TL;DR
Pasir Ris 8 offers unparalleled connectivity and convenience as the new kid on the block. The facilities and amenities within the development will be very attractive to tenants looking around the area. Future developments also might potentially appreciate what is already a premium price tag. With all the different offerings the development has, Pasir Ris 8 is one of the most exciting developments of 2021.
Pasir Ris 8 officially launches on 24th July 2021
Pasir Ris 8, located at Pasir Drive 8 (District 18) is developed by Allgreen Properties Limited and Kerry Properties (Limited), operating under a cooperative corporation named Phoenix Residential Pte Ltd and Phoenix Commerical Pte Ltd. They have engaged DCA Architects Pte Ltd to design the development of 38,007.3 square metres. The 99 Year leasehold land tenure starts from 5th July 2021, and its expected TOP date is 30th June 2026. It is a Mixed-Use Development comprising 2 basements for carparks and commercial use, with an underground linkway, a 4-storey podium consisting of the bus interchange, HDB Town Plaza, Polyclinic, and 487 units of residential flats (3 blocks of 10 storeys and 4 blocks of 11 storeys).
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· An abundance of facilities for families
· Unparalleled convenience
· Good noise dampening architecture
· Well-thought-out unit layouts
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· Will have to wait to enjoy connectivity
· Premium quantum for integrated development
· Only 7-Storeys of Building height
The Next Hot Thing for Awhile
Pasir Ris 8 will not only be the newest development in Pasir Ris for a while but the last Integrated Development to be launched. Given its mixed-use nature, it is also much anticipated by homeowners and investors alike. The first 2 floors and 2 basement levels will be an integrated hub housing 2 MRT lines, the current East-West Line, the future Cross-Island Line, the Pasir Ris Bus Interchange, and commercial spaces. It will also house a Polyclinic within the development. The 3rd and 4th storeys will be used for Residental Carparks/Drop-off and Landscape & Amenities decks for the Condominium that sits atop the development. This development boasts connectivity and convenience that is unparalleled in the area.
With such an excellent development, the only question is, “How expensive will it be?”
Pricing Analysis
Indicative Launch Prices of Pasir Ris 8
Resale Prices of Surrounding Area
At a glance, it may seem like Pasir Ris 8 is exorbitantly priced against the surrounding developments. However, historically, integrated developments have always been launched at a premium against the surrounding for the connectivity and convenience it brings to not only the development itself but also the surrounding areas.
Integrated developments are in a class of their own. We have noticed that the prices in Coco Palms have started to creep upwards with 3 bedders of 1098 sq ft at $1.3x Mil range and approaching $1.4Mil. Then the question would be, “Is it worth it to pay almost $400K extra for an integrated development?”.
Completed Integrated Developments — Capital Appreciation
Courtesy of 99.co Researcher Tool
We have analysed the performance of the 5 most notable integrated developments of recent years in different regions of Singapore. From the average PSF over the years, we can observe a capital gain of averagely 10% across all developments. The only oddball is The Centris. The Centris was one of the first few integrated developments in Singapore, along with Compass Heights in Sengkang. Both developments have seen an appreciation of above 100% since completion over the years. Albeit they are both much older and built much earlier when the land cost is not as high as it is now. However, the other factor is the level of development potential the area has.
Future Development Potential
The similarity between The Centris and Compass Heights had over the other integrated developments is the potential for future development, which they will benefit from. The Jurong area has the relocation of PSA Port to the Western Coastal area and Jurong Lake District (Next CBD). Sengkang is looking forward to the Punggol Digital District and the various lifestyle developments to enhance recreation facilities for the residents.
Pasir Ris will likely benefit from the further developments in the eastern and North-eastern areas. Some notable developments will include the Punggol Digital District and the consolidation of our aerospace resources with Changi Aviation Park. Additionally, the relocation of Paya Lebar Airbase will likely cause an increase in workforce deployment to the other Airbases, namely Tengah and Changi. However, we believe that it is more likely that Changi would see a steeper increase in operations due to the consolidation of aerospace resources in the East.
