Recently I’ve received an email from one of my readers to do a review on The Venue Residences.
Apparently, they are looking to invest in a city-fringe property and had shortlisted it as one of the projects to consider.
However, since the showflat for this project has been removed, they don’t have much information as to how the project is going to be like.
And that’s why I’ve decided to do this in-depth review on The Venue Residences to help buyers who are also considering buying this project as well.
So… Let’s get started shall we?
Price Comparison With The Neighbours
Firstly, let’s look at the prices of surrounding projects to determine if it is worth our while to invest in The Venue Residences.
In this case, the two most comparable condominiums in terms of location and age are:
* Sennett Residence
* Sant Ritz
From the charts above you can tell that Sennett Residence and Sant Ritz are quite similarly priced with an average of $1466 psf.
On the other hand, The Venue Residences is priced lower with an average of just $1404 psf.
However, here are some interesting facts.
As of July 2015…
Out of the total 335 units in Sennett Residence, 267 (80%) were sold.
As for Sant Ritz, 157 out of 215 units (73%) were transacted.
And out of these 3 condominiums, The Venue Residences fared the worst with just 78 units transacted out of the total of 266 (29%)!
Now… At first glance, it might seem to go against reason that despite being the lower-priced option, sales for The Venue Residences have performed relatively worse than its counterparts since it was launched in 2013.
But a closer look at its location reveals clues as to why it is so…
Location
As always, location is the number one factor for any prudent investor to even consider placing their hard-earned cash into a property.
In the case of The Venue Residences, here are my findings.
Close Proximity To Workplaces… BUT…
As one of the factors that determine demand, nearby workplaces are highly important.
If you look at the map of the area, you will see that there is a cluster of light and heavy industrial zoned areas to the South-East of The Venue Residences.
Judging from the relatively small size of that cluster, and the number of available housing options like The Sennett Residences, Sant Ritz and even Woodsville 28, which are surrounding the project, there seems to be too much competition for tenants who are working nearby.
Therefore, my take is that this cluster of nearby workplaces will have a very minimal impact on the demand for The Venue Residences.
However, this brings me to my next point.
Very Close To Potong Pasir MRT
Whilst MRT stations are not really high up on my “to look out for” list, this happens to be the saving grace for The Venue Residences.
The advantage of being close to Potong Pasir MRT station is that residents and tenants get to enjoy a very short commute to the Central Business District (CBD) of Singapore.
4 stations away from Dhoby Ghaut MRT and 5, 6 stations away from City Hall MRT & Raffles Place MRT respectively, makes transport a breeze for those working in the CBD.
If you happen to be staying in this project in the future, you can expect to reach your workplace in around 20 minutes or so from Potong Pasir MRT station.
And that itself is a huge plus point for The Venue Residences in terms of demand.
Established Road Networks Leading To The CBD
Apart from the PIE & CTE which are located very close-by, Serangoon Road provides a quick and direct route to the city centre.
Thanks to the completed Woodsville Flyover, the traffic congestion that plagued this road for many years have eased tremendously since its implementation.
However, do try to only select units that are NOT facing the Pan-Island Expressway because of the constant traffic noise and dust that it generates.
Quite frankly, this is one of the main reasons why units have not been selling so well as many units in this project are facing either a noisy road or expressway.
*Experienced buyers and investors are quick to pick up on such clues and would know that this makes it extremely challenging to sell or rent the unit in future.
Amenities
In terms of amenities nearby, residents of The Venue Residences will get to enjoy a wide range of eateries and food centres nearby and of course be in close proximity to Saint Andrews School if they have school-going children.
Since it is a mixed development, its first level will consist of restaurants, F&B outlets and shops to cater to the residents.
Despite that, it is still lacking in a nearby big-scale supermarket where residents can get to shop for groceries at their convenience without having to drive.
Unit Layout
Being an experienced developer, CDL sure knows how to maximize the space of its units.
Below is an example of one of its 2 bedroom suites unit floor plans.
