Back in October 2017, Chinese developer Logan Property was purchased in a collective sale for SGD$629 million. Owners of the 336-unit former HUDC estate received gross proceeds of between SGD$1.84 million and SGD$1.89 million. The 389,236 square feet residential site with a plot ratio of 2.8 will be developed into Florence Residences. The total number of units should be around 1000. The project is to be launched in early 2019.
Let us look at the good, the bad and the downright ugly facts of The Florence Residences.
1) This will be a large development
Larger developments tend to have more facilities as compared to smaller developments. As there are more stakeholders to share the cost of maintaining facilities, the development can have a wide array of facilities while the cost of running these facilities is divided among many. Tenants and buyers are usually attracted to condominiums with a comprehensive facilities list and this development should be able to attract potential tenants and buyers once the development is completed.
2) The close proximity to good schools
Primary schools within a 1-kilometre radius to The Florence Residences include Xinmin Primary School, Holy Innocents Primary School and Xinghua Primary School. Those within a 2-kilometre radius include Rosyth School, Zhonghua Primary School, Paya Lebar Methodist Girls’ School and CHIJ Our Lady of the Nativity among others. All these schools are well known and popular. Demand for properties in this area is partially driven by parents who want to gain entry into these schools. The kiasu Singapore parent culture does reel its head when it comes to selecting a property…
3) The general location
Hougang is a matured estate. It has many amenities and food options. Just around the corner are popular food haunts like Punggol Nasi Lemak and Durian Culture. Heartland Mall at Kovan and Hougang Mall at Hougang Central provide residents in the area shopping options.
1) 99-year leasehold
This is when there are freehold options in the vicinity. For one, The Florentine, which is right next to The Florence Residences is freehold.
2) It is not exactly near to either Kovan or Hougang MRT stations
Both options require a walk exceeding 10 minutes. It is almost exactly in between both MRT stations. I would think that walking from Kovan MRT station would be the better option as there are no major roads to cross and there are shops along the way.
3) There are many condominiums in the area
Competition is rife. Just next to Kovan MRT is a huge barrage of condominiums like Kovan Melody and Kovan Residences and there are also many new developments around Hougang MRT like Kingsford Waterbay or Riverfront Residences. Buyers and tenants will be spoilt for choice.
1) The price?
Well, we do not have word of this yet but I do think that the market is a little on the high side while rents continue to be weak. Hopefully, the developer will understand the challenging market conditions and hopefully price this to compete with developments like Riverfront Residences.
I do hope that this project will be priced to sell. It is located on a nice, large plot of land and I would think that the developer Logan Property would have to come up with something innovative to differentiate The Florence Residences from the many other condominiums in the area.
For more information about The Florence Residences like brochures (will upload when released), price list and videos, visit the Invest Singapore Property page. I’m guessing The Florence Residences will be launching 1st quarter 2019?
For my in-depth property reviews, do visit my Investment Blog at www.daryllum.com.
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