• Joshua Loo

Review: Penrose

Updated: a day ago

Update: Penrose preview slots are open now as of 23rd September 2020! No Cheque or Expression of Interest is required, register your appointment with me today!


Update (28 September 2020): Over the weekend, over 67.49% of units have been sold! 1 Bedroom units are all sold out! At present, there are only two 2 Bedroom units available. 3 Bedroom and 4 Bedroom units are in good supply.


Introduction


The Aljunied area has been a mostly residential area of Singapore without much mass-market condo developments, but that is all about to change.


In 2020, there will be a new leasehold project called Penrose, which will be one of the few bigger sized project developments in the area.


With more information such as the condo floor plan, site plan, and showflat location in regards to Penrose is being released to the public, I will update this review in time.


What I will cover in this review is my estimation on the asking price and the developments' short-term and long-term benefits.




Site Plan


UPDATE: Penrose Site Plan Image


The site plan of Penrose is extremely well thought out, where facilities which has a high potential of generating much noise is pushed close towards the PIE, this allows most of the noise to simply be drowned out by the expressway.


Yet, that might also be a challenging point in itself. Therefore the choice picks should preferably be the stacks that are facing inwards towards the development, which means that your potential view might be blocked.


The Childcare Centre is located towards the entrance of Penrose, at stack 34. which might prove a convenience for its residents. Do take note that although this arrangement minimises the noise pollution for Penrose residents, neighbouring stacks might be affected.


A unit towards Sims Drive might be preferred by some, but note that this is a big road with multiple lanes, which might still generate considerable volume.


What Makes it Attractive?


Attractive Price


Sims Drive, now known as Penrose, is being collectively sold at the highest bid price of $732 psf by Intrepid Investments Pte.Ltd and CDL Constellation Pte. Ltd. This leads to our estimated breakeven price of around $1,2xx psf.



For starters, this is an exceptional breakeven price, as even with including the developer’s profits, the development will still be priced competitively between $15xxpsf.


Taking into comparison the current prices of condos in the immediate vicinity, this makes it within the asking price range of other resales/new launch condos.



Its closest competitor will have to be Sims Urban Oasis, which is located right beside Penrose, however, it has already obtained Temporary Occupation Permit (TOP) in 2018. Launching at a $15xx psf will make it an extremely attractive offer, and it is to a Sims Urban Oasis owner’s best interest to start planning their exit strategy should Penrose prices are too attractive.


UPDATE: Penrose prices will be starting from $1,509 PSF.

Good Connectivity


Most new launches already have good connectivity, considering that Singapore’s public transportation network is highly accessible. In regards to this point, what I will consider as good connectivity relates to certain considerations, such as the developments’ walking distance to MRTs, and its accessibility to major road networks.


That being said, Penrose is located within 6 minutes walk to Aljunied MRT and a 3 minutes drive to Kallang-Paya Lebar Expressway (KPE) and to Pan-Island Expressway (PIE).


Master Plan Updates


These updates do not directly impact the development of Penrose, however they will provide recreational activities and job opportunities.


Kallang Alive Loop (5 minutes drive)



Paya Lebar Airbase (10 minutes drive)



Integrated Child Care Centre



Not much information is provided in regards to this, but from what we see from the Written Permission, its addition will be a benefit for young families.


UPDATE:

With more information on the Childcare Centre here, we believe that this is a very good arrangement as it is located in close proximity to the entrance of Penrose. This is a functional layout as the drop off zone does not affect the flow of traffic within the development itself.

Drawbacks


Noise Pollution


Its convenience comes at a price, as Penrose is located close PIE. It will be interesting to see how the developers will be able to overcome this drawback through its strategic placement of residential blocks.


Future Competition



This current site is occupied by 54, 55, 56 and 62 Sims Drive, which is slated for demolition on 23 Apr 2019, which means, that this site will be freed up for other residential projects which include private housing.


With Penrose located just beside this future residential site, there will be a potential rental competition for investors. Furthermore, if Penrose is priced incorrectly upon launch, which highly should not be the case with its low land cost, there might be a massive correction of prices once this new development is announced and released.


Some examples of massive price correction are evidently seen in condominiums around the East Coast.



The above trends shown are based on East Coast condos with a relatively recent TOP date of after 2010. These developments are tightly clustered together and can result in a huge correction of prices.


Freehold Competition


Closer towards the Geylang Road – Aljunied Road area lies a huge supply of freehold condos where there might be a higher potential to draw greater capital appreciation over time. However, it is also important to note that many of these freehold condos are smaller, single-stack apartments that might not be attractive to tenants due to its lack of amenities. This can inadvertently affect its valuation even with its freehold status.


Mortgage Repayment Numbers


*Note*

Based on our previous estimate of $1550 psf. This price on a 3 Bedroom (936 sqft) is at $1,450,800. 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.



















Summary


Penrose at this point in time makes for exceptional value in regards to its estimated price. However, there are some factors that are unpredictable, which we can only find out in due time.


At its estimated price, the negatives are downplayed, and any complaints will be nitpicking. However, some of my gripes are that its immediate vicinity is surrounded by a host of residential projects, and a lack of commercial developments such as shopping malls might affect its rental potential. Future developments such as the Kallang Alive Loop and the transformation of the Paya Lebar Airbase will rejuvenate the immediate area to provide for more value in the future.


Are you keen on finding out if Penrose 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! I will be able to provide more details such as site plan, floor plans, and pricing once more information is released.


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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