• Joshua Loo

Review: Kopar at Newton, Best Priced District 9 Property

Updated: Aug 30

Introduction



Core Central Region (CCR) properties are always in discussion due to their high propensity for strong capital appreciation, due to the conveniences that they are able to provide for both tenants and owners alike. This makes it very costly as compared to other areas like the Rest of Core Region (RCR) and Outside of Core Region (OCR).


The main setback is in regards to their high barrier to entry due to high price quantum, which might make them out of reach for most entry-level investors. Should you be a more experienced real estate investor, how will you then decide if a property is worth its purchase if you are looking to invest in this area? After all, not all CCR properties are worth purchasing, and some might lead to huge capital loss


We hope that you will enjoy reading on our review of Kopar at Newton Singapore, which is a new leasehold condominium that was recently launched in early 2020. So far it has extremely healthy sales launch numbers even in the COVID-19 circuit breaker lockdown, which proves to be a positive.

What Makes it Attractive?


Competitive Asking Price


It is always a difficult factor to place as an advantage for new launches, but Kopar at Newton provides such a strong value due to its strategic location at Newton Flyover.



Although located close to Newton MRT, Kopar at Newton is technically located within District 9 which consists of the Orchard/River Valley area. This presents an interesting situation as it can be considered as a District 9 property at a very reasonable price.

Have a look at the above statistics, where most District 9 leasehold condominiums are an average of $2,419 PSF. For leasehold condominiums at District 11 which, exclude the Thomson area, the average PSF sits at $1,669.


Kopar at Newton price sits comfortably at between these two numbers, yet maintain the characteristic quality of a District 9 condominium, such as that Kopar at Newton is in close proximity to Orchard Road, which provides plenty of amenities, from supermarkets to cinemas.


The number of units sold also speaks for itself. Kopar at Newton was launched a week before the COVID-19 lockdown, and to date, have sold close to 25% of all its units as of 2nd June 2020.


UPDATE: As of 30 August 2020, Kopar at Newton have transacted 42.59% of all its units. Units are being sold fast! In addition, it is considered to be one of the lowest asking PSF for CCR in comparison to projects like V Shenton ($2,325 PSF), Fourth Avenue Residences ($2,372 PSF) and Marina One Residences ($2,380 PSF) are more expensive.


Kopar at Newton Units Sold as of 2nd June 2020

Good Schools



Parents with young children will benefit strongly with 3 famous schools within 1 km which is a key consideration for entrance. Not only does this make it easier for them to enter into these renowned schools, but it makes the commute easier and safer for your children.


Renowned Schools

- Anglo-Chinese School (Primary)

- Anglo-Chinese School Junior

- St Joseph’s Institution

Read this webpage from the Ministry of Education (MOE) for the priority admission.

How distance affects priority admission


Rental Pool



From the rental transaction trend shown above, the 3 Bedroom units are more often transacted as compared to 1 Bedroom units. Which means there is a healthy demand for family-sized units across Singapore.


However, a higher transaction volume can show on paper potentially high overall volatility for tenancy. For example, new Tenancy Agreements might need to be constantly signed due to tenants preferring a shorter term of 6 months to a year. This is not always the case, so before arriving at that conclusion the property in mind should be analyzed further into detail. The landlord should also carefully analyze the incoming tenant's profile so as to secure a longer tenancy.


Kopar at Newton provides a fantastic pool of tenants as it provides a good balance for families with career professionals and young children. Such families are great for landlords as these demographic will not relocate as often in comparison to individual tenants. Also, It is far more difficult to uproot an entire family.


Properties located within the Central Core Region (CCR), and more specifically the Central Business District (CBD) usually provides for fewer choices to career professionals who are seeking a good school for their children. If a family were to settle there, parents will most likely have to leave the CBD to drop off their children and return back to report for work. This ultimately defeats the purpose of its convenience.


Purchasing properties along Bukit Timah Road solves the issues in securing a good school, but homebuyers might be put off by the high quantum and career professionals might find the additional traveling time to the CBDs a disqualifying point.


Kopar at Newton, which is located at District 9, addresses these problems above, by providing good connectivity to the CBDs by major expressways, being relatively more affordable to properties along Bukit Timah Road and yet at the same time are located close to three renowned schools as mentioned in my previous point.


For future landlords of Kopar at Newton, our opinion is that you should cater to these demographic, and to do so by opting for a 3 Bedroom here. They should prioritize units that are able to provide a lower PSF with secured tenancy (Big Units) over high PSF rentals with short-term tenancy (Small Units) to obtain the best rental yield efficiency due to reduced vacancy.

