Should I buy a 1-bedroom at Parc Rosewood as a single?

Question 1 

Hi Stacked,

I've read your review for Parc Rosewood, as well as the article on one-bedroom units. I'd like to ask if you have any opinions/advice for me.

I'm currently single and 31 (i.e. not eligible for HDB), and would be able to save enough for a single-bedder some time next year (assuming current prices. Parc Rosewood seemed like a pretty compelling option. I'm buying to stay, not rent.

I had a chat with my property agent friend and listed out the pros and cons of making that purchase in the near future.

Cons

1. Buying resale typically means you'd lose out on the potential capital gains vs a new launch.
2. Buying a one-bedder runs the risk of not being harder to sell it off, as it's too small for most situations.
3. A two-bedder might be more "re-saleable" in the future, but I would need about a year to save the difference.

Pros

1. Even with the loss of potential capital gain when buying a resale, new condos aren't necessarily getting cheaper either.
2. The interest rates are low right now, with expectations for it to rise within the next couple of years. So it might be wise to lock in the lower interest rate now.
3. My assumption is that with the general trend of people marrying later, combined with increased flexibility in working, there would be even greater demand for such lower-cost shoebox units. To have their own place, and a more conducive WFH environment. So the re-salability and capital gain may not be THAT bad.

A bit lengthy, but looking forward to what you guys think.

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Hey there,

Thank you for writing in to us. It has been close to a year since we did the full review of Parc Rosewood and looking at the price and volume, it has risen upwards (much like most of the market).

Current psf stands at $1,093 psf as compared to $999 psf at the point of writing. Transaction volume is extremely commendable with 52 units having changed hands this year (Up till July 25, 2021 caveat) as compared to 38 units for the whole of 2020.

26 out of 52 resale comes from the one bedders units (431 sqft) hence indicating healthy demand for shoeboxes thus it is not conclusive that there is no market for shoebox unit.

Demographic of one bedder buyers varies from singles looking for own stay to Investors for rental income or even retirees that prefer a small unit for easy upkeep. Of course, two bedders has a wider range of buyers which includes small families but there is also demand for one bedders too.

Price of the one bedders (431 sqft) has significantly rose over a short period of time as well. Back in January 2021 one could get a unit $498k - low $5xxk and in July 2021 a SLE facing unit transacted for $549k!

Quantum wise, it is still one of the most affordable one bedder in SG especially for a full-fledged condo with proper facilities and low maintenance fees hence there is demand for it.

Parc Rosewood location is not that bad, basic amenities is minutes walk to The Woodgrove. For more options there's Civic centre, Woods Square and Causeway Point.

Bus connectivity is alright too, three bus stops away to Interchange and MRT. The layout is squarish and comes with Household shelter which is rare in today's new launches. Household shelter can be use for storage space.

To be safe for exiting, choose a unit away from SLE and main road noise (Ave 2). All in all, as there is a lack of one bedders in Woodlands (Parc Rosewood and Woodhaven, mostly loft unit type), we foresee potential for appreciation over the years, price will go according to overall general market sentiments.

Question 2

Hi Stacked,

I'm just curious as to your thoughts on choosing between a newer but smaller condo like Parc Rosewood, or an older but bigger condo like The Woodgrove.

Thanks!

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Hey there,

Thank you for writing in to us. Depending on the unit size you are looking for and you purpose of purchase. Here's our take on both development mentioned.

The Woodgrove:

• TOP in 1997
• Lacks facilities (Small pool)
• Amenities right next door, The Woodgrove for NTUC, food options.
• 4.2 per cent gross yield, extremely healthy
• $734 PSF
• Low transaction volume, four in 2020, zero in 2021
• Looks dated, need lotsa upkeep in future.
• Unit does not come with balcony.
• Unit comes with service yard for laundry area.
• Spacious size

We actually did a full review on Parc Rosewood exactly a year ago.

Here are some pointers:

• Price has appreciated since then. $999 PSF at point of writing to $1091 PSF currently.
• TOP in 2014
• Huge low rise development
• A lot of small unit type (one/two bedders)
• Tons of pools! 10 to be exact
• Affordable quantum and maintenance fees
• There's a minimart in the development itself
• 3.7 per cent gross rental yield, healthy!
• Distance between blocks are near
• Layout is squarish
• Open kitchen layout
• Healthy resale volume, 38 in 2020, 47 in 2021
• Located deepest in along Rosewood Drive, bus connectivity from side gate takes you to Woodlands Interchange.

We are leaning towards Parc Rosewood for proper own stay as it is a full-fledged condo with facilities and decently sized units. The healthy resale volume is a plus as well.

READ ALSO: A first-time homebuyer's journey: My search for waterfront views with review of Waterfront Isle

This article was first published in Stackedhomes.