Currently, Pasir Ris is one of the lesser populated towns according to The Population Census 2020. With the ability to benefit from a broad spectrum of developments and all the different engines in place relating to Pasir Ris, we think Pasir Ris 8 is forward-looking priced and will see a good potential for future appreciation given the potential for an increased residency attractiveness.
If you still want a piece of the eastern pie but not live in the East
We have looked at the Integrated development of Hillion Residences and neighbouring The Tennery as it currently stands as the most similar scenario compared to the environment in Pasir Ris. It may seem like the monthly rent for these 2 developments is on par. However, when we look at the $PSF per Month, we can immediately see a stark difference of at least $1 PSF per Monthly. This shows the attractiveness of integrated developments for tenants, allowing them to command a premium over the surrounding developments.
Coco Palms currently has an indicative rental range of $2.39 – $5.11 PSF per Month and an indicative average rental of $3.44 PSF per Month. Using the examples of Hillion Residences and The Tennery, let’s take a look at what your potential investment stands to gain:
Coco Palms Indicative Average Rental: $3.44 PSF per Month
Pasir Ris 8 projected Indicative Averge Rental: $3.44 + $1 = Est $4.5 PSF per Month.
Median 1 Bedder Quantum: Est $904,750 || $1,750 PSF || 517 sqft
Rental Per Month for 517sqft unit: $2,326.50
Annual Rental Income: $27,918
Rental Yield: $27,918 / $904,750 = 3.08%
We are taking into consideration that this is a conservative approach to determining the rental yield with the median prices on each. In today’s climate, a rental yield of 3.08% is relatively healthy, coupled with the potential of Capital Appreciation and Future Development Potential that we have discussed earlier. We can now understand why Pasir Ris 8 is such an anticipated development for potential homeowners and investors alike. Purely based on the numbers, we foresee that the numbers will likely help justify the price tag of this integrated development. But looking at the floor plans, it seems that the developers have done really well incorporating the much sought-after commodity of 2021, Space.
The Development
One key thing we have noticed is that the developers have purposefully built the blocks in a North-South orientation, FACING AWAY FROM THE MRT. This will help reduce the noise that might be resultant of being this close to the MRT. The next question then would be, “So means those stacks nearer to the station will be noisier?” The developers have appropriately built the Facilities and Landscaping closer to the station to act as a noise buffer, absorbing most of the station noise before reaching the residents. Out of all these considerations, the development also sits atop the Pasir Ris 8 commercial spaces, and the resident deck starts from the 4th Storey onwards. We think the developers have done very well to consider the potential obstacles that the residents might face and mitigate the noise issues. We also noticed that the Genset is intricately tucked away at the side of the development, away from the residential blocks.
For Daddy & Mommy
Apart from the usual facilities, they have included 2 song rooms for those who want to unleash their inner JJ Lin, a Gourmet Kitchen space (usually only offered in more exclusive developments) for those who wish to host dining experiences like Gordon Ramsay but do not want fumes in their homes, and lastly, a Co-working Lounge for those who can’t get a quiet environment to host their Shark Tank conferences at home. These are likely to be well appreciated and popular facilities that will attract homeowners and tenants to live within the development. Couple that with the integrated mixed-use development with retail and food options just right at your doorstep, the facilities offered in Pasir Ris 8 is undoubtedly the first of its kind.
For the Children and Inner-Child
We also like that the swimming pools are meandering around the clubhouse, Club 8, which houses many facilities. Children will likely enjoy access from almost any part of the development, and at the same time, residents will appreciate the spaciousness of the pool, so they do not have to experience overcrowded usage. To say that the development offers your pretty standard facilities is an understatement. It seems that the developers have considered the recent climate of lack of entertainment and space all around Singapore.
But of course, these facilities would be more skewed for the adult residents. However, the developers have also included an abundance of child-friendly facilities. The addition of a Party Room and Interactive Playroom will likely promote that “kampong” spirit within the development with cross-interaction between child residents. There are also 5 different wet activity areas and a wall climb to get the kids to go out rather than being cooped up staring at their Nintendo Switches. All things considered, we see Pasir Ris 8 as a very inclusive and family-orientated development suitable for residents of all ages.
