Irwell Hill Residences

Ivan Cai
Ivan Cai
Co-founder
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Image from Google Maps

Irwell Hill Residences is located along the Singapore River near the Great World City area in District 9. The plot of land was sold under the Government Land Sales program and CDL acquired the land at a winning bid of $583,888,000.

 

With an expected TOP in Q4 2025 and a lease tenure of 99 years, Irwell Hill Residences is a sizable project comprising 540 units. Typically, projects of this size will consist of adequate facilities with reasonable maintenance fees, as there are many owners to share the costs with.

 

Scheduled to open in 2022, the Great World MRT Station (TE15) along the Thomson East Coast Line will just be 450m away from Irwell Hill Residences. Currently, the nearest MRT station is Orchard MRT (NS22) which is 1km away.

Unit Types

Looking at the breakdown of unit types of Irwell Hill Residences, the Studio and 1-Bedder make up 25.2% of the project while the 2-Bedders make up 55.9% of the project. In total, 81.1% of the units at Irwell Hill Residences are 2-Bedder and smaller. Hence, this project seemed to cater towards investors. 

 

What this means could also be most of the units at Irwell Hill Residences will be affordable in terms of price quantum. Hence, more people will be able to buy into this project due to the smaller unit types.

Unit Type Unit Size %
Studio 398 - 614 6.3%
1BR 563 - 667 18.9%
2BR 603 - 829 55.9%
3BR 861 - 1270 12.2%
4BR 1539 - 1582 6.1%
Penthouse 2185 - 2605 0.6%

With the new URA guideline on the minimum average unit size of 85 sqm, it is rare to find Studio units as developers tend to build bigger units to fulfil the requirement. However, it is interesting to note that Irwell Hill Residences have plenty of studio units. This is because the project is within the Central Area which is exempted from the regulation. As such, the entry for investors in terms of quantum will be lower due to the availability of Studio units. However, for homeowners looking at the 3-Bedder or 4-Bedder, there are fewer options available.

Criteria 1 & 2: Growth Area & Demand Drivers

Looking at the locality of Irwell Hill Residences, Orchard Road Shopping District is towards the North and Great World City is towards the South. Being close to these shopping districts as well as the CBD is advantageous for Irwell Hill Residences.

Image from Google Maps

Our government has announced its intention to enhance Orchard Road into a lifestyle destination. However, the area has already been well developed with little growth potential. Hence, there may not be many jobs creation opportunities that could spur more housing demand in this area.

Primary School

One of the key selling points for Irwell Hill Residences is its proximity to River Valley Primary School, which was ranked 30th in terms of popularity. As such, families and tenants who like this project may also consider staying in the 2-Bedder and 3-Bedder of this project to send their children to this school.

Developer

The developer for Irwell Hill Residences is City Developments Limited, or more commonly known as CDL. This developer needs no introduction as it has been in the property scene for more than 50 years.

Projects Location Tenure TOP Total Units
Haus on Handy Handy Road LH 2023 188
Amber Park Amber Gardens FH 2024 592
Whistler Grand West Coast Vale LH 2023 716
Coco Palms Pasir Ris Grove LH 2018 944
The Criterion Yishun Street 51 LH 2018 505
Bartley Ridge Bartley Road LH 2016 868

With its strong track record, CDL’s projects are reliable and we can expect Irwell Hill Residences to live up to expectations.

Criteria 3: New Launch Comparison

When analysing a new project, it is important to look at the other new launches in the area and identify the comparables. Towards the East of Irwell Hill Residences, RV Altitude is available for sale. The project only has 140 units and it is a freehold project situated 650m away from Great World MRT station. Further South of RV Altitude, The Avenir is available for sale and it consists of 376 units. It is also a Freehold project and is 750m to Great World MRT station.

Image from Google Maps

Looking at Irwell Hill Residences, it is a leasehold property that is situated near to Freehold new launches. Although the tenure is different, RV Altitude and The Avenir are still comparable. Projects with Freehold status will set the upper tier pricing while projects with Leasehold status will be priced lower.

1-Bedroom

The 1-Bedroom units at Irwell Hill Residences come with a flexible study area and the prices start from $1.20m or around $2,584 psf at unit size 452sqft (launched price). As to date, Irwell Hill Residences lowest price of 1br + study is from 1.40mil with 485sqft unit. Compared to The Avenir, the 1-Bedroom units start from $1.53m or around $2,900 psf for a 517sqft unit. The quantum for Irwell Hill Residences is reasonable if compared to The Avenir considering that it is nearer to the MRT, even though it is a leasehold project.

(Price quoted on image are estimated price before project launched)

It may be worth looking at the studio units, which starts from $1.11m if looking for investment. When buying into the prime district, one should either aim for the cheapest option or the more premium option. There will be tenants who opt for the most affordable option and also tenants who are willing to pay a premium to stay in a more luxurious unit.

