Penrose, a soon-to-TOP project strategically located within a 6-minute walk of Aljunied MRT, has been on the radar of many discerning homebuyers. With a strong record of 78 sub-sale transactions since July 2023, is there further potential upside for this development?
Offering a range of unit types from 1-bedroom to 4-bedroom layouts, Penrose caters to both investors and families seeking a modern, well-facilitated living environment in a desirable city-fringe location.
If you are interested to find out more about Penrose, read on as we delve deeper into the project details, location, site, price, and MOAT analysis.
*This article was written in September 2024 and does not reflect data and market conditions beyond.
Project Details
Location Analysis
Strategically situated just a 6-minute walk from Aljunied MRT, Penrose is an upcoming development that is set to attract significant interest from homebuyers. This soon-to-TOP project offers a blend of modern living with comprehensive condo amenities, all in a prime city-fringe location within the Rest of Central Region (RCR). Its appealing combination of a new, fully equipped condo and a convenient, well-connected locale makes it a highly desirable option for prospective homeowners.
For families with young children preparing for primary school registration, Penrose is an ideal choice. It is conveniently located within 1 kilometre of Canossa Catholic Primary School and Geylang Methodist School (Primary), offering easy access to quality education for your little ones.
The area’s appeal to both homeowners and tenants is further enhanced by its proximity to major employment and lifestyle hubs, including Singapore Sports Hub and Paya Lebar (one MRT stop down). Similarly, Aljunied MRT station allows commuters to be easily connected to Singapore’s CBD in 4-5 MRT stops (under 15 minutes), making its central location highly sought-after by families with school-going kids, as well as working professionals. The convenient location allows residents to utilise the public transport system easily on a daily basis, providing the opportunity to go car-lite.
Daily conveniences and affordable dining options are readily available at the nearby SimsVista HDB estate, including the popular Blk 49 Food Centre, as well as the tons of shophouses in the Geylang area.
Penrose’s strategic positioning thus would potentially attract a diverse tenant pool, particularly working professionals drawn to high-value job opportunities, as well as families seeking the best in urban living with unmatched convenience.
Site Plan & Facilities
Despite Penrose’s smaller land size compared to the nearby mega development Sims Urban Oasis, it does not fall short on facilities. The project offers an extensive and unique range of amenities that cater to both families with young children and working adults. Key features include:
- Grand Clubhouse: A versatile space featuring a Multi-purpose Room, Library, Star Gazing Lawn, Games Room, Music Room, and Multimedia Room.
- Tree House Pavilion: Includes a Water Terrace for a scenic retreat.
- The Lawn: A spacious area for various activities.
- 50m Swimming Pool and Stream Pools: Ideal for relaxation and exercise.
- Active Clubhouse: Equipped with a Gym, Yoga Deck, Pool Deck, Steam Room, and more.
- Diverse Lawns: Designed for Picnic, Fitness, Leisure, Tai Chi, and Yoga.
- Wellness Gardens: A serene space for relaxation.
- Multiple Courts: Including Tennis, Fern, Bamboo, and Heliconia courts.
- Cascading Garden Walk: A visually appealing and tranquil pathway.
- Adult Fitness Station: For fitness enthusiasts.
- Kids Adventure Park: Features a Kid’s Aqua Play area, Jumping Water Jet, Zipline, and an adventure playground, making it a standout feature.
The thoughtful design in landscaping places potentially noisier activities like the tennis court and Kids Adventure Park closer to the highway, allowing residential units to enjoy a greater distance from road noise.
Additionally, Penrose includes a Child Care Centre of its own, offering great convenience for working parents by reducing transportation and logistical challenges.
For social gatherings, residents can utilise the facilities on the rooftop of the multi-storey car park, which features another lap pool, BBQ pits, and dining pavilions.
For a relaxing evening, the top floor of Block 30 offers a Sky Dining Pavilion with BBQ pits, a Starlight Lounge, and a City View Lounge—perfect for enjoying the evening skyline.
Growth Potential
Existing residential developments often gain from the introduction of new projects and major transformations in the area. As local amenities and conveniences improve through new residential and commercial developments, demand for homes typically rises, leading to an increase in property values.
Penrose is strategically positioned to benefit from these anticipated changes. Here’s a look at some upcoming projects and transformations that could enhance demand and property value in the area:
- Plots next to Penrose & at the adjacent Kallang Basin Industrial Estate and Kallang Distripark areas have been rezoned as residential plots under the URA Master Plan. This redevelopment could significantly rejuvenate the area. If these plots are designated for private residential purposes, new projects could set a new pricing benchmark due to Singapore’s rising cost of living and construction. Conversely, if the plots are reserved for HDB BTO flats, it could attract potential future homebuyers, boosting demand relative to supply.
