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!