Is Royalgreen Condo A Good Property Investment?
Updated: Nov 12, 2020
It has been a great week for Singapore's property market. Our private residential market is recovering at a faster pace. New home sales for the month of June are the highest in 7 years.
Before we dive into Royalgreen condo to analyze if this freehold condo located in the prime area of District 10 is a good property investment, let us look at how the property market performed in the month of June.
Developer Monthly Sales Analysis For June
According to the statistics by URA, new home sales increased 104.9% from 487 units in May to 998 units in June. This is higher than the 75.8% month-on-month (m-o-m) increase in May (see below table).
Including executive condominiums (EC), sales jumped 102.2% from 510 units to 1,031 units over the same period, surpassing the 74.1% m-o-m increase in May. The 998 new homes transacted in June this year was the highest monthly sales for June since 2013 (1,806 units excluding ECs).
How Did Properties in Core Central Region (CCR) Fare?
The increase in sales volume (excluding ECs) was broad-based across all market segments. 430 units were transacted in the Rest of Central Region (RCR), which was an increase of 127.5% m-o-m. 489 units were transacted in the Outside Central Region (OCR) while 79 units were transacted in the Core Central Region (CCR). These were an increase of 90.3% and 92.7% over the previous months respectively.
Let's compare sales in the different regions during the month of June over the past 5 years.
Sales in CCR was 7.9% of the total sales in June this year. This was higher than the 5.7% in 2019 and 7.8% in 2017. It is interesting to note that sales volume in CCR was at 10.1% of the total sales in June 2018 before the government step in the following month with another round of cooling measures.
More Higher-Priced Private Homes Sold After Circuit Breaker Period
There was a substantial increase in higher-priced private homes sold last month.
According to URA data on 15 July 2020, the number of transactions for private homes at $2million and above rose from 23 units in May to 129 units in June. This was 13% of the total units transacted in June, as compared to 5% in May.
For properties at $3million and above, there were a total of 32 units sold. This was 3.2% of the total units transacted in June, as compared to 1.8% in May.
Foreign Buyers Investing in Singapore's Properties
Foreign buyers returned after the Circuit Breaker period. According to URA Realis data on 15 July 2020, the number of non-landed homes bought by foreigners increased substantially last month.
Non-permanent residents bought 49 non-landed private homes in June, a steep increase from the 14 units transacted in May, as well as the 7 units in April. This is also higher than the 33 units sold in June last year.
Singapore permanent residents bought a total of 120 units of non-landed homes in June. This is a surge from the 56 units in May. It is also higher than the 86 units sold in June last year.
Why are foreigners still investing in properties in Singapore amidst this Covid-19 pandemic?
Singapore is a safe-haven for foreigners to park their money due to our stable political environment, trust in our legal system, quality of finishing in properties as well as the investment potential of the properties here.
As the banks' interest rates continue to remain low, and ample liquidity flows into the asset market due to the quantitative easing programs launched around the world, we expect more foreigners to purchase properties in Singapore in the coming months.
Looking at these encouraging numbers, it seems to indicate that confidence in Singapore's real estate market is coming back.
Let's move on now to analyze the Royalgreen condo - an upscale freehold condo in Bukit Timah.
About Royalgreen Condo
Location : 2, 2A, 2B, 2C, 2D, 4, 6, 6A, 6B Anamalai Avenue
Site Area : Approx 174,129sqf
Developer : Allgreen Properties
Tenure : FH
Expected TOP : Estimated 2022
No. of Blocks : 8 blocks
Blocks Height : 5 storeys
Total units : 285
2 bedroom 635 - 721sqf 39 units (14% of total units)
2 bedroom premium 667 - 721sqf 75 units (26% of total units)
2 bedroom + guest/study 721 - 861sqf 63 units (22% of total units)
3 bedroom 926 - 990sqf 42 units (15% of total units)
3 bedroom + study 1044 - 1076sqf 44 units (15% of total units)
4 bedroom + study 1259sqf 4 units (1% of total units)
4 bedroom premium 1432 - 1475sqf 18 units (6% of total units)
Royalgreen is located in the prime district 10, along Anamalai Avenue off Sixth Avenue. This location is prestigious, with the site sitting amidst one of the most expensive landed enclaves in Singapore.
Though it is located among the landed properties, Royalgreen is superbly connected in terms of public transport. It is within 4 minutes walk to Sixth Avenue MRT station, which is along the Downtown Line.
Sixth Avenue MRT is 2 stops from the Circle Line at Botanic Gardens station, 3 stops from the Thomson-East Coast Line at Stevens station, 4 stops from the North-South Line at Newton station, 5 stops from the North-East Line at Little India station, and finally 7 stops from the East-West Line at Bugis station!
