I’m Under 35 And Single With A $900k Budget: Which Of These 5 Condos Is Suitable For Future Rental and Resale Potential?
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Stacked
- January 27, 2023
- 13 min read
13 min read
Hi Stacked Home Team,
I have been reading your analysis for awhile which provided me with useful insights. Now that I have decided to purchase my first home on my own, your expert advices would really be helpful to me.
I am under 35 years old, single and looking to find a place to call home that is also near to my workplace in Jurong/Tuas. I am looking at 1 or 2 BR condos that I will stay in for a couple of years at least. I can take a maximum loan of $900k capped at 75% loan to value but I do not want to stretch my finances so I am only looking at properties priced at $750K and below.
The units I’ve found are Parc Rosewood, The Hillford, Seahill, Parc Riveria and Laurel Tree. I would like to move in as soon as possible due to personal circumstances but I would like to seek your advices to avoid making a haste decision for my first home. In your opinion, which condo do you think would be a suitable choice in terms of affordability, future rental or resale potential?
Appreciate your time and I look forward to your reply.
Hello there,
It’s always nice to hear that our content has helped!
Buying your first property can be both an exciting yet daunting experience as there are just so many little things to look out for. Also, it’s always good to practice prudence, especially with the looming economic uncertainty, so choosing not to max out your loan is a wise decision.
Since you’ve already done the search, let’s run through each of the 5 projects you’ve listed.
Parc Rosewood
Parc Rosewood is a 99-year leasehold development that obtained its TOP in 2014. Its lease started in 2011 making it 12 years old at the moment. It is on the higher end of a mid-sized project with 689 units made up of 1 – 5 bedroom types spread across fifteen 5-storey blocks.
The closest MRT station to the condo is Woodlands, which is a 19-minute walk away. Most will not consider this a daily walkable distance. There are buses that will take you to the MRT station in the same amount of time. For food and basic necessities, The Woodgrove Shopping Mall is just a 12-minute walk away and it houses numerous eateries as well as a Fairprice supermarket. There are also 2 other foodcourts in the neighbouring HDB clusters which are a 10-minute walk away.
| Description | Time taken |
| Nearest MRT station: Woodlands | 19 mins walk 19 mins by bus |
| Public transport from Parc Rosewood to Tuas Link MRT station (Depart at 8 AM) | Fastest 1hr 11mins |
| Driving from Parc Rosewood to Tuas Link MRT station (Depart at 8 AM) | 24 – 50mins |
Pricing
These are some of the recent 1 and 2-bedroom transactions:
| Date | Size (sqft) | No. of bedrooms | PSF | Price | Level |
| Dec 2022 | 431 | 1 | $1,440 | $620,000 | #03 |
| Dec 2022 | 517 | 1 | $1,293 | $668,000 | #01 |
| Oct 2022 | 431 | 1 | $1,428 | $615,000 | #03 |
| Oct 2022 | 517 | 1 | $1,161 | $600,000 | #01 |
| Sep 2022 | 431 | 1 | $1,394 | $600,000 | #02 |
| Sep 2022 | 431 | 1 | $1,370 | $590,000 | #02 |
| Dec 2022 | 753 | 2 | $1,109 | $835,888 | #01 |
| Oct 2022 | 603 | 2 | $1,253 | $755,000 | #03 |
| Sep 2022 | 753 | 2 | $1,046 | $788,000 | #01 |
| Jul 2022 | 603 | 2 | $1,178 | $710,000 | #04 |
With a budget of $750K, you will most likely be looking at a 1 bedder or a 2 bed 1 bath.
Layout analysis
The 1 bedders come in 3 sizes – 431, 506 and 517 sq ft. The two larger units are on the ground floor with a bigger PES, which might be more difficult to sell in the future. The layout is efficient and regularly shaped which makes furniture placement a lot easier. Also, the positions of the fridge and dining table are ideal to fully utilise the space.
In terms of the bedroom, it is decently sized; able to fit a double bed and two small bedside tables. There are 2 entryways into the bathroom which is convenient as you will not have to leave the bedroom in order to use the bathroom. The unit also comes with a home shelter which is great for storing miscellaneous items, but I’m not sure of the merits of it, especially in an already small space. There is also a little corner next to the home shelter which can potentially be used as a study area or for a shoe cabinet.
There are several different sizes for the 2 bed 1 bath units with 581 and 603 sq ft being the ones that fall within your affordability. Of the 2, we prefer the 603 sq ft unit. The layout is also efficient and is of a regular shape.
The kitchen is tucked in a corner and can possibly be enclosed which could be beneficial if you often do heavy cooking. You do also have decently sized bedrooms and a dining area which can fit a small 4 seater table. One drawback is that the bathroom is not attached to either one of the bedrooms (but it’s just a few additional steps).
