AWARDS: Best developments by capital appreciation and rental returns

October 12, 2018 3:23 PM SGT

The EdgeProp Value Creation Award aims to recognise property developments that have rewarded homebuyers in terms of capital appreciation and rental returns on their properties. The developments are judged on the following criteria:

Capital appreciation: This is the difference between the developer’s average selling price and the average price achieved on the secondary market, from January 2016 to June 2018. We considered both resale and sub-sale transactions in our computation, but excluded projects with less than five resale transactions.

Rental yield: We calculated the average monthly rent psf from 3Q2017 to 2Q2018 and compared it with the developer’s average psf selling price. The computation excludes projects with less than five resale transactions in the period in review.

The following are the winning developments in this award category.

Coco Palms

Coco Palms is a 99-year leasehold condominium by Singapore-listed property giant City Developments Ltd. The 944-unit development was completed this year and is located on Pasir Ris Grove, off Pasir Ris Drive 1 in District 18. The development is just 200m from Pasir Ris MRT station on the East-West line. Next to the MRT station is the White Sands mall.

The condo is also close to the Pasir Ris Town Park and is connected to several park and bicycle connectors in the neighbourhood. Nearby schools include Elias Park Primary School, Coral Primary School, Meridian Secondary School and Meridian Junior College.

The condo was launched in May 2014 and is 95% sold so far, according to URA caveats. Prices at Coco Palms have ranged from $483,750 ($1,045 psf) for a 463 sq ft, one-bedroom unit that was sold at launch to $2.8 million ($1,191 psf) for a 2,325 sq ft, penthouse unit that was sold in July this year.

The 944-unit Coco Palms by City Developments Ltd was completed this year and the average capital appreciation of a resale unit is 19.8% (Pictures: Samuel Issac Chua/The Edge Singapore)

The average price of units at the development on the secondary market, including sub-sale transactions, is $1,228 psf, compared with the developer’s average selling price of $1,025 psf. This means the average capital appreciation of a resale unit is 19.8%. All secondary market sales at Coco Palms have been sub-sale transactions so far this year.

The most profitable transaction was that of a 1,378 sq ft, four-bedroom unit on the 12th floor. The unit was bought for $1.32 million ($1,378 psf) in 2014 and fetched $1.75 million ($1,387 psf) when it was sold in June this year. The seller walked away with a 33% profit, or $431,000.

The estimated gross rental yield at Coco Palms over the period in review is 3.59%, based on an average monthly rent of $3.07 psf, compared with the developer’s average selling price of $1,025 psf.

The Panorama

Located in Ang Mo Kio in District 20, The Panorama is a 99-year leasehold condo by Wheelock Properties. The development’s main appeal is its location in a mature residential estate of landed private homes and HDB estates, and its proximity to schools.

The condo on Ang Mo Kio Avenue 2 is just beside CHIJ St Nicholas Girls’ School and 250m from the upcoming Mayflower MRT station on the Thomson-East Coast line. Other nearby schools include Ang Mo Kio Primary School, Mayflower Secondary School, Yio Chu Kang Secondary School and Anderson Junior College.

Launched in 2014 and completed in 2017, the 698-unit condo is fully sold. Units comprise a mix of one- to five-bedders between 431 and 1,561 sq ft, and six penthouses of 1,787 to 2,411 sq ft. Prices have ranged from $564,000 ($1,310 psf) for a 431 sq ft, one-bedroom unit sold at launch, to $3.05 million ($1,265 psf) for a 2,411 sq ft penthouse sold in December 2016.

Units at The Panorama have an estimated yield of 4.03%, with the average monthly rent at $4.22 psf

Based on our computation, units at The Panorama have an estimated rental yield of 4.03%. The average monthly rent is $4.22 psf while the developer’s average selling price was $1,256 psf.

The most profitable transaction at The Panorama so far this year was that of a 1,324 sq ft, four-bedroom unit on the 16th floor that fetched $1.95 million ($1,473 psf) on March 15. The seller had bought the unit from the developer for $1.64 million ($1,239 psf) in August 2014. The seller thus walked away with a profit of $309,504, or 19%.

We estimate that during the period in review, a resale unit on the secondary market saw an average capital appreciation of 15.4%, based on an average resale price of $1,450 psf and the developer’s average selling price of $1,256 psf.

Urban Vista

Just like the other two condos that came in tops in this year’s EdgeProp Value Creation award category, the 99-year leasehold condo Urban Vista is near an MRT station. The 582-unit condo on Tanah Merah Kechil Link, off New Upper Changi Road in District 16, is just beside the Tanah Merah MRT station on the East-West line.

Urban Vista was jointly developed by Fragrance Group and World Class Land, the property arm of Aspial Corp. The condo was launched in 2013 and completed in 2016. On average, resale units at Urban Vista saw a 20.5% capital appreciation, the highest among all the condos we reviewed. This is based on the average psf price of $1,454 achieved on the secondary market and the developer’s average selling price of $1,206 psf.

Resale units at the 582-unit Urban Vista recorded capital appreciation of 20.5%, the highest among all the condos reviewed this year

The most profitable transaction at Urban Vista was that of a 549 sq ft, two-bedroom unit on the second floor. It was sold for $825,000 ($1,503 psf) on April 5 this year. The seller had bought it for $770,196 ($1,403 psf) from the developer when the condo was launched in 2013. The seller reaped a profit of $54,804, or 7%, from the sale.

Resale prices at Urban Vista have ranged from $878,000 ($1,599 psf) for a 549 sq ft, two-bedder sold in January this year to $1.1 million ($1,294 psf) for an 850 sq ft, three-bedroom unit sold in June. The average rental yield at Urban Vista is 3.98%, based on an average monthly rent of $4 psf during the period in review and the developer’s average selling price of $1,206 psf.

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