AWARDS: Best developments by capital appreciation and rental returns

By Feily Sofian / EdgeProp | October 27, 2017 4:00 PM SGT
The EdgeProp Value Creation Award aims to recognise property developments that have rewarded homebuyers in terms of capital appreciation and rental returns. The judging criteria comprise four components:
Capital appreciation — derived from developer’s average selling price and average transacted price in the secondary market in 2017. The computation excludes projects with less than five transactions.
Rental yields — derived from average annual rent in 1H2017 and developer’s average selling price. The data was restricted to the most rented size range in each project and with at least three rental contracts.
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Rental resiliency — computed as the percentage change in monthly rents between 1H2016 and 1H2017. It was used as a proxy for occupancy rate in each project, as official data is not available. The data was also restricted to the most rented size range in each project and projects with at least three rental contracts.
Connectivity — Projects that are within a 500m radius of an MRT station received additional points. Connectivity was also used as a proxy for occupancy rate in each project, as well as a broad indicator of the sustainability of future financial returns.
The 700 to 800 sq ft units at A Treasure Trove have an estimated 3.6% gross rental yield
The 882-unit A Treasure Trove is located 200m from the Punggol MRT station and across Waterway Point shopping mall. Developer Sim Lian Group sold the condominium at an average price of $906 psf between 2011 and 2014. With an average resale price of $980 psf from 26 units sold in the secondary market so far this year, this gives it a capital appreciation of 8%.
The estimated gross rental yield for the 700 to 800 sq ft units — the most rented unit type — is 3.6%, based on the 1H2017 average monthly rent of $2,192 and the developer’s average selling price of $731,398.
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Transacted prices at A Treasure Trove so far this year ranged from $818,000 ($1,055 psf) for a 775 sq ft unit to $2.54 million ($601 psf) for a 4,219 sq ft penthouse.
In 1H2017, rents averaged $1,963 for one-bedroom units of 400 to 500 sq ft at Bartley Residences
Bartley Residences is a 702-unit condo jointly developed by City Developments Limited, Hong Leong Holdings Ltd and TID Pte Ltd. It is located next to the Bartley MRT station, just one stop from the Serangoon MRT interchange and NEX mall.
In February 2012, under Phase One of sale, 240 units were released and snapped up in three weeks. The project was fully sold in about a year.
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The estimated gross rental yield for one-bedroom units of 400 to 500 sq ft — the most rented ones — is 3.6%, based on the 1H2017 average rent of $1,963 and the developer’s average selling price of $659,318.
Bedok Residences sits atop Bedok Mall, scoring high in connectivity
When the 583-unit Bedok Residences was launched in November 2011, CapitaLand sold more than 350 units at an average price of $1,350 psf. Bedok Residences is part of the first integrated development in the east. It comprises eight 15-storey residential blocks atop Bedok Mall, which also houses a bus interchange and is linked to the Bedok MRT station, thus scoring high in connectivity.
The most rented unit type in 1H2017 were one-bedroom units from 500 to 600 sq ft, with 36 transactions. The average rent was $2,453, which, based on the developer’s average selling price of $778,659 for such units, translates into an estimated gross rental yield of 3.8%.
The gross rental yield at Concourse Skyline is estimated at 3.6% for the 800 to 900 sq ft units
Concourse Skyline, a 360-unit residential project on Beach Road, stands on the site previously occupied by the retail and apartment wing of The Concourse, a landmark development known for its angular architecture. The project’s main appeal lies in its location at the fringe of the Central Business District and along a major office belt. New developments such as DUO, South Beach and Pan Pacific Serviced Suites have also rejuvenated the area. The project is a stone’s throw away from the Nicoll Highway MRT station. Some units offer expansive water views.
Rents at Concourse Skyline have been relatively resilient. Monthly rents for the 800 to 900 sq ft units fell marginally from $4,035 in 1H2016 to $3,948 in 1H2017 on average, based on 43 and 39 rental contracts respectively; based on the developer’s average selling price of $1.32 million for similar-sized units, this gives it an estimated gross rental yield of 3.6%.
Transacted prices so far this year ranged from $1.29 million ($1,635 psf) for a 786 sq ft unit to $2.55 million ($1,781 psf) for a 1,432 sq ft unit.
Rents at Centro Residences were among the most resilient islandwide from 1H2016 to 1H2017
Centro Residences is a 329-unit condominium developed by Far East Organization. Rents in the project were among the most resilient island-wide, given its location next to the Ang Mo Kio MRT station, bus interchange and AMK Hub shopping mall.
