4 Simple Strategies to Help Future Homeowners Save Money
TLDR When it comes to being a new homeowner, it's essential to prioritize regular maintenance to avoid costly repairs down...
Read More
TLDR
A case study comparing condos near light industrial areas in Yishun and Bishan found that proximity to these zones does not negatively impact condo prices or profitability. In fact, condos closer to light industrial areas showed higher returns on investment (ROI) and better profitability over 10 years compared to those further away. Factors such as lower entry prices, good rental prospects from nearby workers, and market competition play a larger role in condo performance than industrial proximity. Heavy industries are usually far from residential zones, so light industrial areas near homes mostly consist of less disruptive uses like warehouses. Overall, industrial proximity is less significant than market positioning, entry price, and unit supply in determining condo value. For personalized real estate advice, consulting experts with data-driven insights is recommended.
Conventional wisdom in Singapore often dictates that proximity to industrial areas negatively impacts property values. However, this generalization oversimplifies the reality, as not all industrial areas are created equal. Heavy industries with significant pollution are typically located far from residential zones, while areas near homes tend to house lighter industries like warehouses and material suppliers. To examine the actual impact of these light industrial areas on condo prices, we conducted a case study in Yishun and Bishan.
Case Study: Yishun and Bishan
We selected Yishun and Bishan because they offer a sufficient number of condos both near and far from light industrial areas for a meaningful comparison. Executive Condominiums (ECs) were excluded to avoid distorting the data, as they are subsidized and have specific regulations.
Yishun Analysis:
In Yishun, condos near the industrial area include Yishun Emerald, Yishun Sapphire, Eight Courtyards, Symphony Suites, and Rafflesia Condominium. Condos further away include Canberra Residences, Lillydale, The Canopy, and The Nautical.
Comparing their price movements and Return on Investment (ROI) over a 10-year period (2014-2024), we found a surprising result: condos nearer the industrial area had a higher approximate ROI (around 41.91%) compared to those further away (around 21.76%).
Yishun Emerald and Yishun Sapphire, with their relatively low starting prices, showed strong performance. Canberra Residences and The Nautical, located further from the industrial area, seemed to underperform, while The Canopy and Bishan 8 performed well regardless of proximity.
Factors contributing to these trends include the influx of newer condos near Canberra Residences, creating stronger competition, and higher starting prices for Canberra Residences and The Nautical limiting their appreciation potential.
Analyzing profitability from 2011 onwards (to account for SSD), condos near industrial areas like Eight Courtyards and Symphony Suites had nearly all profitable transactions. Yishun Emerald and Yishun Sapphire also showed strong profitability despite some losing transactions.
This suggests that proximity to light industrial areas did not negatively impact profitability in Yishun. In fact, factors like entry prices and rental prospects, particularly the ready supply of tenants from nearby workers, appear to outweigh the influence of industrial proximity.
Bishan Analysis:
In Bishan, Tresalveo, Boonview, Marymount View, and Seasons View are near the industrial area, while Sky Habitat, Sky Vue, and Bishan 8 are further away.
Similar to Yishun, Bishan condos near industrial areas had a higher approximate ROI (55.33%) compared to those further away (32.91%). This again suggests no negative impact from industrial proximity.
Marymount View (near industrial) and Bishan 8 (further away) were top performers, indicating that industrial proximity may have less impact than other factors. Marymount View’s strong appreciation was likely influenced by its lower entry price.
Looking at profitability, Sky Habitat had the highest percentage of losing transactions, potentially due to its relaunch at a lower price point. However, condos closer to the industrial area, with the exception of Boonview (due to a small number of transactions), seemed to fare better.
Overall Conclusion:
Based on our case studies in Yishun and Bishan, proximity to light industrial areas does not appear to negatively impact condo profitability. In many cases, condos near these areas performed better, potentially due to factors like improved rentability and lower starting prices.
