Comparing Sengkang Grand Residences

Disclaimer: This article is merely providing an opinion and not an advice to buy or not to buy.

The one question I have in mind as the launch of Sengkang Grand Residence approaches is how much upside will it have?

Should we jump straight into it just because it is an Integrated project?

I did some comparisons and try to find some clues on why some Integrated Projects are more profitable than others.

The market is expecting developer to launch this project around $1600psf to $1800psf. Therefore in this article, I shall assume this to be the launched price.

In the market, there are a few popular Integrated projects such as;

  • The Centris (Jurong)
  • North Park Residences (Yishun)
  • Hillion Residences (Bukit Panjang)
  • Watertown (Punggol)

Let’s take a look at their location and profit margins of the above projects.

PLEASE DO NOT JUMP INTO ANY BUYING DECISION AT THIS POINT!!!

THE PROFITS OF VARIOUS INTEGRATED PROJECTS I AM SHOWING IS FOR COMPARISON PURPOSES ONLY!

The Centris (Jurong)

If you look at the map above, you will notice that there is no other Condominium around it.

In other words, if a buyer wants the convenience of The Centris, they have got no other alternative options.

This I feel together with the enhancement of Jurong Point causes The Centris to be the most profitable Integrated project in Singapore.

Price of The Centris more than doubled from $500psf to $1200psf.

Here’s the Top 20 most profitable transaction.

Moving on I would like to see if this success will be repeated for SGR. But before that, I would like to bring you through the rest of the Integrated projects first.

Hillion Residences (Bukit Panjang)

Hillion Residences is a very new project, completed in 2017.

You will notice that contrary to The Centris, there are a few other condominiums around it. Namely, The Tennery, Maysprings and The Linear. This, in my opinion will probably means that a buyer who wants the convenience of Hillion Residences can probably consider a condo around it shoud the price gap become too wide.

Will this has a dampen effect on the price of Hillion Residences? Let’s take a look at the profit. 

Looking at the profits, Hillion Residences performance is significantly lower than The Centris.

North Park Residences (Yishun)

This again is a relatively new project, completed in 2018. The shopping mall is so huge I got lost there a couple of times.

If you look at North Park Residences, you will notice that there is no other condominiums within close proximity.

Let’s take a look at its profitability…

Looking at the profit margin, it has outperformed Hillion Residences making more profit in shorter time.

Watertown (Punggol)

Completed in 2017, by Far East Organisation, on top of Waterway Point.

Looking at the map, you will see a number of projects surrounding it.

Will this affect the profitability?

If you compare Watertown with North Park Residences, you will notice that Watertown took much longer to make similar amount of profit.

One of the key factor we can conclude is that, whether there is alternative projects within very close proximity does have an impact on the profitability.

Looking Sengkang Grand Residences, there are several potential competitions for future resale/ subsale buyers.

With the presence of direct competitions, as in the case of Hillion Residences and Watertown, I will expect the capital gain of Sengkang Grand Residence to be lower than Centris and North Park Residences. Owners may also need to hold for a longer period.

One Critical Reminder to those considering to enter the market, a lot of buyers made this critical mistake!!!

Buyers very often overlook the impact between unit type/ stack and profitability

Even within a same project, there are always some units that made more while some much lesser.

The layout, price difference and facing can play a big part in terms of profitability even within the same project.

We will just take a look at Watertown which is nearest to SGR.

The 3 bedders seems more popular than the 1+study layout for this project.

At this moment, I am unable to provide details on the unit typeS and stackS I feel will potentially be more popular because developer has not released pricing information for comparison.

Should you wish to find out more, do feel free to contact me for a chat and I will update you as much as I can.

If you are looking for property and would like an update of the market and find out how to pick a property that suits your needs and objectives, we can arrange for a no-obligation sharing session.

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Darius Ng
Darius Ng

Darius Ng is a District Director and consistent top producer in PropNex since 2011.

Over the years, he has built up a strong track record of successful restructuring / upgrading case studies. This depth of experience has allowed him to share many critical learning points that are beneficial to his clients.

In addition to serving clients, he also has mentored many of his associates in Darius Ng Division towards becoming top 100 producers as well.

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