From this layout you can tell that the room sizes are very generous as compared to many other recent new launches.
Bedroom 2 (The common room) is just slightly smaller than the Master Bedroom which is large enough to even fit a King-sized bed AND a dresser in front of the bed.
Generally, the layouts of units in this development maximize the important spaces such as the bedroom and living room to make it a comfortable home for both buyers and tenants.
But despite the close proximity to the MRT and good layouts…
There is one last question we have to answer.
Is It A Safe Investment?
To determine if the investment is viable… It always pays to ensure that your potential cashflow is in surplus if you were to rent it out.
Since it is still under construction, I will be using the rental data from Woodsville 28 which is in a similar location to The Venue Residences. According to SRX, a 904 sq ft 2 bedroom unit at Woodsville 28 is currently renting for an average of $3000.
So here’s a worked example of a currently available unit at The Venue Residences. (as of 30/07/2015)
| Unit type | 2 Bedroom Suite |
|---|---|
| Price | $1'218'360 |
| Size | 840 sq ft |
| Downpayment | $243'672 |
| Monthly Mortgage | $3'364 |
| Maintenance Fees | $300 (est.) |
| Expected Rental | $3'000 |
| Monthly Cash Flow | -$664 |
*Assuming purchaser has no existing property ownership and eligible for 80% loan at 1.5% for 30 years
From the above calculations you will be able to see that the rental prices for this project is not high enough to cover for the monthly mortgage payments and the monthly maintenance.
That creates a huge problem for investors as they would have to fork out cash from their own pockets to service the loan each month.
On top of that, its neighbours, Sennett Residence and Sant Ritz will be obtaining their TOP at around the same time as The Venue Residences. Making it even harder to source for a tenant because of all the extra competition in the market.
The Verdict?
If you are looking to purchase this property for your own stay to enjoy the close proximity to the CBD and enjoy the good unit layout, then it might be a good option to consider.
However, if you are intending to purchase it for investment, then I would strongly advise against it because of the difficulty to get tenants to pay a high enough rental to cover your monthly expenses.
Now It’s Your Turn
Did you agree or disagree with this review?
Leave a comment below to let me know what you think!
I look forward to hearing from each and every one of you.
Hi Marcus!
I know this project well and I wish to point out some points in this review that may not be representing Venue Res well.
Venue Res’s sales is heavily affected by the current cooling measures as it was launched after the implementation of the cooling measures. While Sennet and Sant Ritz was launch with most units snapped up before the implementation of the cooling measures. Perhaps there should be some correction to your post. In addition, Venue is not exactly close to the highway. One may like to study the site and have a sense of it. CDL being an experienced developer would not bid the land at such high cost without seeing the potential of the development.
For those who are working on this project or have been to the showroom of Venue Res, Sennet & Sant Ritz would have know better that Venue Res comes with good layout and definitely quality finishing. This project is never inferior to the other two projects that were launched earlier. It is all about timing. Therefore, Venue Res sales is affected mostly because of the timing launched was hit by the new policy…Hope it helps to clarify some thoughts.
Hi Blogtodate!
You bring up a very good point and thank you for that.
It is true that The Venue Residences was launched at a very unfavourable timing. No doubt that has affected the sales during its launch.
As for the distance to the expressway… I’d say it could be argued as some people find the distance alright whilst some don’t.
However the main problem is not really the distance but rather, there is nothing to block off the noise and dust coming from the expressway. That might cause some issues in the future when selling or renting.
And yes, CDL is a very reputable developer and I have the utmost respect for them. However just like you have mentioned, they have bought the land at a high cost without the foreknowledge that the new cooling measures were going to be implemented.
Perhaps that is why sales have been really slow for this project over the past few years.
Hi Hi! My friend shares with me your post.
Been to all these three show flats when it were still there but didn’t get any of the unit from Venue, Sennet & Sant Rtiz at that time as all these projects are selling at steep price of around 1500 to 1600psf.
