{"id":26940,"date":"2016-09-23T07:30:02","date_gmt":"2016-09-23T00:30:02","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/get-the-guru-view-city-fringe-living\/"},"modified":"2016-09-23T07:45:02","modified_gmt":"2016-09-23T00:45:02","slug":"get-the-guru-view-city-fringe-living","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/get-the-guru-view-city-fringe-living\/","title":{"rendered":"Get the Guru View: City-fringe living"},"content":{"rendered":"


\nWith easy access to the CBD and the new Sports Hub, Tanjong Rhu is a popular city fringe location for home buyers and investors.
\nIn this edition of the Guru View, we run the numbers for the real estate market in\u00a0Singapore\u2019s city-fringe, and highlight some growth areas to take note of.
\nby Chang Hui Chew
\nSingapore\u2019s Rest of Central\u00a0Region (RCR) is a popular location for\u00a0potential home buyers and investors.\u00a0Many of the neighbourhoods in\u00a0the RCR feature the amenities and\u00a0convenience of suburban locations,\u00a0such as schools, supermarkets and\u00a0community centres, but are a short\u00a0commute away from either the Central\u00a0Business District (CBD) or the Orchard\u00a0shopping belt.
\nAt the same time, several\u00a0of Singapore\u2019s most livable\u00a0neighbourhoods lie within the RCR.\u00a0These include Marine Parade with\u00a0its easy access to the beach at East\u00a0Coast Park and the culturally rich Joo\u00a0Chiat neighbourhood; Bishan with a\u00a0plethora of parks and green spaces;\u00a0as well as hipster destination, Tiong\u00a0Bahru, popular.
\nOn the map (refer to Figure 1),\u00a0the\u00a0RCR is defined by the parts of the\u00a0Central Region that fall outside of the\u00a0Core Central Region (CCR), which\u00a0are Districts 9, 10 and 11, as well as\u00a0Sentosa. The northern boundary for\u00a0the central region is Lornie Road and\u00a0Ang Mo Kio Ave 1, while the western\u00a0boundary is Clementi Road. In the\u00a0east, Still Road and Jalan Eunos form\u00a0the boundary for the Central Region.<\/p>\n

The boundaries of the RCR are\u00a0often misunderstood because they\u00a0often bisect districts. Properties to the\u00a0east of Still Road, such as those in\u00a0Telok Kurau, are technically located\u00a0in the Outside Central Region (OCR).\u00a0Meanwhile, properties towards the west\u00a0of Still Road, such as those located\u00a0in Joo Chiat and Amber Road, are in\u00a0the RCR. However, when properties\u00a0are priced for sale, they are valued\u00a0generally based on the district, rather\u00a0than whether or not they fall within the\u00a0boundaries of the Central Region.
\nWhile the boundaries might be\u00a0difficult to pin down without consulting\u00a0state maps, what is commonly\u00a0understood is that the RCR has\u00a0several popular locations that offer\u00a0great value. At the same time, prices\u00a0within the RCR are not in the sky-high\u00a0range that properties in the CCR might\u00a0have, making homeownership in the\u00a0RCR possible, rather than aspirational.
\nIn this edition of the Guru View, we\u00a0take a closer look the RCR, otherwise\u00a0known as the city-fringe, examining the\u00a0potential of some of the locations there.
\nLooking at the numbers
\nWe are starting to see a recovery in\u00a0transaction volume in the RCR since\u00a0the beginning of the year. Year-on-year,\u00a0the first half of 2016 saw a 48 percent\u00a0increase in property sales over the\u00a0same period in 2015, with 2,374 caveats\u00a0lodged with the authorities.
\nMeanwhile, median prices have\u00a0stayed in the $1,300 and $1,400 psf\u00a0range for the last eight quarters (refer to\u00a0Figure 2).<\/p>\n

In general, this suggests a\u00a0relative degree of price resiliency for\u00a0properties in the RCR. This is rather\u00a0different from the CCR, which saw a\u00a0higher degree of price volatility due to\u00a0cooling measures, or the OCR, where\u00a0a much larger supply and a propensity\u00a0towards cookie cutter products have\u00a0slowed uptake. Indeed, some of the\u00a0best performing new launches in the\u00a0market have been located in the RCR.
\nFor instance, Sustained Land\u2019s\u00a0Sturdee Residences saw a filled\u00a0showflat and strong sales during its\u00a0initial launch earlier this year, and\u00a0has cleared about 60 percent of its\u00a0units, according to developer reported\u00a0figures to the Urban Redevelopment\u00a0Authority (URA). Meanwhile, UOL\u2019s\u00a0Principal Garden has moved over 80\u00a0percent of their units launched on\u00a0the back of competitive pricing and a\u00a0strong value proposition.
\nInterestingly, resale performance\u00a0in the RCR has also been relatively\u00a0healthy, despite an overall lacklustre\u00a0real estate market. In some quarters,\u00a0resale volume actually outperformed\u00a0new sale volume, suggesting a healthy\u00a0degree of demand for older properties\u00a0in the RCR. In general, older properties\u00a0are favoured by certain buyers\u00a0because of their larger unit sizes\u00a0and proximity to amenities such as\u00a0shopping malls and MRT stations.
\nOut of the top five best-performing\u00a0projects in the RCR over the period\u00a0examined, three of the projects were\u00a0in the Telok Blangah area. These\u00a0include The Interlace and Reflections\u00a0at Keppel Bay, as well as the bestperforming\u00a0resale project over the\u00a0period of analysis, Caribbean at\u00a0Keppel Bay, which moved over 110\u00a0units over the period of analysis.
\nMeanwhile, about eight percent of\u00a0the resale properties transacted over\u00a0the period of analysis were landed\u00a0property sales.
\nRCR rentals
\nRental volume in the RCR has seen\u00a0year-on-year increases over the past 14\u00a0quarters. Q2 2016 saw a nine percent\u00a0increase over the same period in\u00a02015, which was already a five percent\u00a0increase from Q2 2014. Meanwhile,\u00a0rental prices fell from their peak in Q2\u00a02014, at a median of $3.72 psf per\u00a0month, to $3.43 in Q2 2016 (refer to\u00a0Figure 3).<\/p>\n

