Six projects recognised for excellence in value creation
By EdgeProp
EdgeProp recognised six projects for value creation excellence at the inaugural EdgeProp Excellence Awards 2017.
Buyer returns were measured either in terms of capital appreciation, the project’s performance in the rental market — determined by rental yields and resiliency — or in terms of connectivity, which served as a proxy for occupancy rate as well as a broad indicator of the sustainability of future financial returns.
Bartley Residences, which was jointly developed by City Developments, Hong Leong Holdings and TID, is located adjacent to Bartley MRT station. The estimated gross rental yield at the project for one-bedroom units are 3.6%, with rents averaging $1,936.
Launched in November 2011, CapitaLand’s Bedok Residences saw 350 units sold out of 583 on its launch day, at an average of $1,350 psf. With direct connection to the Bedok MRT station, the project’s one-bedroom units managed to secure average rents of $2,453, which translated into an approximate gross rental yield of 3.8%.
Centro Residences, which was developed by Far East Organisation, is located near the Ang Mo Kio MRT station. Despite the soft rental market, the average monthly rents for 800 to 900 sq ft units at the project held firm, averaging $3,309 in 1H2016 and $3,306 in 1H2017.
Rents at Frasers Centrepoint Homes and Far East Organisation’s Eight Courtyards were found to be among the most resilient island-wide. In addition, 14 units were sold in the resale market at an average price of $948 psf in 2017, which translates into an estimated capital appreciation of 17%.
Strategically located next to Dhoby Ghaut MRT interchange, Allgreen Properties’ Suites at Orchard saw average rental rates for 500 to 600 sq ft units edge up 1% from $3,927 in 1H2016 to $3,965 in 1H2017.
Developed by Hao Yuan Investment is The Nautical, which is sited next to Sembawang Shopping Centre. In 2017, 18 units at the project were transacted in the resale market at an average of $974 psf, an average capital gain of 11% over the average developer’s sale price of $881 psf.
According to Tan Tiong Cheng, president of Knight Frank Asia Pacific, one of the biggest challenges and opportunities for developers is meeting the expectations of buyers. The projects recognised for excellence in value creation create value for buyers who consider the property an investment, particularly for the long-term. “The awards will spur developers to offer better options to homebuyers and investors,” says Tan.
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