Duo Residences: A good buy?

This post is not about introducing this historical iconic development. Therefore, I will not go into details. To read more, click on the links below.

Complete e-brochure

Draft Site Plan

Duo Diagrammatic Chart

Site and Facilities Plan

Videos

Video Link (Artist's impresson of DUO's design and architecture

Video Link (Development, uploaded in ERA's portal)

Indicative prices:

Unit sizes and indicative price breakdown

Analysis:

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

D1 : -0.5% / year
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.

New launch coming up opposite Tanah Merah MRT station - The Glades @ Tanah Merah

Among the recent launches that I have seen in the past few months, I am looking forward to this particular development that is going to be launched right opposite Tanah Merah MRT station (See pic below).

Jointly developed by Keppel Land and China Vanke Co Ltd, I believe this is going to be the gem of Tanah Merah. 

Sitting on a plot bigger than 343,000 sqf, it is quite a large piece of land as compared to the recently launched Urban Vista.

This development is made up of 9 blocks giving a total of 726 units and 3 units of shop space; 1 bedroom - 4 bed dual key units. 

Launch prices are estimated to be between $1400 - $1600 psf. 

Looking at the draft layouts, I think the design is pretty decent without any bay windows or planter boxes. 

What really catches my eye is the beautiful landscaping and water features throughout the estate, the patented 1 bedroom SOHO units and the double volume 4 bedroom units. 

The excellent location and close proximity to the MRT station, Changi Business Park, future 4th University (SUTD), shopping malls, airport, ECP, golf courses, Expressways that lead to the city, numerous schools from primary, secondary, tertiary to International schools makes this a pretty sound investment choice or for own stay. 

I expect strong interest if the development is really launched at the estimated range mentioned above with additional early bird discounts as the prices are very similar to the recently launched Urban Vista in the 1st half of this year. 

* Information may not be 100% accurate. Please do your own research. 

  

Searching for a home or an investment property

On many occasions whenever I speak to potential clients who are shopping to buy a new home or for investment purposes, I realise that a lot of them are going around calling up listings advertised either on the papers or various online portals and then arranging viewings on their own. This process can be significantly shortened if only they engage a professional and competent real estate salesperson to assist them.

A person is usually very tied up in going about their day to day activities, let alone to squeeze the extra time in searching through the papers or web portals to look for a home or investment property on their own. 

This is especially so when they are 1st timers in purchasing an investment property. It is not easy to find a good investment property, especially if you choose one whose value drop and/or remains very difficult to rent out over time. 

A lot of people confuse buying an investment property over one for own stay. One thing to note about property investment is that you see with your mind and not with your heart as you'll not be living in it. It is going to be your passive income tool which helps you to grow your wealth. 

Our job as professional consultants come into play and a good real estate salesperson would be in a better position to assist in identifying good properties with good potential. After all, we do this day in and day out. We have a good feel of what is happening on ground level even before any transactions appear on URA's website. By the time a transaction is reported, there is already a time lag of approximately 8-10 weeks. 

We are also able to research and point out ongoing or future developments in a certain locality that may not be apparent to a typical buyer or they may overlook potential issues.  

In the real estate realm, transactions occur all the time and it is no different from the stock exchange. The only difference is the volume, quantum and time taken for transactions to take place. It is precisely the long duration for a transaction to be reported to the public is when buyers and sellers are able to capitalise on either entering or exiting the market before a trend emerges. Of course, not everyone will get it right but it's usually either gaining a bit more or losing a bit less. 

I notice that most savvy and successful property investors usually have a real estate salesperson whom they work regularly with regarding their purchases, sales and rentals of their property portfolio. This is no different from building a good professional relationship with your private banker. After all, the bankers help you manage your wealth by advising on various instruments that benefit you. Building a long term relationship with a competent real estate salesperson is the same. The only difference is they advise you on acquiring, selling and renting your million dollar investments.   

In summary, engage a competent real estate salesperson and they will be able to assist you based on your requirements.