Got our number called about 1pm. Went in for a unit. PLQ has met their objective which is to release only 40% at this phase but response and unit take up is higher than expected. They may likely position this as 'phase 1 100% sold' to anticipate phase 2 price adjustments later part of this year. They should have sold about close to 50-60% of the total of 400plus units.
Marketing talk aside, I stand by the micro location of this D14(it's always an underdog to me) due to its future development potential and the high tenant potential against massive Grade A offices within covered walking distance.
Like all of you here, property is an investment and will contain risks. But if you can see what others do not and believe in the fundamentals. It is a matter of timing your risk against future benefits. There's a lot of talk but not many will really take the plunge. It takes some faith too.
Ps. The earth day moment coincided with those waiting in the dark for their OTP. That's really funny! Have a good day everyone. Those who bought this place, hope to see you there in this mega development.
2 cents,
Propvestor
Congrats, don't ask the blind what they see, ask what you see instead.
Paya Lebar Quarter - https://www.facebook.com/groups/1060930934012764/
Yah seems like I have taken Tanjong Pagar to be CCR.
But actually its really confusing because it is in district 4 which based on some indices calculation is central.
http://www.straitstimes.com/singapor...ckfire-experts
"Chief executive of International Property Advisor Ku Swee Yong feels that public housing subsidised by taxpayers should not be built on expensive, prime land. "We can begin by rezoning all HDB sites in the core central region (CCR) as private residential sites," he said, citing the HDB blocks in Tanjong Pagar Plaza.
He added: "The higher land value for residential sites in the CCR will return more cash into our national reserves when private developers pay for these sites.
"Such a move will also reduce the burden on taxpayers subsidising 'lottery flats' and creating millionaires of subsidised home owners.""
https://spring.ura.gov.sg/lad/ore/login/map_ocr.pdf
But the most important takeaway is it is indeed confusing. How about the segmentation of HDBs that are RCR versus OCR??? Is it real or meaningful?
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Its out today on both Business Times and Yahoo Finance.
https://sg.finance.yahoo.com/news/ha...080500314.html
http://www.businesstimes.com.sg/real...ces-snapped-up
Yes, good observation on the breakeven point. They have also likely recouped their costs from the residential development after paying $900+ psf overall during the bidding if you take 40% development costs benchmark. There is no real hurry now to sell the remaining units. Its easier to report such optimistic (50% sales Phase 1 launch day) figures for their LandLease commercial team who are looking for tenants going into Grade A offices. I will put the price close to Duo Tower going for $8psf, both Grade A, big floor plates and next to MRT Interchanges.
Thats one of the true advantage of buying into a 3-in-1 S$3.2billion mixed development, the developer can play with commercial and residential costs-profits. For owners, its a risk spread because you are really buying into the entire real estate. Residential to recoup costs quickly, use those monies to fund commercial-retail building costs which are really for long term profits through rents. There will be more of such developments in future, investors just need to tune in but prepare to pay future prices.
For Phase II, it will be for those who want to see something being announced before they buy into it. For example, if LandLease announced high tenancy or a MNC taking multiple floors or government announcing something in the pipeline for Paya Lebar Central Region (its in the URA Master Plan anyway so its a matter of time).
40% launch units is a carefully devised plan during such weak times. No reason for them to put 2 full page ads on Saturday if they plan to sell 100% of the units. This is opposable thinking as developers will not hold back 100% release today. Saturday ballot tent already exceeded 1,000 hopefuls.
Over a certain threshold of psf in this area will push back investors as I can see from the fence sitters inside the 'Thinking Box' busy pressing their calculators. I put this figure at $2,000psf for 1-BR in PPR which will put on some brakes. Who would have thought this is once a big swampland circa 1820-1830s asking for such a price today.
2 cents,
PropVestor
Usually i saw on newspaper the estimated break event point is around 500 above land price? And add 200 for profit. So expecting min of 1600+ psf selling price
It depends if landlease can create a real value on it. I guess it depends on how successfull the office and retail, who renting the grade A office thus potential tenants to pay the high residential rental price there.
The closest- though not the same integrated concept is One North and Metropolis in Buona Vista . Maybe PLQ rental will be higher because of the integrated hub concept?
Thanks. Investment.
By the proportion of units, they gear it slightly more for investors since it's a blue commercial site to begin with. Hope your friend is happy with her purchase. My congrats to her.
