My Blog #102
I wanted to understand what is the upside of the Sengkang Grand Residence will really be, so I decided to look in detailed. Comparisons were made between other integrated projects to understand why some generated more profits than others. With launch prices expected to be $1600psf to $1800psf, I’m going to take this as our starting point.
Here’s 4 of the most popular that we’re going to look at in detailed:• The Centris (Jurong)• North Park Residences (Yishun)• Hillion Residences (Bukit Panjang)• Watertown (Punggol)
The Centris (Jurong)Price of The Centris more than doubled from $500psf to $1200psf, and I believe this in large part to its exclusive location. There are no other condominiums nearby, which means Centris is the only option for buyers who desire this location.
Hillion Residences (Bukit Panjang)Hillion Residences, on the other hand, has a number of other options around it should the price gap become too large.
It’s clear that the performance of Hillion Residences is significantly lower than those at The Centris.
North Park Residences (Yishun)You’ll see from the map there is a noticeable lack of nearby alternatives.
It also outperformed Hillion Residences — generating more profit in less time.
Watertown (Punggol)There are number projects nestled in the surrounding area, but will this negatively affect profitability?
Watertown took far longer than North Park Residences to make a similar profit and return. From this we can conclude that when there are alternative projects in the vicinity, profitability is negatively impacted.
In the case of Sengkang Grand Residences, there are a number of competitors for future re-sale/sub-sale buyers.
From this analysis, I expect the capital gain of Sengkang Grand Residence to be less than the Centris and North Park Residences. Owners may also find they need to hold for a longer period of time to generate the same return.
Point to NOTE:
It’s also important to note that within any given project, there are units which can prove significantly more profitable than the average rate of return seen across the project.
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