Performance
| Unit type | Average price (2022) | Average rental (Jun – Dec 2022) | Rental yield |
| 1 bedroom | $597,516 | $2,258 | 4.5% |
| 2 bedroom | $824,453 | $2,760 | 4% |
We can see from the graph above that prices at Parc Rosewood peaked in 2013 and have been declining up until the pandemic hit. Since 2015, it has been in line with the general performance of 99-year leasehold projects in District 25, which if we were to compare it with the overall performance of 99-year leasehold projects in Singapore, is subpar.
The average rental yield for the project is fairly good at 4 – 4.5%. Given its lower entry price, naturally, the rental yield is higher. But we should also note that the rental market has been really hot the past year so the average rental is likely higher than usual.
One possible reason why Parc Rosewood isn’t performing as well could be due to the majority of its units being 1 and 2-bedders which cater more to investors, singles and couples rather than families which we believe make up the majority of the buyers in Woodlands. This may also pose a challenge when you plan to sell the unit in the future.
The Hillford
The Hillford is the first of its kind – a mixed-use retirement project which is targeted at retirees or individuals looking to retire soon. Also worth highlighting is that it has a 60-year lease which started in 2013 and obtained its TOP in 2017.
The development is made up of 281 units of 1 and 2-bedders spread across seven low-rise blocks ranging from 5 – 7 storeys.
The project is situated an 11-minute walk away from Beauty World MRT station – which is definitely not the nearest walk. With the countless options within walking distance, you’ll be spoilt for choice when it comes to food – cafes and restaurants along Lorong Kilat and Cheong Chin Nam Road, Bukit Timah Market, Beauty World Plaza, Beauty World Centre and Bukit Timah Shopping Centre. There is a wet market at Bukit Timah Market and also supermarkets located in the shopping malls.
| Description | Time taken |
| Nearest MRT station: Beauty World | 11 mins walk 12 mins by bus |
| Public transport from The Hillford to Tuas Link MRT station (Depart at 8 AM) | Fastest 1hr |
| Driving from The Hillford to Tuas Link MRT station (Depart at 8 AM) | 20 – 40mins |
Pricing
These are some of the recent 1 and 2-bedroom transactions:
| Date | Size (sqft) | No. of bedrooms | PSF | Price | Level |
| Dec 2022 | 431 | 1 | $1,359 | $585,000 | #03 |
| Sep 2022 | 398 | 1 | $1,361 | $542,000 | #02 |
| Sep 2022 | 398 | 1 | $1,326 | $528,000 | #03 |
| Sep 2022 | 398 | 1 | $1,381 | $550,000 | #04 |
| Nov 2022 | 657 | 2 | $1,299 | $853,000 | #05 |
| Oct 2022 | 657 | 2 | $1,261 | $828,000 | #06 |
| Aug 2022 | 506 | 2 | $1,320 | $668,000 | #04 |
With a budget of $750K, you will most likely be looking at a 1 bedder or a 2 bed 1 bath.
Layout analysis
At 398 sq ft for a 1 bedroom without a balcony, it’s definitely small. The layout is actually identical to that of the 1 bedder at Parc Rosewood.
The 2 bedder layout is functional with no odd corners, although the living area may feel a little cramped if you were to place a dining table at the end of the kitchenette.
As for the bedrooms, there is reasonable space in both bedrooms for a double bed and two small bedside tables.
Performance
| Unit type | Average price (2022) | Average rental (Jun – Dec 2022) | Rental yield |
| 1 bedroom | $530,444 | $2,504 | 5.7% |
| 2 bedroom | $737,009 | $2,944 | 4.8% |
We can see from the graph above that prices for The Hillford were at their highest in 2017 when it obtained its TOP and was on a downward trend until the pandemic.
As there are no other 60-year leasehold developments in the district, we have no choice but to compare it with 99-year leasehold projects instead. The majority of the condominiums in District 21 are freehold with the leasehold ones mostly being above 20 years old. It is a highly sought-after estate due to its location, proximity to nature parks and amenities, as well as the upcoming Beauty World Transformation.
The prices of 99-year leasehold projects in District 21 had a sudden spike in 2018 due to the launch of Daintree Residence and Mayfair Gardens. Although prices did come down gradually as the new launches were being sold, they were still performing well and moving in line with the overall market.
If you’re going after rental yield, this is definitely a good project to consider. However, if you’re thinking about its resale potential, there may be some obstacles as the remaining lease is unable to cover younger buyers up to the age of 95 which will limit their loan and CPF usage (you will also face this issue) so your buyer pool is greatly reduced.
