As Singapore progresses deeper into its worst recession on record, property prices have remained resilient. Singapore private home prices rose by 0.3 per cent in the second quarter of 2020, surprising most analysts. These are perplexing times as Singapore’s second-quarter GDP numbers shrink by 13.2 per cent, yet shopping malls are packed, despite the COVID-19 pandemic, certificate of entitlement (COE) prices are on the rise and property prices are holding firm, even eking out small gains. In the subsequent quarters, I do still believe that the recession will take its toll on asset prices as government stimulus begins to taper off but that is something which I will dedicate a whole other article to in the coming weeks. For now, property launches are still ongoing as developers try to find pockets of opportunistic moments to launch their latest offerings. Penrose by CDL and Hong Leong Holdings is a very intriguing offering. In fact, this is perhaps one of the developments I had been looking forward to since the plot of land was sold to CDL and Hong Leong through a government land sale exercise.
Details about the development
Penrose is a 99-year leasehold development by a joint venture between CDL and Hong Leong Holdings. Back in March 2019, a 60:40 joint venture between Hong Leong Holdings and CDL submitted the winning bid of SGD$383.5 million for the Sims Drive site. This worked out to SGD$732 per square foot per plot ratio (psf ppr). The 174,648 square foot site will be developed into Penrose which will have a total of 566 units with a child care over 5 18-storey blocks. Units will range from 1 to 4 bedrooms. The 5 blocks will be located at 20, 22, 26, 28 and 30 Sims Drive. The expected completion of Penrose is in the year 2025.
Here is the unit mix for Penrose
1-bedroom, 474 – 517 sq ft, 57 units
1-bedroom with study, 560 – 570 sq ft, 2 units
2-bedroom, 646 sq ft, 69 units
2 bedroom premium, 700 – 710 sq ft, 68 units
2-bedroom with study, 797 – 807 sq ft, 34 units
3-bedroom, 936 – 980 sq ft, 105 units
3-bedroom premium, 1044 – 1098 sq ft, 123 units
3-bedroom with study, 1173-1184 sq ft, 54 units
4-bedroom, 1389-1399 sq ft, 54 units
Where is the development located?
Penrose is located along Sims Drive. It is located next to Sims Urban Oasis and is within walking distance to Aljunied MRT Station. Sims Vista market and food centre is also just around the corner.
Penrose location map
According to Google Maps, the walk from Penrose to Aljunied MRT Station will take about 5 minutes and the distance covered will be about 400 metres. The walk is extremely straightforward though relatively unsheltered.
The train journey from Aljunied MRT Station to Raffles Place MRT Station will take approximately 12 minutes over 5 stations and will cost $1.22. The East-West MRT Line is very well connected and brings travellers right into the heart of Singapore’s city centre.
Aljunied MRT Station to Raffles Place MRT Station
The train journey from Aljunied MRT Station to Orchard MRT Station will take about 15 minutes and will cost $1.38. The more straightforward way to get to Orchard MRT Station would be to travel to City Hall MRT Station and making a switch to the North-South MRT Line. My search was done using the LTA transport mobile app and it served me the result below.
Aljunied MRT Station to Orchard MRT Station
The drive from Penrose to Raffles Place will take approximately 13 minutes and the distance travelled will be approximately 6.8 kilometres. This Google Map query was done on a weekend with optimal traffic conditions. In usual peak hour traffic, post-COVID-19, do expect traffic to be less light than the results shown below.
The drive from Penrose to Raffles Place
The drive from Penrose to Orchard Road is also rather short. According to Google Maps, it will take approximately 13 minutes and the total distance travelled would be about 10.4 kilometres.
The drive from Penrose to Orchard Road
The selling points of the development
I’ve always maintained that properties that are close to train stations on the East-West, North-South and North-East Lines generally have accessibility and adequate amenities. The East-West and North-South MRT lines are the earliest lines and the area around the stations on these lines generally have very good amenities and connectivity to the city centre. Aljunied is a very matured estate and there are food centres, hawkers, a wet market, shops, a library and a polyclinic all around the vicinity of where Penrose is located. Travelling south of Penrose in the direction of Guillemard Road and there are many food options in and around Geylang, Guillemard Road and Old Airport Road. Compare this to less mature areas like Sengkang or Punggol or even to places like Ubi which has a train station along the Downtown MRT line but does not have the same connectivity and abundance of amenities and food options like Aljunied does. Living in a matured estate does have huge perks and advantages for buyers purchasing for their own stay or to have the unit rented out as connectivity and availability of amenities are important to homeowners and tenants alike.