 

On the other hand, an optimised unit size would have an advantage compared to a bigger size 1 bedroom if looking at 1br for property investment, A bigger 1 bedroom ( >500sqft) would possibly fetch a higher rental but might potentially lessen the tenant pool.

2-Bedroom

Based on what is currently available, the 5th floor and above 2-Bedroom 2-bathroom units at Irwell Hill Residences start from $1,798,000 or $2,727 psf. For The Avenir, the quantum of $2.35mil is on the high side, which may seem overwhelming for the average Singaporean household. In the future, it may be difficult to exit as the next buyer may struggle to fulfil the TDSR requirements and secure financing.

(Price quoted on image are estimated price before project launched)

Meanwhile the 2-Bedroom units at RV Altitude have been sold out at the time of writing. RV Altitude is an unique project which only consists of 2-Bedroom and 2-Bedroom Dual key. Compared to Irwell Hill Residences, RV Altitude launched at a lower price in the range of $1.55mil or $2,564 psf. Coupled with its Freehold status and its closer TOP date in 2022, RV Altitude may seem to be a better choice as compared to the rest.

3-Bedroom

The 3-Bedroom units for Irwell Hill Residences currently is starting from $2.34 mil or around $2,700 psf. The price point is considered on the high side for investment hence it may be more suitable for ownstay. The 3-Bedroom units at The Avenir are going for $3.31m or $2,901 psf. With both projects within the 1km radius of River Valley Primary School, homeowners may wish to consider Irwell Hill Residences due to the lower price quantum.

(Price quoted on image are estimated price before project launched)

Criteria 4: Releas Project Comparison

When looking at the residential plots of land surrounding Irwell Hill Residences, the overall landscape seems interesting. Towards the West of Irwell Hill Residences, the developments are generally smaller compared to the East, where most of the projects are bigger.

Image from Google Maps

In the resale market, the two comparables that were identified are One Devonshire and RV Residences. One Devonshire is a Freehold project with 152 units. Completed in 2011, the project is located 450m away from Somerset MRT. 

 

RV Residences is a Leasehold project with 999 years, which is almost equivalent to a Freehold status. The project achieved its TOP status in 2015 and it consists of 248 units. The nearest MRT station to RV Residences is Great World station, which is just 650m away.

1-Bedroom

In the resale market, the 1-Bedroom units at RV Residences are asking from $950k or $2,262 psf. Considering that it is a relatively new Freehold project, the price quantum is very affordable. With its attractive rental yield of 3.3%, homeowners looking into resale properties may wish to consider RV Residences.

(Price quoted on image are estimated price before project launched)

2-Bedroom

(Price quoted on image are estimated price before project launched)

The 2-Bedroom units at One Devonshire are generous in size at 904 sqft. Looking at the past rental contracts, the 2-Bedroom units at One Devonshire were able to command a monthly rental of $6,000, compared to RV Residences at $3,500/month. However, this comes at a hefty price tag of $2.35mil or $2,600 psf for the 2-Bedroom units at One Devonshire. Meanwhile, the 2-Bedroom units at RV Residences are asking from $1.56mil or $2,298 psf.

 

Even though One Devonshire has higher rental yield for the 2-Bedroom units, RV Residences and Irwell Hill Residences might be better options as more people will be able to afford the lower price quantum. When selling to the next buyer for exit, a higher price quantum will shrink the size of your buyer pool. 

 

Comparing between Irwell Hill Residences and RV Residences, the size and psf of RV Residences seem to be priced very competitively. Hence, for home buyers who are looking for resale properties, RV Residences is worth looking into.

3-Bedroom

(Price quoted on image are estimated price before project launched)

The 3-Bedroom units at Irwell Hill Residences are starting from $2.34mil or $2,700 psf while One Devonshire’s 3-Bedrooms are going for $3.3mil or $2,554 psf, which is on the high side. RV Residences on the other hand has units asking from $1.95mil or $2,265 psf, which is worth exploring further.

 

If you are a home buyer who prefers brand new, there are not many options out there. However if you are willing to spend the time to look for good value properties in the resale market, RV Residences could be the better option for the 2-Bedroom and 3-Bedroom units.

Criteria 5: Exit Strategy

When talking about the exit plan, it can be looked upon on a spectrum. For the homeowners, the thought process behind the property purchase is purely for their own enjoyment. On the other hand, Investors prioritise profits and make their decisions based on rental yield and capital appreciation.

 

In between the spectrum, the homevestor category are people who strive to buy a place with good potential for high capital appreciation. This way, if the profits exceed the interest payment, one will get to stay for free. 

Conclusion

The smaller units at Irwell Hill Residences are suitable for investors, especially the studio as it is hard to find new projects which offer units that are less than 400 sqft in size nowadays. With these efficiently sized units, this will naturally translate to a lower entry price for investors.

 

For homevestors or homeowner who are looking for the 2-Bedroom and 3-Bedroom units, RV Residences may offer more opportunities.

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Tuesday, 29 June 2021, 8:00 PM – 10:00 PM

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