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Criteria:
Type: Private Residential
Districts 1,2 & 7
Unit Sizes: 400 - 1100 sf
Age: 0 - 7 Yrs old.
1) District Sales Trend (Most recent 24 months)
Please see the sales trend below which I generated based on the above criteria.
D1 : - 0.2% / yr
D2 : +8% / yr
D7 : +12.4% / yr
National: +6% / yr
Findings are that D7 condos / apartments are showing the highest growth rate of avg transacted psf over the last 24 months, followed closely by D2.
This could mean that either D1 has more supply hitting the market thus causing a slow down in capital appreciation or that it is near peak prices / overpriced.
2) Closest comparatives Avg transacted psf and volume (Most recent 24 months)
I have selected 5 developments which is very similar in age range; either not > 7 yrs old or under construction as a gauge.
There is quite a big gap between D1,D2 and D7 average transacted psf.
Taking Sky Suites @ Anson as the closest to Concourse Skyline which is still under construction nearby to Duo Residences, the gap is about $200 psf.
3) District Rental Yield & Rental psf
D2 : -3.3% / year
D7 : -11.3% / year
Do note that rental yield is an inverse relation to capital appreciation. ie when capital appreciation is +ve, rental yield is -ve if all other variables remain constant.
Note that all 3 districts are showing a lower rate of decline in rental yield than the rate of capital appreciation / avg transacted prices.
All 3 districts are showing pretty consistent rental psf. However, districts 1 & 2 are showing signs of softening in recent months. On the overall, still not really cause for concern.
Conclusion:
It appears that district 7 shows the highest potential upside. In addition, the area is zoned to be a growth region by the government in the masterplan.There are not many newer (< 10 yrs old) private residential developments in that area. The only other comparable development is Concourse Skyline, a 99LH project which is still under construction.
Duo Residences is the only 4-in-1 mixed use development (5 Star Hotel, Grade A office, Retail + F&B outlets, private residential) as of now.
It sits right on top of Bugis MRT interchange and Bugis MRT station along the East West Line.
From a price point perspective, it is worth considering taking a second look at this development.
Other factors to consider: Location, iconic architectural design, the 1st JV development by both Singapore & Malaysia governments.
Some questions to ponder: Are you able to find another development at this quantum / psf that may have the potential upside?
To find out more, please contact me @ 9489-3594.
** Do note that if you are keen, the deadline to submit Expressions of Interest (EOI) is this Sunday 10th Nov'13 @ 6pm.
Disclaimer: All efforts were made to ensure the correctness of the information at the point of this post. I am not responsible for any errors or any decisions based on my analysis above.
This is purely my personal opinion.
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