12 on Shan is a fantastic new, low-density and freehold condominium coming to Shan Road in the extremely convenient district 12
Continue Reading ⋅ 19 December 2016
Neem Tree is by Aylesbury Pte Ltd, a company incorporated since January 2011 that has developed industrial to commercial developments, including residential with their most successful to date being E9 Premium @ Woodlands.
Project Name: Neem Tree
Address: 30 Jalan Kemaman
Type: Condominium
Site area: Approx. 17,384 sqft
Tenure: Freehold
District: 12
Configuration: 84 units in a single, 17-storey tower
Unit types: 28, 1BR (420 – 452 sqft)
13, 1+1BR (506 sqft)
14, 2BR (624 sqft)
13, 2+1BR (710 sqft)
13, 3BR (818 sqft)
1, 2BR Penthouse (947 sqft)
2, 3BR Penthouse (1,163 – 1,335 sqft)
Parking lots: 84 + 2
Expected TOP: 2020
Project Details
Neem Tree is expected to be a low-density single tower development. With 84 units only, the developer can properly utilize the smaller surface area to add some distinguishing features to the project without compromising too much on unit size.
The prominent swimming pool aside, other facilities include Jacuzzi, a pool deck, BBQ pits and an outdoor gym. For a small development, facilities are usually limited but those included here are the main ones.
Source: Neem Tree sales brochure
With the smallest unit being a 420 sqft 1BR unit but with a high ceiling if it’s on the 16th floor, units are compensated with good layout planning. From the floorplan for the 1BR unit, the balcony does not seem overly large even while the air-con ledge looks like it may be taking up more space than necessary. Other than this, the unit does look decently sized, with a good large bedroom and an open kitchen.
1BR units tend to follow a strict pattern due to their limiting size but the layout for the 1BR units here looks sufficient. The next biggest unit jumps to 506 sqft for the 1+1BR variant.
Source: Neem Tree sales brochure / 1+1 BR
This is identical to the 1BR unit albeit with a study room and a longer corridor from the main door leading to the kitchen and living area. From the floorplan it looks like it may get a bit crowded as the main living areas are contained in one area as a result of the long corridor.
The most impressive units are the 3BR DK penthouses. The main unit is on the first floor, where the two bedrooms, closed kitchen and living room are.
Source: Neem Tree sales brochure / 3BR DK Penthouse floorplan
The second unit is on the upper floor and it works as a 1BR unit with its own private roof terrace minus a cooking area. However, a small kitchen can be built in by the owner if they want to. This will be likely done on their own without any influence from the developer.
The 3BR DK penthouse units are 1,163 sqft but being on the 16th floor and double storeys may allow for more emphasis on the main floor.
All units regardless of floor, have high ceilings. This helps with alleviating space woes in the smaller apartments.
Location
If you’re not intimately familiar with Jalan Kemaman, then getting to Neem Tree can be a daunting and confusing affair. The project is situated just behind the Global Indian International School, after Jalan Rajah and across the Whampoa River, which is little more than a storm drain.
Neem Tree site next to Whampoa River
Neem Tree is on the right in the picture above with the storm drain and Jalan Rajah on the left. The image is idyllic, despite the brown waters and on a sunny day, the park connector (which is undergoing some renovation) is more than just a thoroughfare. It goes all the way past Curtin Singapore, The Academy of Medicine and NKF Centre toward Whampoa Community Club. It adds a dash of color in a residential-heavy area.
Where Neem Tree is, with Jalan Rajah being a small two-way road that is prowled by feeder bus services that go to and fro Toa Payoh Interchange, traffic does not get too bad. It’s mostly peaceful here with the main issue being the smell of dirty, almost stagnant water in the storm drain but it is merely a tiny bad pill to swallow for quite a large array of conveniences.
Being connected to the park connector, Neem Tree residents are less than five minutes from the nearest bus stop where bus 139 goes (and returns from) to Toa Payoh Interchange.
Bus stops at Neem Tree
This sort of accessibility improves Neem Tree’s list of features. Arguably it’s the location that makes or breaks a development and Neem Tree has a nice blend of privacy and convenience. Though it is situated at the back of Jalan Kemaman, the main Balestier Road is less than a five minute walk out and once you’re along the road, on the right is a hawker centre while Balestier Plaza is on the immediate left.
These are hardly the only amenities around however. Balestier Road resembles Geylang in this regard where there are hawker centres, restaurants and other shops on either side of the street. Even Boon Tong Kee – a famous chicken rice stall – is across the road.
Boon Tong Kee
Probably the best thing Neem Tree residents have within walking distance to the condo is Shaw Plaza. Located just after Balestier Plaza, the Shaw Plaza has quite a few retail elements such as a furniture shop, some Japanese restaurants, a Guardian, MacDonald’s and KFC.
It is usually empty on a weekday afternoon.
Inside Balestier Shaw Plaza
But its best feature hands down is the IMAX Cineplex on the top floor. With a cinema within walking distance from Neem Tree, residents have no need to travel further to town. Even people living in Novena have a straight bus that stops just outside Shaw Plaza. The journey is about 10 to 15 minutes if traffic is slow.
Balestier Shaw Plaza
There are also several banks nearby. Maybank is at Balestier Plaza while OCBC Bank is in Shaw Plaza, but along the exterior, just after KFC. There’s also a taxi stand after the main entrance of the Plaza.
