This short article reveals…
ONE OF THE TOP UNDERVALUED DEVELOPMENTS IN 2023
As broken down by my 4-Step Process below.
Are you searching for a way to safeguard your legacy with an investment that holds the potential for boundless capital growth?
All at a cost that keeps your investment secure?
The dynamics of residential property investment can vary greatly from one country to another, each having distinct factors that define a good investment.
In the context of Singapore’s residential property market, it’s not about rental yield.
The most important factor is Capital Growth Potential.
True, no investment opportunity comes with a 100% guarantee.
However, you can significantly increase your chances of success. The strategy I’m about to share in this report isn’t for those looking for a quick profit. It’s not about making a fast buck.
If you’re in the market for a fulfilling investment and you’re not in a hurry to cash out, this approach is a robust strategy.
It’s ideal for preserving your wealth and is an excellent addition to your legacy planning.
There’s a straightforward theory often tossed around, yet it’s challenging to put into practice: “Buy low, sell high.”
But the question arises, how can you tell if the price is low?
I’ll disclose the key factors that can tip the scales in your favor. But first, let’s recognize an essential fact: Singapore’s private property prices are among the most resilient asset classes globally.
This resilience is why foreign investors frequently invest in our properties.
Below, we’ll go through the 4-Steps that leads us to one specific investment opportunity in the CCR region.
Step 1 – New Projects have Greater Capital Growth Potential
Over the last decade, prices of new projects have consistently increased, yielding higher gains compared to resale properties. Now, if you had to choose between the two, which do you believe would offer better returns?
The reason behind this
This is because historical data shows that a condo typically sees the most significant capital gains in the first five years. After this period, the growth tends to slow down or even stagnate.
Step 2 – Choosing a Region
From 2019 to 2021, Prices for OCR (outside central region) and RCR (rest of central region) were truly sweet deals at about $1400 to $1800 psf.
It was clear that OCR was the cheapest, RCR mid tier, CCR (core central region) the most luxurious.
In the past 2 years, more and more investors started to realize the capital appreciation potential of private properties and entered the market.
At the same time, supply for NEW condo projects was also quite low, thus causing prices to rise drastically.
As a result, OCR and RCR prices rose very quickly, with RCR prices really close to CCR prices. There were certain RCR projects with units pricier than CCR at one point.
The shocking fact? CCR prices have not budged since prior to COVID.
This means while MOST other residential properties have risen in price dramatically, many projects in the CCR region have yet to move, making this the most DISCOUNTED and UNDERVALUED region.
More property investors are starting to realise this and move quickly.
If you’re still able to read this now, you are probably in a great position to act.
CASE STUDY 1: LIV@MB vs Hyll on Holland
CASE STUDY 2: Meyer Mansion vs Pullman Residences
Step 3 – Choosing an Undervalued Development
We’ve already tackled and demystified the two most challenging macro elements of spotting an investment opportunity.
What’s left is the simplest part: Determining Market Value.
Determining Market Value
To determine whats considered undervalued, we first need to know the market value for a particular region. For the purpose of today’s study, we’ll take a look at the Core Central Region only.
On average it is $3,000 psf, and the more recent ones transact $3200 to $3500
Anything lower than $3,000 psf can be well considered to be a worthy buy with good capital appreciation potential.
Price Growth Drivers
It’ll be pointless to look for a discounted price if the product itself has serious flaws, wouldn’t it? You’ll recognise some of these factors already but it’s worth emphasising that the more of these factors present, the stronger chance the development has for Capital Growth.
When it comes to property investment, these are some key factors investors look for, as they can influence property values:
Master Plan Growth Story (Very strong factor)
Near an MRT (even better if the MRT is an interchange with multiple lines)
Near amenities
Near primary schools within 1km to 2km
Near commercial areas (Plus points for reliability)
Rental potential
If you can find a project that fulfils 3 out of 6, it’s a worthy project…
Step 4 – The Art of the Precise Entry
Your entry refers to the timing and price you bought at.
Example of Good Entry
The “Icon” project provides an excellent example of initial owners entering the market at just the right time and price. At launch, the price per square foot was slightly undervalued compared to the average in the Core Central Region.
As anticipated, four years after its launch in 2003, prices experienced a substantial growth of 100%.
This is what we call a good entry.
Example of Good Entry
Example of Bad Entry
This project is an example of owners who bought at an unfavourable entry price. The launch price was above the CCR market value at that time, which meant that project didn’t have additional downside protection.
Coupled with the bad timing of cooling measures during the year of the condo’s completion (TOP), the capital gains weren’t noteworthy.
Are today’s projects considered to have good entry prices?
In the east side of the RCR (Rest of central region), we have the Big 3 — Tembusu Grand, Grand Dunman, and Continuum.
