More Stars in the North? — Top 5 Growth Condos in Yio Chu Kang & Seletar (D28)

Descending from the North, we have Yio Chu Kang and Seletar. While this particular area in Singapore doesn’t get as much attention in the real estate market, it might be holding some gems. District 28, which hosts Yio Chu Kang and Seletar came in at a notable fourth place among all the districts in the OCR when it comes to growth.

District 28 managed to clock 6.6% on its Compound Annual Growth Rate from 2019 to Q2 2022. Average prices increased by 21.2% over this period of time. Yio Chu Kang and Seletar had a moderate number of transactions, with a total volume of 700.

In the fourth instalment of the Top 5 OCR Leasehold Resale Condos series motivated by PLB’s 2022 Q2 report, we will introduce the top 5 growth condos of District 28. Get ready as we whip out some interesting names in this little known district.

 

Fifth Place: The Greenwich

In fifth place, we have The Greenwich, a 99-year leasehold condominium with its lease starting in 2009. It was completed in 2014 with a total of 319 units. This relatively small development has almost half of its units sized between 600 and 700 sqft.

From 2019 to 2022 Q2, the average psf of the transactions for The Greenwich was  $1,148. Despite the smaller development size, it had a good deal flow of 59 transactions over the same period of time. The CAGR for this project was 3.4% and it did an absolute growth of 10.7%.

The Greenwich is conveniently located next to Greenwich V, one of two malls in the Seletar area to meet the everyday needs of the residents here. This condo is located along Seletar Road and Yio Chu Kang Road (the main road in this area).

While there might be no nearby MRT stations for some of the properties in Yio Chu Kang and Seletar, the main road leads to the CTE highway with a short drive. This area is a quieter estate with many private residences and Landed homes. The perk of privacy in this more peaceful area might be a selling point for some interested parties.

The Greenwich scores 66% in total on the MOAT Analysis. As mentioned above in the location analysis, the privacy of this area puts Exit Audience and MRT Effect scores at a lower level. Otherwise, this project scores decently on the MOAT Analysis. 

It has a score of 5 on Rental Demand and Quantum Effect, signalling that this area is still a desirable location for rentals and affordable for Singaporean buyers. The volume is considerably high for a small development (Volume Effect of 4) but there is a good amount of space for residents (Landsize Density Effect of 4).

Overall, The Greenwich might appeal more to homeowners who have access to alternative means of transportation such as cars or motorcycles. It would also appeal to residents who prefer more privacy.

 

Fourth Place: Seletar Park Residence

In fourth place, we have Seletar Park Residences. It is a 99-year leasehold condominium with its lease starting in 2011. It was completed in 2015 with a total of 276 units. Slightly more than half of the units are sized under 900 sqft, but there is a wider range of unit sizes as compared to The Greenwich.

From 2019 to 2022 Q2, Seletar Park Residence had an average psf of $1,238. With an even smaller number of total units, the volume of 67 transacted units in this period is considered to be an impressive deal flow. This project achieved a CAGR of 3.9% and an Absolute growth of 12.1%.

In terms of location, Seletar Park Residence is located beside The Greenwich. The appeal of the location is similar to that of The Greenwich. However, to add to the above analysis, there are some construction works on the other side of Yio Chu Kang Road. This might have some temporary concerns for noise and dust.

An additional note is that while the south-side of Yio Chu Kang Road in this area is mostly private residences and Landed properties, the north-side of the road has more public residences. This is especially true as we get close to Fernvale LRT in the north.

Seletar Park Residence has a score of 62% on the MOAT Analysis. This is slightly lower than The Greenwich due to the higher psf levels, which brought down Quantum Effect by 1 point. Other than that, Rental Demand scored a 5, Landsize Density, Bala’s Curve Effect, and Volume Effect scored a 4. This is a similar MOAT profile when compared to The Greenwich. Yet, Seletar Park Residence managed to marginally outperform The Greenwich.

 

Third Place: Riverbank @ Fernvale

Coming in Third, we have Riverbank @ Fernvale. This 99-year leasehold condominium is young, with its lease starting in 2013. This condo was completed in 2017 with a total of 555 units. Almost half of the units are comfortably sized at around 1,001 and 1,100 sqft.

From 2019 to 2022 Q2, Riverbank @ Fernvale had an average psf of $1,251. There is also a healthy volume of 105 transactions in this period. Riverbank managed to achieve a CAGR of 4.3% and Absolute growth of 13.5%.

Located along Sungei Punggol, Riverbank @ Fernvale lives up to its namesake. It is located west of Sengkang MRT station, and between Kupang and Layar LRT. This is on the fringe of the Seletar area bordering District 19. There is a good mix of public and private housing in the area. With a decently sized park northeast across the road.

