Leedon Green investor review, can an investor make money here?


Background of Project

Built in a wealthy enclave in Farrer Road is Leedon Green – a project by Yanlord and MCL Land – in what is touted as a second Orchard Rd/Tanglin. Leedon Green is nearby Holland Village, which gives you the options for uptown living with its spread of boutique restaurants and fine dining options, grocery shopping at Cold Storage, and in the future to come, enhanced shopping experience with One Holland Village’s completion. 

It also near the “education belt of Bukit Timah” with prestigious schools, and also nearby the GCB enclave of Bukit Timah. For investors, this is particularly attractive as they have directly or indirectly helped to maintain or even prop up the prices of the condos in Farrer Road area for many years.


Leedon Green Condominium Fact Sheet

Property Type: Private Condominium

Tenure: Freehold

Address: 26 – 38 Leedon Heights

TOP: 2023

Site Area: 29,357.36 sqm / 316,000 sqft

Blocks: 7

Units: 638 units

Floors: 12

Developer: MCC Land and Yanlord


Developer’s background info

MCL Land needs no introduction in Singapore. It is a company under Hong Kong’s Jardine Matheson Group, and has shown strong financials for many years, and being backed by a conglomerate. Past developments of MCL Land includes Hallmark Residences, The Estuary and Palms @ Sixth Avenue. 

Yanlord Group, however is a new entrant in the property scene in Singapore. However, it is a veteran in China. It has also invested in projects in Singapore prior to its pioneer project of Leedon Green, notably in UE Bizhub. Yanlord is also listed on SGX. 


Growth areas
Investors and parents would be happy to know that Leedon Green is situated near the “Bukit TImah Education Belt” of National JC, Hwa Chong Institution, Nanyang Girls’ High and Methodist Girls’ School. Within 1km of Leedon Green is Nanyang Primary School and 2km, Raffles Girls’ Primary School.

Leedon Green is also situated near Singapore Botanical Gardens, and this adds on to the landscape that is offered within the area. Hikers will be happy to note that there is an adventure hiking trail planned in the Gallop extension that is currently under construction, together with Forest Discovery Centre, arboretum of rainforest trees, and more.

There is also an uptown vibe with ample recreational hotspots is readily available in nearby Holland Village, with nightlife and mix of franchise, boutique and upscale restaurants to cater and whet your appetite and every choices.

Leedon Green is also 3 minutes away from Empress Road Market and Food Centre, for economical comfort food on days when you need it.
For transportation, Farrer Road MRT is 6 mins walk away, and it takes 15 mins to drive to Orchard Rd/Tanglin and 21 mins drive to Raffles Place, via AYE then CTE. Napier MRT, will also be up, in the future to serve residents in this area. Farrer Road area is also along the North-South Expressway that will be built in the future, making traveling more convenient to the North and South and also to CBD.

Point worthy to note is that condos in Farrer Road typically are in high demand by expats and Caucasians, who are also willing to pay high rental as they could be subsidized in their employment package or fully paid for, or even out of their own pockets. We have noted that condos in this area tend to be minimally at average rental yield across the country for condos, and its not surprising to find even 3% rental yield for 1BR or 2BR in this area.

In addition, there might also be spillover effects from Greater one-North area when more tenants move into the existing bioscience and tech hubs located near NUS and Biopolis, leading to rise in tenant pool, and also upcoming condo launches in the future, from the 2 parcels of land in Slim Barracks that recently got sold in a GLS to Kingsford and EL Development Pte Ltd. These new launch condos might positively impact Leedon Green’s price as a resale condo in the future since their developer breakeven price is already estimated at over 2.5k psf.  

Needless to say, both the planned mixed-use centre at Rochester Park slightly down from Buona Vista and Holland Village Extensions will positively impact the area when it comes to livability and valuation. There is also Holland Plains, where a wetland park, amusement facilities, F&B and shopping options can be found.


