I have been following this project and have gone for their VVIP preview 2 weeks back.
I think for most people, they would be buying J gateway for investment. The one and 2 bedders would not have compressed marble or marble flooring. As such, in order for J gateway to have a respectable yield of 3% at least, and assuming a selling price of 780,000 (for the 1 bedder 474 square feet), a one bedder must be rented out for around $2000 a month, or $4.219 per square feet (4.219 *474). Considering that 2 bedders at ascentia sky are renting out on average at $5.19 per square feet, it is subjective if J gateway would be able to fetch this rental price.
Since some of us here feel that at 1650 psf, there is "possibly" little capital appreciation upwards, rental yield or rent would be the area we will be concerned about. The $780,000 does not take into account the normal buyers stamp duty and the ABSD if it is not our first property.
However, if we use Alexis at Queenstown as an example, for similar sized units of around 400 square feet, they are able to rent at around $6.7 psf, which means if J gateway can achieve around 5-6 psf, the rental yield will be respectable. However, it is important to note that in Hillview and bukit batok, the rent psf is around 2-3.50 for larger size units and small units in the west are an untested concept. In addition, as some of you have mentioned, there are many HDBs and condos around at chinese garden/lakeside. If $3000 can get me a 3 bedder (1000 sq feet) there, I would not pay 2.5k to rent a 1 bedder at j gateway.
Considering potential interest rate increases due to FED action and the possibility of an economic downturn, not sure if J gateway is a good project to plunge into. High psf rental are unprecedented in the West and if J gateway can achieve it, it will benefit all in the West. But rentals cannot increase indefinitely. It must be consummerate with current wage levels in the Western part of singapore. the question is whether there will be enough people willing to rent at around 2000 (or more) for a 1 bedder given their wages. Other factors to consider include it being so near to track side and may not be suitable for self stay. The crowds during weekends are tremendous.
For rental investment at 3% gross yield, the net yield (after deducting higher property tax, sinking fund, maintenance fees), will be lower. I am thinking on the side that if I was a potential tenant, I will choose a bigger space, cheaper rent at hillview/bb/lakeside/chinese garden. But of course, some people I agree might want to stay very near the workplace.
In essence, too much uncertainties and I think I will not jump in. However, to those who are buying and win big, then it is good for the west as a whole!
just my 2 cents worth. cheers.