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Thread: City Fringe or Suburban for Rentals?

  1. #1
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    Default City Fringe or Suburban for Rentals?

    Hi folks,

    If you are looking to buy a unit and rent out for rental income, which will you prefer? Looking at new developments only.

    1) A 1 to 2 bedder in Geylang area, FH, going between 600k+ to 700k+. Examples like Prime Residence, Central Imperial, etc.

    2) A 2 bedder mass market condo at Seng Kang, Punggol, Pasir Ris, etc. Usually in the region of 700k+ to 900k.

    Will it be easier to get tenants in Geylang area? Especially if it is on the verge and not deep in the red area? I see many small developments there and mostly also quite near to MRT...and also only few stations to town. Very convenient.

    In contrast, many mass market developments are large with few 100 units. And may need to also compete with HDBs for rentals? Only plus point is the unit can be considered for own stay.

    thanks for your comments

  2. #2
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    Personally, i would avoid the above for rental.

  3. #3
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    Quote Originally Posted by Rosy
    Personally, i would avoid the above for rental.
    care to share the reason?

  4. #4
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    Quote Originally Posted by bonestock
    Hi folks,

    If you are looking to buy a unit and rent out for rental income, which will you prefer? Looking at new developments only.

    1) A 1 to 2 bedder in Geylang area, FH, going between 600k+ to 700k+. Examples like Prime Residence, Central Imperial, etc.

    2) A 2 bedder mass market condo at Seng Kang, Punggol, Pasir Ris, etc. Usually in the region of 700k+ to 900k.

    Will it be easier to get tenants in Geylang area? Especially if it is on the verge and not deep in the red area? I see many small developments there and mostly also quite near to MRT...and also only few stations to town. Very convenient.

    In contrast, many mass market developments are large with few 100 units. And may need to also compete with HDBs for rentals? Only plus point is the unit can be considered for own stay.

    thanks for your comments
    Get a shoebox in CCR, between 800-900k. Rental yield easily 4-5%

    Freehold, supply cut duty to new ruling. U go figure out.

  5. #5
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    Quote Originally Posted by leesg123
    Get a shoebox in CCR, between 800-900k. Rental yield easily 4-5%

    Freehold, supply cut duty to new ruling. U go figure out.
    Sorry, what is supply cut duty? I googled but couldn't find its meaning. thanks

  6. #6
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    Quote Originally Posted by bonestock
    Sorry, what is supply cut duty? I googled but couldn't find its meaning. thanks
    Ps, typo. Supply cut due to...

    URA new formula for developer means no more worth while for developer to develop shoebox. So shoebox in sg will be limited in number liao.

  7. #7
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    Quote Originally Posted by leesg123
    Ps, typo. Supply cut due to...

    URA new formula for developer means no more worth while for developer to develop shoebox. So shoebox in sg will be limited in number liao.
    I see, so for that reason it is a plus to consider a shoebox.

  8. #8
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    Can be anywhere but must be beside mrt and mall with sheltered walkway.

  9. #9
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    Quote Originally Posted by bonestock
    I see, so for that reason it is a plus to consider a shoebox.
    Got different sch of thoughts. Some hate shoebox and feel is inhumane. But personally having stayed in one for a few years, it has its own market. Single or coiple is fine. Get at least 350sqft above with a proper bedroom. Location is important. simple rule of thumb is look around if there are hotels or service apartments in the vicinity. If yes, that is a good location to consider. Rule of thumb, if a hotel room charges $200 per day and you rent your one bedder shoebox for $3000 per mth, would it be attractive to companies to house their single expat? Usually a place with many hotels or service apartment should have respectable malls and good transport nearby too.

  10. #10
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    Quote Originally Posted by leesg123
    Got different sch of thoughts. Some hate shoebox and feel is inhumane. But personally having stayed in one for a few years, it has its own market. Single or coiple is fine. Get at least 350sqft above with a proper bedroom. Location is important. simple rule of thumb is look around if there are hotels or service apartments in the vicinity. If yes, that is a good location to consider. Rule of thumb, if a hotel room charges $200 per day and you rent your one bedder shoebox for $3000 per mth, would it be attractive to companies to house their single expat? Usually a place with many hotels or service apartment should have respectable malls and good transport nearby too.
    I see. Thank you for all comments. I was previously hesitant in getting a unit near to budget hotels as I thought there will be sleazy activities that tenants would avoid. So this is new another good reason to get a unit in GL.