However there was a huge price drop for Sant Ritz units going at 1300 to 1400psf recently while Venue units have slight moderation that going for 1400 to 1500psf. Seems Venue is still holding on to their price tag I think bec CDL is a big developer. Was told CDL is confident that Venue units will sell as sales is moving every week.
Had bought a 2 bedder unit at Nin Residences opposite Sennet in 2012. Was currently renting at 3.6K. Likes Potong Pasir area. Small town and not so congested. Assessible to islandwide easily, not mentioning the close proximity to town area. Now wanted a bigger unit for own stay at this area as well. Loves the tranquil environment around the private estate area.
Wife and I prefers the layout at Venue as compare to Sennet as Sennet has most units with open kitchen concept. And wife prefers the enclosed kitchen. As for sant ritz, unit size is small and comes with 3 balconies for all the units that’s left. It also comes with limited facilities. Finishing wise, both Venue and Sennet are quite comparable, giving luxury interior but Sant ritz gives an average finishing. As for Venue, it still left with many choice units for the larger units as it was launched later. So we are happy to grab one of the 3 bedder recently!!
Hey Propertylovers!
Thanks for sharing your experience on these three new developments. =)
Yes it’s true that big reputable developers like CDL have the cash and the holding power to withstand the urge to reduce their pricing… as compared to other smaller scale developers.
And the great thing about that… is that they are being fair to the buyers that bought from them during the early stages of the launch.
That’s absolutely commendable.
By the way, congrats on getting your dream home at an estate that you love!
Buying a property for your own stay is really much harder than buying a property purely for the sake of investment.
There are so much more things to consider… like the school your kids are going to… or what the wife prefers (like the enclosed kitchen in your case ;)) and of course… other practical criteria like ease of transport to your workplace…
So its great that you found something you love!
Good write Marcus!
Loves to see review with discussion.
I guess both Venue and Sennet are good properties for city fringe consideration.
Sennet is definitely more assessible to MRT as it is just a 1 min walking distance. While Venue will take 3 mins walk to the MRT. But I guess, this is not a big concern as both are already very near to MRT. And what’s more important is what are the rest of the factors that is more concern to u like the the pricing/ facing/layout.
In all projects, there are pros and cons.
For Sennet, good to take those units not facing the main road as it can be very noisy and dusty, having the buses passing by very often.
For Venue, good to go for units not facing the expressway.
For those who are familiar with these projects would agree that Venue definitely have the best layout and finishing.
As for Sant Ritz, its European style not towards my liking.
Other potential problem to consider would be the road congestion. Understand that there will be an upcoming mixed development and mall coming up opposite Sennet. Therefore, may anticipate that there may be some human and car congestion around the Sennet area.
So come back to the question, is Venue a good investment property? I would think it is especially riding on the fact that it is near the future Bidadari development which can benefit from capital appreciation!
Hi Beng!
Thanks for sharing your experiences with these three projects as well 🙂
And you are spot on.
The Venue Residences does offer the best layout out of the three new launches.
Quite frankly, it will be an interesting case study to see if it does affect the rentals in the future once all of them TOP at around the same time.
As for the mall opposite, I really hope that there’s going to be a big scale supermarket in it! Haha 🙂
hi there , how would you recommend NIN Residence . Please advise as I am buying for own family stay
Hi Indo Indo!
NIN Residence is a condo in a great location. So if you are buying for own stay, it really depends on your needs and how NIN Residence can meet those needs compared to other condos.
If your budget allows and if NIN Residences fits what your family requires then I’d say go for it!
Excellent review!! How about Sims Urban Oasis? Any insights to share with? 🙂
Thanks for the support! By the time I finish writing the review for Sims Urban Oasis, ALL the good units will have already been sold out… Long story short… Grab a unit there while you still can!
How about Tre Residences for investment? Better vs Sims Urban Oasis?
Hey Investor 56, even tenants prefer a quieter facing, more facilities and generally a more complete condo feel… if you know what I mean 😉