If you’re on the hunt for a new abode, you know the drill: excitement and anxiety go hand in hand. On one hand, the options are endless – there are so many beautiful properties out there! On the other hand, with so much choice comes a lot of competition, and making a decision can be tough.
After doing some research and investigating the market, I was intrigued by Sceneca Residence. It’s a new development in Singapore that’s looking to stand out in a crowded market. But what makes Sceneca Residence different from all the other options out there? I decided to take a closer look and see if this development is truly worth considering.
I know you can find a million boring reviews on Google, but I’m here to give you the inside scoop on the Sceneca Residence. I’m gonna bust some myths and give you the straight-up truth that you probably won’t hear from other realtors.
When it comes to buying an investment residential property, there are several important considerations to keep in mind. Whether you’re looking to generate rental income, flip the property, or hold it as a long-term investment, there are certain factors that can affect the success of your investment. In this post, we’ll explore 3 most common misconceptions that buyers should know when buying a unit at Sceneca Residence.
Okay, so when it comes to real estate investments, people often think that condos near an MRT station are guaranteed to go up in value. Convenience is just one factor that affects property values, and there are plenty of other things to consider. However, it’s important to understand the role that inflation plays in property values.
Let’s say you’re thinking about buying a condominium in Singapore with an average inflation rate between 2% to 3% per year. The place you’re looking at costs $300,000.
You’re hoping the price will go up over time, right? (I mean, who wouldn’t?) Well, here’s the thing: due to the inflation rate, the general level of prices for goods and services in the city will be increasing by 3% per year. (I mean, that’s how inflation works.) So the purchasing power of your money will be decreasing by 3% per year too. (When prices rise, your money is worth less.)
Now, over the course of a year, the price of the condominium will increase by 3% due to inflation.
But that doesn’t mean you are being a savvy investor in choosing the right investment property.
Let’s examine this phenomenon by looking at a project performance like Bedok Residences.
Bedok Residence is development located in Bedok. Similar to Sceneca Residences, it is a development that offers a mix of residential and commercial spaces.
Bedok Residence’s close proximity to the MRT station is one of its unique selling points because it offers residents easy and convenient access to the rest of Singapore.
By being close to an MRT station, residents of Bedok Residence have the opportunity to save on transportation costs, travel time and have more flexibility on their travel schedule.
This makes buying into Bedok Residence so much more attractive.
But how is the project performing since it’s inception?
Since its debut in 2013, this project has been on a real winning streak. Appreciation of 20% from launch to 2022? Not too shabby, if I do say so myself. But let’s not get too excited – that’s only 2.2% per year. Which is pretty much on par with the inflation rate in Singapore over the last decade. And that’s why they say, just because a project is located near an MRT station, doesn’t mean it’s a surefire investment.
A mixed-use development mixed-use development in Singapore is a property that combines multiple uses, such as residential, commercial, and leisure, into one cohesive development. The goal of a mixed-use development is to create a self-sustaining community that provides residents with a range of amenities and conveniences within a short distance.
However, it is important to consider the shopping experience of these types of developments. Why do I say that?
The management of commercial tenants in a mixed-use development is typically the responsibility of the property owner or developer, or the organization that they have appointed to manage the property. In the case of a privately-owned mixed-use development, the property owner typically appoints a property management company or an in-house property management team to handle the day-to-day management and leasing of commercial tenants.
In such a case, the shopping experience is largely in the hands of the developer, which means it may or may not reflect the residents’ needs.
When you’re considering buying a residential development, the prices of competing nearby resale residential units can affect your margin of safety margin of safety.
So what is margin of safety when it comes to property purchases?
It’s the difference between the value of the property and the price at which you’re buying it. So if the prices of nearby resale units are relatively high, it might mean that the market value of the residential development you’re looking at is also high. In that case, your margin of safety might be lower, because you’d be paying closer to the market value.
On the other hand, if the prices of nearby resale units are relatively low, it might mean that the market value of the residential development you’re looking at is also low. In that case, your margin of safety would be higher, because you’d be paying below the market value.
It’s important to think about the prices of nearby resale units when you’re evaluating the margin of safety of a residential development. This can help you make a more informed decision about whether the property is a good value and whether it’s a sound investment with a reasonable level of risk.
When considering the purchase of Sceneca Residence, it’s a good idea to think about the questions a savvy buyer would do and ask. Asking these questions is important for ensuring that you are making the right property investment, as it helps you understand the value of the property and whether it is a good deal.
Here are a few questions to get you started.
When you’re thinking about buying a new condo in Singapore, it’s always a good idea to check out what similar properties in the area are selling for. This can give you an idea of the current market conditions and what you can expect when it comes to the value of the new condo. For instance, if the prices of the resale condos are high in that area, it’s likely that the new condo will also be a good investment. However, if the prices of the resale condos are lower, it might be an indication that the market in that area is not as strong. Having a good understanding of the current market can help you make a more informed decision when it comes to buying a new condo.
Whether or not it’s worth paying a premium price for a condo near an MRT station in Singapore is a tricky question, kind of like trying to decide if wearing Crocs is fashionable or not. On one hand, being near a MRT station is like a golden ticket to the land of convenience and accessibility, as it makes getting around the island a breeze. Plus, it can also make your condo more attractive to renters and buyers, which can result in higher rental yields or a better resale value.
On the other hand, it’s important to remember that a premium price doesn’t always guarantee a premium product. You’ll want to consider other factors such as the unit size, condition of the condo, amenities and location. And, you should also consider if the premium price you are paying will give you a good return on your investment in the long run. In other words, you don’t want to be the person who paid top dollar for a condo near an MRT station and ended up with a unit smaller than a shoebox.
It is smart for property developers to price their properties based on the current economic conditions in Singapore. This can ensure that the properties sell at prices that match the market. If a developer prices a property too high during a tough economic time, it may not sell quickly or at all, and also contributing to the added risk of forfeiting their ABSD fees paid.
On the other hand, if they price it too low during a good economic time, they could be missing out on potential profits. Pricing properties correctly can also help keep the market stable and prevent housing bubbles from forming.
If developers price their properties fairly and appropriately, it can help maintain public trust and confidence in the property market. This can encourage buyers and investors to continue investing in the market, which is beneficial for both developers and the economy.
As a realtor working in a continuously changing economic landscape, it is increasingly important to advise my clients beyond transactions. Every client’s financial situation is unique, there is no one size fits all solution for every case. As a realtor myself, my job goes beyond transactions, it is important to go beyond my duties and assist my clients to seek the best outcome possible beyond property-related matters.
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Tan Hong Jie, Huttons Asia Pte Ltd
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