Riverbank @ Fernvale has a high MOAT score of 72%. It scores a 5 on Rental Demand, Quantum Effect, Parents’ Attraction Effect, and Exit Audience. Generally, Riverbank does well as an affordable OCR condo option (for its age) in a residential area in the northeast.

Among other options presented in this district, Riverbank @ Fernvale has a higher MOAT score and over 90 years of lease, giving the next owner an extended time frame to see the price appreciate before the effects of lease decay kick in.

 

Second Place: Sunrise Gardens

In second place, we have Sunrise Gardens, a 99-year leasehold condo with its lease starting in 1995. It has a total of 252 units, more than 85% of units in this condo are sized above 1,200 sqft. This makes the project much more desirable for families who prefer a larger living space.

From 2019 to 2022 Q2, the average transacted psf was $883 with a total volume of 40 transactions. Sunrise Gardens also achieved a CAGR of 4.5% and an Absolute growth of 14.0% in the same period. At that average psf, it is to no surprise that the price disparity would eventually push prices up further for Sunrise Gardens. It puts this project at a favourable quantum for prospective buyers. Of course, this is keeping in mind that the property has around 72 years of lease left.

Sunrise Gardens is located along Yio Chu Kang Road and the Central Expressway. It is found in a private housing cluster with other private condos and Landed property in the estate. The almost direct access to the CTE makes travelling to the CBD a breeze for car owners. However, there might be some concerns about the noise pollution being located right next to the expressway.

Even without a car, Sunrise Gardens is a short bus ride away from Yio Chu Kang MRT. This particular option might be appealing to a buyer profile that prefers privacy and accessibility via private transportation.

Sunrise Gardens scores a total of 60% on the MOAT Analysis. The lower score is mainly due to the lower volume, rental demand, and remaining lease for the condo. The Exit Audience, MRT Effect, and Parents’ Attraction Effect also has a low score of 1. With this MOAT profile, it signals to us that the buying audience for Sunrise Gardens is very niche. 

The privacy, high landsize density, and disparity in the region and district level might be more appealing to a more mature audience who are willing to take the tradeoffs mentioned above. This brings us to a potential buying audience of retirees who have access to private transportation and are not as sensitive to possible noise pollution from the highway.

 

First Place: Seletar Springs Condominium

Finally, in first place, we have Seletar Springs Condominium. This is a 99-year leasehold condominium with its lease starting from 1997. It was completed in 2000 with a total of 362 units, with a wide range of unit sizes. Approximately two thirds are sized above 1,300 square feet. This might be attractive for larger families.

From 2019 to 2022 Q2, Seletar Springs Condominium transacted at an average of $860 psf and had a total volume of 56 transactions. It achieved a CAGR of 6.1% with an Absolute growth of 19.4%.

Like Riverbank @ Fernvale, Seletar Springs Condominium is located along Sungei Punggol albeit further south. This location gives the condo some access to schools in the surrounding neighbourhood. It is also located in an estate with a good mix of private and public housing.

Seletar Springs Condo is located at the fringe of District 28, and borders District 19. It is located west of Sengkang and Buangkok MRT and south of Fernvale and Layar LRT. This location might still be more convenient for car owners.

Among the other top growth condos in district 28, Seletar Springs Condo does very well on the MOAT Analysis with a total score of 70%. It has a score of 5 on Quantum Effect, Landsize Density and Exit Audience. While the remaining lease on the condo is in its low 70s range, the average psf is being transacted at a fair point with this in mind.

This might be a good opportunity for buyers looking for an affordable option in this neighbourhood. Simultaneously, for interested seller residents of this condo, the appreciation of the property might present a tempting opportunity to exit and upgrade.

 

Closing Thoughts

In the less well-known district 28, there are some developments that shine on growth. Yio Chu Kang and Seletar might not seem like much, but this district achieved an honourable fourth place in the Q2 OCR Resale performance category.

While the top growth condos in this district are mostly smaller developments, they are seeing impressive growth and volume for their size and definitely seem to be punching above their weight.

However, there are a sizable amount of unprofitable transactions despite high growth for some of these condos. In particular, The Greenwich and Seletar Park Residences. This is mainly due to high prices at launch, which eventually declined in the late 2010s. Many homeowners exited at a loss.

This is an important reminder for buyers to be cautious about new launch projects and be more selective in their property choice when it comes to the true growth potential of the condominium.

If you want to find out more about the condos on this list, or want to find out how to better navigate your property journey in the current turbulent market, contact us here now!