Our Pick
Block 20. After all that talk of MRT noise, you might be wondering it seems ridiculous to pick the stack nearest to the station. However, the underlying factor here is that the Pasir Ris station is the Start/Endpoint of the East-West Line with trains entering and exiting from/towards Pasir Ris Central. Meaning, the majority of the time, the trains will not be travelling past Block 20 unless returning to the train depot after peak hours. Block 20 is also the only block with an unblocked facing on both sides, with one facing internally towards the Facilities Deck.
Did we also mention that there are only 487 units? All of the integrated developments that we have analysed and mentioned house more than 500 units, with some even surpassing 900, making them highly dense developments. This means that residents at Pasir Ris 8 will not face overcrowding issues when utilising the facilities or when driving residents enter and exit the development. Speaking of entering and exiting, we have also noticed that the entrance to the development is very intuitively positioned at Pasir Ris Drive 8. For the people living around the area, you will probably know that Pasir Ris Drive 8 is one of the lesser utilised roads connecting Pasir Ris Drive 3 and Pasir Ris Central.
The unit distribution also emphasises the kind of audience that the developers are likely to be targeting. With two-thirds of the development (63%) being 2-Bedder Premium and above, young couples to extended or large families will likely be the target audience that developers have taken an interest in. Investors are left with about one-third of the development to consider for low quantum entry (37%). However, we also noticed that the 2-Bedder Premiums and 2-Bedder Premium + Study units make up the highest percentage of 26%. Likely to be the flexibility that Developers want to offer to young couples who might be looking towards their own stay for a couple of years and swap to renting out the unit later. We will dive a little deeper into the specifics of the different layouts, but Space is one of the key offerings in the development from a pre-observation.
Units
1 Bedroom
The 1-Bedroom Flexi is the smallest offering the development has. We find the use of space efficient and very generous at 517 sqft. It is more significant than some of the offerings, by 50 sqft, in other developments of 470 odd sqft. Typically, the only time we see a 1-Bedder unit above 500 sqft is on the 1st Storey with the patio space. The flexible wall that separates the Master Bedroom and the Living room is also a smart feature that maximises the use of the space. Investors looking to buy and rent out will have an additional benefit over other developments without this feature.
The efficient use of corner space in the Master Bedroom allows the wardrobe to be flushed against the wall line. The sliding door shared between the wardrobe and the Bathroom is yet another bright idea that makes the unit seem more spacious. At the time of writing, due to limited information, we do not have the floor plans of the 1-Bedder + Study. Still, with the addition of 21 sqft (538 sqft) for the particular layout, we believe it to be quite generous, even larger than some 1-Bedder + Study Patio units. Overall, we think that the 1-Bedder offerings in Pasir Ris 8 will be popular amongst tenants for the efficient use of space and amenities around the area.
2 Bedroom
The swivel dining table consistent in the 1-Bedder and 2-Bedder layouts seem to be a trend of 2021 for developers to help their consumers save space. The flexibility of the swivel table in the 2-Bedders allow the table to be hidden when not in use or host up to 4 if needed. At 710 sqft, we like that there is no waste of space, with every corner optimised pretty well. We see the consistent use of the sliding door to save space in the Master Bedroom once again in this 2-Bedder layout. However, in this case, we see it as a bit of an inconvenience for tenants. The tenant in the Master will be able to listen in to the business of the other tenant from the shared Bathroom, which might be a potential obstacle for separate tenants. The designated space for the washer/dryer is a nice addition, allowing ample space to do laundry duties. The space also has the potential to be converted into an extra study room or additional storage space if needed.
2 Bedroom Premium
At 775 sqft, this is a pretty standard offering from the developers. Although we have seen smaller 2-Bedder Premium units, we can’t exactly say that this layout is more significant than some. However, this amount of space is sufficiently livable for a young couple or 2 separate tenants. We also see a good width to the Master Bedroom being able to put a King size bed with a dresser table beside and still have the wardrobe tucked at the corner. It is pretty rare to have this kind of wide space in a 2 Bedder Premium unit. In the 2 Bedder Premium units, you have an enclosed kitchen to facilitate any heavy cooking. Our only issue with the unit is that you may potentially have to convert the 2nd Bedroom or the Dining area to a work/study space if need be. However, for young couples or even separate tenants, they may not consider this a potential roadblock since there is quite a generous amount of Living & Dining space. At the same time, there’s also the Co-Working Lounge just right downstairs at the clubhouse.