- White Sites Between Kallang MRT & Lavender MRT: White sites represent high-value opportunities as they can be used for a range of purposes including commercial, hotel, residential, sports, recreational, or a combination as a mixed-use development. These sites hold significant potential for landmark developments or important projects.
- Revitalisation of Geylang Zone: The rezoning of existing residential and commercial plots in Geylang to commercial/institutional uses, coupled with increased plot ratios, will bring about a major transformation. This will likely result in large-scale new buildings, more job opportunities, and enhanced amenities in the area.
- Kallang Alive Masterplan: The relocation of the Sports School Campus to Kallang will expand the array of sports and recreational facilities available, benefiting residents who enjoy an active lifestyle.
Additionally, the increasing supply of prime HDB flats and BTO projects in the RCR region, including the Kallang estate and surrounding areas, offers existing homeowners a substantial pool of potential HDB upgraders. The high value of these HDB properties, particularly newer 5-room flats which have already crossed the $1 million mark, enables HDB homeowners to leverage their equity and consider upgrading to private properties. Penrose, with its attractive offerings, is a compelling choice for those looking to elevate their living experience.
These planned transformations promise substantial benefits for residents of Penrose and the surrounding area, providing both immediate and long-term advantages. Residents and investors can look forward to a harmonious blend of urban rejuvenation and enhanced recreational opportunities, making Penrose a highly appealing option in Singapore’s evolving real estate landscape.
Price Analysis
To provide a detailed pricing analysis, we employed a lease reset calculation method. This involves taking the average PSF (price per square foot) from the latest six months of transactions and dividing it by the remaining lease term. This approach helps us estimate the yearly PSF if all properties were assessed at the same lease term.
Although Penrose shows a slight premium compared to its surrounding counterparts, this is expected due to its advantages in land size, density, and facilities. For example, when recalculated to a 99-year lease, Central Grove, a 27-year-old development, shows a PSF of $1,916, which is only marginally less than Penrose’s $2,294 PSF. Therefore, for families seeking a newer development with premium facilities and a location within walking distance of Aljunied MRT, Penrose remains an attractive option.
We also examined the performance of Parc Esta, located next to Eunos MRT. Both Parc Esta and Penrose offer notable facilities and are conveniently situated near MRT stations. Penrose has a slight edge in proximity to the CBD and town area, and both projects are sizable in terms of density and total units.
Despite Parc Esta’s higher lease reset PSF of $2,376, its strong demand continues. The project’s facilities and overall appeal create what we term a “star effect,” where families are drawn to its distinctive features and are willing to accept the higher price premium.
Similarly, Penrose is expected to generate a comparable star effect due to its excellent location and extensive, unique facilities. Data shows that both Penrose and Parc Esta rank first in transaction volume in District 14, indicating robust demand and validating the attractiveness of these developments.
Similarly, it shows the strength of entering into a mid-large density project as the Volume Effect takes place, which we will dive more into our MOAT analysis.
Looking at the broader market, recent new launches in the RCR region are limited in supply, with median prices reaching $2,616 PSF. This scarcity has bolstered the resale market, with average home prices climbing to at least $2,500 PSF. In contrast, the latest sub-sale transactions for Penrose are approximately $2,136 PSF. This lower PSF indicates that Penrose homeowners are currently benefiting from a regional disparity effect, which can be advantageous for potential capital appreciation.
MOAT Analysis
The MOAT Analysis is a proprietary tool by PLB that presents a meticulous technique for estimating a property’s value, considering a wide array of influential factors. This strategy involves a comparative study of the property against others, grounded on ten key dimensions, to deliver an unbiased assessment of its attractiveness to the broader market in Singapore. To grasp a deeper understanding of our tool’s functionality, kindly refer to this article, which elucidates the MOAT Analysis in detail.
The final MOAT score of Penrose stands at 64%, an above average performance.
Let us explore the strengths of Penrose by zooming into the specific areas that it has performed well in.
The project excels in several areas, receiving the highest scores in:
- Bala Curve Effect (5/5): As the newest project in the area nearing its TOP, Penrose benefits from a long lease term, which enhances its appeal and results in a top rating in Bala’s Curve assessment.
- MRT Proximity (4/5): Its city-fringe location, within walking distance to Aljunied MRT, ensures excellent connectivity to public transportation, a significant advantage for residents.
- Region Disparity Effect (4/5): The Aljunied area continues to experience positive price disparity trends compared to other RCR regions. This trend indicates potential for further price appreciation, contributing to a strong regional disparity effect.
- Volume Effect (4/5): With over 500 units, Penrose’s mid-to-large density allows it to benefit from the volume effect. This is evident in its transaction volume over the past six months.