Their average psf entry pricing is currently higher than the average psf for RCR condos, meaning these new projects are currently at all-time high prices.
Most new projects in the CCR are currently at all-time high prices.
The Opportunity: One Bernam
Before we go into the investment reasons why One Bernam is such a great catch, here’s a quick introduction of the development.
One Bernam is a 351-unit, 99-year leasehold mixed development at the heart of the Central Business District (CBD). The development is located on a corner site at 1 Bernam Street, and it is jointly developed by MCC Land and HY Realty.
This is a very well-connected development, with easy access to public transportation and major roads. It is a short walk to the Tanjong Pagar MRT station, which is on the East-West Line and the upcoming Prince Edward MRT station, which will be on the Circle Line.
The development is also well-connected to major roads such as Anson Road, Ayer Rajah Expressway (AYE), and Marina Coastal Expressway (MCE).
With 1-Bedders to 4-Bedders, the units are spacious and well-designed, and they offer a high level of finishes. The development also features several amenities, including a swimming pool, a gym, a sky terrace, and a barbecue area.
One Bernam is a prime development in the heart of the CBD. It is a great choice for those who are looking for a luxurious and convenient home in the heart of Singapore.
The Price Gap
Currently One Bernam is priced as low as $2.8K-$2.9K PSF for a 2-bedder, which is much lower than the surrounding developments.
To put into perspective, Wallich Residences, a 99-year leasehold project just 650 meters away from One Bernam, is going for $3.5K-$5K PSF in the resale market!
What this means is that we have a price gap that represents that this development is currently undervalued, meaning your entry price is safer with more room for upward growth.
As of 2023, while One Bernam is being priced at ~$2.8k psf, we have:
- Midtown Bay selling at $3.3k PSF (leasehold 99 years)
- Canninghill Piers with prices up to $3.5k PSF (leasehold 99 years)
- Perfect Ten selling at $3.5k PSF (freehold)
- Wallich Residences, a 5-year-old development, sold between $3.5K-$5K psf (leasehold 99 years)
- TMW Maxwell set to launch above $3k psf (leasehold 99 years)
This is why investors seeking to grow their wealth see this undervalued property in a prime district as a choice to keep in serious consideration.
The Surprising Update about this Development
In fact, there’s very recent news about the area surrounding One Bernam, that highly increases the probability of One Bernam’s capital gains.
It significantly raises the profit potential of One Bernam by multiple 6-figures according to several predictions. But here’s the catch – this information hasn’t become widespread knowledge yet, meaning only a handful of investors know about it.
As with any investment opportunity, timing is crucial, and the chance to benefit from this insight is still available. But be warned; it’s a race against time.
Are you curious to see if this aligns with your investment strategy and portfolio?
Contact me for a more detailed consultation on whether this is a good fit for your investment portfolio, where I’ll also discreetly share this exclusive information with you.
Sincerely,
Daniel Kok
Real Estate Strategist
ERA
8100 7248
Property Spotlight – October Launches Part 2
Hello 🙂 Hope you are well. As promised, here’s part 2 of my Oct Property Spotlight The 1st launch I covered was J’den, and the 2nd one is Watten House 😉 Major Launch 2 – Watten House Watten House District 10 Freehold Large Formats ( Rare & Sought after in luxury market) Within 1km to Nanyang Pri & Raffles Girls Pri School Huge site area, but only 180 units 220,240.37 sqft (For
Property Spotlight – October Launches
Welcome! To yet another edition of my property spotlight. As usual, now that the Hungry Ghost Festival is over, developers are starting to roll out their launches again. In October 2023, there are two major launches to look out for. Today I’ll cover the first one, and will share more about the second one in the near future. Major Launch 1 – J’Den (Formerly Jcube) J’Den (Formerly Jcube) J’den will be helmed
Property Spotlight – Pullman Residences
Welcome! To yet another edition of my property spotlight. Today we feature something truly unique in Prime District 11, and is a freehold property: PULLMAN RESIDENCES Pullman Residences Showflat What makes it exceptional is that this is one of only 4 Branded Residences in Singapore, 1. RITZ CARLTON RESIDENCES 2. ST REGIS RESIDENCES 3. THE RESIDENCES @ W 4. PULLMAN RESIDENCES Meaning everything from concierge to building maintenance and management is of
Property Spotlight – One Bernam
This short article reveals… ONE OF THE TOP UNDERVALUED DEVELOPMENTS IN 2023 As broken down by my 4-Step Process below. Are you searching for a way to safeguard your legacy with an investment that holds the potential for boundless capital growth? All at a cost that keeps your investment secure? The dynamics of residential property investment can vary greatly from one country to another, each having distinct factors that define a good