Hi Kate,
Your question got me thinking and i thought that i might take a look at what the potential might be like for Hillview in terms of investment.
1. Capital Gain
I analyzed the capital appreciation along Hillview and compared it to the 07/08 peak. The price difference shows less that 10 percent change. Even places in Bukit batok area D23 has a 30 percent change since the peak. And the property transactions in Hillview seems to have flatlined, except for a few spikes in psf, mainly from the new development (The Lanai).
2. Hillview MRT
When the "Bukit Timah Line" was announced, there dont seem to have much change in price fluctuation as well. Main reason being that the properties there are mainly for own stay and not a commodity.
3. Rental
I think the new condos, Hillier, Foresque are probably going at about 1200 psf, with those nearer to MRT (tree house) going at about 900 psf. So this would probably make a 2 bedroom costs about $9XXK. Although the surrounding condo, rental are about $3.5K for 3 bedroom, i will assume that people do not mind paying more for new developments, say $3K for a 2 bedroom. This will make your gross rental yield to be 3.6%. The cash flow that you will be getting for this investment will not be attractive, in my opinion.
Note that all this analysis are my own opinion and of course, i am also prone to errors. However, I would think that the new condos in Hillview would be great for own stay. But from investment point of view, you should be able to get something with a better capital upside, better cash returns and at a similar quantum. That's what i think anyway.
However, i still believe that land is precious in Singapore and there is no harm in collecting properties in Singapore for the long haul.
Cheers.
Ken Tan
96461490
Huttons
more info, go to www.96461490.com
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