It is evident that other factors, such as market positioning, entry price, and the number of units, significantly outweigh industrial proximity as a primary determinant of condo performance. This may also be attributed to the nature of light industrial zones in Singapore, which are typically kept separate from residential areas to minimize pollution and noise.
For personalized advice on your property or guidance on your next purchase, consider consulting us who can provide data-driven insights tailored to your specific needs.
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:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- 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.
You May Also Like …
5 Cons of Buying a New Development
Luxury properties in Districts 9 and 10 of Singapore are highly coveted, and for good reason. From stunning views and...
Read More
6 Misleading Claims Property Agents Often Make That Savvy Buyers Are Aware Of
TLDR Real estate agents can sometimes use deceptive tactics to push sales. Be cautious of claims about other interested buyers,...
Read More
Why The URA Master Plan Matters For Your Property’s Potential
TLDR The URA Master Plan entails significant shifts like the relocation of Paya Lebar Airport or creation of Punggol Digital...
Read More
Top 5 Best Urban Hiking Trails in Singapore
Singapore, known as the Garden City, is a bustling metropolis that offers a multitude of parks and nature reserves for...
Read More
Is Renting Out Your HDB to Live in a Condo a Smart Move? How Rentvesting Can Help You Save Money
TLDR Rentvesting is a strategy where individuals rent a home in their desired location while purchasing investment properties in more...
Read More
5 Reasons : Why Investing In Singapore Property Is The Best Decision I Ever Made
Investing in property is a great way to build wealth and secure a stable source of passive income. When it...
Read More
Top 5 Live Music Venues in Singapore
Singapore, a vibrant and multicultural city-state, is well-known for its diverse food scene, stunning architecture, and bustling shopping districts. However,...
Read More
Calculating Your Property’s Annual Value in Singapore 2024: A Simple Guide!
TLDR Understanding your property's annual value is crucial for determining property taxes in Singapore. The annual value is based on...
Read More
Top 5 Shopping Malls in Singapore for Luxury Shopping
Singapore, a bustling city-state known for its stunning architecture and diverse culture, is also a paradise for luxury shopping enthusiasts....
Read More
Purchasing Older HDB Resale Flats: Key Considerations When the Flat Outlives You
TLDR HDB flats have a 99-year lease, and key housing schemes require the lease to cover the youngest owner until...
Read More
Why Aren’t Spacious, Wallet-Friendly Homes Our Reality Yet?
TLDR The article discusses the current housing market in Singapore, focusing on the challenges faced by individuals like Sherlyn Tan...
Read More
5 Factors : Why Singapore’s Property Market Is A Good Hedge Against Inflation
As inflation becomes a growing concern for investors worldwide, the stability of Singapore's property market has become an attractive option...
Read More
What’s The Difference Between An Offer To Purchase And An Option To Purchase?
TLDR Understanding the crucial difference between an Offer to Purchase and an Option to Purchase (OTP) is vital when buying...
Read More
What Is An Affordable Home In Singapore?
TLDR Affordable housing in Singapore is about more than just having a roof over your head—it’s about survival and opportunity....
Read More
Quick Guide for Condo Sellers: Timeline to Sell Condo in 2023
TLDR When selling a condominium in Singapore, understanding the critical steps is key. First, ensure you are not liable for...
Read More
The Top 10 Traits Of A Good Real Estate Agent
TLDR Jayson Ang, a reputable real estate agent in Singapore, offers extensive experience and a data-driven approach to guide clients...
Read More
Discover the 7 Unique Attributes of Real Estate Investing
TLDR The post highlights the benefits of investing in real estate, such as high leverage, capital appreciation, income generation, usability,...
Read More
Unveiling the Truth: Why Freehold is Not Always the Optimal Choice for Property Investment
TLDR When it comes to investing in real estate in Singapore, traditional beliefs may not always hold true in today's...
Read More
2-Bedroom vs. 2+Study Units: A Decade of Performance Analysis
TLDR Over the past decade, 2+Study units (compact 3-bedroom layouts) consistently outperformed standard 2-bedroom units in resale gains across most...
Read More