Given the high traffic frequency along Balestier Road, it’s not difficult to get a cab however it may be easier if you took one while standing along the road instead of waiting at the taxi stand when it’s not peak hours.
Shaw Plaza bus stop and taxi stand
The only issue here is that the road is quite narrow and the current construction will slow things down a bit. However, Balestier Road is connected to the CTE (Central Expressway) – about five minutes away – and from the CTE, you can head down southwest to Orchard Road or northeast to the PIE (Pan Island Expressway) to get to Potong Pasir, MacPherson and Geylang.
Balestier Road to CTE
The PIE is also connected southward to Kallang Road and by extension, Mountbatten, Stadium, Marine Parade and Bedok. So while Neem Tree isn’t within walking distance to the nearest MRT station, which is Toa Payoh, it’s not difficult to get around via bus or taxi.
Neem Tree is also next to a Chinese temple with an Old People’s Home located just behind.
Neem Tree and Tai Pei Yuen Chinese Temple
The proximity of the temple is convenient for people of this religion whom practice frequent worshiping. Others who may be averse to living in close proximity to any sort of religious establishments may want to look further afield. It is likely that this will be the deciding factor for some people though it’s hardly a big deal outside the occasional sounds and smells that may come from the temple.
If Neem Tree overlooked the busy highway, then this would have been an issue but aside from the nearby storm drain potentially creating unwanted vapors, Neem Tree is in a good location.
Analysis
Out of 84 units, 19 have been transacted so far at the time of writing. 18 were transacted during May to December 2015 and only one unit has been sold as of March 2016. It is a bit strange that a property like this is seeing a low volume of sales. Freehold properties tend to be bought up quite quickly. It is entirely possible that with the sudden influx of freehold properties as of late, that the public aren’t as convinced that they are as rare as developers like to claim.
In fact, almost all of the neighbouring properties (about 24) to Neem Tree are freehold giving Geylang’s concentration of freehold properties a run for their money. Still, freehold properties will run out and Neem Tree is certainly one of the better ones.
Sales does appear to have grinded to a halt. Ideally, any marketing initiative by the developer would help put the property back on the map but for now, it does not look like its moving.
Given that Neem Tree is in a rather good location – quiet yet within walking distance to many amenities including a cinema – it is one of the few properties in Singapore that serious buyers should be paying much closer attention to.
Source: PropertyGuru, URA
Furthermore, with only fourteen out of 28 1BR units sold, there are still several more units below the $1m price tag for interested singles to snap up. Already the quantum range of 1BR units lie within $650K and $750K and for freehold units, these are some of the more affordable ones by comparison.
The price jump from 1BR to 2BR however is rather sudden with prices leaping from a comfortable $750K to $960K/$1m. But, based on the only transacted 3BR unit so far, the price point appears to stabilize at about $1.2m. It is likely that the cap for the 3BR units will be about $1.5m while the penthouse and DK penthouse units coming up to just around $2m.
This is mere speculation however as future sales pushes may introduce discounted prices. Current PSFs are as follows:
Source: PropertyGuru, URA
Going by what is available, unit prices seem justifiable for the location. It is close to Toa Payoh and Novena without being hampered by the higher price tags of those areas but given the sheer number of amenities and conveniences within walking distances, Neem Tree feels like an absolute steal.
Rental
Rental yield according to URA is a decent 3.14%. Population in this area is mostly made out of buyers rather than renters and given how several properties are old, having achieved TOP as far back as 1974, the rental potential is still here but the market has relaxed into a comfortable cadence where most would prefer to just stay in their freehold properties.
Neem Tree’s closest competitor is Kemaman Point, a 1993 Freehold apartment development. Rental there for 800 to 900 sqft units which are equivalent to a 3BR unit in Neem Tree have rental transactions starting at $2,400 to $2,700. Neem Tree residents may be able to get away by increasing the rental amount by 20% due to the fact that the development is new but if competition is high or the options are slim, it would be beneficial to tweak the rental amount based on what is needed.
However, a baseline starting point of $2,700 for a small Neem Tree unit can be a safe bet, once again determined by the fact that it is a new development that is closer to the bus stops.
Summary
Due out in 2020, a good four years from now, it’s possible that interested buyers are taking a wait and see approach before they plunge into Neem Tree. As the development is currently under construction, once the property takes shape, sales may begin to pour in if no additional marketing is made until then.
Neem Tree development ground
But given that there’s only 65 units left, it’s not much and Neem Tree is, a rather good project. It has its issues with unit sizes and spaciousness where the smaller ones are concerned but this is a symptom of the property industry collectively. The important thing is how that space is arranged and so far it looks fine. Neem Tree is not an über luxury project but it is poised to class up the area it is in while increasing the overall value considerably with its presence.
Now, the closeness to the storm drain may be a turn off for some people and the next door temple may come into conflict with certain lifestyle choices for specific individuals. Other than those however, the property is a good buy, where its location is concerned. For investment, it should be able to give a decent resale value, especially since prices are comparatively lower here than with other freehold properties minus Geylang.
Source: Neem Tree sales brochure
That it is within walking distance to the bus stop with direct buses to Toa Payoh MRT/Hub as well as to hawker centres, restaurants, shopping malls and cinema makes Neem Tree worthy of scrutiny for buyers interested in the area.
It may not be perfect (which property is?) but it does come close.
