investors largely depend on the investors’ objectives.
Investors pursuing income stream from their rental properties would scrutinise the property location to determine current and potential tenants pool and market rental rates ( translating to rental yield ) as important aspects to their scrutiny for any property purchase.
Figures and statistics are vital wherewithal for investment analysis and research. The relevance of such quantitative data would determine your decision making. In property terms, we would collectively evaluate these data under the Competitive Market Analysis.
For the sake of the current new launch at Principal Garden @ Prince Charles crescent, we had previously extracted the respective land bid prices for new launches in D3 since 2012. This area had seen some intensive bidding due to the proximity to city and also the tight supply.In this article, we would
- Further present the land bid prices for the nearby projects/developments which have launched since 2013.
- Draw up some rental prices comparables
- Identify the current/potential tenant pool for the Queenstown, Redhill and Tiong Bahru Vicinity.
Further present the land bid prices for the nearby projects/developments which have launched since 2013.
Echelon was launched as early as January 2013 and had closed its land bid tender at $754.40 psf with an estimated breakeven at $1203 psf. Its historical high in sales was $2474 psf in comparison to the lowest at $1346 psf, giving it an average sale price of approximately $1531 psf.
In April 2013, Mon Jervois, tucked at the quiet enclave, was launched and units were sold at an average price of $1824 psf despite closing its land bid at $880.70 psf. The estimated breakeven cost was $1404 psf.
Launched in the later part of 2013, Alex Residences had the land sale closed at $970.20 psf and was estimated to break even at $1450 psf. It was not unforeseen as this project is with closest proximty to the Redhill MRT. They clocked an average of $1712 psf sales thus far.
Situated right beside Queenstown MRT station, Commonwealth Towers,which was launched in May 2014 was bidded at $882.80 psf to close off the land sales. The units were sold at an average price of $1721 psf. Approximately 44.3% of the 845 units were sold as of 21st July 2015.
Rental prices comparables
Rental comparables would furnish investors with a proximate yardstick of the rental market sentiments within the vicinity and then a more rigorous computation of the rental yield.
At Tanglin regency (TOP Year:1998), the recent average rental prices for 2 bedrooms, 3 bedrooms and 4 bedrooms units are $3650, $4500 and $5300 respectively. Tanglin View, which was completed 3 years later, has her similar sized units rented out at $4200 for the 2 bedrooms, $4700 for the 3 bedrooms and $5300 for the 4 bedrooms unit.
With Queenstown MRT just a mere 5 minutes walk away from the Queens Condominium, she has been a popular take up for tenants interested in living within the district 3. Their unit sizes are pretty much similar to those at Tanglin Regency and Tanglin View. The 2-bedroom units can fetch up to $4500 of rental per month, the 3-bedroom $5500 and $5800 for a 4-bedroom unit.
The rental rates at Metropolitan Condo are $3650, $5700 and $7300 respectively for her 2-bedroom, 3-bedroom and 4-bedroom units. This was one of the best selling condominium in a weekend in that year. This district saw a substantial appeal for a new condominium along Alexandra Road. A queue of more than 100 homebuyers started forming at 3am on that fateful day of preview.
With the strong response at Metropolitan,the Ascentia Sky, with redhill MRT right at its doorstep fetched a relatively strong rental price of $4800 for the 2-bedroom unit, $6500 for the 3-bedroom and $8000 for their 4-bedroom units.
Identify the current/potential tenant pool for the Queenstown, Redhill and Tiong Bahru Vicinity.
Prospective tenant pool could be concluded by the development’s proximity to the Redhill, Queenstown and Tiong Bahru vregion. We have 1 MRT stop away or an approximate 3-minutes drive to Singapore General Hospital and Outram MRT. 2 MRT stations away would transport us to Orchard which is of equivalence to 10 minutes of drive. On the opposite side,the sentosa and PSA Harboufront area requires a 8 to 10 minutes drive. That would be 2 MRT stops away for the rest of the commuters. A 12 to15 minutes drive up west would lead us to Biopolis and the Fusionopolis or the Marina Bay and CBD area should you head towards the central. These destinations are only 4 MRT stops from the Redhill MRT, making travelling almost a breeze.
Conclusion
With the above 3 aspects elaborated and backed up with the numbers, it should guide you towards adopting some sound real estate investment practices irregardless of the market sentiments. In closing, it is essential that investors take a holistic approach to determine what is a realistic and desirable property investment portfolio outcome for themselves. Should you require any real estate related discussion and advice, do contact our friendly sales team. Up next, we would share with you some financial tips, so stay synchronized with us.
