A look into Bidadari Estate’s Resale Condo – Part 3: Potong Pasir Cluster
This is a 3-part series where we explore Bartley, Woodleigh and Potong Pasir Clusters to see if the private resale condos are worth considering.
In the first part of this series, we discussed about the Bidadari Transformation, the Bidadari Wealth Effect and had a look at the Bartley Cluster. In the second part of this series, we discussed about the Woodleigh Cluster.
In the next and final part of this series, we dive deep into the Potong Pasir Cluster.
A. The Potong Pasir Cluster
The cluster has a mix of HDB, Condo and Landed homes. For those who drive, the cluster is close to the expressway. During peak hours, the traffic in the area is usually heavy and will require patience navigating your way home. If you don’t drive, then the MRT is really convenient to almost anywhere in Singapore since Potong Pasir is located in a central location.
For property buyers who prefer a quiet environment, Potong Pasir may not be the best choice. If you enjoy being in the middle of hustle and bustle, look no further, this cluster could be a perfect choice.
The cluster will benefit from having even more dining options with the development of the Bidadari Estate. This area will likely remain a popular expat rental cluster due to its proximity to CBD and Orchard. Rental rates continue to be affordable for expat tenants
B. Are the resale properties undervalued?
There are 21 private residential apartments and condominiums in the Potong Pasir Cluster, in this research, we will only look at 5 of the larger, popular developments.
- The Poiz Residences
- The Venue Residence
- Sennett Residence
- Sant Ritz
- Nin Residence
There are 3 new private condominium that has been launched
- The Tre Ver (99yr)
- The Addition (FH)
- Myra (FH)
Below are the prices of the resale and new properties in the Potong Pasir Cluster:
In the price analysis, we will focus on three metrics.
- PSF/Year which is taking the average price psf divided by the remaining lease
- Rental Yield which is taking the annual expected rent divided by the property price
- Price difference to New which is taking the difference between the resale and new properties in the area
Base on the PSF/year analysis, the most expensive properties are The Poiz Residences and Sennett Residences at 17.56 and 16.67 respectively. As The Poiz Residences is the newest development in the cluster and also a mixed development, naturally there will be a premium, however Sennett Residences seems to be priced above market. Purely based on a PSF/year, Nin Residences, Sant Ritz and The Venue Residences have similar PSF/year values of between 14 to 15.
As Rental Yield for all five properties are similar, we will have to look at other factors to determine which of the properties are a better choice.
We look at the price difference to new numbers in image 4 above, which is benchmark to the adjusted price psf of Myra ($1890psf). Nin Residences, Sant Ritz and Venue Residences have a 40% or higher difference in price. A gap of 40% or higher is a sizable gap as the average New to Resale price gap for District 13 has been about 23%.
This means that based on the New to Resale price gap, the three developments mentioned above that has a price gap of 40% or higher are attractive and more analysis should be done on the developments to determine if they are worth looking at. The current premium on Sennett Residence shows current demand in the property, should the premium be revise downwards, the property can be a good option.
C. How are the layouts like?
Notes: In general, only the common floorplans will be used for this comparison exercise. For Sant Ritz, only tower block layouts are included.
1-Bedroom Layout Comparison
Nin Residence, Sennett Residences and The Venue Residences have the most open floorplan, which gives you a greater sense of space. This is because the moment you enter the unit, you will be able to see the living area instead of having a small corridor to walk through, like the layout for Poiz Residences.
If you prefer to have storage space, the layout at Nin Residence and Sant Ritz will be suitable, as there is a bomb shelter and study respectively for the units and the space can be used as a store.
2-Bedroom Layout Comparison
The 2 bedroom layout at Nin Residences has an enclosed kitchen which is most suited for own use if you love to cook, while the other development’s layouts feature open concept kitchens.
Sennett Residences has an efficient dumbbell layout except for the large balcony which stretches from the living to the master bedroom. The unit is suitable for buyers who like a larger balcony and will fully utilise the space.
The Venue Residence’s dumbbell layout is less efficient due to the long walkway to the living area and some wasted space just outside the common bathroom on the left.
Both Poiz Residences and Sant Ritz has similar layouts which features an open concept kitchen tucked in one corner of the living room, which allows you the feel spacious in the living and dining area. If you are sure that an open concept kitchen is suitable for your needs, these 2 layouts are good choices.
3-Bedroom Layout Comparison
The layout for Sennett Residences comes with an open concept kitchen, which may not be a preferred choice for the profile of 3 bedroom buyers in the area as we would assume that buyers are mainly families and will utilise the kitchen for cooking more.
Poiz Residence and Nin Residences has the most efficient layout with minimum wastage of space. All the bedrooms for both developments can fit queen size beds. Both have places for storage and have enclosed kitchens.
4-Bedroom Layout Comparison
Poiz Residences has the better layouts of all the 3 condos. It has a balance of everything that is needed in a 4 bedroom family home. A wet and dry kitchen, utility room, walk-in wardrobe and good sized bedrooms. The long balcony is also great for outdoor dining as an extension of the indoor living and dining area.
The layout for Sennett Residences has some wastage of space with an entrance corridor before arriving at the living area, while the kitchen and yard area does not have an efficient use of space.
The layout for Venue Residences feels more compact with the living area not as “wide” as both Poiz and Sennett’s layout. Some home buyers may feel that the units are not as brightly lit.
D. Are private properties in Potong Pasir cluster worth considering?
Three out of the five properties analysed has a sizable price gap as compared to the new launch in the area and are definitely worth considering. Nin Residence currently offers the most value if you find the layout suitable for your needs, however at time of writing, there is a mismatch between listing prices and transacted prices. As such, buyers will need to sieve out the units that are more negotiable.
In general, the cluster has more units that have inefficient layouts which may affect future resale value. This means buyers will have to take time to research and select better layouts. The better units may appear on the market often and if these units are listed on the market, the market usually snaps up the unit. As such, buyers for the cluster will need to exercise patience and make quick decisions when a good unit is on the market.
E. What are the possible exit plans?
For smaller units
Homeowners who own or purchase 1 bedroom and compact 2 bedroom types are likely to find it challenging to sell their smaller units in the future as there are more upcoming small units on the market over the next 5 years. Units that are scarce and have unique selling points will perform better.
For larger units
For larger 2 bedroom, 3 bedrooms and 4 bedroom, homeowners can potentially sell their units to HDB upgraders from the Bidadari and Boon Keng estates about 7 to 8 years from now. The strategy for owners of larger units in the Potong Pasir cluster is similar to the ones for Woodleigh as there may be some spill over buyers who look at properties in either Potong Pasir or Bartley.
As always, the decision to buy a property depends on your objectives. It is important to identify your needs and requirements in the coming years in order to make a good decision.
If you would like to discuss further about our articles or would like our views, feel free to reach out to us and we will be happy to have a chat.
Notes: The title image is of The Tre Ver, image source is from MCC Land, no copyright infringements were intended.