IMHO, the road traffic there needs some rework therefore I will not stay there. There is not much to look at hence we bought the pool facing, 13th floor unit.
2 cents,
PropVestor
Only time can tell.
I personally not bullish on this development considering there are many residential options around, with monthly rent of 3000+ you can easily get 2-3 bedrooms larger units in quieter area. Whenever most condos around have much lower rents, it take more efforts to gain decent yield.
Also with such compact size units (474/484 sqft for 1 bedroom, plus large balcony/ledge, narrow doorway in few types) you won't feel comfortable for long stay, so expect the high turnaround of tenants who just interested to try it once. IMO the ideal 1 bedroom should be 500-600 sqft (e.g. Katong Regency, City Light, Icon, etc).
Though i think Park Place probably has the best condo facilities within radius of 1 KM.
I think you are right. $3,500 can get you pretty spacious units around. There are plenty of condos in the D15 Tanjong Katong area. But I disagree that PLQ has the best condo facilities around. It does not have parking space allocated for tenants which needs to be balloted. Yes, we read the fine prints. Also, there is only a pool and nothing else that really stands out. Trampoline park? Really?
However, I won't argue that the train station is just next door and a 200 lot shopping mall is a stone throw away with 11 screen cineplex. Those who like integrated living will like it. I don't. I prefer the peace and quiet along Meyer Road(minus the TEL mrt construction).. I just hope our future tenants will like it.
Looking ahead, as developers maximizes land use and plot ratio increases, mixed development will become more common for investors to invest. Duo is a 4 in one which is pretty rare. This is 3 in one. There will be plenty of 2 in 1 in the future where we are begginng to see now..
Self stay or invest. It's a day and night choice. As investors, we need to make sure we put every dollar to work hard for us per psf. Working up vertically from basement, to ground level and 30th storey; this single psf could change in so many uses. That to me is making that dollar per psf work really hard.
2 cents,
Propvestor
Payar Lebar that area is a terrible traffic nightmare........
Won't be surprise you will get many ERP gantries there in near future (since that is their only ultimate strategy and solution to managing traffic in Singapore)............
With the high bid prices developers are paying for the land since 2011, all developers are building enough shoe box units and more compact sizes unit in order to be inline with URA guidelines on restricting the number of shoe box units in each development. Thousands of these compact size units and shoe box units targeting investors are coming on stream the next few years with more developers building them over the next many years. The leasing market is going to be very challenging and investors may find themselves paying so much for these units when falling rental simply cannot support the price. Tenants have choices and these non-livable compact unit and shoe box will be greatly hit.
Thank you! With its location (2 mrt lines), offices, it is not difficult to rent it out in future. Do you mean that buyer will get parking lot via balloting? When?
Congestion and lack of parking are valid. But lack of demand or mismatch, the trend and current data does not support it.
Govt restricts the number allowed so in the future, there will be lesser of these units than what we have currently.
Jurong Gateway Condo has also proven that there is good demand for this especially if amenities are within reach, and this is in line with major cities worldwide.
It may be hard to cook much food in shoebox apartments, but this is a plus for owners I feel.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Actually, the number of parking lots versus number of PPR units is a mismatched and its deliberate. They want it to be a car-lite area. There is even a car sharing scheme set aside to PLQ to alleviate transportation (for those who insist on cars and not MRT). Duo also has insufficient car lots for owners, so you got to bid for it too.
I seriously do not encourage driving in Paya Lebar Central unless you are going there to run quick errands or better still, collect rent.
On a side note, more news on Paya Lebar Central today! SingPost Centre building will be managed by CapitaLand Mall. More supermarkets, cinemas, shops (e-commerce ones too) and eateries to rejuvenate this area. Based on my calculation, it is about 3 mins walk from PLQ offices and mall. PPR residents will be about 5 mins walk away. Combined it is about 70% GFA of Suntec City Mall (888,000 sq ft): 269,000 sq ft for SingPost Mall plus 340,000 sq ft for PLQ Mall entertainment space. This mall will be opened later part of 2017.
http://www.straitstimes.com/business...ingpost-centre
The real tipping point will be a 'specialised' commercial area or zone not found anywhere in Singapore which may be built there. Based on the land size around SingPost Mall area, it is primed for such a development. For example, Biopolis at One North. I am also hoping a hotel will be built there soon. This is mentioned by Tan Chuan Jin during PL Square opening.
Lets see what else will be announced in this up and coming area.
2 cents,
PropVestor