Glendale Park August Update

 

In the month of August, the latest transaction for Glendale shows a low floor unit transacted at a historical high psf of S$1,562. Almost half of all 2022 transactions done in Glendale were above S$1,500. 

Our purchase price in 2019 was S$1,147 psf which means an approximate capital appreciation of 36.2%(S$428,695). Looking back at this, it seems like we were lucky to have bought it during the covid period.

Rental wise, the most recent transactions for our size ranges from S$3.3k to 3.8k per month. This equates to ard 3.8% gross yield p.a base on our cost price.

Glendale is the closest condo to Hillview mrt and its freehold in status. If we were to compare it with the recently sold out 99 years Midwood, the price discrepancy is still large. Lets look at the surrounding condos to compare their latest transactions.

Distance from back gate to mrt

Midwood 95 years leasehold remaining transacting at around 1.6-1.7k psf (2.8x plot ratio)

Kingsford 87 years leasehold remaining transacting at around 1.4k psf (2.8x plot ratio)

Hillier 88 years leasehold remaining transacting at 1.5k psf (2.8x plot ratio)

Glendale freehold transacting at 1.5k psf (1.92x plot ratio)

Glendale is basically a 1.9x plot ratio freehold condo surrounded by 2.8x plot ratio new leasehold developments. The recently announced Government Land Sales at Hillview(link here) is also at 2.8x plot ratio. 

A potential plot ratio reversion for Glendale is possible. A conversion to a higher plot ratio for condominiums that currently sitting on a land with a sub 2x plot ratio could be one of the potential reasons to spark an en-bloc bid 10 years down the road.

The new GLS site just beside Midwood will be another test for Hillview to see if the current market price will continue to attract demand.

Midwood was developed by Hong Leong and the land they purchased in 2018 has a per plot ratio of S$1,068. Their breakeven psf was estimated to be around S$1.6k after taking into account land financing, construction cost and marketing. Despite the relative high price for a leasehold development, it is still fully sold at 1.6-1.7k psf since May this year.

Quoted from the article: "Huttons Asia's senior research director Lee Sze Teck said there is little competition in the Hillview area as the nearest project, Midwood, which was launched for sale in October 2019, is fully sold as at May this year.

Ms Wong estimated that the Hillview Rise site could attract top bids of between $313 million and $345 million, reflecting a land rate of $1,000 to $1,100 psf ppr."

The new GLS site will likely be sold higher than S$1,068 psf, which Hong Leong bought for Midwood in 2018. And the breakeven price may go as high up as 1.7-1.8k because of inflationary pressures on construction cost. Lets wait and see.