*This article was written in January 2023 and does not reflect data and market conditions beyond.
Thomson Three is a 99-year leasehold condominium nestled in a quiet residential landed enclave of the highly desirable Thomson area. The condo is aptly named after its three residential blocks that tower over the low-rise buildings and landed enclave in its vicinity, giving its residents a panoramic view towards the city. The site also includes 10 strata semi-detached units, but for the purpose of this article, we will only be focusing on the condo development.
Location Analysis
Thomson Three is located on Bright Hill Drive, just 650m or an 8-minute walk away from Upper Thomson MRT station on the Thomson-East Coast Line (TEL). With the Phase 3 opening of the TEL on 13 November 2022, it is now more convenient for residents of Thomson Three to travel to other parts of Singapore. Stage 4 and Stage 5, set to open in 2024 and 2025 respectively, will see the line expanding to the eastern part of Singapore.
The nearest mall would be Thomson Plaza, which is directly across the road and right next to the MRT. Compared to newer malls, it may have a dated exterior but it does provide a wide variety of amenities ranging from restaurants (including the highly popular Omoté), an NTUC Fairprice Finest, to medical services and tuition centres, and more.
Drivers can also take a 10-minute drive to get to Junction 8, which has a wider range of entertainment and dining options. As for connectivity, Thomson Three is a short drive to major roads and has easy access to expressways like CTE, PIE, and SLE.
For parents with young children or couples planning to start a family, it is noteworthy that reputable schools like Ai Tong School, Catholic High, and Raffles Institution are in the vicinity of Thomson Three. However, aside from Ai Tong School which is within 1km walking distance, the rest of the schools require public transport to access.
Midview City, a mega business hub that houses a range of eateries and commercial offices, is also a stone’s throw away from Thomson Three. For prospective condo buyers who work in Midview City, own an office here, or are thinking of renting a unit here for storage or business operations, Thomson Three would be one of the ideal places to look at.
Site Plan Analysis
At first glance, the site of Thomson Three is not a regular shaped plot of land. But the developers have made the most of it by clustering most of the condo facilities in the middle of the site, with the residential blocks taking a linear profile along Sin Ming Avenue. It is made up of 1-Bedroom to 4-Bedroom unit types with a total of 435 units spread across three blocks standing at 21 storeys high.
The units here are either north facing or south facing, with a few stacks that enjoy a rare dual facing towards the north and south. This means that the units here will not get afternoon sun coming in. Higher floor units with dual facing will get a panoramic view over the low-rise buildings and landed enclave towards the north and a city view with minimal obstructions towards the south. Some stacks will also be able to see Thomson Plaza right across the street.
As for the condo facilities, the ones that stand out are the Hydro Gym and the Multi-Purpose Hall. Hydro Gyms, often used for muscle recovery and physical therapy, are not very common facilities found in condos. So that’s one great perk that residents of Thomson Three have. The Multi-Purpose Hall includes entertainment and dining facilities, a private Karaoke room, as well as steam rooms for all your entertainment needs and relaxation after a long day at work.
Price Analysis
Thomson Three obtained its TOP in 2017. As a private condominium, it has no MOP period unlike executive condominiums. However, under the current Sellers’ Stamp Duty (SSD) framework, owners who sell their units within the first three years will incur a stamp duty fee of up to 4%. That is the reason why transaction volume and prices only started rising and stabilising after Q3 2020. Since the SSD period for Thomson Three ended, the average psf has grown 22% from Q3 2020 to Q4 2020. If Q4 2020 were to be excluded due to low transaction rate causing a spike in the average psf, the growth rate would still be at 19%, which is decent for a relatively new development.
Thomson Three averaged at S$1,325 to S$1,350 psf when it first launched in 2013. At the time of writing, it is transacting at an average psf of S$1,724. This means that owners who purchased a unit here at launch are now seeing a 27-30% capital appreciation.
The area around Thomson Three is mostly populated by freehold condominiums. But looking at the few 99-year leasehold condominiums within the immediate vicinity, the nearest would be Thomson Impressions (TOP 2019), which is also the newest. Followed by Bishan Point (TOP 2005) and The Gardens at Bishan (TOP 2004).
With the opening of Stage 2 of the TEL on 28 August 2021, these four developments now have either Upper Thomson or Bright Hill MRT stations within walking distance. Looking at the price trend, there is a very obvious spike in the average psf across all four developments after Q2 2021, which coincides with the opening of the stations.
Thomson Impressions had just passed the SSD period last year and is currently transacting at an average psf of S$1,766, which is similar to Thomson Three’s S$1,724. This is not surprising since they are less than 1km apart and have a similar balance lease. However, it is worth noting that Thomson Three is located slightly nearer to an MRT station than Thomson Impressions. On the other hand, Bishan Point is transacting at a much lower average psf of S$1,293. This is likely due to lease decay, since it is much older than the other two. However, The Gardens At Bishan managed to outperform Bishan Point with an average psf of S$1,408 despite having a similar balance lease, likely due to the closer proximity of Bright Hill MRT station.
