Park Nova is a luxury development located in District 10. Aside from its freehold status, the development also offers super spacious units and easy access to MRT stations and nearby amenities.
Continue Reading ⋅ 15 June 2021
JL Asia Resources Pte Ltd is in the property management services sector, involved in building and developing property, in addition to hotel management.
Project Name: Forte Suites
Address: Mergui Road
Site area: Approx. 22,075 sqft
Tenure: Freehold
District: 8
Configuration: 106 units
Unit types:
16 1-bedroom units (441 – 474 sqft)
68 2-bedroom units (603 – 700 sqft)
16 3-bedroom units (624 sqft)
6 penthouse units (1,033 – 1,227 sqft)
Maintenance fees: TBA
Parking lots:
106 normal lots
2 handicap lots
Expected TOP: 2018
Expected legal completion: 2021
Project Details
Forte Suites is a 106-unit freehold development located along Mergui Road. At time of writing (August 2016), 2- and 3-bedroom units as well as the penthouse units are still available.
The project is a 25-storey residential tower with facilities interspersed between the levels.
Construction is progressing and the block is already standing.
Source: Developer’s Brochure
Source: Developer’s Brochure
The level 5 recreation deck is perfect for evening relaxation or to have family picnics and gatherings on the weekends.
Source: Developer’s Brochure
The level 14 recreation deck is the place for fitness junkies or even just those who want to enjoy themselves in the themed lounges.
Source: Developer’s Brochure
Lastly, the level 20 recreation deck – set against the backdrop of the city skyline – is great for residents looking to escape the hustle and bustle of city life for a few minutes.
Source: Developer’s Brochure
The penthouse on the 24th storey gives residents a great view of the island.
Show flat units are no longer available for this project. Photos are from the Developer and are from different unit types.
Source: Developer
Cabinets with solid surface and/or stone countertops and a sink with mixer are provided with the kitchen. Appliances provided include a built-in microwave oven, electric cooker and hood and refrigerator.
Kitchen and sanitary fittings are from Hansgrohe, Franke, Johnson Suisse, Roca and Villeroy & Boch.
Source: Developer
The dining area is right in front of the kitchen and beyond that, it is the living space.
Source: Developer
The living area extends to the balcony in all units.
Source: Developer
Common bedrooms can generally accommodate a queen-sized bed quite comfortably.
Source: Developer
You could go with the study cum loft bed option, to optimize the given space.
Source: Developer
And finally, the master bedroom. Select units come with a jacuzzi attached to the master bedroom.
Buyers are likely to be a mix of owner-occupiers and those looking to lease. About 70% appear to be HDB upgraders, as of now.
Location
Farrer Park is an area known for its rich sporting heritage and history. The place was originally home to Singapore’s earliest horse racing turf club – hence the name ‘Old Racecourse Road’.
Source: Google Maps
Getting there: Forte Suites is located along Mergui Road of District 8. If you’re travelling by train in the mornings, Raffles Place MRT is a 9-minute ride from Farrer Park MRT. By car, it is a 6-minute drive to town via the Central Expressway (CTE), assuming optimal traffic conditions.
Farrer Park MRT is about a 7-minute walk away. From there, Dhoby Ghaut MRT is two stops down, City Hall MRT three stops and the entire Orchard Shopping Belt and CBD area four stops down.
The estate: The area surrounding Forte Suites is mostly residential and commercial. The development is right in the middle of a stretch of road that has been earmarked by the Urban Redevelopment Authority as a key area to be preserved while also being revitalized for the future.
The nearest bus stop is a short walk away, along Rangoon Road. Between them, the services cover, Bukit Merah, Whampoa, Bugis, Thomson, Telok Blangah, Geylang, Kallang, Toa Payoh, Balestier, Orchard and the CBD area.
Source: Developer’s Brochure [click here for full version]
As for school options, there are a few nearby.
International Schools:
- Stamford American International School
- SJI International School
- Insworld Institute
- International Management School
City Square Mall is about a 10-minute walk away. Anchor tenants at Singapore’s first eco-mall include Uniqlo, NTUC Fairprice and Golden Village Cinemas. Shoppers will enjoy the spread of over 200 stores and services.
