5 Top Reasons Why Chinese Love to Invest in Singapore Property Market Today
Here are the top 5 reasons why Chinese love to invest in Singapore's property market today. 1. Political stability: Singapore...
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 …
How Will Singapore’s Development Influence The Real Estate Markets In Bedok, Changi, Pasir Ris, And Tampines : 2023
TLDR You will find detailed insights into upcoming housing developments in the East of Singapore, specifically in areas like Bayshore,...
Read More
Here’s How Property Data Can Be Misleading: Navigating Through Common Misunderstandings
TLDR When comparing property prices, discrepancies can arise due to various factors like timing of purchase, scarcity in niche projects,...
Read More
Can Your HDB Flat Safeguard Your Retirement?
TLDR The HDB market has seen significant changes over the years, with many young owners looking to upgrade to private...
Read More
Top 5 : Risk Factors For International Buyers Investing In Singapore Real Estate And How Can They Be Mitigated?
Singapore, a thriving global city-state, is known for its business-friendly environment, low tax rates, and high standard of living. The...
Read More
Top 5 Tips : How to Choose the Best Property Agent in Singapore – Insider Tips and Strategies!
Choosing the right property agent in Singapore can be a daunting task, especially with the plethora of options available. A...
Read More
Don’t Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore’s Property Market
Don't Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore's Property Market When it comes to...
Read More
The Secret Strategies of Singapore’s Property Tycoons: Lessons You Can Learn
The Singapore property market has always been a hot topic for both locals and foreign investors. With its stable economy,...
Read More
3 Exciting Residential Sites Coming Soon!
TLDR The Lion City is undergoing rejuvenation with upcoming developments in coveted areas like Clementi and sites near MRT stations....
Read More
Top 5 Factors : Location More Important Than Freehold Status?
When it comes to purchasing a property, there are numerous factors that potential buyers need to consider. While the debate...
Read More
Essential Steps for Safely Purchasing Your First Home in Singapore
TLDR When considering buying your first property in Singapore, start by assessing your budget and qualifying for a permissible loan....
Read More
Don’t Miss Out: Take Control of Your Life in Your 30s and 40s
TLDR The stages of wealth management vary from ages 30 to 80, with different focuses and considerations at each stage:...
Read More
Top 5 Art Galleries in Singapore for Contemporary Art
Singapore, known for its modern architecture and vibrant culture, has a thriving art scene that showcases the best of contemporary...
Read More
5 Techniques for Identifying Undervalued Properties in Singapore 2023
TLDR To spot undervalued properties in Singapore's real estate market, focus on market value, location, and unique features. Consider "up...
Read More
Top 5 Museums in Singapore for Art and History
Singapore, known for its vibrant culture and rich history, is home to a plethora of museums that cater to art...
Read More
Top 5 Factors: Singapore Offer A Stable And Lucrative Investment Opportunity In Real Estate?
Singapore, a small yet economically powerful city-state, has long been recognized as one of the most attractive destinations for real...
Read More
Top 5 : Dangerous Ideas Singapore Property Investors Have
Investing in property, particularly in a thriving market like Singapore, can be an enticing prospect. However, it's not without its...
Read More
Top 5 Tips : How to Choose the Right Type of Property to Invest in Singapore – Expert Tips and Analysis!
Investing in property has long been a popular method for growing wealth in Singapore. With million-dollar HDBs being sold and...
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
Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market
Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...
Read More
