Sunday, September 6, 2009

Grandlink Square Apartments

Which would you buy? A 1200 sq feet freehold apartment or a 1100 sq feet HDB flat, costing the same, just 2 stops away from each other?

Intuitively, all will choose the former. But with reference to my earlier post, many risks are ignored when we make choices based on intuition.

However, there is indeed such an offer!
A quick check at the government website showed that a freehold apartment in district 14 is selling at a lower price psf compared to one which is just 2 bus stops away, within the same district!

Consider a 111 sqm or about 1195 sq ft HDB flat in pine close selling at $600,000. It works out to be $502psf. The larger 1227sq ft private apartment at grandlink square is only selling for $489 psf!

There are 2 possible scenarios, intuitively:


1) The grandlink apartment is under priced, as it has a lot of sleazy pubs at ground floor. It is in geylang and loans can be a problem. Interest rates will definitely be high. Rental to families virtually impossible. Bachelor would not want to rent a large place to stay either. MRT is nowhere near.


2) HDB is over priced, despite walking distance to Aljuned MRT, near old airport road eateries and stadium.


At this kind of cheap pricing, grandlink square apartments may well be the cheapest freehold apartment in Singapore. One can consider for investment if your family consist of only males and can afford huge cash outlay to purchase the apartment


Renting out grandlink apartments are perhaps a headache. Your tenants might be in the flesh trade and your apartment may evolved into a boutique hotel.


Everything is priced for a reason, buyers beware.

2 comments:

PanzerGrenadier said...

Property is largely about location, location, location.

But seriously, the flooding of immigrants has resulted in HDB resale getting out of the affordability of young couples who want to start a family.

HDB at $1,000 psf may eventually be a reality going by Tiong Bahru HDB prices.

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