Tag Archives: district 14

Shoebox influx in 2017

Investors of shoebox units may face some difficulty renting them out, reported The Straits Times.

This is because a bumper supply of shoebox units are expected to enter the market, peaking by around 2017, revealed R’ST Research data. Leasing demand for such units is also untested, with fewer foreigners able to afford them.

“Increasingly, many (overseas nationals) can’t even afford renting a single shoebox unit, but would instead rent a room in an apartment… Rents will be under further pressure,” noted Alan Cheong, research head at Savills Singapore.

Based on caveats lodged, majority of the supply will come from District 19Sengkang, Hougang and Punggol – with at least 700 units expected to be completed during this period.

R’ST Research noted that at least 527 shoebox units could come from District 14, and at least 383 units from District 12. Over in the suburbs, districts 17 and 22 will contribute at least 224 units and 151 units respectively.

In the Guillemard to Changi Road area (Districts 14 and 15), Cheong stated that prices of newly-completed shoebox units stood at around $1,350 psf in 2013, increasing to more than $1,400 psf late last year and this year.

However, rents for such units fell from $2,600 per month in 2013 to around $2,000 to $2,200, bringing the gross yield down from 5.2 percent in 2013 to 4.1 percent.

Most shoebox owners have holding power, opting to keep their units rather than sell them at a low price. Hence, yields have more room to fall into the mid-three percent level in more accessible areas such as District 14, where rents stood at less than $2,500 per month.

“Once we venture into the new developments in the outlying HDB estates, the market is untested. There, yields may tend closer to three percent or even dip below that,” said Cheong.

Overall, prices of shoebox units fell by about 10 percent from their last peak in August 2013, based on flash estimates of the NUS Singapore Residential Price Index. Prices dropped about 1.1 percent in June from the month before.

R’ST Research director Ong Kah Seng said while prices of shoebox units keep falling due to growing supply, such units are still relevant.

“These tend to be occupied by younger tenants or owners, who will bring energy to the development and area – especially important for newer residential areas like Bartley, or those undergoing rejuvenation like Hillview and Lakeside.”

Where to find affordable, well-located condos

Home buyers looking for cheaper yet well-located condominium units are drawn to districts 13 and 14, which offer a central location and relatively lower prices.

In District 13, one of the most popular projects is the 868-unit Bartley Ridge . Launched in March, the 99-year leasehold condominium offers units at an average price of S$1,241 psf. Aside from the affordable price; the development is located near Bartley MRT station.

According to data from the Urban Redevelopment Authority (URA), average transacted prices at the development between December 2012 and last month stood at S$1,291 psf.

The four other projects within the district are smaller. Of these, 8@Woodleigh has the highest average asking price of S$1,627 psf.

Meanwhile, District 14’s top five popular condos comprise a mix of freehold and 99-year leasehold projects. Topping the list is Waterbank at Dakota which has an average asking price of S$1,615 psf. Offered on a 99-year lease, the 616-unit project comprises one- to three- or more bedders and is located near Dakota MRT station and the Circle Line. It also recorded the highest average transacted price of S$1,516 psf for the period from December to last month, noted the URA data.

Over at the freehold Vacanza@East, units at the 473-unit project comprise one- to three- or more bedders, with an average asking price of S$1,335 psf.

Rounding up the top five on the list are the 522-unit Simsville, the 348-unit Dakota Residences and Le Crescendo – a 228-unit condo.

Source – PropertyGuru – 4 Jul 2014