Arena Residences is an interesting development. Located along Guillemard Road and close to the city, it is relatively close to a few MRT Stations and is garnering some decent interest in spite of the property cooling measures.

 

Details about the development

Arena Residences is a freehold condominium developed by Roxy-Pacific Holdings. The development sits on the sites situated at 2, 6, 12 and 14 Guillemard Lane. Roxy-Pacific Holdings acquired the freehold residential sites for $22.5 million (12 and 14) and $33.5 million (2 and 6) sometime back in September and October 2017 respectively. The group amalgamated the plots of land and the combined site is to be developed into Arena Residences. The combined site has a total site area of about 25,601 square feet and will house 98 residential units. There will be a mix of 2 bedroom compact, 2 bedroom, 3 bedroom and 3 bedroom dual key units in the development.

 

 

Where is the development located?

Location of Arena Residences

Location of Arena Residences

Arena Residences is located along Guillemard Road. If you are driving from Paya Lebar MRT and head down along Guillemard Road in the direction of Nicoll Highway, it is just before the junction that leads to Nicoll Highway and the intersection with Mountbatten Road. It is just after the former Singapore Badminton Hall. The former Singapore Badminton Hall has been converted into Guillemard Village where there are restaurants, a wellness spa and a rock climbing gym.

 

MRT Stations near Arena Residences

MRT Stations near Arena Residences

There are two MRT stations near Arena Residences. The nearest would be Mountbatten MRT Station which is part of the Circle Line and next would be Aljunied MRT Station which is along the East-West Line. According to Google Maps, the distance from Arena Residences to Mountbatten MRT Station is 600 metres and it will take you 6 minutes to cover that distance by walking.

Distance from Arena Residences to Mountbatten MRT Station

Distance from Arena Residences to Mountbatten MRT Station

 

If you are travelling to Singapore’s Central Business District (CBD), it will take you 11 minutes to get from Mountbatten MRT Station to Raffles Place MRT Station which is 6 stations away. The journey will cost you $1.07.

Mountbatten MRT Station to Raffles Place MRT Station

Mountbatten MRT Station to Raffles Place MRT Station

If you are travelling to Orchard Road, it will take you 14 minutes to get from Mountbatten MRT Station to Orchard MRT Station which is 8 stations away. The journey will cost you $1.16. You will need to make a few switches. First to the Downtown Line and then to the North-South Line.

Mountbatten MRT Station to Orchard MRT Station

Mountbatten MRT Station to Orchard MRT Station

 

The next nearest MRT Station would be Aljunied MRT Station. Although I would think that walking to Mountbatten MRT Station would be the better option. The walk to Aljunied MRT Station is unsheltered and takes 12 minutes. The distance travelled is 900 metres.

Distance from Arena Residences to Aljunied MRT Station

Distance from Arena Residences to Aljunied MRT Station

 

If you are travelling to Singapore’s Central Business District (CBD), it will take you 10 minutes to get from Aljunied MRT Station to Raffles Place MRT Station which is 5 stations away. The journey will cost you $1.07.

Aljunied MRT Station to Raffles Place MRT Station

Aljunied MRT Station to Raffles Place MRT Station

 

If you are travelling to Orchard Road, it will take you 14 minutes to get from Mountbatten MRT Station to Orchard MRT Station which is 8 stations away. The journey will cost you $1.16. You will need to make a few switches. First to the Downtown Line and then to the North-South Line.

Aljunied MRT Station to Orchard MRT Station

Aljunied MRT Station to Orchard MRT Station

 

If you are driving to Suntec City, it will take you 5 minutes to get there. The distance travelled is 3.6 kilometres. Do take note that this enquiry with Google Maps was done during off-peak hours and during peak timings do expect the time taken to be longer.

Drive from Arena Residences to Suntec City

Drive from Arena Residences to Suntec City

 

If you are driving to Raffles Place, it will take you 11 minutes and again, you will be travelling along Nicoll Highway. The distance travelled is 5.6 kilometres.

