Leedon Green has been in the market for more than a year and it is about time for a revisit to this project. Located in District 10, Leedon Green sits on a big parcel of freehold land and was the former Tulip Garden, which had successfully gone through the en-bloc sale at S$907 mil.
Leedon Green has a total of 638 units, which is big enough for the developers to provide a complete set of facilities to serve its residents. Expected to TOP in Q1 2024, Leedon Green is developed by MCL Land and Yanlord Land, both of which have been in the property scene for a long time.
With 850m to Farrer Road MRT station, Leedon Green may not be as walkable. Hence, people staying there are likely to drive or use private transport.
Unit Types
| Unit Type | Unit Size | Availability | |
|---|---|---|---|
| 1BR | 474 - 689 | 92/145 | 63% |
| 2BR | 614 - 926 | 190/320 | 60% |
| 3BR | 958 - 1163 | 80/112 | 71% |
| 4BR | 1496 - 1744 | 36/61 | 59% |
| Garden Villa | 2400 - 2680 | 0/5 | 0% |
Breakdown of unit types for Leedon Green
Launched in January 2020, Leedon Green still has about 62% of its units left. This leaves potential buyers plenty of choices in terms of the unit types. However, the Garden Villa type which is 2,400 to 2,680 sq ft is fully sold out, though it has only 5 units. This shows that large sized units are highly sought after in this area.
There are 63% and 60% of the 1-Bedroom and 2-Bedroom units remaining respectively, signalling weak interest from investors. Similarly, the 3-Bedroom and 4-Bedroom units have 71% and 59% available respectively. The low take-up rate could be attributed to the high quantum as well as the distance to MRT. Perhaps the developers may want to reconsider its pricing strategy accordingly to move the sales of the remaining units.
Criteria 1 & 2: Growth Area & Demand Drivers
Looking at the immediate surroundings of Leedon Green, there is no development ongoing in the Farrer area. However, when we zoom out to look at the vicinity, there are several key places such as Holland Village, Dempsey Hill and Botanic Gardens. Leedon Green is also within a short distance drive to the Orchard belt.
Image from Google Maps
One attractive feature of Leedon Green is that it is situated near several Good Class Bungalow (GCB) enclaves. Being among the upper class of high-end properties will make Leedon Green seem like a premium development located in an exclusive area. This will bring along another benefit such as privacy, where the residents can enjoy the peace and quietness of the place.
Image from URA
In terms of the growth potential for Leedon Green, there is the One-North development in the short term and Dover Knowledge District in the longer term. Both are towards the South-West of Leedon Green. This will bring in positive benefits such as job creation, which will in turn increase the demand for housing in the future.
Source: URA Master Plan
However, there are many residential projects that are much closer to the One-North area, such as One-North Eden, Normanton Park and Kent Ridge Hill Residences. Hence, the demand driver may not be strong.
Primary School
Source: Primary school within 1km radius of Leedon Green, Onemap; Primary school popularity ranking, Salary.sg
For Leedon Green, only Nanyang Primary School is within a 1km radius. However, it is interesting to note that only one block, Block 26, qualifies. With a popularity ranking of 14, we can expect the units at Block 26 to be popular among parents with young children.
Developer
| Projects | Location | Tenure | TOP | Total Units |
|---|---|---|---|---|
| Parc Esta | Sims Avenue | LH | 2022 | 1399 |
| Margaret Ville | Margaret Drive | LH | 2021 | 309 |
| Lake Grande | Jurong Lake Link | LH | 2019 | 710 |
| Sol Acres EC | Choa Chu Kang Grove | LH | 2018 | 1327 |
| LakeVille | Jurong Lake Link | LH | 2017 | 696 |
| J Gateway | Gateway Drive | LH | 2016 | 738 |
List of projects by MCL & YanLord
Looking at the developers’ track record gives us insight into their credibility. We know for sure that MCL and YanLord are not new developers as they have completed projects such as J Gateway and LakeVille in the past. They have also taken on big projects with over 1,300 units, such as Sol Acres, as well as Parc Esta which will TOP soon.
Criteria 3: New Launch Comparison
Image from Google Maps
Hyll on Holland and One Holland Village Residences are two new launches near Leedon Green, which will compete for a similar pool of buyers. Hyll on Holland is a freehold project with 319 units and is 1km away from a MRT station. This makes Hyll on Holland comparable to Leedon Green as both projects are freehold and not near a MRT. One Holland Village Residences is a project by Far East Organisation and the prices are disclosed for interested buyers only.
1-Bedroom
Image from Google Maps
There are still plenty of 1-Bedroom units left at Leedon Green, which could be attributed to its high psf. For a 474 sq ft unit, it is starting from S$2,597 psf. With a budget of S$2,600 psf, one can easily look into the Core Central Region and live nearer to CBD at this price range.
On the other hand, Leedon Green’s competitor Hyll on Holland only has unit types starting from 2-Bedroom and above. This may be a residential project that caters for homeowners. Thus, if you are looking for 1-bedders in this area, you will have no other choice in the market at the moment.
2-Bedroom
Image from Google Maps
As for the 2-Bedroom units, both Leedon Green and Hyll on Holland have similar psf. Leedon Green is asking from S$1.77 mil or S$2,502 psf, while Hyll on Holland has a lower quantum starting from S$1.65 mil or S$2,518 psf. Although both projects are similar, Leedon Green is closer to the Farrer Road estate while Hyll on Holland is closer to Holland Village. Hence, when choosing between these two projects, price may not be a key factor. Instead, the buyers’ own preferences and familiarity with the area may play a more important role.
