17 May 2017
Homebuyers and developers are optimistic about the prospects of Singapore’s West side as plans are underway to develop the Jurong Lake District into the largest commercial hub outside the Central Business District. Set to be home to more than 500,000 square metres of office space, 250,000 square metres of retail space, 1,000 homes and 2,800 hotel rooms when fully developed, excitement is also certainly building up.
The recent signing of the bilateral agreement between Singapore and Malaysia on the implementation of the High-Speed Rail project is another key development. This provides a strong tenant base for landlords who are looking to rent out their units and is a major reason why investors are zooming in on properties in the West for capital appreciation opportunities.
Just adjacent to Jurong, the Clementi area may appeal more to buyers as well; as it is near enough to reap the many benefits that the Jurong Regional Centre may bring. In addition, Clementi has the added advantage of having an “educational cluster”, coupled with the mall and sports hall at Clementi MRT station, making it suitable highly attractive to families.
As such, it is no surprise that the western part of Singapore is much sought after by owner occupiers and investors alike.
In today’s market, opportunities are plentiful for home buyers. With the new SSD in place, investors will probably favour newly launched projects, as the three year holding period coincides with the approximate construction time of the development. This allows investors the flexibility to sell off their unit upon completion of the project without incurring any levy. Also, given the weak rental market currently, buying an uncompleted project allows investors to wait out the downturn.
In addition, developers have deliberately kept the overall quantum of each unit affordable so as to remain attractive. With ample supply in the market, these investors have many choices. For a “safer” bet, investors could look at developments which are near commercial clusters or have easy access to public transportation. These projects will generally see higher demand for housing units due to a ready tenant pool and are usually more resilient to market shocks.
