Ensuring the safety and stability of an asset is a top priority for most individuals considering investment in a project. Here, we outline three crucial factors to assess the security and stability of an asset.
Now, let's delve into a case study illustrating these factors: Blossoms by the Park, a new launch at one-north.
1) Supply versus Demand
The first factor to consider when determining the safety and stability of an asset is the supply versus demand dynamics. In the case of one-north, it is divided into eight distinct areas that attract a diverse population for work, living, recreation, and education. Notably, well-known companies like Lucas Films, Johnson & Johnson, and Dyson have established regional offices in the area, contributing to a significant working population of over 50,000 individuals. This high demand for space and facilities in one-north could potentially indicate a stable and secure investment opportunity.
Indeed, despite the substantial workforce in one-north, the supply of residential units in the vicinity is relatively limited. With only 4,377 residential units available in seven developments, including Blossoms by the Park, it becomes evident that there will be a persistent demand for homes in the area, both for rental and ownership purposes. This scarcity of available residential properties further strengthens the potential for stability and long-term value appreciation in the housing market within one-north.
As widely recognized in Singapore, properties located in close proximity to MRT stations often exhibit better performance compared to those situated further away. In the case of Blossoms by the Park, its strategic location is a notable advantage, as it is positioned between two major MRT stations: one-north and Buona Vista MRT station. The convenience of being an 8-minute walk from one-north MRT station and a 5-minute walk from Buona Vista MRT station enhances the property's attractiveness to potential buyers and renters. Such prime accessibility to public transportation not only offers convenience for residents but also contributes to the property's potential for long-term stability and capital appreciation.
3) Reputable School
Another important factor in evaluating its investment potential is the proximity of a property to reputable schools. Blossoms by the Park enjoys a significant advantage in this regard, being situated within a 1-kilometer radius of Fairfield Methodist School, a highly sought-after primary school. This close proximity to a prestigious educational institution is likely to attract families with children who prioritize living near quality schools. As a result, the demand for homes in the area is expected to increase, adding to the property's appeal and potentially providing a stable and sustainable investment opportunity. The strong demand from families seeking access to quality education can positively impact the property's value and rental potential in the long run.
4) Rentability & Profitability
Based on the examples of One-North Residences and Stirling Residences, it is evident that newer developments tend to command higher rental rates. The rental prices of $3,850 for a 1-bedroom unit at One-North Residences and $4,200 for a similar unit at Stirling Residences illustrate this trend.
Given that Blossoms by the Park is an upcoming project, it benefits from its newer status, which could potentially work in favor of higher rental rates compared to older developments. The strategic location of Blossoms by the Park between two MRT stations and its proximity to reputable schools may further contribute to its rentability. As the property market dynamics are influenced by multiple factors, it's essential to consider the overall market conditions at the time of Blossoms by the Park's completion and its unique selling points to gauge its rental prospects accurately.
However, please note that actual rental rates can be influenced by various factors, including the prevailing rental market conditions, the economic climate, demand and supply dynamics, and the overall attractiveness of the development to potential tenants. It's recommended to consult with real estate experts or agents who have up-to-date knowledge of the rental market in the area to get a more accurate projection of rental potential for Blossoms by the Park closer to its completion date.
Indeed, the examples of One-North Residences and Stirling Residences demonstrate that properties in certain locations can experience significant profitability over time. One-North Residences, even though it was launched more than a decade ago, has shown that owners can still achieve substantial profits, with some gaining as much as $923,060. On the other hand, Stirling Residences, a newer development, has already seen impressive profits of over $400,000 in just four years.
These profit figures indicate that both older and newer developments in the right locations have the potential to offer substantial returns on investment. However, it's essential to keep in mind that property markets are subject to fluctuations and can be influenced by various economic and market conditions. While the past performance of certain projects may provide valuable insights, it doesn't guarantee similar outcomes for future investments.
When considering the profitability of Blossoms by the Park, it's crucial to evaluate factors such as its location, amenities, demand from buyers and tenants, and overall market conditions at the time of investment. Engaging with real estate professionals who are well-versed in the local market can help provide a more accurate analysis of the potential profitability of the development. Additionally, investors should always conduct thorough due diligence and consider their own financial goals and risk tolerance before making any investment decisions.
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