Notwithstanding the soft rental market, the average monthly rent for the 800 to 900 sq ft units held firm, averaging $3,309 in 1H2016 and $3,306 in 1H2017, based on 32 and 16 rental contracts respectively. Based on the developer’s average selling price of $1.09 million for 800 to 900 sq ft units, investors would enjoy an estimated gross rental yield of 3.6%.
So far this year, transacted prices range from $1.1 million ($1,481 psf) for a 743 sq ft unit to $1.42 million ($1,419 psf) for a 1,001 sq ft unit. The project was completed in 2014.
Eight Courtyards has an estimated capital appreciation of 17%
Jointly developed by Frasers Centrepoint Homes and Far East Organization, the 656- unit Eight Courtyards saw 202 units snapped up over the launch weekend in April 2011. Market watchers attributed the brisk sales to the project’s attractive price tag. Based on caveats lodged, the average launch price was $809 psf between 2011 and 2013. So far this year, 14 units were sold in the resale market at an average price of $948 psf, which translates into a 17% capital appreciation.
Rents in the project, located at Canberra Drive, were also among the most resilient island-wide. Monthly rents for the 900 to 1,000 sq ft units inched up 1% from $2,396 in 1H2016 to $2,429 in 1H2017 on average, based on 13 and 24 rental contracts respectively; compared against the developer’s selling price of $754,188 on average for similar-sized units, this gives it an estimated gross rental yield of 3.9%.
So far this year, transacted prices ranged from $570,000 ($1,261 psf) for a 452 sq ft unit, to $1.36 million ($862 psf) for a 1,572 sq ft unit. The project was completed in 2014.
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The most rented units at Ripple Bay have an estimated gross rental yield of 3.7%
Developed by MCL Land, the 679-unit Ripple Bay is within walking distance of Pasir Ris Beach. URA data on developer sales recorded that 326 units or 48% of the units were sold in March 2012, the month it was launched. In April, the second month of sales, another 174 units were sold. The project was fully sold in June 2013. The developer’s sale price averaged $890 psf, based on URA caveat data. A total of 21 units changed hands so far this year at an average of $1,038 psf, which translates to an estimated 17% capital gain.
In 1H2016, rents for the most rented unit types — the 700 to 800 sq ft two-bedrooms — averaged $2,141 psf; in 1H2017, they held firm at $2,135. The estimated gross rental yield for such units is also a respectable 3.7%, based on the developer’s sale price of $693,211.
Parc Rosewood stands out for its capital appreciation and rental yield
Located close to Woodlands Regional Centre, Parc Rosewood saw 70% of the 236 units released sold during its launch weekend in January 2012.
Units were sold at an average of $947 psf by co-developers Fragrance Group and World Class Land, according to URA cav eat data. So far this year, 29 units have been resold at an average of $1,104 psf, which translates into a capital appreciation of 17%.
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Parc Rosewood also stands out for its rental yield. In 1H2017, there were 55 rental transactions at an average rent of $1,572 for one-bedroom units of 400 to 500 sq ft. Based on the developer’s average sale price of $431,785, this translates into an estimated gross rental yield of 4.4%.
Suites at Orchard has an estimated gross rental yield of 4%
Located next to Dhoby Ghaut MRT station and Plaza Singapura, Suites at Orchard saw monthly rents for its 500 to 600 sq ft units edge up 1% from $3,927 in 1H2016 to $3,965 in 1H2017 on average, based on 13 and 17 rental contracts respectively. The estimated gross rental yield for similar-sized units is an attractive 4%, based on the developer’s average selling price of $1.2 million.
Transacted prices so far this year ranged from $1.36 million ($1,620 psf) for an 840 sq ft unit to $2.9 million ($1,448 psf) for a 2,002 sq ft unit. The 118-unit condo was developed by Allgreen Properties and completed in 2014.
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The capital gain at The Nautical is an estimated 11%
Developed by Hao Yuan Investment, the Nautical is a 435-unit condo beside Sembawang Shopping Centre. In its first month of sales, 84 units were sold at prices ranging from $790 to $1,043 psf, according to URA data on developer sales. So far this year, 18 units were transacted in the resale market at an average price of $974 psf, which is an 11% average capital gain over the developer’s average sale price of $881 psf.
Two-bedroom units of 700 to 800 sq ft that were sold by the developer at an average price of $676,506 saw rents averaging $2,215 in 1H2017, which translates into an estimated 3.9% gross rental yield.
This article appeared in EdgeProp Pullout, Issue 803 (Oct 30, 2017).