Investment Opportunities at the Transforming Farrer Park Enclave

One of Singapore’s most exciting areas gazetted for future development by the Urban Redevelopment Authority. Farrer Park combines the best of both worlds in one location, with the historic Little India district on one side and the vibrant Bras Basah-Bugis arts and entertainment precinct on the other. Quaint and charming arts houses, boutique hotels and new F&B establishments that are sprouting to life add much vitality and variety to the area.

Shop houses along Serangoon and Jalan Besar offer some of the city’s best local fare, while the 24-hour Mustafa Centre and eco-friendly City Square Mall draw crowds with their offer of a unique retail experience.

The transformation of Farrer Park has taken shape over the past few years with the successful completion of the Farrer Park MRT Station to Tekka Market’s remarkable facelift. At the same time, heritage landmarks are lovingly preserved, while modern infrastructure continues to boost the area’s accessibility and development potential.

In addition, Connexion at Farrer Park will be one of the world’s first integrated healthcare and hospitality complexes. Comprising a specialist medical centre with 189 consultation suites, a private tertiary hospital, a luxury hotel equipped with state-of-the-art conference and wellness facilities and a ground floor lifestyle retail zone, Connexion (built directly above Farrer Park MRT Station) will strengthen and support Singapore’s position as Asia’s leading medical hub when it is completed in 2013.

Opportunities for Property Investors

In tandem with the general increase in properties prices across Singapore, the private property prices in the Farrer Park precinct (District 8) has also risen over the past years with the completion of City Square Mall. Labeled as a “quiet achiever” by property experts and consultants, City-fringe homes tend to be overshadowed by those in prime and mass-market areas.

Notably, in recent years, the demand of show-box apartments (which refer to less than 500 square feet) within the Farrer Park precinct has gained popularity due to its proximity to Orchard, City Hall and CDB area.

TARGET: One-Bedroom Apartments at the Farrer Park Precinct

City-fringe one-bedroom apartments at the Farrer Park precinct are highly sought after partly for their accessibility, public transport links and lifestyle amenities. Investors also find it easy to get expat tenants as their accommodation budgets scale down.

From an investment perspective, the price level for a one-bedroom residential apartment at Farrer Park ranges from S$600,000 to S$900,000, thus offering good affordability for property investors.

More importantly, rental prices of Farrer Park one-bedroom residential properties have increased with the ongoing transformation of the heritage precinct.

  

As seen in the following graph, indicative rentals for condominiums nearby the Farrer Park MRT station range from S$3.84 psf to S$4.67 psf. For one-bedroom units, rental price per square foot are generally higher due to its compact size.

Using the latest freehold development project, Le Somme (located next to City Square Mall), in the area for reference, the approximate rental yield is as follows:

Price of a one-bedroom apartment: S$750,000

Size: 560 sq ft

Expected Rental per month: S$5.35 psf or approximately S$3,000 per month

Expected Rental Yield:  4.8% 

Driven by its proximity to city and amenities, one-bedroom apartments within Farrer Park area will likely to see potential upside and good rental yields with its affordability and growing popularity.

To find out more details on the latest freehold development project in this area, please visit: www.le-somme.com

The information contained herein does not constitute or form any part of any offer for sale or subscription of, or solicitation, recommendation or invitation for or in relation to any offer to buy properties nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever.

All the information contained herein has not been independently verified. No representation or warranty, express or implied, is or will be made in or in relation to, and no responsibility or liability is or will be accepted by the writer or any of their affiliates, advisers or representatives as to the fairness, accuracy, completeness or correctness of, this information or any other written or oral information made available to any interested party or its advisers and any liability therefore is hereby expressly disclaimed. Any prospective property purchaser should make its own investigation and all information provided.

The information contains certain forward looking statements and forward-looking financial information. Such statements and financial information are based on certain assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from those expressed in these forward looking statements. Predictions, projections or forecasts of the economy or economic trends of the markets are not indicative of the future or likely performance of the properties listed herein. The inclusion of such statements and information should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions by any other person, or that the forecast results will or are likely to be achieved. Actual future performance could differ materially from these forward-looking statements and information.