Seahill
Seahill is a 99-year leasehold development comprising of 388 units of 1 – 4 bedroom apartments (SOHO as well as condominium) and townhouses. There is also a tower block of serviced apartments within the development. Its lease started in 2011 and it obtained its TOP in 2016.
Seahill is located just right next to West Coast Park so if you enjoy being outdoors, this could be perfect for you. However, it is not within walking distance of any MRT stations so you will have to take a bus out. In terms of food and basic necessities, it is an 11-minute walk to West Coast Plaza and West Coast Food Centre.
| Description | Time taken |
| Nearest MRT station: Clementi | 27 mins by bus |
| Public transport from Seahill to Tuas Link MRT station (Depart at 8AM) | Fastest 1hr 1min |
| Driving from Seahill to Tuas Link MRT station (Depart at 8AM) | 20 – 50mins |
Pricing
These are some of the recent 1 bedroom transactions:
| Date | Size (sqft) | No. of bedrooms | PSF | Price | Level |
| Nov 2022 | 527 | 1 | $1,471 | $776,000 | #19 |
| Oct 2022 | 786 | 1 | $1,553 | $1,220,000 | #08 |
| Sep 2022 | 527 | 1 | $1,536 | $810,000 | #20 |
| Sep 2022 | 495 | 1 | $1,474 | $730,000 | #08 |
| Sep 2022 | 667 | 1 | $1,424 | $950,000 | #15 |
| Jun 2022 | 506 | 1 | $1,473 | $745,000 | #15 |
With a budget of $750K, you will most likely be looking at the smaller 1 bedders.
Layout analysis
This is the 495 sq ft SOHO 1 bedroom unit. Its layout is pretty compact but functional and fully maximises the available space.
The biggest downside here is that the bedroom is on a platform that is built above the kitchen which may feel rather claustrophobic as there is not much headroom. The kitchen may also feel cramped if you were to place a 4 seater dining table in it. You could instead use a small dining table or consider moving the dining area to the balcony so the kitchen will be more spacious.
But on the brighter side, the communal areas here are definitely bigger as a consequence. And if you value outdoor space, the balcony is of a good size.
Performance
| Unit type | Average price (2022) | Average rental (Jun – Dec 2022) | Rental yield |
| 1 bedroom | $815,326 | $3,097 | 4.6% |
From the graph above, you’ll notice that from 2012 – 2014, the trend line of Seahill is moving in the same direction as 99-year leasehold developments in District 5 as well as the overall market. 2013 was the year when the government implemented 3 rounds of cooling measures which is why prices came down. Although prices at Seahill did pick up slightly in 2015, those transactions were the last couple of units sold by the developer and they were all 1 bedroom apartments which usually have a higher PSF. After that point, while prices in the rest of D5 and Singapore were recovering, prices at Seahill were declining up until the pandemic.
An average rental yield of 4.6% is good but judging from how the project was performing pre-pandemic, prices may remain stagnant or gradually go down when the market returns to normal. Just as with Parc Rosewood and The Hillford, the majority of the units at Seahill are 1-bedders which as we have mentioned, cater more to investors, singles and couples so the potential buyer pool is limited. Also with its compact layout, it may not be the first choice for buyers looking to stay in the apartment.
Parc Riviera
Parc Riviera is a mid-sized 99-year leasehold project that is made up of 752 units of 1 – 4 bedroom types. Its lease started in 2015, making it 8 years old currently and it obtained its TOP just 3 years ago in 2020 so it’s a relatively new development.
The project is currently not within walking distance of any MRT stations so you will have to take a bus out. Although it is worth noting that Pandan Reservoir MRT station will be coming up in the future – it’s still not near enough to really walk daily, but at least there is that option. In terms of amenities, it is a 10-minute walk away from NEWest which has a handful of eateries and a mini-mart. For more food options, you’ll have to take a bus to the Ayer Rajah Food Centre, Clementi 448 Market and Food Centre or Clementi Mall.
| Description | Time taken |
| Nearest MRT station: Clementi | 20 mins by bus |
| Public transport from Parc Riviera to Tuas Link MRT station (Depart at 8 AM) | Fastest 52mins |
| Driving from Parc Riviera to Tuas Link MRT station (Depart at 8 AM) | 16 – 40mins |
Pricing
These are some of the recent 1 bedroom transactions:
| Date | Size (sqft) | No. of bedrooms | PSF | Price | Level |
| Jul 2022 | 463 | 1 | $1,523 | $705,000 | #07 |
| Jul 2022 | 463 | 1 | $1,627 | $753,000 | #29 |
| Jun 2022 | 463 | 1 | $1,597 | $739,000 | #26 |
| Jun 2022 | 463 | 1 | $1,545 | $715,000 | #18 |
Layout analysis
The 1 bedroom units come in 3 sizes but they all have the same layout. The only difference is in the balcony size and ceiling height.