Unique Selling Points 

  • Nearby numerous prestigious schools such as Nanyang Pri and Raffles Girls’ Pri (within 1km and 2km respectively)
  • Uptown vibe with numerous dining options in the area and Holland Village
  • Great for people who like to exercise (Singapore Botanical Gardens is nearby) 
  • 3 swimming pools, and ample space in the compound to stroll/exercise
  • Above average rental yield, popular with expats with deep pockets


Price comparison vis-à-vis other new launches


Price comparison vis-à-vis resale condos 


Analysis 

We have done the numbers crunching, and what we found is that Leedon Green is priced at 17 to 34% premium of breakeven prices for the developers. 

Naturally, we ask, is this premium worth it?

Especially when the nearby new launches are priced cheaper than Leedon Green per square feet.

If you are buying not for own-stay but investment purely, you could buy a 1BR unit (which is popular to lease in this area with expats) at The Wilshire for 1.2mil instead of 1.483mil at Leedon Green (for a 2BR as there is no 1BR at Leedon Green). Then, you would have saved 283k for a car, pay other loans, or channel into other investments, while at the same time earn a healthy rental of $2.9k per month (even for 1BR) based on D’leedon’s historical rental data. At 2.9k per month, this is for an above average rental yield of 2.9%. In fact, to top it off, there might even be appreciation from the 1BR 10 years later, as historical data from D’leedon showed that there is 29% increase in price over a period of 10 years. So, if you hold out for 10 years, rent it out continuously, there will be rental income to earn plus a bonus of capital appreciation to earn once you sell it 10 years later. 

However, that is not to say that buying Leedon Green is a poor investment. Based on historical data, 2BR and 3BR units in both D’leedon and Leedon Residences saw price increase from 7% to even 24% over 10 year period. So, while you might be paying a premium now, there is a chance to see appreciation over a mid to long period of time for stay-vestment and own stay buyers.

Based on historical record from 2016-2021, Leedon Residences saw 39 transactions, out of which 32 were profitable and 7 unprofitable. Many saw profits of well above 200k. (82% profitable)

For 99 year lease D’leedon, out of 267 transactions, 224 were profitable (84% profitable).

To summarize, The Wilshire and Hyll on Holland are priced lower psf than Leedon Green, and Hyll on Holland is particularly attractive if you want privacy and the gated community feel. In our opinion, The Wilshire is particularly attractive for investment as it is lower psf and yet likely similar returns to freehold condo Leedon Green. 

Do note that The Wilshire is built on a hill and is a smaller development, but most likely will have better view than the less desirable stacks of Leedon Green. 

We also note that this area is attractive for children of landed owners who want to stay near to parents, HDB upgraders who want a chance at freehold condo for legacy planning and to pass their wealth to their children, landed downsizing since Leedon Green is freehold and for those who want to send their kids to prestigious schools and be near them. 


Exit Strategy 

There are strategies for exit if you own a condo in Farrer Road region:

  • Buy a 1BR unit for investment, collect rental over 10 years, let it appreciate (hopefully) in the 10th year barring economic crises, then cash out.
  • Buy 2BR/3BR for own stay, let it appreciate (hopefully) in 10-20 years, then cash out and downsize or asset switch. 


Contact us

The above is the analysis for Leedon Green, a mega project in district 10.For more information and advice, just contact Home Quarters by going over to www.homequarters.com.sg or send us an email at homequarterssg@gmail.com or visit our social media on YouTube, Facebook and Instagram or call K.C. Ng at 88092889. Remember, for all your real estate needs, call home quarters and start packing!


Normanton Park can buy or cannot buy for investment?


Background of Project

Built upon a large landmass of ~680,000sqft of land, Normanton Park offers a suburban feel in an affluent enclave that is 16 mins walk away from Kent Ridge MRT, in the Queenstown Planning area. When this modern and thoughtfully designed condo was launched, it was the talk of the town due to its sheer size, the number of units (totaling 1862), and its myriad of facilities available that make your maintenance fee worth every cent. 

This is a 99 years leasehold condominium situated in district 5, with 1862 units and 8 commercial shops. The development has anything from 1BR to 5BR to even landed strata houses and the expected TOP date is 2023. We are looking at a mega project of 9 tall blocks with full condominium facilities.

