Your Property Agent Says: The 3 Hottest Districts for Investment in 2018

New year, new opportunities. We speak to three real estate agents to find out which areas to consider investing in.

District: 3 (Commonwealth, Queenstown, Redhill, Tiong Bahru)
Recommended by: Hiroshi Oh, Senior Marketing Director, Huttons Asia Pte Ltd

Last year’s surge in collective sales meant a wealth of ‘en bloc millionaires’ were created almost overnight. Many of these homeowners, especially those from suburban locations, have been looking to upgrade to a city fringe location, driving interest there.

Oh says that city fringe districts like Commonwealth and Queenstown continue to be popular. Last May’s record $1 billion tender for a land parcel on Stirling Road raised further interest in the area.

According to Oh, residential units in the new development that will go up on the site are expected to fetch almost $2,000 psf. This is based on the site’s psf per plot ratio (psf ppr) of $1,050.

This drove up interest in nearby developments like Commonwealth Towers and Queens Peak, because buyers anticipated the new condo to be even pricier when it launches.

Oh expects the launch to be as early as mid-2018. Commonwealth Towers has an indicative price of $1,735 psf, while Queens Peak registers an average of $1,687 psf.

All this buzz has also pushed buyers to look at properties in nearby Redhill and Tiong Bahru. Oh says that buyers feel these areas, which are even closer to the CBD, offer more bang for their buck.

Taking $2,000 psf as a benchmark, prices in Redhill and Tiong Bahru are comparable, if not more affordable. In Redhill, for example, prices range from $1,614 to $2,180 psf at Alex Residences. Meanwhile, Principal Garden sees prices hovering between $1,574 and $1,932 psf.

Over in Tiong Bahru, units in Highline Residences span from $1,535 to $2,061 psf.

District: 18 (Tampines)

Recommended by: Georgette Lee, Assistant Marketing Manager, Huttons Asia Pte Ltd

For Lee, the area to look into is Tampines. Specifically, Tampines Avenue 10, where a flurry of development is taking place.

The Alps Residences was launched in late-2016. The Santorini, Waterview and Q Bay Residences followed soon after. In Q32019, a new EC will be built at the junction of Avenue 10 and Avenue 5. Adjacent to Avenue 10, along Tampines Street 86, are new BTO flats.

Lee herself is marketing The Tapestry, a new 99-year lease condo expected to be launched in 1Q2018.

What is exciting, says Lee, is that the project is being developed by CDL. Expectations are high, given CDL’s reputation for upscale properties rather than mass-market suburban condos.

The presumption is also that this project will be a “value buy”, compared to other mega launches (developments with more than 500 units) coming on stream in 2H2018, says Lee. These include the former en bloc estates of Eunosville, Serangoon Ville, Shunfu Ville and Tampines Court.

Developments along Tampines Avenue 10 are fetching between $900 and $1,100 psf. Units at The Tapestry are therefore likely to launch at a similar or slightly higher psf. This compares favourably against neighbouring suburbs like Serangoon and Hougang, where current selling prices hover around the $1,400 to $1,500 psf mark. “More people are getting to know this area,” says Lee. “The general perception is that it’s far from the CBD. But the reality is that connectivity is good, thanks to Bartley Road East.” The nearby Tampines West MRT, a station on the Downtown Line 3, opened last October too, boosting the area’s accessibility.

Newly built park connectors and the proximity to Bedok Reservoir also works in the area’s favour, says Lee.

District: 22 (Jurong)

Recommended by: Hansen Ng, Senior Associate Director, OrangeTee

The Jurong Lake District has been buzzing for the past two years. This is likely to continue in 2018, says Ng, thanks to recent developments such as the opening of Vision Exchange.

The 25-storey commercial tower is but the latest in a series of projects in Jurong Gateway, the area earmarked as Singapore’s second CBD. The projects will culminate in the Kuala Lumpur-Singapore High Speed Rail (HSR) terminus in 2026. This will be built on the site of the former Jurong Country Club.

With so much going on, it is no wonder that buyers’ interests are piqued, says Ng. Malaysians, he adds, are likely to invest heavily into the area, because it will be convenient for them to travel back and forth.

Already, newer condos near Jurong East MRT are fetching much higher psf prices than their counterparts just one or two MRT stations away (Chinese Garden and Lakeside). The year-old J Gateway, for example, fetched $1,838 psf in December 2017, according to the URA.

In contrast, The Lakeshore, a 10-year-old development near Chinese Garden, registered $929 psf in a December 2017 sale. And four-year-old The Lakefront Residences, a property near Lakeside, is going for $1,309 psf as of January 2018. Both of these make good value propositions.

Ng suggests giving older condos in the area a chance, too. “Investors should definitely consider purchasing (older condos) for en bloc potential,” he says.

Ivory Heights, a 25-year-old development near Jurong East, is in the midst of applying for a collective sale. According to Ng, residents of neighbouring Westmere, Singapore’s second-oldest EC, are also hoping to hop on the en bloc bandwagon. In Lakeside, the ball has started rolling for 21-year-old Parc Vista as well.

“Newer condos such as The Lakefront Residences, which give decent rental yields, have the potential for capital appreciation if the surrounding condos go en bloc,” says Ng.

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