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The Significance of Choosing the Right Condo: A Real-Life Tale of Two $1.8 Million Investments with Significantly Different Results.

Posted by Jayson Ang on August 13, 2024
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TLDR

When contemplating property investments in Singapore, consider various factors like rental performance, unit count, access to train lines, and prospects of the surrounding neighborhood. Duo Residences and Robin Residences present distinct advantages and disadvantages, catering to different preferences. Duo Residences shines with its mixed-use concept and prime location, while Robin Residences offers exclusivity and family-friendly surroundings. Understanding these key differences can guide your decision-making process.

Amid the soaring property prices in Singapore, owning more than one property seems like a distant dream for most. Yet, for those who took the risk, the outcome can vary greatly. Allow us to illustrate with a true story, featuring two prime properties: Duo Residences and Robin Residences. Both were featured in our articles back in 2019, and now, coincidentally, they have both been sold within months of each other.

To provide some context, both properties were initially purchased with the intention of being a combination of own-stay and investment, although that plan never came to fruition. While we’re not claiming that Duo Residences was the pinnacle of investments (there are certainly others that have appreciated more), this serves as a real-life example of how two individuals with similar budgets and timelines can end up with vastly different outcomes.

Let’s delve into the details of their journeys.”

Duo Residences Robin Residences
Purchase Price $1,770,000 $1,789,000
Rent (1st 5 years) $300,000 $198,000
Rent (Next 2 years) $144,000 $79,200
Rent (Next 2 years) $144,000 $108,000
Total Rent Collected $588,000 $385,200
Selling Price $2,180,000 $1,870,000
Profit/Loss $998,000 $466,200
Gross Gain 56% 26%

Key Points Of Difference Between Duo Residences And Robin Residences

1. Rental Performance

Not all individuals are fixated on making a profit through reselling. Sometimes, the ultimate goal is simply to gather rental income, a trend that is gaining popularity among retirees. Hence, when considering which condo to invest in, one may wonder – between DUO and Robin Residences, which one reigns supreme?

Although both condos boast a prime location, DUO takes the crown with its exceptional performance. This is due to its mixed-use concept, featuring a commercial space that sets it apart from its competitor. Moreover, DUO boasts swift access to shopping malls and entertainment hubs, making it a top choice for the modern urban dweller.

Not to be outdone, Robin Residences also holds its own in the coveted District 10 area. However, it caters more to families, with its close proximity to lush parks and prestigious schools like ACS, Singapore Chinese Girls School, and Raffles Girls School – all within priority enrolment distance. A fact that is highly emphasized by real estate agents in their marketing strategies.

Nevertheless, for single expats or young couples seeking a vibrant city lifestyle, DUO’s location along Bugis and Beach Road is a major draw. With the addition of new office spaces in Midtown Bay, the catchment area for young professionals expands, cementing DUO’s appeal.

But as the saying goes, “with great success comes great competition.” And with the emergence of Midtown Bay, Midtown Modern, and the impending redevelopment of Shaw Tower, DUO Residences may soon face a fierce battle for supremacy. Therefore, any predictions on its future success must be taken with a grain of salt.

2. Unit Count

“With a unit count of 660, DUO Residences stands as a poised and promising mid-sized development, undoubtedly leaning towards the higher end of the spectrum. Its size strikes the perfect balance, as it not only caters to the preferences of buyers, but also maintains a reasonable number of units to ensure a peaceful and well-managed living experience. A count of 500 to 600 units, only slightly surpassed by DUO, is considered optimal for keeping maintenance fees at bay and avoiding overcrowding of facilities.

On the other hand, the petite yet elegant Robin Residences boasts a mere 134 units, ensuring a heightened sense of exclusivity and privacy. However, this also means fewer households to share the cost of upkeep, resulting in potentially higher expenses. The smaller unit count also translates to lower transaction volumes and a more volatile price history, often influenced by the latest sale.

But fret not, for DUO Residences enjoys a relatively consistent price trend, with at least two to three transactions every year. This is a result of its moderate unit count, offering a steady and desirable living experience.

In the grand scheme of things, small unit counts tend to attract pure owner-occupiers who value privacy and avoid overcrowding. On the other hand, investors may lean towards mid-sized projects like DUO, while steering clear of mammoth developments with over 1,000 units that invite fierce competition.

Thus, it seems that DUO Residences will be a preferred choice for investors, while Robin Residences will continue to capture the hearts of those seeking their own slice of peaceful paradise.”

3. Access To Train Lines

Not all train stations are created equal. The ones nestled near bustling hubs (think City Hall, Orchard, Dhoby Ghaut, Tanjong Pagar) hold a higher prestige than those located a dozen or more stops away from these coveted hotspots. Moreover, certain train lines – the NSL and ESL, for instance – are hailed as more desirable compared to their newer counterparts like the CCL and TEL.

Enter DUO, with its subtle advantage. Situated near Bugis MRT (DTL, EWL) just a hop away from City Hall, and a mere two stops from Raffles Place, DUO reigns supreme. Plus, the cherry on top: it’s a leisurely stroll away from Nicoll Highway MRT (CCL), providing seamless access to three different train lines.

Meanwhile, Robin Residences basks in the glory of its prime location near Stevens MRT (DTL, TEL); and one could argue that it holds the coveted NSL access, with Newton MRT (just one stop away) boasting a connection to the NSL. And let’s not forget, it’s also just a stone’s throw away from Orchard MRT, making it a dream for families seeking easy access to Singapore’s premier shopping district.

It’s clear to see why the corporate crowd would flock to DUO, while families would gravitate towards Robin Residences; with DUO flaunting top-notch connectivity to office hubs, and Robin Residences boasting unparalleled access to Singapore’s retail paradise.

4. Prospects Of The Surrounding Neighbourhood

As you walk along the bustling Bukit Timah Road, with its well-developed infrastructure that has reached its peak for the foreseeable future, your gaze may be drawn towards the looming redevelopment of Raffles Town Club. However, without any changes to the plot ratios, the transformation of this area may be minimal.

On the other hand, DUO Residences sits at the heart of the ever-evolving Ophir-Rochor Corridor. This ambitious project has the power to shift the traditional Central Business District (CBD) from its throne, as major offices and commercial spaces move to the thriving midtown area of Bugis, Rochor, and Beach Road.

It’s not just speculation – we’re willing to bet that when you plan a day out with friends, the vibrant Bugis district will rival the renowned Orchard Road in terms of popularity. The dynamic atmosphere and endless entertainment options make it an irresistible magnet for the young and trendy.

In the immediate future, DUO’s surroundings offer a wealth of potential for growth, far more than the prestigious but subdued Bukit Timah area. The possibilities are endless, and the only limit is the sky for DUO Residences.

Advantages & Disadvantages

Sometimes, what is hidden from the data can hold more weight than what is visible. In the case of DUO Residences, the looming threat of future competition in the Ophir-Rochor corridor is a top concern. The potential for fierce rivalry is a dark cloud that hangs over the investment. But beyond this, there is another factor to consider – choosing the right unit type within the development. While a 2-bedroom unit may be ideal for tenants in a bustling area like Bugis, it may not have the same appeal in a more residential setting like Robin Residences. In such tranquil neighborhoods, families with children may be the primary market, making larger units like 3-bedders a wiser choice. The trick is to find the perfect match between property and location.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

  1. Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
  2. Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

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