Avenue South Residence Review: Next To Singaporeís Largest Healthcare Hub

After taking into consideration expenses such as construction costs, legal fees as well as profit margin, One-North Eden can be expected to be priced at an estimated minimum of S$1,707 psf. However, if we factor in the average overall price of a unit for a 1 BR, 2BR and 3BR in the area,, we estimate the project to be priced around S$1,900 psf.

Avenue South Residence is located along Silat Avenue in District 3, within 2km from the Central Business District (CBD). It is a 99-year leasehold project, comprising 1,074 units. Considering its substantial size, Avenue South Residence will be a recognisable project in the area.

Avenue South Residence is expected to achieve its temporary occupation permit (TOP) status in the fourth quarter of 2023, which is only two to three years away. One advantage of investing in projects nearer to their TOP date is that your downpayment money (25%) will not be tied up for long periods of time. An earlier key collection date means that one can potentially start receiving rental income sooner.

Image from Google Map

Avenue South Residence is about 1.2km walking distance to Outram Park MRT. However, most people would prefer to take a bus instead as they may sweat after walking this far under Singaporeís warm and humid weather.

There are also two new and upcoming MRT Stations along the Circle Line, which is expected to be completed in 2025 – Keppel and Cantonment stations, which are approximately 1.6km and 2km walking distance away from Avenue South Residence respectively. As the distances to these new MRT stations are not very near to the project, the impact will not be significant. This is because Avenue South Residence would already be well served by Outram Park MRT, which has two of the major lines – North-East Line and East-West Line.

Avenue South Residence has a range of units available, from 527 sqft 1-Bedroom units to 1,688 sqft 4-Bedroom Premium units. Most of the unit types have around 30% – 50% units remaining. However, a point to note is that 92% of the 4BR Premium type units are still available. This could serve as an indication for the future demand of 4-Bedroom units in the area.

Unit Type Unit Size (sqft) Available
1BR 527 ~ 43%
2BR 657 ~48%
2BR Premium 689 – 883 ~ 28%
3BR 947 – 1,120 ~ 59%
3BR Premium 1,109 – 1,302 ~39 %
4BR Premium 1,496 – 1,668 ~ 92%

Breakdown of the units for Avenue South Residence

Criteria 1: Growth Areas

Upon looking at the actual site of Avenue South Residence, we noticed that there are two empty plots of residential land in the vicinity that are ìsubjected to detailed planningî, according to the Urban Redevelopment Authority (URA) Master Plan 2019. Towards the South, there is a huge plot of land labelled as ìReserve Siteî, which could be used for either residential or commercial purposes in the future. These new developments may potentially increase the value of Avenue South Residence.

Image from URA Master Plan

One of the key factors that will propel the growth of the area is the Singapore General Hospital (SGH) Campus Master Plan. Avenue South Residence is situated right next to the interconnected healthcare ecosystem. The 43-hectares of land will be dedicated to more research and education, as well as patient care. This will create an active funnel of healthcare sector jobs in the area.

Image from Google Map

The next driver of growth will be the highly anticipated Greater Southern Waterfront, which will transform the whole area in the future. However, it will easily take 15 years or more to see significant change down the road. Hence, as an investor buying into Avenue South Residence, it will require patience and holding power. As such, the development may be more suitable for homeowners who value having easy access to the CBD area.

Source: Jurong Lake District Website

Criteria 2: Unique Selling Points
Building Height & View

An interesting aspect of Avenue South Residence is its high Gross Plot Ratio (GPR) of 3.7, which allows the developer to build up to 56 storeys. With this height, the project boasts a fantastic view and scenery. However, one needs to be aware of the potential risks. If the two empty plots of residential land in front of Avenue South Residence have high plot ratios as well, there is a chance that the promised seaview could no longer be enjoyed in the future. Hence, those who paid a premium for the unblocked seaview may see its value erode away.

Primary Schools

Avenue South Residence is located within the 1km radius to Radin Mas Primary School, which ranks 15th in terms of popularity, according to Salary.sg. With a school that is highly sought after by parents, this will likely draw more families to move into the area. As such, Avenue South Residence is well positioned for parents who are working in the CBD and looking to send their children to Radin Mas Primary School for education.

Image from URA

Developerís Credentials
Before committing to a property purchase, we always recommend buyers to do their due diligence by researching a developerís track record. A property is one of the largest purchases that an investor can make and it would be unwise to invest in a property with quality issues upon its completion.

Avenue South Residence is jointly developed by UOL Group Limited, United Industrial Corporation Limited (UIC) and Kheng Leong Company. Both UOL and UIC have strong track records and have done various projects in the past. Interestingly, these developers have also worked with one another on projects such as Meyer House, Clavon and The Tre Ver.

Projects Location Tenure TOP Total Units
The Eden @ Tampines Tampines Street 34 LH 2003 430
Novena Suites Novena Suites FH 2004 92
Twin Regency Kim Tian Road FH 2007 234
One-North Residences One North Gateway LH 2009 405
The Clement Canopy Clementi Avenue 1 LH 2019 505
The Tre Ver Potong Pasir Ave 1 LH 2022 729

List of projects by UOL Group Limited

Projects Location Tenure TOP Total Units
Mon Jervois Jervois Road LH 2016 109
Avenue South Residence Silat Avenue LH 2023 1,074
The Tre Ver Potong Pasir Ave 1 LH 2022 729
V On Shenton Shenton Way LH 2017 510
Sixth Avenue Residences Sixth Avenue FH 2009 175
Archipelago Bedok Reservoir Rd LH 2015 553
One Amber Amber Gardens FH 2010 562

List of projects by UIC Limited

Criteria 3: New Launch Comparison
The new projects surrounding Avenue South Residence have similar TOP dates. Starting with Sky Everton, it is the only freehold project in the area with 262 units. Also, Sky Everton is only 650m away from Outram Park MRT, which is almost half the distance compared to Avenue South Residence.