Drive from Arena Residences to Raffles Place

Drive from Arena Residences to Raffles Place

 

If you are driving to Orchard Road, it will take you 15 minutes and you will travel 9.2 kilometres. You will have to travel via the CTE to get there.

Drive from Arena Residences to Orchard Road

Drive from Arena Residences to Orchard Road

 

There is no shortage of food options or amenities. Geylang is just a street away and that is an area with a lot of food options. However, if you do not want to travel to Geylang, there is a market and the Old Airport Road Food Centre nearby. The distance to walk to the market is about the same distance as walking to Mountbatten MRT Station. The Old Airport Road Food Centre is just a street away. This particular food centre is one of the more popular ones with many famous food stalls.

Market, Food Centre and amenities near Arena Residences

Market, Food Centre and amenities near Arena Residences

 

The selling points of the development

The main selling point is the location. This condominium is located just at the edge of Nicoll Highway which leads straight into Singapore’s CBD. Guillemard Road is a very long road which stretches from just after Paya Lebar MRT Station to just before Nicoll Highway. Arena Residences is located just at the tip of Guillemard Road before Nicoll Highway. Getting to town is a very simple affair. The condominium is not exactly right next to Mountbatten MRT Station but the walk is not long. It is relatively sheltered once you cut across the park and get to the HDB blocks. There are not many condominiums in this area and if you are buying the property as an investment to collect rental income, your competition will be mainly from the HDB blocks around Cassia Crescent and Pine Close. If you are driving, this is really in the city fringe. It will take you mere minutes to get to the ECP, PIE and CTE and Nicoll Highway is just a minute away from the condominium.

There are a lot of amenities located around the area as well. Geylang is renowned for its food options. It may be a little rowdy at night but then the rowdiness does not spill over to the area south of Guillemard Road, which is where Arena Residences is located. Instead what you will find around Arena Residences is a matured estate with HDB shophouses and a very good food centre in Old Airport Road Food Centre.

 

Possible bad points about the development

I would think that the possible downside would be the proximity to Geylang where some of the streets are a bit seedy. That being said, Arena Residences is not located in Geylang. Some people may have this perception but I personally feel that this claim is not accurate.

 

My thoughts about the developments

I would think that this would be a decent investment if you are looking for a purchase a place to rent out or stay. The nearest comparison would be Cosmo along Guillemard Crescent. Cosmo is a 45-unit freehold condominium that was completed in 2012.

Cosmo Rental Contracts

Cosmo Rental Contracts

Based on the rental contracts of the last 6 months, the median rent for a 2 bedroom is $2,300. There is also a 2 bedroom unit that was rented for $2,800 in May 2018. If we were to assume that a 2 bedroom unit at Arena Residences will rent for $2,500 a month in the future and the purchase price of a 2 bedroom compact is about $1,000,000, that would give you a rental yield of 3 per cent.

 

Cosmo Past Transactions

Cosmo Past Transactions

There are only two sale transactions for Cosmo in the past year and only one in 2018. The last transaction was at $1,607 per square foot. If you factor in the fact that Arena Residences is going for about $1,800 per square foot which is about a 12 per cent premium over Cosmo, then it does sound rather decent. Cosmo is already 6 years old and is a smaller development of about half the size of Arena Residences.

 

The next nearest condominium to note would be Nicole Green which is along Guillemard Close. However, Nicole Green is a little less convenient and a slightly longer walk to Mountbatten MRT Station and the amenities previously mentioned. Moreover, there is a Kallang Fire Station that will be completed soon right in front of the condominium. Due to a lack of comparatives in the area, we shall use Nicole Green in our analysis as well.

Nicole Green Past Transactions

Nicole Green Past Transactions

Judging by the resale transactions, the median price for the last year is $1,067 per square foot. There was an outlier of $875 per square foot but that was for a large 2,228 square foot unit.

 

Nicole Green Rental Contracts

Nicole Green Rental Contracts

Rents are more or less in line with the ones at Cosmo. A 2-bedroom unit was rented for $2,400 per month in May 2018 and there were two 3-bedroom units that were rented for $2,700 and $2,900 per month in June and May of this year respectively.