As this is quite a recent launch, the layout is efficient and regularly shaped. For the bedroom, it is a good size; as you can fit a double bed and 2 small bedside tables with space to manoeuvre around still. There is also sufficient space to put a small dining table but it might make the walkway appear a little cluttered. The unit does not come with a home shelter so you may need to consider building more storage space.
Performance
| Unit type | Average price (2022) | Average rental (Jun – Dec 2022) | Rental yield |
| 1 bedroom | $724,270 | $2,823 | 4.7% |
We can see from the graph that prices at Parc Riviera are moving in line with the other 99-year leasehold projects in District 5 as well as the overall market. Given that it was the first of 3 plots of land to be sold and developed in the same area, the higher price tags of the two newer projects, namely Twin VEW and Whistler Grand, help to support the prices here.
Besides its good rental yield, the development has a balanced unit mix which caters to both investors and homeowners so prices are likely to be more protected as compared to a project with majority investors. Given that is it one of the youngest condominiums in the area and with the price support of the neighbouring projects, there is potential for growth and prices should hold up in the short term.
Laurel Tree
Laurel Tree is a freehold boutique development with 70 units of 1 bedder. It is also a rather new project that obtained its TOP in 2021. The condominium was originally meant to obtain its TOP in 2016 but its developer went bust before the project was finished which delayed the TOP by 5 years. We have heard from a buyer who was recently looking to purchase a unit at Laurel Tree that some of the major banks are not offering mortgage loans for the project so it will be best to check on this before proceeding.
The project is not within walking distance of any MRT stations so you will have to take a bus out. It is flanked by 2 parks, namely Bukit Batok Town Park and Bukit Batok Nature Park, so if you’re a nature lover, it’s perfect. There are several food courts and supermarkets within a 15-minute walk from the development so you are covered in terms of basic necessities.
| Description | Time taken |
| Nearest MRT station: Bukit Gombak | 17 mins by bus |
| Public transport from Laurel Tree to Tuas Link MRT station (Depart at 8 AM) | Fastest 56mins |
| Driving from Parc Riviera to Tuas Link MRT station (Depart at 8 AM) | 20 – 45mins |
Pricing
These are some of the recent 1 bedroom transactions:
| Date | Size (sqft) | No. of bedrooms | PSF | Price | Level |
| Dec 2022 | 463 | 1 | $1,498 | $693,150 | #04 |
| Oct 2022 | 463 | 1 | $1,458 | $675,000 | #04 |
Layout analysis
The 1 bedder at Laurel Tree also has an efficient and regularly shaped layout. There is a possibility to do up a small second bedroom but it would be pretty cramped. Without the second bedroom, the living area is quite a good size and can also fit a dining table.
As for the kitchen, it is tucked in a corner which you can potentially enclose if you prefer. However, the kitchen is facing the bathroom directly which some individuals may not appreciate. It does come with a home shelter which is always great for storage and keeping clutter to a minimum.
Performance
| Unit type | Average price (2022) | Average rental (Jun – Dec 2022) | Rental yield |
| 1 bedroom | $684,075 | $3,029 | 5.3% |
As there were no transactions from 2017 up until 2022 where there were 2 transactions, the trend line may not accurately reflect the performance of Laurel Tree. But generally, the growth rate for freehold boutique developments tends to be slower due to their low transaction volume. Their prices may hold up in the long run but we rarely see a significant appreciation.
The rental yield at 5.3% is great but we do have some reservations when it comes to buying a freehold boutique development and especially so when it only has 1-bedroom apartments.
Conclusion
Out of the 5 developments that you’re considering, 4 of them have a rather skewed mix of units with mostly smaller unit types such as 1 and 2-bedders which as we have mentioned, cater more to investors, singles and couples which limits your buyer pool. Not only that, if the majority of the owners are investors, prices in the development may not be as protected since an investor has no emotional attachment to the property and will not hesitate to let go of the unit even at a loss should he/she find a better opportunity elsewhere.
And so out of the 5, if we had to pick, the one development that stood out for us is Parc Riviera. With it being one of the youngest projects in the area and having the price support of the neighbouring projects, there is potential for growth and prices should hold up in the short term. Although there isn’t a home shelter (which some people see as a good thing anyway in a small unit), the layout is still efficient and the space would suffice for a single person. The project may not be situated in the most convenient location but it takes the shortest amount of time to get to Tuas Link MRT station which is one of your listed considerations.
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We hope that our analysis will help you in your decision-making. If you’d like to get in touch for a more in-depth consultation, you can do so here.