In general, while landlords of\u00a0rental units in the RCR might find\u00a0themselves moving downwards on\u00a0prices to attract tenants to their units,\u00a0or to retain current tenants, demand\u00a0looks relatively healthy.
\nThis is likely because many areas\u00a0popular with expats to live in are in\u00a0the RCR. These include the Amber\u00a0Road area in Katong, with views of the\u00a0beach; Harbourfront and Queenstown\u00a0with quick access to the CBD; Upper\u00a0Bukit Timah with its proximity to expat\u00a0enclave Holland Village; and Upper\u00a0Thomson, next to MacRitchie Nature\u00a0Reserve and Singapore Island Country\u00a0Club for golfers.
\nAreas of growth
\nIn previous editions of the Guru\u00a0View, we highlighted two particular\u00a0areas of note that are within the city\u00a0fringe \u2013 Little India and Geylang.\u00a0With their reputation for vice,\u00a0these areas have seen depressed\u00a0property prices despite their\u00a0many plus points. With rezoning\u00a0and gentrification, especially in\u00a0Geylang, property prices are set to\u00a0see increases in the medium and\u00a0long term.
\nWhile Singaporean homeowners,\u00a0especially those with families, eschew
\nGeylang and Little India for their\u00a0reputation, they remain popular with\u00a0expatriate tenants, because of their\u00a0convenient locations, and distinct\u00a0cultural identities.
\nPaya Lebar is another potential\u00a0growth area that will reap benefits in\u00a0the medium, and especially long term.\u00a0The government has designated Paya\u00a0Lebar Central as an area of growth,\u00a0setting aside 12 hectares of land for\u00a0commercial development. Plans for\u00a0public spaces and walkways are also\u00a0underway, with a pedestrian mall\u00a0planned between Paya Lebar Central\u00a0and Geylang Serai market.
\nIn the long term, the state has\u00a0indicated that Paya Lebar Airbase will\u00a0be relocated. Currently, the height\u00a0of buildings within a certain radius\u00a0of airbases are kept low. When the\u00a0airbase moves out of the area, the\u00a0potential height of developments in\u00a0the area is expected to increase. With\u00a0this, real estate developers are likely\u00a0to collectively purchase projects and\u00a0redevelop them, at a tidy upside to\u00a0property owners in the area.
\nLooking forward
\nBetween the state\u2019s plans for\u00a0certain districts in the city fringe,\u00a0as well as the plethora of amenities\u00a0and conveniences already available,\u00a0we can expect values in the area to\u00a0increase in the medium and long terms.\u00a0While cooling measures might have\u00a0taken their toll on Singapore\u2019s real\u00a0estate market, signs of a recovery are starting to appear.
\nFor those looking to enter the city\u00a0fringe real estate market, the next\u00a0six months are likely to present an\u00a0interesting array of launches to choose\u00a0from. Queens Peak by MCC Land is\u00a0rumoured to be launching by the end\u00a0of the year, while Paya Lebar Quarter, a\u00a0massive mixed development right next\u00a0to Paya Lebar MRT, is set to launch in\u00a0February 2017. In the north of the RCR,\u00a0Qingjian Realty is looking to launch an\u00a0as yet unnamed project on the Shunfu\u00a0Ville site, which it purchased from the\u00a0current residents at a collective price\u00a0of $638 million.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0
\nThis article was first published in the print version\u00a0PropertyGuru News & Views.\u00a0Download PDFs\u00a0of full\u00a0print issues or read more stories now!<\/p>\n


\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Get the Guru View: City-fringe living<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With easy access to the CBD and the new Sports Hub, Tanjong Rhu is a...<\/p>\n","protected":false},"author":1,"featured_media":26941,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-26940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/09\/GV10501.png?fit=530%2C462&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-70w","jetpack-related-posts":[{"id":49336,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/investment-opportunities-in-the-city-fringe\/","url_meta":{"origin":26940,"position":0},"title":"Investment opportunities in the city fringe","date":"March 24, 2017","format":false,"excerpt":"\r A big crowd turned up at the Thomson Impressions showflat to find out key predictions for the property market in 2017. 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