Singapore’s only 24-hour shopping mall, Mustafa Centre, is also about a 10-minute walk away. The Mustafa department store consists of two shopping centres – one for jewelry and household appliances and another for a variety of products like DVDs, books, watches, electronic goods, footwear and clothing.
Connexion at Farrer Park, Singapore’s first integrated hospital and hotel complex is a 6-minute walk away. This makes it convenient for residents who may require outpatient treatment regularly or in the case of an emergency.
Little India is also within short distance of Forte Suites. Serangoon Road is the main commercial thoroughfare in the area. Along and around it, you can find Tekka Mall, the Little India Arcade, Serangoon Plaza and several Hindu temples, mosques and other places of worship. Famous for its food and heritage, the place is frequented by locals and tourists.
As for healthcare needs, if Connexion is not sufficient, KK Women’s & Children’s Hospital is a 3-minute drive away. You can also easily find general and specialist clinics in the many malls around the area.
Analysis
Caveated transactions for Forte Suites at time of writing stands at 50. Recorded transaction prices range from $749K to $1.88M (see Chart 1).
Sale Transactions
Source: PropertyGuru, URA
Source: URA
Forte Suites’ closest competitor would be Cityscape at Farrer Park, located right next to it, along Mergui Road. Launched in 2010, its current median price is $1,420 psf to Forte Suites’ median of $1,725 psf. Residents at Cityscape at Farrer Park are also likely to be a good mix of owner-occupiers and tenants who like the project’s location.
Units at The Citron Residences range from 2- to 3-bedroom + study units as well as penthouse units. To have a clearer picture, we will be looking at 3-bedroom units in particular, across both developments. According to caveats, Forte Suites’ 3-bedroom units have a median price of $1,885 psf while Cityscape’s is $1,365 psf. Transactions for the units at Forte Suites range from $1.142M to $1.264M, and are between $1.565M and $1.922M at Cityscape at Farrer Park. The price differential can be explained by the very different market conditions at time of launch for both projects.
Before deciding based on these numbers alone, we should look at unit sizing as well. Units are generally much larger at Cityscape at Farrer Park with the 3-bedroom ones ranging from 1,238 sqft to 1,518 sqft. At Forte Suites, they are 624 sqft.
Future Rental Potential
To understand what rental prices will be like for Forte Suites, we need to look at rental prices for other projects in the area.
The current median rental price for District 8 (Little India) is around $3.77 psf per month at time of writing, based on rental transactions for the past 4 quarters. At these rates, a 3-bedroom unit around 624 sqft at Forte Suites would go for around $2,800 a month, after factoring a 20% premium for its new build. With the median price for the unit being around $1.177M, the annual gross rental yield at the current rate would be an estimated 2.9%.
The median unit size of a 3-bedroom at Cityscape at Farrer Park, on the other hand, would probably fetch around $5,200 a month at today’s rental rates. This translates to around 3.5% in annual gross rental yield.
Nearby amenities are pretty much the same for both projects, with them being next to each other. Unit sizing however, differs with units at Cityscape being much larger.
With the upcoming revitalization plans for the district, rental prices could increase further, so rental yield could also possibly be even higher.
Summary
Location is Forte Suites’ biggest plus point. Being situated in the centre of a rejuvenated area that stretches from Jalan Besar to Kampong Glam, Ophir and Rochor, residents will definitely enjoy being so easily connected to several parts of Singapore.
The easy access to major expressways and the MRT stations nearby make it extremely convenient to navigate – the number of rental contracts at the nearby City Square Residences is testament to this. Following its transformation into an urbanized district, the Ophir-Rochor corridor will be a mixed-use hub featuring offices, hotels and residences, connecting Marina Centre to future developments along Rochor Canal and Bukit Timah Canal.
A potential drawback that arises because the project is located in a predominantly commercial area, is the lack of a range of educational institutions. There are primary schools within walking distance, but secondary and tertiary school-going residents may have to travel a bit.
Investment potential is high and this is clearly evident from the sold-out 1-bedroom units. With the upcoming changes to the Jalan Besar/Rochor district, there will be demand for private residential units in future.
Overall, purchasing a unit at Forte Suites for investment purposes or as a home buyer, seems like a good move. Keeping in mind that the development is freehold, coupled with the surrounding amenities and facilities, the relatively higher price points may still prove to be worth it, in future.
