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Hello John,

Thank you for your question about the investment quality between Kovan and Simei.

Let's look at this question as an locational assessment using the respective MRT station as a reference point, and examine the area surrounding it in a 2km radius and see what we find.

When making a location assessment, investors typically look at what is surrounding the area, good investors make an enhanced assessment to "see" what is NOT YET there. This is where the key really lies.

When you look at the area surrounding Kovan, what is it that you see?

Which ever way you look at it, Kovan is essentially a dense residential neighbourhood which is along a narrow real estate corridor bounded by an industrial belt to the East, and Ang Mo Kio to the North West, the value of the properties are bouyed by neighbourhoods further to the North East who's residents would rather live closer to town. On an investment basis, you would be hard pressed to achieve a solid rental yield.

Simei on the other hand is abound with opportunities.
Located nearby is a treasure trove of high quality tenants in the commercial centers of Changi Business Hub, and the aero space hub. Simei is currently undervalued in a sense that you can get very large units, about 1410sqft 3 bedroom units that give rental yields of up to 4.7%, within a stone's throw from the MRT station.

If you are looking at the Simei area, focus on Tropical Spring and Modena. These two are fairly undervalued.

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Kovan:

Pros:

Established Neighbourhood: Kovan is a mature estate with a good mix of residential and commercial areas.
Potential Rental Market: Kovan attracts tenants who might prefer a central location with easy access to amenities and established schools.
Capital Appreciation (Potential): Kovan's proximity to mature estates like Hougang and Serangoon could contribute to potential capital appreciation in the long run, although this is not guaranteed.
Cons:

Limited Rental Yield: Due to the established nature of the area, rental yields in Kovan might be on the lower side compared to newer developments.
Fewer Large Units: Finding a large condo unit under S$1 million in Kovan might be challenging.
Simei:

Pros:

Undervalued Market: Simei might offer relatively larger condo units at more attractive prices compared to Kovan for your budget.
Potential Tenant Pool: Simei is near Changi Business Hub and the aerospace hub, which could translate to a good pool of potential tenants working in those areas.
Higher Potential Rental Yield: Due to its positioning and proximity to workplaces, Simei might offer the possibility of higher rental yields compared to Kovan.
Cons:

Newer Estate: Simei is a relatively newer estate compared to Kovan. The surrounding amenities might still be developing.
Accessibility: While Simei has an MRT station, it might not be as centrally located as Kovan.
Here are some additional factors to consider:

Your Risk Tolerance: Are you comfortable with a potentially lower entry price in Simei (with the possibility of higher rental yield) or a more established area like Kovan (with potentially lower rental yield)?
Investment Timeline: How long do you plan to hold this property as an investment? Capital appreciation is a long-term consideration.
Ultimately, the best choice depends on your investment goals and risk tolerance. Researching current property listings in both areas and consulting with a qualified property agent can provide valuable insights to help you make an informed decision.
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Hi, hopefully you managed to get your doubt or query answered. If so, then congrats! Hopefully you are doing well now.

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If you are interested in prices of houses in your neighbourhood, you may visit this website to find out more or contact me.

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