Why We Bought A $1.9xm Unit At The Continuum: A Buyer’s Case Study With Stacked

First consultation

Our buyer, NN, was clear about the intended location from the start. Her family has a home in Kembangan, and she was residing in Meyer Road at the time of the consult; so there was a firm attachment to the East side, particularly the Katong and Eunos areas. This was also convenient for work-related reasons, so NN was 100 per cent sure about her desired location.

NN had also settled on something within the two-bedroom size range, and the home would be for own-stay use. She had rented and lived in Balmoral and Balestier before, so her prior living experiences had helped to affirm the kind of unit she needed.

Exploring a range of options

NN’s initial choice was much more straightforward: this was to purchase a unit in the same condo she was already renting. However, this opinion changed while looking at other options. NN also considered older resale condos nearby, such as Makena, but was ultimately drawn to the newest project in the immediate vicinity: Tembusu Grand.

NN decided that, while she appreciated the larger units in older condos, she ultimately wanted something new. We discussed some of the inherent drawbacks of opting for a new launch, of which two stood out:

1. New launch units were likely to be smaller
2. There is a delay in moving in, due to the required construction time 

However, NN said there was an emotional appeal to owning something new and fresh; and she wasn’t too concerned with factors such as price appreciation, but rather wanted something she would be “happy to come home to.” Also, there was a consideration that – however much you renovate a resale unit – the common facilities in an older condo will remain dated. 

As such, the focus for the initial viewing was Tembusu Grand.

Initial and second viewings at Tembusu Grand

Upon the initial showflat visit, NN said she loved Tembusu Grand’s location, but was ambivalent about the project as a whole (quality, facilities, layout, etc.) It was on a second visit that NN noticed something she didn’t like. 

NN often hosted friends and guests, who would mostly be driving to her place; but Tembusu Grand only had 71 basement car park lots, while the remaining 516 lots were within the multi-storey car park. She didn’t like the idea of her guests having to park at the multi-storey (the visitor lots are likely on the highest floor), take the lift down, and then walk to her block to take another lift. 

In addition, NN didn’t like the colour palette, particularly the tiling, as seen in the show flat. While this could be changed with renovations, NN didn’t want extra costs when moving in. At least part of the attraction for a new launch is, after all, lower renovation costs than a resale. 

As luck would have it though, Hoi Hup had just announced their own launch at the time, also in the east – this was The Continuum.

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Visiting The Continuum as an alternative

From NN’s perspective, The Continuum was less ideal than Tembusu Grand in terms of location. However, she preferred the unit layout at The Continuum. NN liked the layout of the two-bedroom + study, and the storage room next to the kitchen was also ideal; this would spare her from leaving the vacuum, mops, and other cleaning supplies in the open. It would also help with storing her luggage carriers, which NN used often as a frequent traveller.

We also noted the location of the study made it quite flexible – it could double as a work area, or be converted to a walk-in wardrobe. Plus, the colour of the tiling was much more to her taste.

As such, it boiled down to two main options: Tembusu Grand for its better location but less ideal interior, or The Continuum which was the opposite. 

After much deliberation, NN decided The Continuum’s location wasn’t too big a compromise after all. While dinner and groceries would be a bit further, she decided it was ultimately possible to order what she needed online. 

Besides this, NN would have been buying at a later launch phase, when it came to Tembusu Grand. This limited the options, as we had only the remaining units to pick from. With The Continuum, there was still more choice and opportunity, in the ballot for the preferred units. 

The final tilt in the favour of Continuum was its freehold status, in addition to the wider availability. 

Balloting and crunching the numbers 

For those who’ve participated in a new launch ballot, you would know that you’re only given a few minutes to make price comparisons for the varying stacks and floors. Fortunately, NN was less particular about facing, and she didn’t want a high-floor unit (due to long elevator rides and waiting times.) NN did specify she didn’t want exposure to the west sun, but this was simple to avoid as Continuum has a North-South facing anyway; most units wouldn’t have such exposure. 

NN did have a preference for stacks 44 and 45, because these stacks have a facing that overlooks one of the clubhouses. The Continuum has two clubhouses, one of which is a preserved heritage building (21 Thiam Siew Avenue). 

However, these stacks cost a premium of about five to six percent above stacks five and six. The added premium was enough to inch the pricing past a comfortable budget for NN. This led to a discussion on how much she valued the view: would she open the windows, sit on the balcony, and enjoy the view often? 

NN decided that this wouldn’t be a frequent occurrence; and with four cats, she may need safety grilles as in her current home, and might rarely open the windows. This led to choosing the most affordably priced 2BR+S units. 

We also looked at other stacks, clustered toward the middle of Continuum – but these were at a three to four per cent premium, which further encouraged the decision to choose stacks five or six instead. These stacks are closer to Tanjong Katong Road anyway, which is where many of the main lifestyle amenities are found. 

A final consideration was the floor of choice. The developers were quite strategic in their pricing strategy: while stacks five and six were more affordable, the price jump per floor was more significant than the others. After observing and continuously checking the price, we settled on a mid-floor unit.

While NN was willing to accept lower-floor units, such units can sometimes be harder to sell later or show weaker appreciation. And whilst NN did say she was unlikely to sell, we advised a mid-floor unit just in case a sale ever becomes necessary. Even though investment wasn’t the primary goal, it made sense to leverage on internal pricing, and arbitrage future potential gains or losses. 

One thing to note from this transaction is that – just because owner-occupiers can be more relaxed about the bottom line – that doesn’t mean everything should be “free and easy.” 

Even if the resale gains are not a priority, there can be substantial savings if you surrender the lesser perks (e.g., a slightly better facing.) In addition, there’s no harm in grabbing what advantages you can – such as a mid-level instead of a lower floor unit – when the incremental cost is still well within budget. 

In fact, in some ways, the number crunching for pure home buyers can be more complex, as there are qualitative issues involved. How do we put an exact dollar value on being closer to a certain area? For a pure investor, there are well-defined answers (look at rental rates, transaction histories, zoning etc.) But for a home buyer, there are emotional factors that are difficult to price, such as a childhood attachment to an area, or longstanding lifestyle routines. If you do struggle with these issues, reach out to us on Stacked, and we can find the professionals to lend added clarity to your decision.