Undergraduate and SGXStockWhiz winner Scott Tan,24, thinks it is okay to lose alittle investment money forthe learning experience.See >>Page 29

Markets move in cycles, so donot let your emotionsinfluence your investmentdecisions.See >>Page 30

Go for growth stocks as theyhave unappreciated value orbusiness fundamentals.See >>Page 31

Melissa Tan

Suburban condominiums have gen-erally fared better than those inprime districts this year, and thetrend could continue into 2013.

Property analysts told The Sun-day Times that their top picks fornext year were mostly in the west-ern and northern suburbanregions.

Interest could also shift to dis-tricts at the city fringes.

Those who do not want city liv-ing yet want the convenience of be-ing near the city will look to thecity fringe, said DWG senior manag-er Lee Sze Teck.

Though the spotlight will likelybe on suburban and city fringe hotspots next year, investors shouldnot rule out homes in the prime dis-tricts despite a fairly lacklustre 2012as economic conditions improve.

Rich investors from overseasmay seek unsold units in premierlocations next year to take advan-tage of low interest rates and excessliquidity, said Colliers Internation-al director of research and advisoryChia Siew Chuin.

Ms Chia added that signs of re-covery in China and other majoreconomies could bring more for-eign buyers back into the primemarket.

But regardless of the market seg-ment, buyers should look out forhomes near MRT stations and indistricts where price movementshave been subdued, analysts said.

These could be areas that haveseen few exciting new launches buthave the potential for future devel-opment.

Other factors to consider areaccessibility, congestion and theuniqueness of the development,said Savills research head AlanCheong.

Buyers should take into consider-ation the traffic conditions in thesurroundings once all the units,both private and public, are com-

pleted, Mr Cheong said.

The Sunday Times takes a lookat the property consultants’ toppicks for 2013.

1Jurong EastThere is a buzz in Jurong East,now that it is firmly estab-

lished as a commercial hub in thewestern part of Singapore.

The focus is mainly on JurongGateway, an area around theJurong East MRT station, which hasbeen jazzed up by the developmentof commercial sites such as the Jem

TURN TO PAGE 28

INSIDE INVEST

Learning frommistakes

PHOTO: LIM YAOHUI FOR THE SUNDAY TIMES

NTU business undergraduate Scott Tan says investment losses are like “school fees” you pay as you try tounderstand what went wrong.

Looking to invest in real estate next year? We askproperty consultants for their recommendations

Keepingcalm

Smartinvesting

Home in onthe suburbs

ST FILE PHOTO

JURONG EAST: The focus is mainly on Jurong Gateway, an area aroundthe Jurong East MRT station, which has been jazzed up by the development ofcommercial sites such as the Jem (above) and Westgate shopping malls.

27investDecember 23, 2012 thesundaytimes

and Westgate shopping malls.The Government is keeping up

the rapid pace of development inJurong East, with the sale of a resi-dential site to MCL Land for $369.4million, or $705.10 per square footper plot ratio (psf ppr), in May.

A hotel site was also bought for$238.2 million last month by Re-sorts World Singapore, a unit ofGenting Singapore. This translatesto $1,167 psf ppr, a record price forhotel land.

Mr Ku Swee Yong, chief execu-tive of International Property Advi-sor, said job creation in the area islikely to be strong, which will driveup residential rental demand andcapital values.

New malls built in Jurong Eastwill create new jobs, as will hospi-tals such as the Ng Teng Fong Gener-al Hospital, which is under construc-tion. Also, up to 5,000 existing jobs

could move to Jurong East as gov-ernment agencies relocate theirpremises there, Mr Ku noted.

As a consequence of the large de-velopments there, rental demand islikely to rise as more locals and for-eigners move in.

However, the downside of therapid pace of development in Ju-rong East is that the area could be-come more congested in future as itbecomes more densely populated,analysts said.

2AlexandraUpcoming launches are likelyto boost prices in the Alexan-

dra area, which was given a faceliftseveral years ago by the transforma-tion of Alexandra Canal into awaterway and park connector.

Gross rental yields here couldclimb as high as 5 per cent, saidDWG’s Mr Lee.

The most recent condo launch in

Alexandra was the 373-unit Ascen-tia Sky in 2009.

Upcoming launches include508-unit Echelon along AlexandraRoad, which could be launchedwithin the next few months.

Also, two land parcels in Alexan-dra, at Prince Charles Crescent andAlexandra View, were sold this year.

However, prices may havealready started to rise. Resale pricesin the Redhill and Alexandra areahave climbed 6 per cent in the thirdquarter of this year compared to thesame period in the preceding year,Ms Chia said.

