Considered to be the first new launch of a mega project which is above 1000 units in 2019, The Florence Residences consist of 1410 units has launched over the weekend of 2&3 March, selling 54 units out of the 200 units released for the first phase. The latest update of units sold is 63 units, after 3 weeks from its first launch. The take up rate has been slower as buyers are aware that there are more options in the coming months such as Treasure at Tampines (Lauching 23 March) which we have covered in last week newsletter and they would likely want to make comparison before committing to purchase.
Situated along Hougang Avenue 2 and Florence Road, The Florence Residences is a 99 years leasehold project in North East Region of Singapore, Hougang. Developed by Logan Property, a foreign developer listed in Hong Kong Stock Exchange and is also the same developer that has won a record bid of $1 billion in Government Land Sales for the development of Stirling Residences. Back in October 2017, Logan Property purchased the 336 units former HUDC Estate, Florence Regency, for $629 million.
Sitting on a large piece of land of 389,236 sqft, the developer is transforming it to a 1410 units over 9 blocks of 18 storeys and introducing an astounding 128 facilities to increase the project attractiveness. There are wide range of bedroom types from 1 bedroom to 5 bedrooms, with over 40% of the project being 2 bedrooms which is also one of the most popular types in the property market nowadays.
For more details about the project, please visit:
Location: 6/10 (10 being the highest)
– Located in the middle of 2 MRT stations which are generally more than 1km away, they are Hougang MRT and Kovan MRT. The walk to either of the stations talk about 14-15 minutes. However, personally I would prefer the walk to Kovan MRT as it is more sheltered and there are shops and amenities along the route as well. The walk to Hougang MRT will need to cut across the major road, Hougang Avenue 2 and walk through the landed property enclave to reach the train station.
– Both stations are on the same North East MRT Line, just one stop away from on another. An advantage of this line is its relatively shorter time to get to town as compared to other train lines, taking only about 17 minutes to Dhoby Ghaut Station which is an interchange of 3 MRT lines.
– A recent plus point about this development is the announcement of Cross Island Line (CRL) on 25th January 2019 which Hougang station will be the interchange of the North East Line and Cross Island Line. Though is slated to completed around 2029, 10 years from now and about 6 years from estimated TOP in 2023, it will still be an added perks to the residents staying in The Florence Residences.
– Surrounded by several well known schools such as Rosyth School, Xinmin Pri School, CHIJ, Monfont Junior, the project will be ideal for families with young children.
– The project is also nested in an area of good food, wet market and a host of amenities. The Heartland malls and HDB shophouses at Kovan and Hougang offer a lot of food and shopping options for residents nearby.
Project & Developer: 7/10
– With a huge plot of land, The Florence Residences offer a wide range of 128 facilities, catering from singles to families. The Club-Condo concept with unique facilities such as Amphitheatre with Outdoor Movie Screening, Sparring Ring Pavilion with Punch Bag Corner, Pool Table and Dart Board Pavilion. It also offer recreational club lifestyle which will conduct classes and workshops regularly for residents. Despite the large number of facilities, the maintenance fee is expected to be reasonable due to economies of scale.
– With its almost squarish land shape, the development is nicely developed with good space between blocks. Most units are in north south oriented which are local’s favorite.
– Most units get to enjoy a 270 degree unblocked view with the facing of Hougang Stadium at Hougang Avenue 10 and landed houses off Florence Road.
– As mentioned earlier, the developer Logan Property is a foreign developer however they are not a small player in the property market. They have received Grade A qualifications in property development, general construction contracting and engineering design. They have a strong track record in building numerous residential properties in China and they are also developers for Stirling Residences.
With an average of selling price at $1450 psf with some units starting from below $1400 psf, the project is competitively price. If you look at the table above, The Florence Residences have a slightly more premium location than Affinity at Serangoon and The Garden Residences but the average prices for these 2 projects are above $1500psf. I think the price is reasonable considering the higher price tag in new launches now.
Appreciation Potential: 6.5/10
– On the long run, there will be better appreciation potential for the bigger units that cater to families as this development has one of the most comprehensive facilities among the projects in the vicinity and of course the potential affordable maintenance charges. As mentioned earlier, the project is ideally nested among reputable schools and thus will be attractive to young families. Despite the large number of units in the development which can be of competition in the resale market, as long as your unit is of prime and with unique selling points, the owners will still benefit in the long run.
– Looking at the rental aspect, this project may not be as ideal as it is generally some distance away from the 2 MRT stations. The redevelopment of Defu Industrial Estate to a modern industrial park will benefit the landlords in the long run as this should boost the rental market with the increase of job opportunities. However there are also plenty of options in the vicinity such as Star of Kovan, Kovan Regency, Kovan Residences, Kovan Melody, Midtown residences which are the bigger projects and many smaller boutique developments as well that are in close proximity to Kovan and Hougang MRT, competition will be quite intense.
Granted that the location might not be nearest to MRT stations, but being in an area of good food, amenities and reputable school, this project will be one that I will recommend for own stay. The wide array of facilities as well as nested in a private residential enclave, it will be definitely suitable for families who desire to enjoy the extensive facilities in a serene environment. If you are looking at the point of purchasing for own stay and for future capital appreciation, this is a development you can consider.