When it comes to investing in a property project, most people want to ensure that they choose an asset that is safe and stable. And rightfully so, as investing in real estate is a significant financial decision that can have a long-term impact on your finances. But how do you determine if an asset is safe and stable?
In this blog post, we will look at three factors to consider when evaluating the safety and stability of an asset.
Let’s take a look at this case study, Blossoms by the Park, an upcoming launch at one-north.
1. Supply versus Demand
When it comes to investing in real estate, one of the key factors to consider is the supply versus demand equation. The balance between the two can determine the potential for growth and stability of a property investment. In the case of Blossoms by the Park, an upcoming launch at one-north, it is clear that the supply of homes in the area is limited, which could translate into high demand for the development.
One-north is a vibrant and dynamic area in Singapore that has emerged as a hub for research and development, technology, and innovation. With several major companies such as Lucas Films, Johnson & Johnson, and Dyson setting up regional offices in the area, one-north has become a hotbed for businesses and talent. The area is home to more than 50,000 workers, all of whom require housing options.
Despite the large workforce present in the area, the supply of homes in the vicinity is fairly limited. Seven developments, including Blossoms by the Park, offer only 4,377 residential units. This clearly shows that there will be high demand for homes in the area, both in terms of rental and ownership.
From an investment perspective, this presents an opportunity for those looking for a safe and stable asset. With limited supply and high demand, Blossoms by the Park could potentially see strong rental yields and capital appreciation over time. This makes it an attractive proposition for investors looking to enter the property market.
Singapore’s efficient public transport system has always been a major selling point for properties in the city-state. Properties located near MRT stations tend to fare better than those further away, with easy access to public transport being a top priority for many buyers and tenants. In the case of Blossoms by the Park, the development is strategically located between two MRT stations, one-north and Buona Vista MRT station, making it an attractive proposition for those looking for convenient transport options.
One-north and Buona Vista MRT stations are just an 8-minute and 5-minute walk away, respectively. This means that residents of Blossoms by the Park will have easy access to both the Circle Line and East-West Line, two of Singapore’s major MRT lines. This will make it convenient for them to travel to various parts of the island for work, leisure, and other activities.
In addition to the MRT stations, the development is also well-connected to major expressways, including the Ayer Rajah Expressway (AYE) and the Pan-Island Expressway (PIE). This makes it easy for residents who prefer to drive to get to their destinations quickly and efficiently.
The strategic location of Blossoms by the Park between two major MRT stations and its accessibility via expressways is a major selling point for the development. It offers residents the convenience of easy access to public transport and the flexibility of driving, making it an attractive proposition for both buyers and tenants.
3. Reputable School
For families with children, one of the most important considerations when choosing a home is its proximity to good schools. Living near reputable schools not only provides convenient access to quality education but can also potentially increase the value of the property. In the case of Blossoms by the Park, the development is within 1km of Fairfield Methodist School, a highly coveted primary school in Singapore.
The proximity of Blossoms by the Park to this reputable school is likely to increase demand for the development among families with school-going children.
When it comes to investing in a property, rental yield is an important consideration for many investors. Rental yield refers to the amount of rental income that a property generates as a percentage of its value. In Singapore, properties located in popular and convenient areas tend to command higher rental yields, and newer developments are often able to fetch higher rents compared to older ones.
Blossoms by the Park, an upcoming launch in one-north, is located in a highly sought-after area with easy access to public transport, reputable schools, and major amenities. This makes it a potentially attractive investment option for those looking for a property with good rental yield.
Looking at similar developments in the area, such as One-North Residences and Stirling Residences, we can see that newer developments tend to fetch higher rental yields. For example, a 1-bedroom unit in One-North Residences, which TOP in 2009, can rent out for as high as $3,850 per month, while a 1-bedroom unit in Stirling Residences, which TOP last year, can fetch rent as high as $4,200 per month.
Considering Blossoms by the Park is a newer development than One-North Residences, it is likely to command a higher rental yield. Additionally, with its strategic location and proximity to major amenities, it is also likely to be in high demand among tenants.
In Singapore, properties located in prime areas with easy access to amenities and public transport tend to have a good track record of appreciation in value over time. In this regard, both One-North Residences and Stirling Residences have demonstrated their potential for profitability despite being launched at different times.
One-North Residences, which TOP-ed more than 10 years ago in 2009, still sees healthy streams of transactions today. Owners have been able to profit as much as $923,060 from their investments in the development. This is likely due to its strategic location in one-north, which is home to many major companies and institutions, as well as its proximity to major amenities and public transport.
Stirling Residences, which was launched in 2018, has also seen impressive profitability in just four years since its launch. Owners have been able to make profits of more than $400,000 from their investments in the development. This is likely due to its strategic location near Queenstown MRT station, as well as its proximity to major amenities such as Anchorpoint Shopping Centre and IKEA Alexandra.
Blossoms by the Park, an upcoming launch in one-north, is also poised to be a potentially profitable investment option for investors. With its strategic location between two MRT stations, its proximity to major amenities and reputable schools, and limited supply of homes in the vicinity, it is likely to be in high demand among homebuyers and investors alike.
In conclusion, both One-North Residences and Stirling Residences have demonstrated their potential for profitability and good rental yield over time, and Blossoms by the Park is also likely to be a potentially profitable investment option for investors and even for those buying for their own stay.
However, it is important to also look at other factors to determine if the unit that you are looking at is a good buy. If you would like an in-depth analysis on the right unit for your needs and goals. Do contact us and we will be happy to share with you more.
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