Imagine how this will appeal to tenants working in different parts of Singapore!
For drivers, Royalgreen is only 3 minutes drive to Pan Island Expressway (PIE), which brings you all the way to Jurong in the west and Changi Airport in the East. Drive along Bukit Timah Road and you will reach the city area in 15minutes.
And before we continue, let's take a pause and give this question a thought: How many freehold condos can we find in Singapore that is within 5mins walk to the MRT station?
Royalgreen is conveniently located near many amenities.
Step out of the main gate and you will reach Guthrie Cold Storage in a minutes' walk. Other supermarkets nearby include Cold Storage in Sime Darby, Greenwood and Cluny Court. You can also find NTUC in Coronation Plaza and Bukit Timah Plaza.
There are many choices for eateries too. From local eateries like coffeeshops along Sixth Avenue, Bukit Timah Hawker Centre, Adam Road Food Centre to the upmarket restaurants in The Grandstand, King Albert Mall and Greenwood Avenue etc, the options are plenty.
Properties in Bukit Timah are popular with families with school-going children as there are many highly sought after schools in the vicinity.
For the primary school kids, Henry Park, Nanyang Pri, Methodist Girls and Raffles Girls Primary School are within 2km of Royalgreen.
As for the secondary school students, Methodist Girls, Nanyang Girls, Hwa Chong Institution, St Joseph Institution, ACS (Barker) and ACS (Independent) are popular options.
National Junior College is within walking distance to Royalgreen. Other junior colleges within the vicinity include Hwa Chong and Anglo Chinese Junior College. Higher education institutions like Ngee Ann Polytechnic, Singapore Polytechnic, National University of Singapore are also nearby.
For foreign students, international schools like ACS International and United World College of South East Asia (UWC) are within 15minutes drive.
Bukit Timah-Rochor Green Corridor
Under the masterplan 2019, Bukit Timah will soon undergo a green transformation with the exciting Bukit Timah-Rochor Green Corridor plan.
This 11km corridor will run parallel to the Bukit Timah Canal, and will link Jurong Lake Gardens to Singapore Botanical Gardens and Gardens By The Bay. There are plans to extend it to Kallang Riverside Park in the future.
The first phase of the project comprises of a 1.4km elevated linear park (also known as the sky park) just outside Royalgreen, from the Rail Corridor at Rifle Range Road to Elm Avenue. Cyclist and pedestrian can look forward to a unique experience as it will connect the Rail Corridor near Bukit Timah Railway Station node and the existing pedestrian overhead bridges across the roads.
Low-Density Housing Area
Royalgreen condo is sited in a low-density housing area. It is surrounded by low rise landed properties.
Imagine the unblocked view overlooking the most expensive landed housing in Singapore!
There are 2 areas where the facilities are located.
On the ground floor, we can find a 50m lap pool, a spa pool and a children's pool. Within the clubhouse are plenty of entertainment area - function room, reading room, party room and party deck. The gym and steam rooms are also located here.
Another area where the facilities are located is on the rooftop. There is a tennis court that spreads across the top of 2 blocks. There is also a bridge that connects the different blocks.
Rooftop facilities are getting more common as it is a smart use of limited space.
Unit Layout And Efficiency
The majority of the units in Royalgreen condo are the 2 bedroom types, with a total of 177 units. There are 86 units of 3 bedroom types and 22 units of 4 bedroom types.
Let's look at the layout of some of the units.
2 Bedroom Premium
The typical 2 bedroom premium layout is at an average size of 667sqf.
There is good efficiency in this layout. It features the dumb-bell layout where the rooms are on both sides of the living room and thus there is no wasted corridor space.
The balcony is about 65sqf. This is a good size balcony which will appeal to homeowners who like outdoor space.
3 Bedroom + study
The 3 bedrooms + study unit is 1066sqf. It opens to a short corridor before you turn into the kitchen and living area. Personally I like this entrance area as it does not open straight into the unit and thus ensures privacy.
I like the way the balcony stretches all the way to bedroom 3 and does not take away too much space from the living room.
4 Bedroom Premium
This 4 bedroom premium layout is at a comfortable size of 1432sqf.
Personally I like the spaciousness of the 4 bedrooms unit. The size of the master bedroom is generous and I like that there is a junior master bedroom too.
Given the limited number of 4 bedroom units in Royalgreen condo, as well as the demographics of the homeowners in Bukit Timah, the 4 bedroom types will be highly sought after! (P/s: I just checked. 8 units have been sold so far, so there are only 14 units left!)
The average transacted price for units in Royalgreen ranges between $2,612psf to $2,883psf. I further broke down the prices to find out the average transacted price for the different room types.