Lastly, just to the south of Thomson Three, Thomson View Condominium was put up for en bloc sale in late 2021 which drew several enquiries from interested parties. However, it eventually failed due to the short window between the announcement of property cooling measures in December 2021 and the tender closing in January 2022. It was relaunched for en bloc sale again in May 2022, with tender closing in June 2022. If the en bloc is successful in the near future, with the site zoned for residential development and a gross plot ratio of 2.1, it will likely become the next hot launch in the area and drive prices of surrounding developments including the neighbouring Thomson Three.
MOAT Analysis
In this section, we take a more objective view of Thomson Three using PLB’s proprietary MOAT Analysis. The MOAT Analysis compares properties on 10 different dimensions to help us reach a more holistic view of the property in question and evaluate whether it might be appealing to the mass market in Singapore. If you want to find out more about our MOAT analysis, you can read this article here.
Looking at the MOAT profiles of the condominiums we highlighted in our price analysis, they have relatively high MOAT scores of between 50-70%.
Thomson Three scores a relatively high 68%. Its Bala’s Curve Effect score is high, given that it has a healthy balance lease of around 93 years left at the time of writing. It has also done well on its Volume Effect and Rental Demand, riding on the high volume of transactions in the highly desirable Thomson/Bishan area.
The three main points that stand out for Thomson Three are Quantum Effect, MRT Effect, and Region Disparity Effect.
Firstly, Quantum Effect scores a perfect 5 out of 5. This means that Thomson Three is still relatively affordable after taking into account the median income of average Singaporean family units. This is also in tandem with its Region Disparity Effect score of 4 out of 5. A high score in this dimension means that Thomson Three is affordable in comparison with other projects in the Rest of Central Region (RCR). Given that RCR property prices are on the rise with the decentralisation of the Central Business District (CBD), and the limited supply of residential housing in District 20, Thomson Three is likely to see further appreciation.
Next, MRT Effect scores a high 4 out of 5, despite being directly opposite Upper Thomson MRT station. This isn’t surprising, seeing that both Bishan Point and The Gardens At Bishan are located nearer to Bright Hill MRT station than Thomson Three is to Upper Thomson MRT station. However, it is worth noting that Upper Thomson MRT is closer to the Orchard Shopping District which is on the same TEL.
Prospective buyers and investors should take note of the relatively lower scores on the District Disparity Effect, Parents’ Attraction Effect, and Exit Audience. Firstly, the low district disparity score could signify that there are more affordable options within the district. This has already been brought up in the price analysis, with both Bishan Point and The Gardens At Bishan transacting at a much lower psf as compared to Thomson Three. But as we pointed out, both projects are significantly older than Thomson Three, so the disparity in psf is within expectations.
Next, the Parents’ Attraction Effect is on the lower side due to the lack of options around the vicinity of Thomson Three. For Primary schools, there is only Ai Tong School, and it is pretty much always fully subscribed. As such, Thomson Three might look more appealing to families with older children.
Coming to the point of Exit Audience, it could be on the lower end due to the limited supply of fresh public housing within the vicinity of Thomson Three. This means that there is a lack of the upgrader demographic, which makes up a significant segment of condo purchasers, in the area. However, given the amenities in the area, on top of District 20 being a desirable location to live in, this is likely not going to be much of a concern.
Unit Distribution
Thomson Three offers 1-Bedroom to 4-Bedroom types, with 2-Bedroom (38%, 168 units) and 3-Bedroom Compact (23%, 101 units) making up the majority of the unit offerings. 1-Bedroom types make up 14% (61 units), 3-Bedroom Premium make up 19% (84 units), and 4-Bedroom types make up the remaining 6% (21 units). The spread of unit offering caters to a range of buyer profiles – investors, young couples, and both small and multi-generational families are likely to find what suits them in this development.
The unit mix is very evenly distributed, meaning you can find each unit type in any of the three blocks with the exception of 4-Bedroom types, which you can only find in one block and stack – Block 43 Stack 08.
One interesting thing about the penthouses here is that they all open up to a private sky roof terrace from inside the unit, a great feature and perk for those who enjoy having an alfresco dining space.
1-Bedroom Type
There is only one layout variation for 1-Bedroom types, and they are found in each block but specifically in Stack 04, 09, and 16. These stacks are all north facing towards the low-rise Thomson area.
What stands out about the 1-Bedroom layout is the elongated entrance that leads into the kitchen and dining area. This gives more privacy as the living area cannot be seen directly from the entrance by neighbours, passers-by, or delivery personnel. The living room and master bedroom are also nicely segregated, making it feel more like a 1-Bedder than a studio.
