The Addition Condominium – More Than The Sum Of Its Parts

In August, Prime Minister Lee Hsien Loong popped an issue that’s been slowly simmering on the threshold of the national consciousness right into the wide open, when he addressed the running down of public housing’s 99-year leaseholds, during this year’s National Day Rally.[1]

Long story short, heated discussions on the topic of housings asset values have revolved around the idea that as a property gets closer towards the end of its term, the harder it is to sell it off at a good price. The end game has the property value plummeting to zero as the term runs out. This, according to commentators, means that HDB buyers are effectively renting their properties from the government, rather than owners.

Notwithstanding how this view of property ownership came about, the Government has taken the stand that HDB owners do in fact own their properties. Ergo, they have the rights to renovate, sell, bequeath and collect rent on the properties, just like owners of 99-year leasehold private properties do.

But, in case you weren’t paying attention: only for 99 years.

But what the Government has left unsaid is that unlike HDB property owners, private property leasehold owners can sell their properties in collective en-blocs, to private property developers who wish to redevelop that particular land parcel. Hence private leasehold owners have the opportunity to cash out for much bigger sums than their property values might suggest; HDB property owners, however, can’t as the land belongs to the government.

Freehold Property : I Want To Break Free! 

Freehold property owners on the other hand, have no restrictions whatsoever. Arguing about the benefits of freehold property versus leasehold is like bringing a gun to a knife fight, then tying leasehold’s knife hand behind its back, and then putting a blindfold over leasehold’s eyes while spraying aerosol cream on its head.

The-Addition-Condo-Entrance

There’s simply no contest – because a freehold lease is in perpetuity[2], there is no expiration date, and the value of the property can simply continue to rise (or fall) along with the land value.

Of course, freehold property owners already know this, but you might want to wipe that smug smirk off your face (you know who you are) – the Government still reserves the rights to acquire the land your property is built on for public purposes: for example, building new transport infrastructure, etc.

That said, freehold is the way to go if you really want something you can pass on to your descendants. This is the only option for if you are looking for property investments that doesn’t freefall to zero upon the end of the leasehold tenure – as there aren’t any.

The Solution Is In The Addition

With the advantages of freehold in mind, the arrival of The Addition on the property market should be of much interest to anyone looking for investment grade property – one might argue that the high cost of acquiring a freehold is offset by future capital gains.

the-addition-at-potong-pasir

The Addition is a 26 unit freehold development condominium located in between Toa Payoh MRT and Potong Pasir MRT as the crow flies. The 21 Meyappa Chettiar Road address (District 13) is right at the city’s fringe, with direct access to the Pan Island Expressway and Kranji Expressway, and and bringing easy commuting to any part of the island.  Units in the 8 story single apartment block are said to come with branded appliances and smart home systems.

The Developer

The developer, Oxley Holdings, is Singapore’s largest developer in terms of residential landbank[3]. It holds a presence across 12 geographical markets, in Singapore, the United Kingdom, Ireland, Cyprus, Cambodia, Malaysia, Indonesia, China, Myanmar, Australia, Japan and Vietnam. Inclusive of The Addition, the developer has 36 projects in Singapore alone.

Not bad for a company that only started out as a property developer in 2010.[4]

The speed of Oxley Holding’s ascent has been recognised: in 2017, Oxley Holdings’ executive chairman and CEO Ching Chiat Kwong, who propelled Oxley from a local developer to an international developer with a presence in 11 countries in the span of less than five years, was honoured as the Singapore Real Estate Personality of the Year by the editors of Property Report magazine.

The Neighbourhood

The Meyappa Chettiar Road address (District 13) is right at the city’s fringe, with direct access to the Pan Island Expressway and Kranji Expressway, bringing easy commuting to any part of the island.  Shopping malls nearby include NEX, The Venue Shoppes, The Poiz Centre and Heartland Mall Kovan.

The Addition Sitemap

 

Poised in between Toa Payoh, Potong Pasir and nearby Geylang Bahru gives you plenty of schools and eateries within 5 minutes walking or driving distance, along with access to Kallang Park Connector for a spot of outdoor exercise every now and then.