The land is garnered from an En-Bloc or collective sale from the previous owners of the project that is also known as Normanton Park. Kingsford hurray won the close door bid for $830.1 million, and since it’s closed-door, we are unsure of the other bids placed.  In addition, Kingsford also paid an estimated $231.1 million to top up the lease to 99 years and also the fee of about $283.4 million to redevelop the site to the maximum permissible gross floor area.


Normanton Park Condominium Fact Sheet

Property Type: Private Condominium

Tenure: 99 years leasehold wef. 22 July 2019

Address: 1 – 88 Normanton Park

TOP: 2023

Site Area: 61,408.31 sqm / 660,999 sqft

Blocks: 9

Units: 1,862 Residential Units and 8 Commercial Units

Floors: 24

Developer: Kingsford Huray Development Pte. Ltd.


Estimated breakeven price and the developer’s bio

Our estimated breakeven psf ppr is $1516. With an estimated modest 15% margin, it will be $1743psf.

The developer, Kingsford, is no stranger to developing mega projects.

Notably, they have developed Kingsford Hillview Peak that have 512 units and also Kingsford Waterbay with 1165 units.

Even though this is not their first mega project, the Controller of Housing issued a no-sale licence for the project on Jan 15 2019, “as the company had failed to meet the requirements for a sale licence”, according to an Urban Redevelopment Authority (URA) spokesman.

After investigation, it was found that some building works such as windows, barriers and common storey shelter “had deviated from requirements under the Building Control Act and Regulations”.

However, Kingsford was quick to react to this negative news, and brought in a new construction company, China Jingye, which is a subsidiary of MCC Land, to finish construction for Normanton Park. China Jingye is well known for its sustainability efforts and is well received in Northern China, where it was awarded the 2017 Most Influential Responsible Brand of Beijing-Tianjin-Hebei region. In Singapore, China Jingye has won Gold award in “Project Category” and Platinum in “BCA Green Mark” category. Previous projects completed by China Jingye in Singapore includes Queens Peak, The Alps Residences and The Poiz.

Sale licence was finally awarded to Kingsford for Normanton Park by the Comptroller of Housing on 30th Nov 2020 but under the conditions of the sale licence, all units within the condominium must pass the Quality Mark inspection by the Building and Construction Authority (BCA) before being issued the Temporary Occupation Permit (TOP).


Growth potential of project

In the vicinity of Normanton Park, there are other 2 residential plots that are subjected to details planning and also multiple smaller plot of commercial lands across the street along Portsdown Road and One North Ave. This means that URA has plans to further develop the area. However, these developments will not take place in the near future as they are not mentioned in the Master Plan 2019.
That said, taller condos might be built in the future and these might block your otherwise unhindered view when you first move into Normanton Park. Be aware of this point.
In the shorter term, Normanton Park investors can seek to tap on the existing tenant pool found within the One North Region with its development and established companies and institutions. White collars from one-North in the life sciences, tech industries, media industry, start up and even NUS academics will form the tenant pool. With the limited supply around the Buona Vista region, we expect potential long term lease lock in with these groups of tenants. We expect good tenant pool mix and healthy rental rates.
In the medium term, spillover effects from Jurong when Jurong Innovation District, with its first phase of development finish in 2022 (expect some delays), will be positive. This is because Jurong is touted as the “2nd CBD of Singapore”, and so Normanton Park, being just 3-4 MRT stops away, might prove to be a hot place to stay/rent for those working in Jurong.
Looking further ahead, the development down south at Greater Southern Waterfront will come alive post 2040. Together with the Waterfront Promenade and Eco Corridor found south of Normanton Park, we predict this will be positively impact Normanton Park, leading to capital gains at the later stage in about 20-25 years’ time.


Unique Selling Points 

Normanton Park, being a mega development, has a large landscape swimming pool, and a resort-style feel to it that is quite different from other projects in the vicinity. It also has Kent Ridge Park as its backyard for nature lovers that love to stroll along parks, and is also relatively near to Mount Faber for sight-seeing trips on the weekends. 

Kent Ridge Park

However, Normanton Park is not school-going friendly. As there is no primary school to be found within 1km radius. There are only 2 primary schools within 2km, namely Fairfield Methodist Primary School and New Town Primary School. Fairfield being a good school is hard to get in even in the 1km radius, so do not place high hopes on getting into the school if you live in Normanton Park.    


