One Holland Village Residences Comparative Analysis

One Holland Village Residences has been a buzz recently. This is mainly attributed to its prime location right in the central of Holland Village beside the MRT station. Moreover, the mixed development will consist of private residential units service apartments, office and retail units. Thus, it is going to rejuvenate the already vibrant area.

Today we will be looking at the 2 bedrooms type for analysis purpose. So we will filter out the other bedroom types in order to see a better representation of the price trend.

Price

The most important thing to look at is the price point. Hence, we have identified some nearby developments of varying age to understand the price trend and recent transactions.

We want to see the newest resale projects and see how the price compares to One Holland Village Residences.

Projects Nearby One Holland Village Residences

Here we identified 4 nearby resale developments of varying age. Here we see how the prices compare by at the past 15 years price trend.

One Holland Village Residences
Source: SRX Analyzer Tool

Something to note when we examine the price trend is the unit mix. On closer examination, we see that Loft @ Holland consist of mainly studio/1bedroom units. Hence, we need to be cautious about the price trend that we see. The limited 2 bedrooms transactions may not be truly reflective to compare with One Holland Village Residences.

Nearby Price Comparison

Source: SRX Analyzer Tool

From above the price trends, you can observe that Holland Residences, built in 2012, has the highest average $ Price PSF. It ranges at about $1800 – $2000 psf.

In contrast, One Holland Village Residences with $ Price PSF ranging from $2600 – $3200 psf will TOP is in 2024.

Rentals Around One Holland Village Residences

Note that usually rental for newer development will be higher. Will use the $ Rental psf/month and 2br data for comparison purposes. Check out the article here to understand how to calculate your cash on cash return on investment from the rental income.

But comparable newer development in Holland closet match is probably a 2012 development looking at around $4.50 psf. We believe that it should be able to do $4.50 – $6.50 for newer development. Note the newer development consisting of mainly 1bedroom has transacted rental at $6 psf.

So I will say that new One Holland Village Residences should be able to do $4.50 – $6.50 psf when it TOP.

Assuming a $5.50 psf/month rental rate on a average price of $2800 psf, it will translate to a yearly rental yield of 2.36%.

Summary

Given the relatively substantial price differential (~$800 psf) between the new One Holland Village Residences and resale projects around, it may be take awhile to drive up the price of the new project for substantial capital gain.

We wouldn’t rule out the chance that the rental can match a $7 psf/month eventually in the future at Holland side to translate to a 3% yield for investors. However, we see that there are some other new projects with higher relative rental transactions.

Based price points and rental transactions comparison, we see that there are other new projects that investors should consider. So perhaps we can KIV this One Holland Village Residences first.

*Check out the estimated valuation of your home here!

Published with StoryChief

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