The average transacted price for 2 bedroom units is $2,736psf. 3 bedroom is $2,712psf and 4 bedroom is $2,816psf. Due to the scarcity of 4 bedrooms unit in Royalgreen, and the strong demand for bigger units in the Bukit Timah area, the price of 4 bedroom is higher than the smaller units.
Prices of nearby new condos
There are no freehold condos launched in the Bukit Timah area. The closest comparable is Leedon Green, 15 Holland Hill and Van Holland in the Farrer/Holland area.
Leedon Green transacted at an average of $2,690psf. This is a huge development with 638 units located at Farrer Road. In terms of location, it is not as prestigious as Royalgreen.
15 Holland Hill is a small development with 59 units. The units in this condo are spacious. Their 2 bedroom unit has an area of 1292sqf and 5 bedroom unit is huge at 5425sqf. It is no small feat that the units can fetch an average of $2808psf for such big units!
Van Holland is also a small development with 69 units. The sizes of their units range from 495sqf to 1991sqf. The average transacted price is $2,934psf.
As mentioned above, there are no new freehold condos along Bukit Timah Road near to Sixth Avenue. Royalgreen condo is the only brand new freehold condos situated at this prestigious location.
Prices of nearby resale condos
There are a couple of resale condos located near Royalgreen. I have selected those that are less than 15 years old to do a comparison on their prices. The average transacted prices of these resale condos range between $1,536psf to $1,768psf.
The average transacted price for units in Royalgreen ranges between $2,612psf to $2,883psf.
The price difference between a brand new vs a resale condo is around $1,000psf. Question: Will buyers choose to go for the resale condos?
My take is this: There will always be buyers who prefer a brand new condo and buyers who opt for a resale condo. Those who choose the latter might feel it makes better investment sense not to pay higher price for a new condo. There are also buyers who are restricted by budget and thus not able to go for a brand new condo.
However, there will be demand for units in Royalgreen condo. This is a rare commodity in a prestigious location. Buyers who are die-hard Bukit Timah fans and want to buy a brand new, freehold condo do not have many options.
And honestly, the price might look high as compared to resale condos. But if we were to compare the prices of Royalgreen to the new condos in Holland/Farrer vicinity, units in Royalgreen are competitively priced.
Prices of Fourth Avenue Residences vs Royalgreen
It is important to discuss a new condo within the immediate vicinity of Royalgreen, and that is Fourth Avenue Residences.
Fourth Avenue Residences is located within 5 minutes walk from Royalgreen condo. It is a 476 units condo also developed by Allgreen Properties - the same developer for Royalgreen. The main difference between the 2 condos is land tenure. Royalgreen condo is freehold whereas Fourth Avenue Residences is 99 years leasehold.
In terms of the units types, Fourth Avenue Residences offers 1, 2, 3 and 4 room types. Royalgreen on the other hand does not have any 1 bedroom units.
Let us look at the average transacted prices in both condos.
Based on the above chart, we can see that the average transacted prices of Fourth Avenue Residences are around 16% lower than Royalgreen.
In terms of the total quantum, the average quantum prices of units sold in Fourth Avenue Residences is $1,593,325 as compared to $2,531,937 in Royalgreen. We can get a good hint here that the 1 and 2 bedroom units appeal to property buyers in Fourth Avenue Residences.
It is rare to have a new condo launched in the prime area of Bukit Timah. The last freehold project was Floridian which was completed in 2012. There will also be no supply of brand new freehold units in the vicinity in the next few years.
Properties in Bukit Timah has always been highly sought after. Buyers buy properties here for long-term capital appreciation.
Royalgreen's proximity to Sixth Avenue MRT station also means there will be a shorter vacancy period in between tenancies as it will appeal to tenants working in different parts of Singapore.
If you would like to find out more about investing in a property, or would like to have a professional opinion on which unit to choose in Royalgreen, please feel free to drop me a message. You can also schedule an appointment with me using the link below.
See you soon!
About The Author
Vivian is a highly experienced real estate agent who has been in the industry for 18 years.
Over the years, she has transacted numerous property deals including HDB and private properties. She is well-versed in policies and regulations involving the sale and purchase of residential properties. She has also handled many transactions involving complicated situations like contra, divorce, administration/probate cases, and decoupling / part-share purchase.
Vivian is also a mother to 2 boys. Being a real estate mom allows her to spend more time with her children as they were growing up. Both boys are avid footballers representing their schools and clubs. She loves watching their games and hardly misses a game whenever they play.
Vivian is an active real estate salesperson and team leader. Call her at 98577714 for your real estate matters, or if you are looking to join the real estate industry.