2-Bedroom Type
For 2-Bedroom types, there are two standard layouts – B1 and B2, with ground floor and penthouse variations. For the standard types, B1 comes in at 732 sqft and is slightly larger than B2 at 710 sqft. B1 ground floor variations are larger at 883 sqft because of an additional PES area, and penthouse variations come in at 1,066 sqft. B2 ground floor and penthouse variations are 797 sqft and 1,141 sqft in size respectively.
The differences between the two standard layouts are the size of the balcony and bedrooms, as well as the configuration of the entranceway. B1 has a larger balcony and bedrooms as compared to B2, which is something to take note of for those who prefer a larger 2-Bedder. For the configuration of the entrance, B1 has an elongated entrance that leads into the kitchen and dining area while B2 has a small L-shaped entrance. While the L-shaped entrance does provide more privacy, the elongated entrance also puts the living room further away.
3-Bedroom Type
Coming to 3-Bedroom types, there are three standard layouts – C1, C2, and C3, with ground floor and penthouse variations just like the 2-Bedders. These layouts are considered 3-Bedroom Compact by the developers. The C1 layout, which has four sub-variations, stands at 1,033 or 1,044 sqft. Its ground floor and penthouse variations are 1,098 and 1,410 sqft in size. Similarly, the C2 layout also has four sub-variations, are 1,033 or 1,055 sqft in size. Its ground floor and penthouse variations are 1,119 and 1,410 sqft in size respectively. And lastly, the C3 layout which also has four sub-variations are 1,033 or 1,044 sqft in size. Its ground floor and penthouse variations are 1,141 and 1,421 sqft in size respectively.
Comparing the standard layouts, C1 and C3 layouts have an angled entranceway while the rest of the unit maintains the squarish configuration. They also have a huge balcony that spans the living room, master bedroom, and one of the common rooms.
On the other hand, the C2 layout has a slightly more efficient layout with an elongated entranceway leading into the kitchen and dining area. What stands out about the C2 layout is that it has a total of three balconies – one next to the dining area, one next to the living room, and one in the master bedroom. This layout is also one of the rare ones that provide a dual facing to the north and south.
Thomson Three also offers 3-Bedroom Premium units, with four sub-variations which are all 1,141 sqft in size. Its ground floor and penthouse variations are 1,259 and 1,582 sqft in size respectively. Aside from an additional utility room behind the kitchen, the main difference is a slightly larger dining and living room space.
4-Bedroom Type
Lastly, the 4-Bedroom type also has four sub-variants which are all 1,485 sqft in size. As mentioned previously, they can only be found in Stack 08, making it the most exclusive unit offering of Thomson Three.
The elongated entrance of the standard layout opens up into the kitchen and dining area, with an allocated dry kitchen and the option of doing an open-concept kitchen or a fully enclosed one. There is also a wall partition right behind the living room for additional privacy, but owners have the flexibility of removing that wall to have a bigger living and dining area.
Future Growth Potential
Firstly, the TEL is still not fully completed. The expansion is still going on in phases, with Stage 4 opening in 2024 and Stage 5 opening in 2025. Stage 4 of the TEL will include eight stations from Founders’ Memorial to Bayshore, with Founders’ Memorial (in between Gardens by the Bay and Tanjong Rhu) to be opened at a later time in tandem with other developments in the area. Stage 5 of the TEL will include Bedok South and Sungei Bedok stations, with Sungei Bedok interchanging with the Downtown Line (DTL).
In 2019, it was also announced in the Land Transport Master Plan 2040 that there will be an extension of the TEL to Tanah Merah via Changi Airport Terminal 5, which will take over the existing East-West Line (EWL) link between Tanah Merah and Changi Airport.
Although the opening of these stations is not happening in the immediate vicinity of Thomson Three, it does improve its connectivity to the eastern part of Singapore via the TEL. Looking at the price analysis where prices spiked in tandem with the opening of Stage 2 and Stage 3 of the TEL, Thomson Three will likely increase its appreciation potential.
Lastly, with the potential en bloc of Thomson View just south of Thomson Three and the limited supply of new launches in the area, there is much growth potential to look forward to.
In Summary
Thomson Three is one of the rare 99-year leasehold condo developments in the Thomson area that is located within a 8-minute walk to Upper Thomson MRT and has a healthy balance lease. With the upcoming expansion of the TEL and the potential en bloc of Thomson View, Thomson Three is likely to see further price appreciation.
Thomson Three also has units boasting a dual facing with unblocked views towards the north and south, as well as penthouse units with private sky terraces, which are strong attraction factors that are appealing to both investors and families buying for own-stay purposes.
Let’s get in touch
If you are looking to buy or sell a unit in Thomson Three, do reach out to us here. Thank you for reading and following PLB. Stay tuned as we bring you more in-depth reviews of condo developments around Singapore.
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