Wolf Money(my property journey part 2 of 3)
(Paya Lebar Central where all the action will be taking place)
My friends had known me for analysing marketable securities for good part of my life. I hope to apply my research skill in the property market. All analysis are base upon reliable data from government agencies and newspaper articles but of course nothing is set in stone as policy do changed over time. Just like our footballing project “World Cup 2010” had been changed to “World Cup 2034”. 😁. There is no certainty things will move according to plan, at least in true Churchillian style “Its sound like a plan” to start with. Having a plan to cater to your property needs is very important. I believe in the motto plan well and live well.
In Singapore property context, there is always a location which I call it the “golden junction” in every town where some landmark development and amenities are located. For e.g Rochor Road and Beach Road Junction(Guoco Midtown), Orchard Road and Scott Road Junction(Ion)and for Paya Lebar area case Sims Avenue and Paya Lebar Road(PLQ) was identified as the golden Junction (circle yellow) given PLQ hub status. As seen in the map, PLQ development occupied two corners of the junction and Simsville which is a very large condo development occupied the other corner. Geylang Lorong 37,39,41 occupied the last corner of that golden junction where most properties are under freehold status. In part 1 of my write up I explained Geylang height restriction and plot ratio.
Simsville is a very nice condo project unfortunately for my family and fortunately for the owners are asking en bloc price for their units. I saw a news article, the whole development is seeking 902m or $1400 psf for en bloc, even thou en bloc was pulled due to cooling measure in Dec, the secondary market is still asking close to en bloc price, I find it a bit rich for my blood but no doubt about it, Simsville remain a very liveable development with full condo facilities. The land size is close to 300,000sqft!
PLQ Park Place Residences are above my budget with selling price averaging psf $2000-2100. PLQ Residences is nice to stay but it does come with hefty price tag. In typical Lone Wolf Investor fashion, wifey and I wouldn’t mind a less glamorous location just across the road, in process saving $1000psf which can amount to more than 1m of saving base on the same size we are eyeing. That leave me with Geylang Lorong 37,39,41 as my potential choice. I am pleasantly surprised by the clean and well structured street at Lorong 41,39,37. Street especially Lorong 41 give me a sense of affluent with its “Duxton like” shophouses. Telecom exchange occupied a big corner at Lorong 41 which can potentially be converted into other usage. Units size at Sims residences at Lorong 39 are all well above 1200sqft. Penthouse are huge at above 1800sqft. Most apartments within the Geylang Lorong are on freehold status with exception of Sims Green,The Alcove and Sims Residences which are on 99 years leasehold.
I have been to varies viewings in Geylang, new launches and resale. There are basically 4 main area in Geylang Lorong(marked 3 yellow zone and 1 red zone). Area surrounding Aljunied Mrt, the red light district(pure commercial zoning highlighted in red),the even Lorong just beside and the odd and upper Lorong just above Sims Avenue. I have marked out the area in green which I think is more suitable for family on a macro basis and on a micro basis personal judgment for e.g on your neighbour, condition of the apartment, layout of units etc are required.
The red light district is marked red zone which may not be suitable for family. Apartments within the red zone are more difficult to get financing, even if you can do financing for the property, interest cost will be higher and loan quantum will be lower plus it is harder to do a quick sell if you decide to move on in short notice. En bloc potential might be limited due to commercial land use only.(would any developer en bloc the apartment and build office building within the red zone?) I don’t know unless the government has intention to uproot the vice away from the area. What is for sure land price around Geylang area and its immediate vicinity is set to rise due to pull factor of the bullish 1.28b Dunman GLS bid at $1350 for 99 years leasehold land(circle blue) which is two junctions away from PLQ, the new launch project is likely to set a new wallet busting benchmark of at least $2200 psf. In the next blog I will talk about my housing search and what should one be looking out for. Stay tune to part 3.
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Disclaimers
All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.
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