The Competition

Freehold properties are rare. Freehold properties located on the fringe of the city are even more rare. If you are looking for freehold in this district, the only project worth considering is The Poiz Residences, which is 99% sold with only 7 units left at time of writing.

There are also no new freehold properties being planned for this district, so demand for The Addition is expected to run high, even with market cooling measures in place.

Table 1: Recent & Coming New Launches in D13

  Tenure TOP Year Average PSF Rental Yield*
R Maison Freehold 2016 1172 2.6

 

E Maison Freehold 2016 1289 3.1

 

Sky Green Freehold 2016 1148 3.7
Sennett Residence 99 years 2016 1,537

 

3.1
The Poiz Residences Freehold 2019 1,347

 

NA
The Woodleigh Residences

 

99 years 2022 NA NA
The Tre Ver 99 years 2022 NA NA
Park Colonial 99 years 2022 1,756

 

NA
The Addition Freehold 2023 NA NA

* Based on transactions in the last 12 months, excluding projects with 3 or fewer transactions (https://www.squarefoot.com.sg/market-watch/rental-yield)

Can you afford it?

Well if you have to ask…. We’ll tell you! Sign up for a TRUNew account and our onsite mortgage calculator will help you figure out what you can afford.

We will also keep you up to date on The Addition’s launch details, access to VVIP previews via a personalised news feed, plus the following unique benefits:

Be The First To Know

Sign up for a TRUNew account to stay up to date on The Addition’s preview and launch details. You’ll get exclusive access to VVIP previews, plus our platform’s unique benefits:

Get first hand news of its launch with a TRUNew account. Our personalised information feed will keep you to date on The Addition’ launch details, access to VVIP previews, plus our platform’s unique benefits:

  • The widest listing of units direct from developers (from new launches to sale-of-balance units). We have 239 listings to-date, versus 167 from Propertyguru
  • First-to-market information for all project launches
  • In-depth information that your agents may not have told you (via this blog itself)
  • Customised, print-friendly reports for every project you are interested in
  • The ability to shortlist, save, and share detailed inter-project and inter-unit comparisons for all your needs
  • Free Truuue concierge services all throughout your property buying experience, from viewing to post-sales; via the Truuue Ops Team
  • Personalised information feed for each stage of your purchase (viewing, balloting, unit selection, S&P, post-sales, tenant sourcing)
  • Appointment reminders for any listed project

Our Compare tool is also handy for helping you see what else you can be buying in this city centre district.

Sign up now, it’s easy and it’s free!

  • The widest listing of units direct from developers (from new launches to sale-of-balance units). We have 239 listings to-date, versus 167 from Propertyguru
  • First-to-market information for all project launches
  • In-depth information that your agents may not have told you (via this blog itself)
  • Customised, print-friendly reports for every project you are interested in
  • The ability to shortlist, save, and share detailed inter-project and inter-unit comparisons for all your needs
  • Free Truuue concierge services all throughout your property buying experience, from viewing to post-sales; via the Truuue Ops Team
  • Personalised information feed for each stage of your purchase (viewing, balloting, unit selection, S&P, post-sales, tenant sourcing)
  • Appointment reminders for any listed project

 

Our Compare tool is also handy for helping you see what else you can be buying in this city centre district.

Sign up now, it’s easy and it’s free!

[1] https://www.businesstimes.com.sg/government-economy/national-day-rally-pm-lee-explains-99-year-leases-of-public-and-private-housing

[2] https://singaporelegaladvice.com/law-articles/types-of-property-and-home-ownership-in-singapore/

[3] https://sg.news.yahoo.com/oxley-shares-drop-imposition-cooling-022822249.html

[4] https://www.propertyguru.com.sg/property-management-news/2017/11/165354/from-policeman-to-property-developer

https://new.truuue.com/p/the-addition?utm_source=Truuue%20Blog&utm_campaign=The%20Addition%20Article

https://new.truuue.com/compare/?utm_source=Truuue%20Blog&utm_campaign=The%20Addition%20Article#?cp=2805,2527,&cs=16988,12079,

https://new.truuue.com/developer/oxley-holdings?utm_source=Truuue%20Blog&utm_campaign=The%20Addition%20Article

 

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