However, Penrose scored lower in the Land Size Density Effect due to its density of 566 units spread across 174,646 sqft—a common feature in the RCR where prime land is limited. Despite this, Penrose’s ability to provide extensive condominium facilities within these constraints is noteworthy.
Unit Distribution
Spanning approximately 174,646 sqft, Penrose offers a mid-to-high-density living experience with 566 units across five 18-storey towers. It features a diverse range of unit types, from 1-bedroom to 4-bedroom layouts, catering to both investors and families seeking a new home. Compared to its neighbouring project, Sims Urban Oasis, which consists of 1,024 units spread over 257,257 sqft, Penrose provides a more intimate setting, making it an appealing choice for those who prefer a development with comprehensive condo facilities but lower human density.
With the majority of units being 2-bedroom or larger, Penrose is particularly suited for homeowners looking for their own residence. The development offers a variety of floor plans, including compact layouts, units with additional studies, and premium configurations within the 2-bedroom and 3-bedroom categories. This flexibility allows buyers to choose a home that meets their needs while benefiting from a balance between a reasonable entry price and a comfortable living space.
Penrose features three main facing options:
1. Highway Facing: Generally catered for the smaller unit types, this facing offers good privacy due to its distance from neighbouring developments, despite some potential road noise.
2. Sims Drive Facing: This orientation provides a quieter environment compared to the highway-facing units. For unobstructed views, consider units above level 13, which clear the top floor of adjacent buildings.
3. Internal Facing: Taking a look at where the developer has placed the largest unit types, 4-bedroom and 3-bedroom + study, the premium facing would be the internal facing. These units enjoy a pool view and substantial separation from opposing blocks, offering a premium living experience.
Floor Plan Analysis
In this segment, we will highlight our top choice from each unit type available at The Metropolitan. Our aim is to furnish you with useful knowledge that will assist you in choosing the perfect unit tailored to your tastes.
2-Bedroom
For those considering Penrose as their primary residence, the Type (2p)B layout—a 2-bedroom, 2-bath unit with a floor area of 66 sqm (710 sqft)—emerges as an excellent choice. This layout features an enclosed kitchen, a spacious living and dining area, and a balcony. Its dumbbell design efficiently minimises wasted space, making the most of its dimensions. Both bedrooms can comfortably fit a queen-sized bed, and the presence of two bathrooms enhances daily convenience.
For investors, the smaller floor plate of the 2-bedroom units with one bathroom presents a lower price quantum compared to larger layouts, making it a compelling option for those considering rental opportunities.
3-Bedroom
Among the various 3-bedroom layouts at Penrose, the Type (3Y)b stands out as a premium option. With a floor area of 98 sqm (1,055 sqft), this layout features a spacious, enclosed squarish kitchen with a provision for a store, an additional WC, and even a home shelter. This design is ideal for families who need extra storage space or have a live-in helper.
The layout allows flexibility in dining arrangements, with the option to place the dining table in the dining area or utilise the balcony for alfresco dining. Compared to larger 3-bedroom layouts, the Type (3Y)b minimises walkway space, which can help manage the overall price quantum while still providing ample space and functionality.
This layout offers a balanced choice for those seeking a functional and well-organised living space. Larger 3-bedroom layouts provide additional space and privacy but may come with a higher price point, while smaller 3-bedroom units offer a more affordable entry price with an efficient design. Your selection will ultimately depend on your family’s lifestyle preferences and specific needs.
4-Bedroom
We recommend the 4-bedroom Type (4)a, which spans 129 sqm (1,389 sqft), for its well-designed landscape layout in the living and dining areas. This layout extends seamlessly to a private balcony, making it ideal for hosting both indoor and outdoor gatherings in the comfort of your home.
The layout excels with its spacious bedrooms, all of which can comfortably accommodate queen-sized beds. Additionally, the unit features two common bathrooms shared among the three bedrooms, reducing wait times for family members. The inclusion of a mini entrance foyer adds an extra layer of privacy to the main living areas.
This layout provides a blend of functionality and elegance, perfect for families seeking a spacious and versatile living environment.
Closing Thoughts
Penrose emerges as a compelling choice for those seeking the best of city-fringe living in the RCR region. This brand-new development offers exceptional facilities and thoughtfully designed units, while benefiting from a significant regional disparity effect. Located just under a 6-minute walk from Aljunied MRT and situated at the heart of major urban transformations, Penrose provides homeowners with an ideal blend of convenience, quality, and growth potential. For those looking for a harmonious combination of modern living and investment opportunities, Penrose presents as an attractive option.
Let’s Get in Touch
If you’re considering buying, selling, or renting a unit and are uncertain about its implications on your property journey and portfolio, please reach out to us here. We would be delighted to help with any market and financial assessments related to your property, or offer a second opinion.
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