Penrose was the Star of September- new project by Hong Leong & CDL which sold over 60% of its stock on launch day of 26 September.
It pretty much woke many people up when September ended.
Singapore property market is alive and kicking despite the pandemic.
Penrose has generated strong hype months before its launch date. Primarily because of its centralised location and its prevailing land cost of $732 per square foot per plot ratio (psf ppr).
Is $732 psf ppr land cost low?
For comparison, Allgreen secured a land plot at Pasir Ris at $648 psf ppr.
That is slightly less than $100 psf difference between a suburb Pasir Ris location and city fringe Aljunied.
(Worth noting that the Pasir Ris project is an integrated project next to MRT station, which tend to command higher price).
Allgreen likely to market their project at around +- $1,4xx psf, in line with current projects in suburb area and still lower than its closest competitor, integrated project on top of Buangkok MRT, Sengkang Grand Residence’s price.
Currently the selling price difference between suburb / Outside Central Region (OCR) and city fringe / Rest of Central Region (RCR) properties is at least $300++ psf.
So technically speaking, the market rate price for Penrose should be $1,700-1800 psf. Anything below this price presents good opportunity for home buyers.
As such, it explains why buyers snapped up Penrose’s expressway (PIE) facing units which was priced attractively at $1,4xx- 1,5xx psf.
The smaller inside facing units which were priced at $1,6xx – 1,7xx psf were sold out too.
This shows that most likely the majority of the buyers are either
1) investors who prioritise price factor above all else, or
2) younger home seekers who are more open to compact size units.
As of now, the only units remain unsold mostly are 3 and 4 bedroom units with inside facing. (Price and unit details correct as of Oct 2020)
Are there still good buys here?
Let’s take three bedroom units for our case study.
Here’s our criteria for apple to apple comparison:
1) City fringe location (Penrose is 4 MRT away from City Hall MRT station)
2) Near MRT (Penrose is 600 m away from MRT)
3) At least 900 sqft 3 bedroom unit
4) Below $1.7m quantum
5) No objectionable facing such as road noises, west sun or bin station etc (our Penrose 3 bedroom in this study is facing inside facilities)
Can we find similar or better alternative condo?
A quick search shows that there are a few projects that are close in some aspects:
Verdale – New launch at Upper Bukit Timah area. Another good project which is 49% sold as of today.
Verdale’s location is arguably more upscale, surrounded by private condos and landed houses.
Where Penrose wins is its proximity to MRT and to downtown compares to Verdale. And for the same price we can only get road facing units in Verdale.
Kent Ridge Residence – another popular project within close walking distance to Pasir Panjang MRT. Equally near to CBD area.
Nicely surrounded by greenery with Kent Ridge Hill right behind you and private residential around you, this project may suit some buyers more than Penrose does.
However Penrose scores in price department. Kent Ridge’s cheapest 3 bedrooms are $1.69m 2nd floor units (+- $1770 psf). With $20k+ top up, you can get 1,055 sqft pool facing, three bedroom with store and utility room in Penrose.
Parc Esta – possibly the project with most similarity to Penrose. They are 2 MRT stations away. In most aspects, Parc Esta is as good or better than Penrose.
The one thing Penrose is better at is price value. For similar price, the available 3 bedroom units in Parc Esta are low floor road facing units.
CONCLUSION
There are ‘better’ residential area than Aljunied. But what is apparent here is that there is no other project now that offers better value for money and convenience than Penrose does.
The closest to Penrose, price-wise, I believe is Verdale.
What buyers need to consider though is the relatively far distance to MRT and present supply of new projects at Upper Bukit Timah (Linq, Forrett, Daintree, Midwood, the list goes on..)
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