Properties in RCR, or Rest of Central Region is fast gaining popularity amongst home-buyers and investors. Comprising multiple precincts that lie outside of postal districts 9, 10, 11, the downtown core and Sentosa, the RCR includes Aljunied, Geylang, Paya Lebar, Kallang, Serangoon, Toa Payoh, Commonwealth, Alexandra and Queenstown.
Hmmmm, everyone knows it’s good value but RCR properties would surely be high priced right? Logically it would be priced lower than the CCR (core central region) properties and much higher than the OCR (outside central region) counterparts.
Let’s discover the good and the bad of city-fringe properties today!
For example let’s take Queens Peak vs Forest woods
|Floor area||861 sqft||915 sqft|
|Level||35th floor||3rd floor|
(accurate as of 7th March 2018)
|Price per square foot (psf)||$1,892||$1,528|
|Unique selling point||Directly linked to MRT station, spectacular view, childcare, ultimate convenience||Smart home, local developer, 5mins walk to NEX|
Whhaaatt? Queenspeak would naturally be priced higher as expected but it’s not that big a gap that we all thought right? From an investor point of view, where would you think would give you a better tenant pool, capital appreciation? From a home-buyer view, which would give you better convenience? Is it worth the extra money?
Most RCR properties are located within an easy 10-15 minutes’ drive or MRT ride from the city centre.
This is a known fact that city fringe properties would certainly be more convenient than their OCR counterparts, From Queenstown to Buona Vista, (where the potential tenants or your work place is) it’s only 11mins (information from google maps).
Or if you go into central for work trips, it’s under 20 mins. And all of these travelling duration we’re looking at is using the MRT. You can even consider to forgo your car!
You would still have access to your nearby schools, libraries, polyclinics, wet markets, supermarkets, hawker center food, all these which would be slightly more challenging to find in the Central region where everything’s more expensive.
Thanks to its proximity to the downtown core, RCR properties are fast gaining interest amongst renters.
Gross yields for non-landed RCR properties were highest, at 4 per cent, in the second half of last year and are tipped to remain the same this year, according to a Straits Times report in February this year.
According to an OrangeTee report, lease potential for properties within the RCR compares favourably with those in the core central region (CCR).
Properties in the CCR are getting gross rental yields of between 2.7 per cent and 3.5 per cent while properties in the RCR are getting rental yields of between 2.8 per cent and 3.6 per cent. Average rent for properties in the RCR are $3.50 to $4.50 per square feet per month, when compared with $5 to $6.50 per square feet per month for properties in the central region and $3 per square feet per month for those in the suburbs.
New commercial hubs
RCR properties are attractive for another reason – they are situated in areas that have been designated as new commercial cores.
Places such as Paya Lebar and Queenstown are getting makeovers. This is in line with the government’s decentralisation strategy to sustain Singapore’s growth by developing regional centres in various parts of the island. Such makeovers come complete with new facilities for living; new civic spaces, and new supporting infrastructure to accommodate business activities.
Source : URA
Queenstown, for example, is home to One-North, a technology as well as Research and Development (R & D) cluster.
Paya Lebar, too, is being developed as a new regional hub. A 12 ha space has been earmarked for Paya Lebar Central, which will comprise 5.5 million square feet of commercial space that is underpinned by a two-line MRT exchange.
These new developments will no doubt inject a heavy dose of vibrancy to old familiar neighborhoods, making the RCR an increasingly desirable area to invest, live and play.
I’m really having a hard time listing the downsides of city-fringe properties. At the back of my mind, there’s only 1, the price. Not all city-fringe properties are equally priced, and which one would give you a better value for your hard-earned money? All the good points above comes at a price, one that’s higher than OCR properties undoubtedly but would all the plus points make up for the price difference for you? Oh yes, and b. Time is not on your side if you’re looking for a good RCR property at the moment. There are actual transactions happening daily for city-fringe properties.
Don’t fancy waiting too long for your new property?
Or if you are going for Executive condominiums, read more about them here.
We’re just a text/phone-call away! Everyone’s situation is different, there’s no one size fit all solution. Let us know if you’re interested in city-fringe properties and we’d help you make an informed decision on your million dollar decision according to your current finances & needs!
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