THE PENROSE CONDOMINIUM

City-Fringe New Launch by CDL & Hong Leong Group
VIP Preview Starts from 12 September 2020

We present here the Penrose condo. This is the next launch in the Sims / Aljunied area, on the city fringe.

Penrose Singapore is being developed by a partnership, of a unit of Hong Leong Holdings and a subsidiary of City Developments, two of Singapore’s most reputable developers.

This review will discuss the attributes of this Sims Drive condo location, its likely pricing vis-a-vis those around, and how it rates against its competition.

At first glance, the Penrose condo looks like it could be one of the more promising new launches of 2020. There appear to be a number of factors in its favour, but some drawbacks as well.

Penrose Condominium at Sims Drive

::

Penrose @ Sims Drive · Key Facts

First, a quick summary of its main features.

• 99 year leasehold site of 174,648 square feet. The developers have said that the Penrose condominium will comprise 566 units in five 18 storey high towers.
• Land cost was SGD$732 psf per plot ratio (PSF PPR).
• Around 450 metres, or 6 to 7 minutes walk to Aljunied MRT station.
• 5 minutes walk from Geylang Methodist Primary and Secondary schools.
• Within 5 minutes drive from the nearest exits of the PIE (Pan-Island Expressway) and KPE (Kallang-Paya Lebar Expressway)
• The northern boundary of the Penrose site borders the PIE as well. So that part of the site will get traffic noise from it.
• City-fringe location set for rejuvenation. 15 minutes drive from the Central Business District and Orchard Road Shopping Belt.

Penrose Sims Drive Grand Arrival

::

The Penrose Condo · Impact of Features

At 566 units, Penrose Singapore is a nice mid-sized project. Large enough to carry a good range of facilities and landscaped grounds, but small enough to give it a more cosy feel and engender a sense of community.

Buyers often prefer this over tiny projects with few facilities and little land, or the very big ones that could be overwhelming for some. So this could be a factor in the Penrose condo’s favour.

The site fares quite well for ease of access too. A 6 minute walk to an MRT station is of course not as convenient as one right next to a station, but generally considered quite acceptable. This is a plus point if you are thinking of renting out.

Particularly as this is a city-fringe location. Considering its proximity to the CBD, the Aljunied / Sims areas seem a bit undervalued, in comparison to other places within the same radius and convenience.

This could of course be due to the general grunginess of the neighbourhood. With the exception of Sims Urban Oasis next door, there is nothing “posh” about the vicinity. Most of it has not been gentrified yet.

The Penrose Location Map . Source Google

On the flip side, it means that the potential upside would be so much the greater, if and when that happens.

The main drawback to the Penrose site is likely the expressway on its northern border. North-facing units at the top quarter of the land parcel, would get the hum of traffic. But if you can get accustomed to the noise, or keep windows closed and air-con on, you could be rewarded with a more open outlook.

Otherwise, just opt for the south-facing units. The choice is yours to make.

The Penrose Singapore Sky Garden . View to South-West

The Penrose Singapore Sky Garden Facade

::

The Penrose Condo @ Sims Drive · Other Features

There isn’t a major shopping centre within walking distance of the Penrose at Sims Drive. The nearest big ones are at Paya Lebar Square / Paya Lebar Quarter, one train stop down.

Other than that, it doesn’t do too badly for food. There is Sims Vista Market and Food Centre diagonally across Sims Drive. And of course Geylang to its south is a veritable foodie’s haven within walking distance, round the clock.

Another place of note nearby is the James Cook University Singapore (Sims Drive Campus), about 10 minutes on foot.

The Penrose Location Schematic . Source URA

::

Penrose @ Sims Drive · Cost Benefit Analysis

Nice as the above features are, the sense of anticipation around this project is centred around its pricing, more than anything.

At its $732 PSF winning bid for the land in March 2019, the developer was felt to have got it for something of a “bargain”. This was the lowest price paid for a city-fringe near-MRT-station land parcel in over 2 years. In fact, for a city fringe site, with or without MRT station.

Even Parc Esta, the nearest comparable new launch, bought its land in 2017 for $910 PSF. Its selling price averages around $1,6xx to $1,7xx PSF, which appears to be seen by the market as fair value for a city fringe location.

As evidenced by the fact that Parc Esta managed to sell 1,000 out of its 1,399 units within 14 months of its October 2018 preview. And despite hiking prices, as they now have more than two years left to sell the remaining 399 units.