  11. #11
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    buy 2 bedders at suburbans near MRT (~400m) on the East-West line.

  12. #12
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    Quote Originally Posted by bonestock
    I see. Thank you for all comments. I was previously hesitant in getting a unit near to budget hotels as I thought there will be sleazy activities that tenants would avoid. So this is new another good reason to get a unit in GL.
    oh wdf.. big diff! Buy condo beside budget hotel vs buy condo beside business hotels. If u dun know how hotel operation works mai anyhow HOOT!

  13. #13
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    Quote Originally Posted by bonestock
    I see. Thank you for all comments. I was previously hesitant in getting a unit near to budget hotels as I thought there will be sleazy activities that tenants would avoid. So this is new another good reason to get a unit in GL.
    ah, near to budget hotel is another different story. budge hotel in balestier vs budget hotel in geylang are different leh. so need to open your eyes.

  14. #14
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    Quote Originally Posted by Allthepies
    buy 2 bedders at suburbans near MRT (~400m) on the East-West line.
    2 bedders is good too. ultimately, every housing format has its pool of tenants.

  15. #15
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    Quote Originally Posted by bonestock
    I see. Thank you for all comments. I was previously hesitant in getting a unit near to budget hotels as I thought there will be sleazy activities that tenants would avoid. So this is new another good reason to get a unit in GL.
    GL hotels are like 70 bucks a night so one month ~ $2100 only. Maybe block book long term got discount somemore. Plus no need to do your own housework everyday got housekeeping and security.

    No pool no gym no carpark, no kitchen and no allow pets and orgies only.

    Hmm maybe for the above people will pay 500 more. Possible.

  16. #16
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    Quote Originally Posted by dtrax
    oh wdf.. big diff! Buy condo beside budget hotel vs buy condo beside business hotels. If u dun know how hotel operation works mai anyhow HOOT!
    I was asking about units in geylang and I thought most if not all hotels there are budget hotels

  17. #17
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    Quote Originally Posted by leesg123
    ah, near to budget hotel is another different story. budge hotel in balestier vs budget hotel in geylang are different leh. so need to open your eyes.
    I see. Sorry misinterpreted your earlier advice. Cos I was asking about Geylang condo and thought you were referring to hotels there. apologies.

  18. #18
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    Quote Originally Posted by leesg123
    2 bedders is good too. ultimately, every housing format has its pool of tenants.
    besides geylang, I was also looking at mass market condos in punggol, sengkang or pasir ris. Yes, I was only looking at 2 bedders. My agent told me may have challenges getting tenants as there are many condo projects in these town and also have to compete with HDB'ers. true?

  19. #19
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    Quote Originally Posted by mcmlxxvi
    GL hotels are like 70 bucks a night so one month ~ $2100 only. Maybe block book long term got discount somemore. Plus no need to do your own housework everyday got housekeeping and security.

    No pool no gym no carpark, no kitchen and no allow pets and orgies only.

    Hmm maybe for the above people will pay 500 more. Possible.
    I see. Makes sense. Thanks for advice

  20. #20
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    Hi Bonestock, ultimately it depend on your investment objective. i believe the geylang potential, just look at balestir now. It used to be sleazy in the past but i proximity to NOVENA area eventually prevail where the economical factor push the sleazy business out although one might argue some of it still exist until today but look at the capital appreciation of the private apartment there.

    I believe now all it take i a huge development in Geylang to clean up the streets. This will come one day when we host a major event at the New National Stadium. No country want it red district to be close to its National Stadium right? Just look at Beijing history during the Olympic where most of the red light district was forced to closed down or move to the outskirt.

    I still believe in the Geylang potential as a rental haven due to it proximity to Paya Lebar and CBD.

  21. #21
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    Geylang is definitely nearer than balestier to CBD
    Freehold means next time when Marina bay business district opens mean your kids will benefit. See long term.

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