Sixteen35 Residences Investment analysis
Over the past 10 years in District 14 where Sixteen35 Residences (Sixteen35 (1635) Residences) is located, non-landed house prices have risen from S$704 psf in Feb 2010 to S$1,329 in Jan 2018.
This represents an eye popping increase of 89% over the 8 years! On an annualized basis, this represents an increase of 8.3%.
If rental income and leverage were to be taken into account, the returns to an investor would be in the double digit range and likely higher than 20%.
For an investor in Sixteen35 Residences Geylang, the historical guide could be taken as a guide and potential capital gains would be very attractive.
The following chart shows how non-landed prices have moved over the last 10 years.
Indeed as a testament to the investment potential for 1635 Residences, other comparable properties in district 14 such as Eunos Mansion, The Arizon and Wing Fong Mansions have registered capital gains of more than 100%.
On the lower end there is Mera East and The Waterina but these still had gains of approximately 50%.
An investor in Sixteen35 Residences would want to take note of these historical precedents.
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Sixteen35 (1635) Residences is also likely to have rental yields of more than 4% going by the comparables in the area.
The following table shows various comparable projects in district 14 and their rental yields.
||Gross Yield %
|Wing Fong Court
Even at the lower end of rental yields tracked by Squarefoot research, yields are at least 3.7% (Goodview Apartments).
One reason yields are so attractive in district 14 is the relatively proximity the area is to the city.
For investors in Sixteen35 Residences, it would be wise to keep an eye out for competitor buildings as they may provide more choice for potential renters.
In district 14 where Sixteen35 Residences is in, there are 3 uncompleted condomiuniums.
They are Tre Residences (TOP Dec 2019), Rezi 35 (TOP 2020) and The Navian (TOP Dec 2020).
The TOP date for Oxley' new launch is unconfirmed but is given a lead time of about 3 years for construction, the TOP could likely be in 2021.
Sixteen35 (1635) Residences Immediate Surrounding Analysis
Immediately around the upcoming condo are a few projects that we can take reference from to see what type of investment returns can be achieved.
Carmi Mansions was built in 1992 and has a rental yield of 3%
Chen Fang Mansions was built in 1997 and has a rental yield of 3.8%
Regal 35 was built in 2005 and has a rental yield of 3.3%
En Fu Mansions was built in 1995 and has a rental yield of 3.7%.
All the projects are freehold in nature.
The above suggests that Sixteen35 Residences would most likely achieve a yield in the 3.5% range.
1635 Residences Things foreign buyers should look out for
Foreign buyers are able to buy Sixteen35 Residences and they are not subject to any additional restrictions that are not already in place.
For more information on stamp duties, taxes, loan restrictions, do contact us and we can link you up with a professional.
Taxes for investors in Sixteen35 Residences
Investors in Sixteen35 Residences Oxley Holdings can buy units under a special purpose corporate vehicle but they will be subject to the additional conveyancing duty.
Sixteen35 Residences purchase detail
The following article extracted from Straits Times gives a good background on 1635 Residences.
Oxley acquires clan property in Geylang
Geylang's red-light reputation has not stopped it from turning into a red-letter day for some property owners.
Property developer Oxley Holdings said its wholly owned subsidiary, Oxley Pearl, agreed yesterday to buy a property in Geylang for S13 million from Huang Shi Zong Hui Singapore (Huang Clan Association) under a 99-year lease.
It is acquiring the property at 16 Lorong 35 Geylang with the intention of turning it into an eight-storey mixed-use development, which it will name Sixteen35 Residences.
The plot, which currently houses the clan association's headquarters, has an area of about 2,219.6 sq m and is zoned for residential/institution use under the Urban Redevelopment Authority's (URA) 2014 Master Plan.
Sixteen35 Residences will house the clan association's new premises on the second and third storeys, and residential flats from the fourth to eighth storeys, Oxley said in a filing with the Singapore Exchange.
The development will also have communal facilities, a swimming pool, and a carpark at its basement level, Oxley added. Upon completion, Oxley will transfer the clan association's units to its trustees to be held in trust for the association as a beneficial owner. You can visit Facilities and Site Plan here to see the beauty of Sixteen35 Residences.
The mixed-use development is expected to be completed within 40 months from the handover date of the plot by the clan association.Separately, a site with a 60m frontage along Lorong 18 Geylang, near its intersection with Geylang Road, is up for sale by tender. The property is offered for sale based on a 99-year leasehold tenure.
It has a total site area of about 1,696.3 sq m and is located within an area that was rezoned in 2015 from "residential/institution" use to "commercial/institution" use under the URA Master Plan 2014.
At a gross plot ratio of 2.8, it can be redeveloped into an eight-storey development with a maximum allowable gross floor area of 4,749.6 sq m.
The property is held under single ownership. "A development site of this size is rarely available as ownership of land plots in the Geylang area is mostly fragmented," said Ms Swee Shou Fern, senior director of investment advisory at Edmund Tie & Company (SEA), which is marketing the site.
From Sixteen35 Residences, it takes you just 10 minutes walk to Paya Lebar Central, one of the most hustle and bustle business hubs in Singapore. In addition to existing Singapore Sports Hub, Kallang Riverside Park, OneKM Mall, Kallang Wave Mall, and Leisure Park Kallang, works are underway to transform the Kallang River precinct into a 64-hectare lifestyle hub, complete with venues for water sports.
Located on a prime and strategic address, Sixteen35 Residences D14 is the best destination where has a huge potential for both investment and owning. Visit Location to see why thousands of investors choose Sixteen35 Residences, hurry up!!!
The asking price for the property is S36 million, which reflects a land rate of 5948 per square foot per plot ratio (ppr) for commercial use, or S704 ppr for institution use.
To redevelop the site for commercial use at a plot ratio of 2.8, an estimated development charge of S12.5 million is payable, said Edmund Tie in a statement. If the site is developed for institution use, no development charge is payable.
The tender closes on March 22.
Source: Straits Times