With the choicer units at Parc Esta gone, and Sims Urban Oasis next door having sold out some time ago, prospects are looking up for the Penrose condominium launch. Particularly since the developers, CDL and Hong Leong, are as highly regarded as Parc Esta’s MCL Land.

Of course a lot will depend on the kind of margin that the Penrose condo is targeting. And bearing in mind that construction costs go up every year. But that still leaves some room for play.

::

In assessing possible rental returns and gains, we are fortunate to have a direct comparison in Sims Urban Oasis next door. Sims Urban Oasis is still relatively new, having completed in 2017.

It launched in 2015 at around $1,3xx PSF. Today resales average $1,6xx PSF, with a rental yield of slightly over 3%, which is quite decent in the Singapore context.

Sims Urban Oasis Pricing and Yield . Source SRX

If Penrose Singapore sells at around $1,6xx PSF it could still find takers as it is a newer product.

Its location should appeal to investors, being close to the tenant pool of the Marina Bay Financial District & CBD. Apart from Sims Urban Oasis, there aren’t many similar sizeable new projects in the area to compete with either.

The site also straddles two upcoming URA master plan growth areas, Kallang and Paya Lebar, and might ride a wave of growth from the development of these hubs.

::

Penrose @ Sims Drive · Artist’s Impression · Flythrough Animation

::

Register interest for updates here.

Shown here are 6 good examples of the 28 floor plan layouts in this project.

Please drop us a note via the Contact Form if you wish for the full set of Penrose floor plans to be emailed to you.

Penrose Floor Plan . One Bedroom Type (1)b

Penrose Floor Plans . 2 Bedroom Premium Type (2P)b

Penrose Condo Floor Plan . 3 Bedroom Type (3)d

Penrose Floor Plans . 3 Bedroom Premium Type (3Y)d

Penrose Floor Plan . 3 Bedroom with Study Type (3+1)b

Penrose Condo Floor Plans . 4 Bedroom Type (4)b

Penrose Sims Drive . Schematic Diagram

::

The Penrose Pool . Treehouse Pavilion

Penrose Singapore is being developed by a 40:60 collaboration of City Developments Ltd and Hong Leong Holdings’ Intrepid Investments, sister companies of Hong Leong Group Singapore.

Both are well known and established household names. Each, in its own right, ranks amongst Singapore’s top property players. Each one has a long track record, and a reputation for quality across the various sectors, from mass market to high end products.

Over the last more than 50 years, the Hong Leong Group has been responsible for developing much of Singapore’s skyline, and emerged as a leading force in the local real estate market.

::

About City Developments Limited (“CDL” or the “Group”)

City Developments is a leading international property and hotel conglomerate that has been established in Singapore since 1963, and is listed on the SGX.

It runs a network of over 300 associated companies and subsidiaries worldwide. Seven have listings on the stock exchanges of London, the Philippines, New Zealand, and Hong Kong as well.

All in, the Group operates in 103 locations across 29 countries. Its main business focus is in real estate development and investment. But it is also involved in hotel management and ownership, facilities management, and hospitality solutions.

CDL’s portfolio encompasses a wide spectrum globally, from retail malls to offices and hotels, integrated developments and serviced apartments, as well more than 18 million square feet of residential property.

In the course of 55 years of work, the Group has delivered over 43,000 homes.

Among the numerous projects these are spread across, are many local names. Like St. Regis Residences, Gramercy Park, The Pier at Robertson, Cliveden @ Grange, The Sail at Marina Bay, One Balmoral, New Futura @ Leonie Hill, Residences @ Evelyn, Echelon, Nouvel 18, The Glyndebourne, Golden Hill Villas, Goldenhill Park, Amber Park, and South Beach Residences.

South Beach Residences by CDL . Developer for the Penrose Condominium

For more details on City Developments Limited, see www.cdl.com.sg (opens in new window).

::

Hong Leong Investment Holdings (“Hong Leong” or the “Group”)

Intrepid Investments is a unit of Hong Leong Investment Holdings. Hong Leong started out in the property business in the late 1960s.

It has now grown to become one of the largest housing developers locally, having built over 130 residential, and 100 commercial and integrated developments.

The Group currently also owns and operates more than 8 million square feet of office, industrial, retail, and residential space.

Among the many projects it has built, some in collaboration with CDL, are names like The St. Regis Hotel and Residences, Watermark at Robertson Quay, The Tate Residences, Aalto and The MeyeRise at Meyer Road, One Shenton, Grange Heights, Sage, Atria, The Residences at W Singapore, and One Balmoral.

One Balmoral by Hong Leong Holdings . Developer for Penrose Singapore