Better Rental Yield/Unit Size to The Competition



Comparing resale properties is not the only way to determine if a new launch is worth purchasing, but you will be required to compare with other new launches for a more even comparison. This is because other new launches can accurately reflect the current land costs of that immediate area, to provide an accurate picture of the new launch in question is overpriced.


Pullman Residences (Freehold) is every similar to Kopar at Newton (Leasehold), with its main difference in the land tenure, price, and unit size.


Having a lower entry price for a condominium typically allows for better gross rental yield due to the lower quantum. Leasehold condominiums like Kopar at Newton add to this advantage as you are able to pay almost $182,500 less in downpayment as compared to Pullman Residences, based on an initial 25% downpayment of asking price.


However, the size of 3 Bedroom units in Pullman Residences are larger than the ones in Kopar at Newton, which tenants might prefer.


Ultimately, we feel that Kopar at Newton ultimately wins our vote, as the higher rental yield outweighs the risks of obtaining a smaller unit. This is because the rental demand from District 9 is healthy and there will be no shortage of tenants as long as there is the right rental pricing.


UPDATE: We believe that the rental yield will sit at a comfortable 3%, based on present rental rates.

Drawbacks


Maintenance Fees



Kopar at Newton have maintenance fees starting from $400 onwards, these might be more expensive as compared to the standard offerings. This is due to bespoke services that are being offered. This however can be an interesting offering for people who are interested. In addition, this might be potentially a service offered, which might be a factor that seals the deal for a tenant who is comparing with another new launch which does not offer such services.


Noise Pollution/Traffic Congestion



With the unit located close to Newton Circus, this makes for easy access through to major road networks like Bukit Timah Road and CTE. This convenience however comes at a price as traffic congestion in this area is typically very heavy, and might pose a challenge for newbie drivers and an irritation during rush hour. This congestion is also accompanied by noise pollution along the major road networks, so if you are intending to purchase a unit, be prepared to dress it with thick curtains.


Neighbor Future Development Site



Upon closer inspection, you might have realized that a small quarter of the plot of land is reserved for a future new launch called The Atelier. At present there are no site plans for this development, which might present some uncertainty for buyers who are particular about the surrounding landscape. Once we have more information on this development, we will update our Kopar at Newton review accordingly.


Mortgage Repayment Numbers


This price on a 3 Bedroom (958 sqft) is at $2,038,000. In the view that this will most likely be purchased by investors who have an existing property count, we will be adding in 12% ABSD, which is the tax for this purchase being the second count for Singaporeans. Legal Fees of $2,000 will be the rough average.


The bank loan interest rate is currently based on fixed loan rates given at this point and is subjected to changes.

Take note that these numbers are only for illustration and are not finalized.



The following progressive schedule payments provide you with a rough estimate on when the payments will be made. Take note that these numbers are only for illustration and are not finalized.



Summary


Kopar at Newton is a fantastic new offer within due to its highly attractive launch price in comparison to other new launch and resale properties around the area, this is possible due to its strategic location – Being part of District 9 while being relatively more affordable than the average.


Kopar at Newton provides fantastic connectivity to major road networks like Bukit Timah Road and CTE which allows professionals working in the Central Business District to shorten their traveling times by a big margin.


In addition, Kopar at Newton is located in close proximity (less than 1 km) to renowned schools like Anglo Chinese School (Primary & Junior) & St. Joseph’s Institution, making it very attractive to parents with young children.


The main challenges are the higher than usual maintenance fees, this is due to bespoke services offered, which might be prioritized by certain homeowners.


In addition, the high traffic congestion and noise pollution in the immediate area might be a concern for occupiers.


The new project which is located just beside Kopar at Newton, called The Atelier, might provide some uncertainty in terms of how the overall landscape will be affected to interested investors.


Other Reviews


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MARINA ONE RESIDENCES

PARC CENTRAL RESIDENCES

PENROSE

DAINTREE RESIDENCE



Are you keen on finding out if Kopar at Newton is an ideal investment for your specific financial circumstance? Contact us at +65 96329840 or send your queries to estatemagnates@gmail.com! Our consultations do not have a charge, so let us assist you!


The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee, or other group or individual. The author does not accept any responsibility whatsoever for any harm or loss arising from accessing or relying on information contained in this blog post.

 

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