Aljunied MRT station is a mere three MRT stations away from Bugis and four from City Hall. Considering the fact that a recent launch in Bugis, The M, had units that went for as high as $2,937 psf, developments at the city fringe like Penrose do look attractive for buyers seeking a slight tradeoff in terms of location for a rather significant discount in price psf. Just for comparisons sake, The M was launched and sold at prices ranging from $2,127 to $2,937 psf. At the point of me writing this review, there were 387 transaction records of The M on URA’s private residential property transactions search.
Here are five transactions at The M that managed to breach the $2,900 psf mark.
Highest psf transactions at The M
In contrast, prices at Sims Urban Oasis, which is next to Penrose, are in the range of $1,577 psf to $1,631 psf for the year 2020. If we were to compare the average of the top 5 psf transactions for Sims Urban Oasis and The M ($1,598 vs $2914.40), Prices at Sims Urban Oasis are about 45% lower in terms of psf as compared to prices at The M. The savings for moving four MRT stations away from Bugis to Aljunied are huge.
Highest psf transactions at Sims Urban Oasis (for year 2020)
If we were to compare the rents in district 7 (Bugis, Beach Road) to those in district 14 (Aljunied, Paya Lebar area), we can see that the higher prices paid in District 7 do not automatically translate to a proportionate increase in the rents collected. As a practising property agent, I would also highlight that the rental data do not reflect the time taken for a unit to be rented. Properties in District 14, in my personal experience, do take a shorter time to get rented out.
2020 Q2’s Median Rents (non-landed):
- 400-500 sq ft: $2,775 vs $1,800 (35.2% diff)
- 500-600 sq ft: $3,200 vs $2,000 (37.5% diff)
- 600-700 sq ft: $3,200 vs $2,450 (35.2% diff)
- 700-800 sq ft: $3,200 vs $2,300 (24.5% diff)
- 800-900 sq ft: $3,400 vs $2,400 (29.5% diff)
- 900-1000 sq ft: $3,450 vs $2,600 (24.7% diff)
Source: squarefoot research
This is perhaps the last plot of land around Aljunied MRT station that can be developed into a condominium. Unless of course certain HDB blocks are selected for redevelopment and taken back by the government. In this area, there will be four condominiums competing for buyers and tenants. Tre Residences, Central Grove, Sims Urban Oasis and Penrose. Tre Residences and Central Grove are too close to Geylang for many people’s liking. Sims Urban Oasis and Penrose seem to be viable options for buyers looking to live near Aljunied MRT Station but want to be away from the hustle and bustle that is Geylang.
Possible bad points of the development
I would say that if you settled on Penrose, unit selection is key as there will be units facing the Pan Island Expressway. If you were curious to know how loud the sound of the expressway can be, there are HDB blocks in Aljunied Crescent that also face the PIE. Buyers can go to these HDB blocks to experience the sound. Buyers should avoid purchasing units with expressway noise.
My thoughts about the development
I am still waiting for pricing to be released before making a more conclusive judgement of the development. However, if pricing were to hover in and around the $1,600 psf range, which is what Sims Urban Oasis is going for in the resale market, this is perhaps a good development to consider for buyers looking for a city fringe property.
Penrose
Pricing TBC
As of writing, pricing had yet to be released.
Location 4.5/5
This is city fringe. As areas like Bugis start to develop and offer more grade A office space, places like Aljunied stand to benefit from the spillover of tenants working in these areas. Aljunied is also a mere five MRT stations away from Raffles Place MRT. Tenants working in the central business district who want easy access to their workplace yet want a place with adequate amenities at a more affordable price should be drawn to a development like Penrose.
Quality 4.5/5
Hong Leong Holdings and CDL are reputable developers with extensive track records. In times like what we are living in today, you want to purchase from developers who can weather the downturn. There have been cases of, but not widely reported and circulated, of Singapore developers going bust and not following through with their developments. Since we are experiencing an unprecedented economic contraction, I do think that the viability of the developer is important. Hong Leong and CDL do also have a track record of developing good, high-quality developments like 76 Shenton, Commonwealth Towers, St. Regis Residences, South Beach Residences, One Shenton, Cliveden at Grange and many others. A collaboration of two property heavyweights bodes well for Penrose.
Yours Sincerely,
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 Penrose. Buyers can approach me to purchase Penrose 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.
My other Singapore Property Reviews
My review of Normanton Park by Kingsford Development
My review of Forett at Bukit Timah by Qingjian Realty
My review of Clavon by UOL Group
My review of The M by Wingtai Asia
My review of Kopar at Newton by CEL Development
My review of The Avenir by Hong Leong Holdings and GuocoLand
My review of One Holland Village Residences by Far East Organisation
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 Arena 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