One Pearl Bank is also similar to Sky Everton in terms of convenience, as it is only 550m to Outram Park MRT. It is a substantially sized 99-year leasehold project with 774 units. The Landmark on the other hand, is nearer to Chinatown MRT at 600m. The project is a 99-year leasehold and has an adequate number of units of 395.

Image from Google Map

For a fair analysis, we did not include Riverie as a basis of comparison as it is relatively far from the nearest MRT station, approximately 1.6km away from Clarke Quay MRT.

1 Bedroom

Image from Google Maps

When looking on a quantum basis, the pricing of The Landmark is similar to Avenue South Residence at S$1.10 mil and S$1.09 mil respectively. However, when looking at a per square foot basis, The Landmark is only about 3% higher at S$2,135 psf than Avenue South Residence at S$2,072 psf. Hence, with a similar price point, The Landmark may seem to be a better option as it is much nearer to a MRT station.

2 Bedroom

Image from Google Maps

For the 2-Bedroom units in One Pearl Bank, they are going from S$1.81 mil which is very high compared to the other projects. Both Avenue South Residence and The Landmark have similar pricing at S$1.52 mil and S$1.51 mil respectively. However on a per square foot basis, The Landmark is much cheaper at S$1,978psf compared to Avenue South Residence at S$2,216psf. Hence, The Landmark may seem to be a better choice for 2-Bedroom units.

3 Bedroom

Image from Google Maps

When looking at the 3-Bedroom units from Avenue South Residence, they are going from S$1.84 mil or S$1,943 psf. The 3-Bedroom units are the lowest in terms of quantum and per square foot basis, as compared to other new projects which start from S$2.29 mil and S$2,135 psf.

This makes Avenue South Residence very attractive for homeowners, as it is not easy to find projects with a low quantum (compared to surrounding projects) yet near a popular primary school in the CBD area.

Criteria 4: Resale Project Comparison

Image from Google Map

When looking at the resale market, there are several projects near Avenue South Residence. This includes Twin Regency, Teresa Ville, Highline Residence, Spottiswoode 18 and Spottiswoode Residence. An interesting find is that there are plenty of freehold properties that are much nearer to an MRT station as compared to Avenue South Residence.

1 Bedroom

Image from Google Maps

When we look at the available 1-Bedroom units in the surrounding resale market, Spottiswoode 18 offers the lowest quantum at S$820K. This could even be one of the lowest price points for 1-Bedroom units near the CBD area.†

1-Bedroom units with the size of 387 sqft will become harder to come by moving forward. This is due to the 2018 URA guidelines with regard to the minimum average unit size. As such, Spottiswoode 18 presents a good opportunity for 1-Bedroom units compared to Avenue South Residence. Looking for an undervalued unit in the resale market will definitely require time and effort.

2 Bedroom

Image from Google Maps

Similarly for the 2-Bedroom unit types, Spottiswoode 18 is worth looking into due to its low quantum of S$1.34 mil compared to the price of S$1.52 mil at Avenue South Residence. The project is close to Outram Park MRT and it is only 7 years old. The 2-Bedroom units are also of decent size at 635 sqft. Furthermore, Spottiswoode 18 is a freehold project.

3 Bedroom

Image from Google Maps

While there are no 3-Bedroom units at Spottiswoode 18, Spottiswoode Residence is commanding a hefty price tag of S$3.29 mil whereas Avenue South Residence is only asking from S$1.84 mil. From the perspective of a buyer who wants to stay in the area to send their children to Radin Mas Primary School, they will likely gravitate towards the cheaper option (Avenue South Residence) based on the price comparison between the two projects and especially if affordability is an issue for them.†

Hence, for 3-Bedroom units, Avenue South Residence might be the better option due to its low quantum when comparing it against the resale market and new projects.

Criteria 5: Exit Strategy

There are three types of home buyers: Homeowner, Homevestor and Investor. For Homeowners, the primary motivation when selecting a property is happiness. As long as the home buyer feels good and happy, that is what matters most to them. Investors, on the other hand, look out for properties that are specifically for rental and capital appreciation. For Homevestors, they are in the middle of the spectrum where they are buying for their own stay as well as looking for potential capital appreciation at the same time. Their aim is to cover their ìcost of livingî and make their stay worthwhile.†

Hence, 1-Bedroom and 2-Bedroom units are usually better suited for investors while 3-Bedroom units for both Homevestors and Homeowners. Looking at Avenue South Residence, this project is more suitable for Homvestors and Homeowners. With the lowest quantum in both the new launch and resale markets, Avenue South Residence is ideal for parents working in the CBD area and looking to have their children attend Radin Mas Primary School. Hence, Avenue South Residence may be worth considering as there are not many projects that can fulfill all these criteria.