Why We Bought A $1.69M Condo Without A Nearby MRT As An Investment

When M and his wife first approached the Stacked Consultancy team in April this year, their hunt to find a suitable investment property was in limbo after they had shortlisted and viewed a couple of properties on their own.

In the months before that, they had been researching on property portals, picking out the listings that caught their eye, and contacted agents to arrange viewings. However, they quickly found that this approach was not bearing fruit.

Their about-turn regarding agent representation

The biggest gripe that they faced at the start of this purchasing journey was the lack of neutral guidance that they felt they had received from agents representing the various sellers they encountered. They felt that those agents were pushing specific units without considering their interests.

Before they started searching for a potential investment property, the couple decided that they did not want to work with an agent. As second-time property buyers, they felt that transacting a property was something they could handle on their own.

“When they started their property search, average prices in the new launch market for most three-bedroom units were definitely higher than their initial budget of $2 million,” says Rachel, one of the partner property consultants with Stacked who worked with the couple. She adds that since the couple were eager to find a suitable property quickly, the focus turned to options in the resale market.

During the initial consultation call with Stacked, the couple made it clear that they were not looking to engage a property agent and were only looking for advice on their situation.

But the turning point came when the couple saw a low-floor unit at Treasure at Tampines, and asked for some advice on that particular unit. With over 2,000 condo units, it is also the largest condominium by unit count in Singapore, and a redevelopment of the former Tampines Court HUDC.

Rachel and Suyin, another partner consultant with Stacked, pointed out some red flags that the buyers had missed. This included factors like the proximity of a barbecue pit and high foot traffic around the unit they had shortlisted, since it was also near one of the condo’s side gates.

“After analysing the stack and facing of the unit, we came to the conclusion that the price point of the unit they were considering was rather high. It was a low-floor unit that was near a side gate and BBQ pit, which means there will be footfall throughout the day and night,” says Rachel. She points out that this can be disturbing for some people who prefer a more quiet location.

Cognisant of the buyer’s reluctance to engage a property agent, Rachel still felt that the buyers deserved a detailed price analysis to help them on their property hunt. She did this for them before any formal agreement was in place.

This was a crucial contribution and the buyers recalled later that this helped to establish trust, and demonstrated to them the value of having an agent who prioritised their interests over closing a fast transaction.

As Rachel, Suyin, and the buyers reviewed the list of shortlisted properties, it was pointed out that while resale units at Riverfront Residences were not the most expensive in terms of average transacted prices, the condo has strong locational attributes including proximity to reputable schools and scenic river views.

Situated on a 504,820 sq ft mixed-use site along Hougang Avenue 7, Riverfront Residences is a 99-year leasehold development that was built in 2023. It is one of the newest condos in Hougang, and it has set new price benchmarks in the area.

Analysing the available options 

Throughout their property hunt, the couple made sure to keep the needs of their two young children in mind. Thus, they were also looking for a unit with a layout that would offer them flexibility to cater to the needs of their family in the coming years.

Given the reg flags pointed out by Rachel when they viewed the unit at Treasure at Tampines, and the family’s sensitivity to excessive noise, they preferred a unit with a quieter facing. They eventually found that the unit at Riverfront Residences met several of their requirements.

Developed by Oxley Holdings, Riverfront Residences overlooks Serangoon River and was one of the few new developments in 2018 that boasted a river view. The condo is also close to Hougang MRT station on the North-East Line, and the station will be an interchange on the future Cross Island Line.

The couple eventually settled on a 915 sq ft three-bedroom unit that was listed for approximately $1.685 million, after turning down a 872 sq ft three-bedroom compact unit due to its half-windows which they felt were claustrophobic.

The listed price of the 915 sq ft three-bedder was also within their budget. Experience had taught them that they needed to make a decision soon in order to secure their unit of choice at a reasonable price point.

Specifically, they wanted to purchase the unit before the upcoming integrated development at Hougang Central was launched for sale. That GLS site was awarded earlier this year, and its launch would have uplifted the prices of surrounding condos, including Riverfront Residences.

They also preferred the 915 sq ft three-bedder due to its efficient layout, as the unit’s configuration made it possible to have distinct dining and living zones.

This unit also came with floor-to-ceiling windows in all three bedrooms, which helped to bring in a lot of natural light during the day. The master bedroom has standard separation in relation to the other bedrooms, which divides the home into public and private zones. This layout design appealed to the buyers, since their children would need more privacy as they grow up.

The couple eventually settled on the unit at Riverfront Residences due to the condo’s potential to see further price growth in the coming years, as well as its ability to meet the clients’ criteria for a quiet living environment.

One of the units there that was briefly considered was a lower-floor unit which was priced lower than the three-bedder they picked. But Rachel and Suyin advised them to aim for a pool-facing unit on the 11th floor.

Their rationale was that units on higher floors tend to offer better exit potential, which justifies the slightly higher entry price as a strategic move for the unit’s future price appreciation.

Another consideration was the area’s liveability. While the property was purchased primarily as an investment asset, the couple considered the possibility of staying there in future. The decision was influenced by the condo’s proximity to Holy Innocents’ Primary School, where they hoped to enrol their two children in a few years.

The offer that almost didn’t happen

After the buyers decided on the unit at Riverfront Residences, they decided to engage Rachel and Suyin to proceed with the transaction. As the deal involved a multiple-bid situation with five offers, having experienced agents on their side proved to be pivotal.

In addition, the seller had lease-back requirements between three to six months. This meant that after the sale, they could continue staying at the property until their lease is up. They also wanted the flexibility to break the agreement and move out earlier once their replacement property was ready.

Initially, there was a verbal agreement, but the seller’s agent later tried to re-negotiate the price. Rachel advised the couple not to give in as they were buying at market value and were prepared to fulfill the conditions put forth by the seller. In the end, the buyers took their advice and won the bid without an increase in price, while securing the unit for $1.695 million.

Final thoughts

This case study highlights how much time and effort can be saved when working with professional agents, who can guide their clients to understand the data and balance it with their needs to make an informed decision.

Rachel shares that while there is nothing wrong with self transacting, homeowners may find themselves wasting valuable time and resources. “Working with a professional who is tuned into the market takes the uncertainty and stress away from the process,” she says, adding: “For homeowners, unless they are familiar with price trends and able to perform their own analysis and negotiate well with sellers, a transaction may take a lot longer than expected”.

This case study is based on a recent consultation conducted by Rachel Xu (R006569F) and Suyin Gan (R071075A), property agents and partner property consultants with Stacked. This write-up walks through the key decisions, trade-offs, and market considerations involved, with insights that buyers and sellers may find useful.