3WoodlandsWoodlands is also designatedas one of Singapore’s regional

centres, but prices here have not ap-preciated as much as those in theother regional centres due to a rela-tive lack of new launches recently.

Since 2011, there have been only

two new launches: Woodhaven inJune last year and Parc Rosewoodin January this year.

But the area’s image as a remotenorthern outpost could changesoon. One factor is the completionof the Thomson MRT line in 2019,which could drive up home pricesby as much as 30 per cent, analystssaid.

The three stations along thenew line – Woodlands, WoodlandsNorth and Woodlands South – willserve the residents of more than4,300 private homes as well asthose living in HDB flats, whichdominate the area.

Also, Singaporeans’ growing in-terest in buying second homes inJohor Baru could increase cross-bor-der activity and add buzz to Wood-lands, said Colliers’ Ms Chia.

However, since Woodlands isstill quite far from the city centre,not everyone may want to livethere, said SLP International re-search head Nicholas Mak.

4GeylangAlthough it is more knownfor its red-light district, Gey-

lang has been thrust into the spot-light by a slew of new launches.

At least 40 projects, yielding2,190 units, will be launched orcompleted in this area in the nextfive years or so.

Most developments in Geylangare small. Recently completed con-dos include the 78-unit Casa Aerataat Lorong 26 and the 62-unit Cen-tra Suites at Lorong 25A.

The stigma of Geylang’s sleazefactor has been holding down pric-es. Banks are also known to be reluc-tant to finance home purchasesthere.

However, that makes it an attrac-tive investment option forcash-rich investors interested inyield accretion, said Colliers’ MsChia.

Yields are a tad under 4 per cent,which is slightly higher than theaverage of 2 per cent to 3 per centfor condos islandwide.

5Potong PasirThe Potong Pasir area is nearthe Central Business District

and Orchard Road, and is undergo-ing rejuvenation.

Projects under construction inthe area include Nin Residence and18 Woodsville, and Sennett Resi-dence and Sant Ritz will belaunched next year.

There was healthy demand for a99-year leasehold mixed-use site atUpper Serangoon near the PotongPasir MRT station. It was sold inSeptember this year for $793 psfppr.

Also, the Bidadari Cemetery hasbeen cleared and is zoned for resi-dential use, though the exact de-tails of land parcels have not beenreleased yet.

However, DWG’s Mr Lee notedthat Potong Pasir currently lacks re-tail amenities.

melissat@sph.com.sg

FROM PAGE 27

PHOTOS: CAPITAMALLS ASIA LIMITED, FRASERS CENTREPOINT TRUST, THE NEW PAPER, QINGJIAN REALTY AND ST FILE GRAPHICS: TANG WEE CHEOW

BUKIT TIMAHEXPRESSWAY

AYER RAJAH EXPRESSWAY

SELETAR EXPRESSWAY

WEST COAST HIGHWAY

THE HOT SPOTSPROS■ Undergoing rejuvenation■ Nearby Bidadari Cemetery being cleared for homes

CONS■ No nearby amenities

PROS■ Higher rental yields

CONS■ Relatively subdued price appreciation■ Sleaze factor

PROS■ Near city centre■ Upcoming launches will add buzz

CONS■ Prices have already risen■ Few major malls nearby

PROS■ Future Thomson line MRT station■ Prices have not risen much yet

CONS■ Far-flung

PROS■ Regional commercial hub■ Rapid pace of development

CONS■ Future congestion

Jurong East

Woodlands

PotongPasir

Alexandra

GeylangGeylang

JCube is one of the newer malls in the bustlingJurong East hub.

Luxury project Nin Residence isexpected to be completed in 2014.

Top property picks for 2013

The 15-year-old The Anchorage will soon bejoined by new developments such as Echelon.

Causeway Point is next to the Woodlands MRTstation. Two more stations are on the way.

Geylang’s reputation as a red-light district couldbe a factor keeping property prices down.

ST FILE PHOTO

ALEXANDRA: Gross rental yields could climb as high as 5 per cent inthe area, which was given a facelift several years ago by the transformationof Alexandra Canal into a waterway and park connector.

ST FILE PHOTO

GEYLANG: The stigma of its red-light district has been holding downprices. Banks are also known to be reluctant to finance home purchases here.However, that makes it an attractive option for cash-rich investors.

ST PHOTO: ALPHONSUS CHERN

POTONG PASIR: The area is near the CBD and Orchard Road, and isundergoing rejuvenation. The Bidadari Cemetery (right) is zoned forresidential use, though details of the land parcels have not been released yet.

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