Comparison vis-à-vis new launch in the vicinity

In just less than 8 months of sales since launch, Normanton Park has sold 60% of units till date. The main competitor in the vicinity is Kent Ridge Hill Residences which launched about 2.5 years ago. 1 Bedder at Normanton Park (from 517 to 700sqft) starts from $951k and till date, 51.2% are sold. There is no comparison with Kent Ridge Hill Residences as there is no 1 bedder to be found, making Normanton Park the sole option for those who wish to invest in a 1 bedder in this region.

For 2bedroom, Normanton Park has units from 657-980 sqft, starting from $1.356 mil. Units are selling like hotcakes, with 90.7% of sold till date. Kent Ridge Hill has 2BR for sale from 743 to 797 sqft, starting from $1.465mil, with 95.7% sold.

For 3 bedrooms, 904 to 1249 sqft, starting from $1.561 million and has 34% unit sold. In comparison, 

Kent Ridge Hill has 3BR, 883 to 1076sqft, starting from $1.746mil, with 67% sold.

Lastly, for 4 bedrooms, Normanton Park has units 1195 to 1453sqf starting from $2.111 million with 25% sold, while Kent Ridge Hill has 4BR penthouse units 1518 to 1927sqf starting from $2.748mil with 66% units sold.


Comparison vis-à-vis resale condo in the vicinity

Down at nearby Depot Rd, we have The Interlace (TOP 2013) as a resale comparison with Normanton Park.

Pulling figures from online portals, it is found that:


Exit Strategy

Once one-North is fully developed and Jurong Business District becomes operational, expect positive spillover effects from these urban areas to reinforce Normanton Park’s price by then. Judging from the historical trend of The Interlace and if history repeats itself, then mid-term exit investors can look to gain from the sales of Normanton Park, just like in the case of The Interlace. 

For longer-term exit investors, For the long-term exit investors, bank on the Greater Southern Waterfront to positively impact Normanton Park’s prices. Also, one can hope that government will release the land and developers will bid for the nearby undeveloped residential plots in the future at higher price, thus leading to increase in price for Normanton Park due to the higher valuation of surrounding nearby land from future land sales. This could prove to be healthy capital gains for longer-term investors.


Analysis 

For buyers that are looking to own a new project in the Buona Vista/one-North/Kent Ridge vicinity, either as an investment or own stay that will be ready in the recent future, one can consider getting a unit in Normanton Park, at cheaper psf and absolute price than that of Kent Ridge Hill Residences, or the resale unit in The Interlace, due to The Interlace’s bigger unit size.

If you can wait and are also willing to take the risk of a potentially higher price but for a project that is nearer to the Buona Vista MRT station, there are two land plots upcoming along Slim Barrack Rise just opposite of One-North Eden.


Conclusion

In short, looking at the demand especially for 1BR and 2BR, our subjective view is that Normanton Park can serve as a good investment for growth in the medium term due to the lower absolute price as compared to the new and even resale units in the region. Rental turnover should be healthy given the proximity to the one-North region but you will have much competition from other landlords in Normanton Park for tenants, come TOP. 

For longer term own stay buyer, Normanton Park will be comfortable to stay due to numerous facilities found. And if you like very high floor units, comparing the other condo in the region, only Normanton park have tower blocks that goes up to 24th storey

For the short-term investor looking to flip, we here at Home Quarters advocate and believe that you should at least be able to hold on to an investment unit for the medium term but if market condition is good to sell off in the short-term, you can choose to do so. Looking at short term, we anticipate heightened competition among investor sellers that want to exit quickly considering there are 1150 units of 1 and 2 bedroom in Normanton Park!


Contact us

The above is the analysis for Normanton Park, a mega project in district 5. For more information and advice, just contact Home Quarters by going over to www.homequarters.com.sg or send us an email at homequarterssg@gmail.com or visit our social media on YouTube, Facebook and Instagram or call K.C. Ng at 88092889. Remember, for all your real estate needs, call home quarters and start packing!