Singapore Property | As 2018 comes with new opportunities, here is the view of 3 real estate agents in the areas you should consider investing in.
Recommendations by Hirosh Oh, Huttons Asia Ltd, Senior Director of Marketing
Hottest Districts to Invest in 2018 – District 3 (Queenstown, Commonwealth, Tiong Bahru, Redhill )
The rise in collective sales in 2017 resulted in the almost overnight creation of ‘en bloc millionaires’. Majority of them would like to advance to a city fringe location, which has increased interest there.
According to Oh, city fringe area such as Queenstown and Commonwealth remain popular. Further interest in the area was raised by May 2017 record of the tender of $1 billion for the Stirling Road land parcel.
The new project is projected to fetch about $ 2,000 psf and to be launched around mid-2018.
This has driven up interest for developments nearby such as Queens Peak and Commonwealth Towers whose indicative price is $1,687 psf and $1,735 psf respectively since the buyers anticipate the price of the new condominium to be higher when launched.
Buyers have now turned to Tiong Bahru and Redhill since the areas are nearer to the central business district, and offer more value for money. In Redhill price for Alex Residences starts at $1,614 to $2,180 psf while Principal Garden has prices of $1,574 psf to $1,932 psf. These 2 developments are fully sold.
In Tiong Bahru, residential units at Highline Residences range starting $1,535 psf to $2,061 psf.
An upcoming launch, Margaret Ville, by MCL Land, will be located along Margaret Drive in District 3 too.
Recommendations from Georgette Lee, Huttons Asia Ltd, Assistant Marketing Manager
Hottest Districts to Invest in 2018 – District 18 (Tampines)
According to Lee, homebuyers should focus on Tampines Avenue 10, which has many developments going on.
The Alps Residences had its launch towards the end of 2016 followed by Q Bay Residences, Waterview, and The Santorini soon after. A new executive condominium is expected to be built in the third quarter 2019 at Avenue 5 and Avenue 10 junction. There are new BTO flats on Tampines Street 86 adjacent to avenue 10.
Lee is the marketer for The Tapestry, a condo on a leasehold of 99-years set for launching in the first quarter 2018. She observes that it is a value buy in comparison with other large launches set for launch in the second half of the year including previous en blocs such as Tampines Court, Serangoon Ville, Eunosville and Shunfu Ville.
The price on Tampines Avenue 10 is from $900 and $1100 psf, which means that The Tapestry may launch at the same or a bit higher price.
The price is favorable if compared to Hougang and Serangoon whose current prices are about $1,400 to $ 1,500 psf.
“Other people are knowing about the area. While the general view is its long distance from CBD, it is well-connected using Bartley Road while the Tampines West MRT opened in October 2017,” said Lee.
Recommendations by Hansen Ng, Orange Tee, Senior Associate Director
Hottest Districts to Invest in 2018 – District 22 (Jurong)
There has been a beehive of activities at the Jurong Lake District in the last 2 years. This may continue in 2018 given the latest developments, like the Vision Exchange opening, a commercial tower of 25 stories.
Jurong Gateway is earmarked as the second CBD in Singapore. The Kuala Lumpur –Singapore HSR terminus is set for completion in 2026. It is expected that Malaysians will invest there since they can travel back and forth.
Newer condos close to Jurong East MRT cost more than those located 1 or 2 MRTs away such as the Lakeside and Chinese Garden. For instance, according to URA, in December 2017, J Gateway fetched $1,838 psf.
In contrast, next to Chinese Garden is The Lakeshore, a 10-year old development that fetched $929 psf in the sale of December 2017 while The Lakefront Residences, a 4-year old development near Lakeside fetched $1,309 psf in January 2018.
Investors should also purchase older condos for en bloc potential. For instance, the 25-year old Ivory Heights near Jurong East is in the process of applying for a collective sale while the residents of Westmere nearby are also looking forward to an en bloc sale. In Lakeside, the en bloc sale has started for Parc Vista, which is 21 years old.
If the nearby old condos are sold en bloc, newer condos, for instance, The Lakefront Residences can gain capital appreciation.