Five years on: Best projects by capital appreciation

By Esther Hoon / The Edge Property | January 8, 2016 10:00 AM SGT
Here is more evidence why properties located in the city fringe or near regional centres may be investors’ best bets, at least in terms of capital appreciation. In this study, we identified 10 projects with the highest capital appreciation between 2010 and 2015. Most of them were either in the central region or near regional centres.
Another attribute driving price appreciation is first-mover advantage, which is related to timing. The study compared the average transacted price of private non-landed projects between 2010 and 2015 by size and those with at least three transactions.
Top-performing projects
For homes ranging from 700 to 900 sq ft, the top 10 projects in terms of price appreciation were Caspian (37%), Hougang Green (31%), The Gardens at Bishan (30%), Kemaman Point (29%), Tanglin Regency (27%), Waterbank at Dakota (25%), Regent Park (23%), NV Residences (22%), Waterview (21%) and City Square Residences (21%) (see Table 1). Of these, eight were located near the city centre or regional centres.
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The top-performing project, Caspian, is a condominium near the Lakeside MRT station and Jurong Lake. The project rode on the development of the Jurong Regional Centre, which was designated as a lakeside business and leisure destination. The average price for 700 to 900 sq ft units at the project rose from $814 psf in 2010 to $1,118 psf in 2015.
Separately, the top 10 projects for homes ranging between 900 and 1,100 sq ft were Atrium Residences (35%), Double Bay Residences (35%), The Wharf Residence (34%), Signature Park (33%), Trevista (30%), Parc Vista (29%), Hillington Green (29%), Regentville (29%), Simsville (28%) and The Centris (27%) (see Table 2). Again, eight of them were located near the city centre or regional centres.
Atrium Residences is located on Geylang Road in the city fringe and Double Bay Residences near the Simei MRT station and Tampines Regional Centre.
Table 1: Top 10 projects with highest capital appreciation between 2010 and 2015 (700 to 900 sq ft)
Project Name
Planning Area
Segment
Capital Gain (%)
Near Regional Hub/ Central Region
≤ 500m from MRT station(s)
≤ 1km from popular schools/education institutions
Jurong West
OCR
37%
Hougang
OCR
31%
-
-
-
Bishan
RCR
30%
-*
Novena
RCR
29%
-
-
Bukit Merah
CCR
27%
-
Geylang
RCR
25%
Clementi
OCR
23%
-
Pasir Ris
OCR
22%
-
-
Tampines
OCR
21%
-
-
Kallang
RCR
21%
-

*near upcoming Bright Hill station

Source: URA, The Edge Property

Table 2: Top 10 projects with highest capital appreciation between 2010 and 2015 (900 to 1,100 sqft)
Project Name
Planning Area
Segment
Capital Gain (%)
Near Regional Hub/ Central Region
≤ 500m from MRT station(s)
≤ 1km from popular schools/education institutions
Geylang
RCR
35%
Tampines
OCR
35%
-
River Valley
CCR
34%
Bukit Timah
RCR
33%
-
Toa Payoh
RCR
30%
Jurong West
OCR
29%
Bukit Batok
OCR
29%
-
-
Hougang
OCR
29%
-
-
Geylang
RCR
28%
Jurong West
OCR
27%
-

Source: URA, The Edge Property

First-mover advantage
Sixteen of the 20 top-performing projects got a price boost from new launches in the vicinity. Parc Vista, Caspian and The Centris, for example, rode on the coat-tails of new launches, including Lakefront Residences, Lakeville and J-Gateway. Lakefront Residences was launched in 2010 at an average price of $1,069 psf, at least 30% higher than the average sale prices of Parc Vista, Caspian and The Centris, which hovered in the $650 to $820 psf region in 2010. Subsequent launches in the area included Lakeville in 2014, at an average price of $1,325 psf. Separately, J-Gateway in Jurong East averaged $1,493 psf during its sellout launch in 2013.
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Another example of projects benefiting from new launches in its vicinity is Tanglin Regency. Following the launch of Ascentia Sky in 2010 at an average price of $1,321 psf, the average price at Tanglin Regency surged by 17% over a one-year period, from $1,029 psf in 2010 to $1,203 psf in 2011. Ensuing launches in the area continued to propel prices in the area. Alex Residences was launched in 2013 at $1,698 psf on average, while The Crest was launched at an average price of $1,762 psf in 2014.
Over in Toa Payoh, Trevista could possibly have got a price boost from Sky Habitat in Bishan. Following the launch of Sky Habitat in 2012, which averaged $1,604 psf, the average price at Trevista rose 12% from $1,258 psf in 2012 to $1,412 psf in 2013.
The rule of three?
Ultimately, the best-performing projects bear a combination of at least three desirable attributes. Besides a strategic location and first-mover advantage, they might be located near transportation nodes or popular schools, carry freehold tenure or offer a park or waterfront lifestyle.
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Caspian, for example, is located near Lakeside MRT station, Jurong Lake and the Canadian International School. The Gardens at Bishan is located next to the upcoming Bright Hill MRT station as well as within 1km of Ai Tong Primary School. In yet another example, Waterbank at Dakota is a stone’s throw from the Dakota MRT station and within 1km of Kong Hwa Primary School.
Start browsing for listings at Caspian and Atrium Residences.
This article appeared in The Edge Property Pullout, Issue 710 (January 11, 2016) of The Edge Singapore.