3 Bedroom Premium
Again, we do not have the layouts for the 3-Bedder units at the time of writing due to limited information. However, if you can fork out the extra “premium” for this layout, we’d suggest you go for it. Immediately upon entering the unit, you are greeted with a wide and massive Living & Dining area that spans across your balcony. Throw in a Ziptrak system (Although mostly approved, still subjected to the discretion of each MCST council) covering the balcony space, your Living & Dining area is immediately expanded even more massively. The kitchen, while enclosed, comes with a glass covering to allow for natural light to seep into the kitchen and showcase the massive space once you enter from the door. Once again, the use of space in the Master Bedroom is well thought out, with an in-built walk-in closet design conveniently beside the Bathroom. The sliding door covers the space seamlessly, allowing ample room to get prepared and dressed.
Similarly to the 2 Bedroom Premium, there is ample width for a King size bed and excess for a desk or dresser. But, the best feature of the entire layout is the Flexible Guestroom/Storage space. For years, home shelters have been a dilemma for many homeowners. Some were using it as storage, citing mould issues from the stale air or even housing their helpers in those small spaces. The developers for Pasir Ris 8 have eradicated the home shelter/enclosed storage space entirely. Instead, they are offering a Guestroom with a window that accompanies the room. This will allow more humane living conditions for helpers or double up as a well-ventilated storage space. At 1302 sqft (similar to some 4 Bedroom Premium units in other developments), this is much larger than some of the other developments we have explored at about 1000+ sqft to 1100+ sqft. It seems that the developers have seriously taken into consideration the much-needed commodity of 2021, Space. Considering that some developments have 4-Bedder units of smaller sizes starting at the same price as this 3-Bedder Premium, we believe that this a value buy for this development.
4 Bedroom Suite + Guest (with Private Lift)
This 4-Bedder layout with a private lift is the largest offering in Pasir Ris 8, with only 14 units available, and the 4 Bedroom Premium Flexi has 16 units up for grabs. As you would expect in the most premium unit of any development is the separated Dry and Wet kitchen area with an island table. Again, once entering through the private lift, you are instantly greeted by this wide-open space overlooking the entire development. This is because the 4 Bedroom Suite layouts are only offered at 2 stacks, both having an unblocked view facing the facilities deck, which we consider the most premium facing. That certainly helps to justify the most premium price tag in the development. In a similar fashion, the traditional home shelter is a full guest room. We absolutely love the placement of this guest room, along with the WC that can serve as a small bathroom, as it allows you to rent out this room (if you do not need the extra room) and essentially never see your tenant. The alternate entrance to the unit is via the wet kitchen area, and your tenant does not even need to enter your living area upon returning home. Alternatively, if you do require the room for your helper, the segregated space will allow them to have their own private space while you host your guests over at your massive Living & Dining space.
Now, you might be thinking, why pay for the private lift over getting a regular 4 Bedroom unit in this excellent development?
1. Your lift lobby can double up as storage space for your shoes, bicycles, Barang Barang, so your living room is not as cluttered.
2. The price difference between a 4 Bedroom Suite + Guest (with Private Lift) and a 4 Bedroom Premium is about $140,000. The extra space between the units is 86 sqft. You will be paying about $1630 for the additional 86 sqft of space, which is lower than the lowest indicative starting PSF price of $1650.
3. You will be sharing it with 5 other residents only. Due to the building height limitations in the Eastern areas, there are only 6 Storey and 7 Storey variations in Pasir Ris 8. The 4 Bedroom Suites are only offered at 2 of the 6 Storey blocks.
After looking at the pricing factors and different layouts available in Pasir Ris 8, we at PLB are already very excited for the launch of this excellent development. But, we are not done talking about the other offerings the development has yet. Next, we will look at the Lifestyle factors that you may consider before deciding if this purchase is well suited for you.
