Apart from a home’s physical attributes, some other factors we look for when buying a property are location (near MRT stations), safe entry price, and potential upsides.
Out of the factors listed, two very important points in determining a good project to enter are:
Safe entry price & Price gap
Let’s take a look at this freehold new launch Terra Hill as a case study.
Taking a look at 99-year leasehold properties, the benchmark pricing for properties in the OCR and CCR starts from $2,1XX psf and $2,8XX psf respectively. In the case of RCR properties, its average price for a 99-year leasehold is $2,4XX. Considering the fact that a Freehold project like Terra Hill is going for $2,5XX, doesn’t it make sense that it is a safe buy?
Not convinced? Let’s go into more detailed figures:
As we can see from Figure 1, the average price of a 99-year leasehold in RCR for 4Q 2022 is $2,659 psf, and given that Terra Hill is a Freehold development selling below an average price of a 99-year leasehold at $2,5XX – it is quite easy to realise that the price gap makes it absolutely favourable.
Furthermore, in Figure 2, we can see the average price of new launch projects in the RCR with the range going from $2,526 psf to $2,882 psf. This is a bigger reason to determine that the entry price for Terra Hill is sound and makes it a safe buy.
Summary of what makes Terra Hill a great buy in 3 key points:
1) Freehold property at leasehold price
2) Near the MRT station without paying a premium
3) The Price Gap between Freehold & 99 is very narrow, that makes it an attractive entry price.
Still Interested? Contact me to find out more.
DISCLAIMERS: This message, its contents and any files transmitted with it are intended SOLELY for the addressee(s) and may be legally privileged and/or confidential. Access by any other party is unauthorised without the expressed written permission of the sender. If you have received this message in error, you may not copy or use the contents, attachments or information in any way. Please destroy it and contact us immediately via return email or by telephone at (65) 6820 8000. This message has been prepared using information believed by the author to be reliable and accurate, but PropNex makes no warranty as to its accuracy or completeness. PropNex does not accept responsibility for changes made to this message after it was sent.
PropNex Realty Pte Ltd or its salespersons will not be responsible for any errors or omissions or for the results obtained from the use of this information. All information is provided with no guarantee of accuracy. If in doubt, kindly seek appropriate advice from your financial advisors or bankers before you make any property investment decision.