3-Bedroom
Image from Google Maps
For the 3-Bedroom units, Leedon Green has an asking price of S$2.45 mil or S$2,562 psf. Again, Hyll on Holland has a lower price quantum and psf at S$2.37 mil or S$2,532 psf. As 3-Bedroom units will appeal to families, it is interesting to note that Block 26 of Leedon Green is within 1km of Nanyang Primary School. Hence, a buyer’s decision may be dependent on their need to be in close proximity to a primary school. Otherwise, Hyll on Holland would have a slight advantage in terms of quantum and distance to MRT.
The main difference between Hyll on Holland and Leedon Green is actually its “branding”. Leedon Green is towards the Farrer Road area while Hyll on Holland is nearer to the Holland area. The distinction between these 2 areas is not just for the name but also the on-the-ground experience, which would be different as well.
Criteria 4: Releas Project Comparison
Image from Google Maps
It is also important to look at the surrounding resale projects near Leedon Green as a comparison. There are Leedon Residence and D’Leedon in the same area, with Leedon Green being the furthest to Farrer Road MRT at 850m. Leedon Residence is also a freehold project with 381 units while D’Leedon is a mega leasehold project with over 1,700 units and is more walkable to the train station. Further South of Leedon Green, there are two freehold projects, Holland Residences and Parvis which were completed in 2012.
1-Bedroom
Image from Google Map
For the resale 1-Bedroom units, D’Leedon is asking from S$1.07 mil or S$1,685 psf. Compared to Leedon Green, the quantum of S$1.23 mil is palatable, however, the psf of S$2,597 may seem very steep. Usually, the price premium of a freehold project is around 10-15%. However, in this scenario, the 1-Bedroom units in D’Leedon are asking 35% cheaper than Leedon Green’s. With a building age gap of about 10 years, the price difference of 35% suggests that D’Leedon might be undervalued.
2-Bedroom
Image from Google Maps
Compared to Leedon Green, Leedon Residence has a much higher quantum at S$2.80 mil and its psf of S$2,682 is higher than Leedon Green as well. When looking at the price quantum, Leedon Green seems acceptable at S$1.77 mil though it is smaller in size.
The 2-Bedroom units at D’Leedon are asking from S$1.60 mil or S$1,487 psf. Completed in 2014, D’Leedon is still relatively new and enjoys a huge price gap compared to the newer projects in the area. For example, a developer could potentially buy over this plot of land, tear down, and rebuild D’Leedon. And after factoring in the construction costs which is around S$350 psf, the replacement cost for D’Leedon is still way lower than its surrounding area in terms of psf.
3-Bedroom
Image from Google Maps
For Leedon Green, the 3-Bedroom units start from S$2.45 mil or S$2,562 psf. Interestingly, the units are 958 sq ft in size, which is similar to the 2-Bedroom units at Leedon Residence at 1,044 sq ft. As 2-Bedrooms at Leedon Residence are starting from S$2.80 mil, one could purchase a 3-Bedroom unit at Leedon Green that is of similar size yet at a much lower quantum and psf at S$2.45 mil or S$2,562 psf. This will be a situation where you could buy a brand new development at a 6-years old resale price. Hence, it is worth looking into.
Leedon Green and Leedon Residence are freehold projects. However, if one is willing to buy into a leasehold project, D’Leedon presents an interesting opportunity at S$1.95m or S$1,603 psf for its 3-Bedroom units. On the other hand, the 3-Bedroom units at Leedon Residence and Parvis are asking from S$4.88 mil and S$3.59 mil respectively, which are very high in quantum.
Criteria 5: Exit Strategy
When buying a property, it is important to enter with the end in mind. This means that one needs to understand what are the exit strategies and who are the potential future buyers when you are eventually looking to sell.
When buying a property, we can use a spectrum to determine which type of homebuyer you are. You could be a Homeowner, Homevestor or Investor.
For Homeowners, the primary motivation is happiness. This means that when you find a property that you love, you are likely willing to pay a premium as long as you are happy. Capital appreciation and rental income are not your priorities.
Investors, on the other hand, have a very clear objective of securing the most profit from rental and capital appreciation.
As for Homevestors, they are in the sweet spot between homeowners and investors. Homevestors typically purchase properties for their own stay with potential capital appreciation. The main objective is not to maximise profit but to cover their “cost of living”, which allows them to stay at the property for free upon exit.
Conclusion
Using the above spectrum to analyse Leedon Green, the 1-Bedroom and 2-Bedroom units at Leedon Green would belong to the Homeowner category. This is because, in the resale market, D’Leedon presents much more value both in terms of quantum and psf.
However, when looking at the 3-Bedroom units, Leedon Green could fall under the Homevestor category. In particular, the units at Blk 26 will be more favourable as it is located within 1km of Nanyang Primary School. This makes the project attractive to families with young children looking for a popular primary school nearby.
Furthermore, the pricing of its 3-Bedroom units is similar to the 2-Bedroom units of Leedon Residence, which are both similar in size. Hence, one would be paying for a brand new development at a resale price point for the 3-Bedroom units at Leedon Green.