Lifestyle Factors
Connectivity
The upcoming Cross Island Line has been overly mentioned over the last year in anticipation of the convenience it will bring to the North-Eastern and Eastern areas. However, the Cross Island Line, in fact, is a 3-phase project that will award the Cross Island Line as the longest MRT line in Singapore at an overall length of 58km. The East-West (Green) Line currently stands at 57km. Phase 2 is the connection of the Punggol area to Pasir Ris. It surely will add some driving force behind the further development of the Eastern area since the connectivity is already being enhanced. The 3rd phase of the project will likely extend from the Central regions towards Bukit Timah, spanning through Clementi, West Coast, to the Jurong Industrial Area. If we are talking about connectivity, being the longest MRT line is undoubtedly tough to beat. With most of Pasir Ris’s development, many residents will benefit from the increased connectivity, which will require more developments to cater to the increased population.
Recreation
Part of the reason many residents love staying in Pasir Ris is the abundance of recreational activities. With a broad spectrum from nature walks in Pasir Ris Park to Wild Wild Wet in Downtown East, the residents in the area are spoiled for choice when choosing activities over the weekend. Pasir Ris Park is one of the most scenic routes in Singapore. It is also the only park that has a beach. Many residents currently enjoy their weekend walks (Rising in popularity due to COVID-19) over at Pasir Ris Park, setting up picnics and sporting activities. Downtown East has also undergone a $200Mil refurbishment completed in 2018, enhancing the facilities and providing more play space in the development. That has seen Wild Wild Wet double in size with an addition of seven new attractions. Whoever said living in the East was boring, clearly is living under a rock.
The Orchard of the East
With the addition of Pasir Ris Mall within the integrated development, Pasir Ris will have 2 malls servicing the area. However, a short distance away, Pasir Ris residents have access to Tampines Mall, Century Square, Our Tampines Hub, the 4 current Terminals of Changi Airport with a 5th addition initially planned for 2030, and the “Jewel” of Singapore, Jewel Changi Airport. The only other area with this number of well-established developments is Orchard Road. If working around the area in the East, you may not even need to drive more than 15 minutes through your entire week, but with the increased connectivity the area will be having, you may not even need to drive at all. You can throw in the excess money from not buying a car to your down-payment for a unit at Pasir Ris 8.
Be Smart and buy a Smart Home
Pasir Ris 8 has smart home capabilities already in-built to future-proof your unit. Our favorite feature is the Smart Aircon, for obvious reasons in our oven-like Singapore. At first, these intricate features may seem like just additional “fluff” that the developers are trying to sell you. But smart homes are becoming increasingly more popular. A study by Businesswire, a Berkshire Hathaway Company, in 2019, estimated that the Smart Home Market in Singapore is valued at over USD$125 Million and is forecasted to grow at a double-digit rate through 2025. Thus, having these features built-in will translate to some cost savings for you instead of having to spend the excess expense to install them. As a fun fact, to make the entire house a Smart Home, it requires a “Strip-down” extend of renovation to replace the suitable wirings and fixtures, which will be pretty costly.
Our Take
Being the only development with a significant number of driving engines behind, future potential for appreciation, the upcoming and future developments that will start rising surrounding this development, the unparalleled connectivity, shopping belt like Orchard Road, Smart Home capabilities in-built, we are very enthusiastic and optimistic of Pasir Ris 8. The well thought out use of floor space within the units will be one of the main factors to attract potential buyers. The main obstacle when looking to compare prices within the direct vicinity may seem like a hurdle initially. But as we have already mentioned, Integrated developments are in a category of their own, they always bring about a new premium to the area, rightfully so. However, coupled with the Capital Gain appreciation and the command of higher rental, we believe many buyers will overlook the entry price.
A year ago, we talked about The Rise of Integrated Developments in Singapore on Episode 28 of our Investors Series. Over the years, we have noticed a trend in the uprising of these mega convenient developments. Will we see more of these developments popping up? Watch the video to find out more!
We appreciate that you have read through the entire article and hope it will bring some clarity if you are contemplating visiting the showroom to have a closer look at the offerings. Should you require a consult or just have some burning questions about the development, do contact our New Launch Consultation Team if you require any assistance. Otherwise, thank you for staying to this point, do leave us a comment on your thoughts on this excellent development— PropertyLimBrothers, always happy to show you the place.