I have always stated that URA gives us data of the past transactions and the rental contracts but it does not give us information about how long it took for the property to be rented out for. Also, they do not indicate how many units are left vacant. As an investor, if you purchase something that is centrally located, you should have lesser trouble renting it out than properties that are far away from the city centre.

Supply is one of the determining factors when predicting price and from the URA Master Plan, there is no other plot of residential land that can be developed in the area. Developers will have to do what Roxy-Pacific Holdings did and purchase existing property en bloc and redevelop it. Based on the URA Master Plan, there is no significant government land that can be released in this area.

URA Master Plan of the area around Arena Residences

URA Master Plan of the area around Arena Residences

 

Arena Residences

 

Pricing 3.5/5

As always, I do think that new project launches are priced too high. The indicative pricing for Arena Residences is in excess of $1,700 per square foot. However, when I compare this freehold development to other 99-year leasehold projects in places like Serangoon North that are asking for in excess of $1,500 per square foot, I do think that this seems a bit more reasonable.

 

Location 4/5

This is extremely price and what I think we can truly call city fringe. The proximity to the city centre is the main attraction of properties in this location. I personally like the fact that there are amenities close by as the neighbouring HDB estate is a matured one. It only it was a tad closer to Mountbatten MRT Station then this development. Hey but then this is me nitpicking. This is a very conveniently located development.

 

Quality 3/5

Due to the fact that it is not a large development with a few hundred units, amenities are rather limited if you compare to larger developments. The National Stadium is just a short distance away with loads of facilities if residents find that they need something extra. However, if we look solely at the facilities that Arena Residences has to offer as compared to those larger developments then it will definitely pale in comparison. This is not unique to Arena Residences. Every smaller development will have fewer facilities to keep the running costs low. As for the developer, Roxy-Pacific Holdings is an experienced developer with a long track record. Their notable developments include Trilive, EON Shenton, Liv On Wilkie, Liv On Sophia and The Marque@Irrawaddy.

 

p.s. Disclaimer: I am a licensed real estate salesperson at the point of writing this review. My real estate agency is the marketing agency for Arena Residences. Buyers can approach me to purchase Arena Residences and I will earn a commission from the developer. My reason for writing this review is to share my personal view about the developments not as a real estate salesperson but in the neutral context of a buyer and hopefully share some insight to help buyers make a more informed buying decision.

 

Yours Sincerely,

Daryl Lum

 

My other Singapore Property Reviews

 

My review of Neu at Novena and Fyve Derbyshire by Roxy Pacific Holdings

My review of Midwood by Hong Leong Holdings

My review of Royalgreen and Juniper Hill by Allgreen Properties

My review of Sky Everton by Sustained Land

My review of Sengkang Grand Residences by Capitaland and City Developments Limited

My review of One Pearl Bank by Capitaland

My review of The Antares by FSKH Development

My review of Parc Clematis by SingHaiyi Group

My review of Piermont Grand by City Developments Limited

My review of Parc Komo by CEL development

My review of Riviere by Frasers Property

My review of Avenue South Residence

My review of 1953 by Oxley Holdings

My review of Uptown @ Farrer

My review of The Florence Residences

My review of Treasure at Tampines

My review of Fourth Avenue Residences

My review of The Woodleigh Residences

My review of Kent Ridge Hill Residences

My review of Whistler Grand and Twin Vew

My review of Mayfair Gardens and Daintree Residence

My review of Parc Esta

My review of Jui Residences

My review of The Jovell

My review of JadeScape

My review of Stirling Residences and Margaret Ville

My review of The Tre Ver and Riverfront Residences

My review of Park Colonial

My review of Affinity at Serangoon and The Garden Residences

 

P.S. You can reference the Arena Residences floor plans here. 

P.P.S. I have just started a YouTube Channel and I will be uploading weekly videos explaining the various investment terms and jargon which may come in handy for some. Do consider subscribing to my YouTube Channel for useful investment content videos. You can access my YouTube Channel here.