Why choosing the right condo matters: A real-life story of two $1.8m investments with drastically different returns

Given the high costs of owning more than one property in Singapore, you really only have one shot at making it a wise investment. Here's a real-life example of how much the outcome can differ if you make the right and wrong choice.

The properties in question are Duo Residences and Robin Residences. We last wrote about them in 2019 — and by coincidence, both properties have now been sold just a few months shy of each other. 

Just as a point of context, both properties were bought with an own-stay/investment in mind, with the idea that the owners may live in them at some point (even though that never happened).

We aren't saying that Duo Residences was the best investment ever (there are definitely others that have appreciated better), but this was an actual scenario of how two individuals with a similar budget and timelines had such different outcomes.

Here’s how both have played out:

Key points of difference between Duo Residences and Robin Residences

1. Rental performance

Not everyone is focused on resale gains. Sometimes all you want is to collect rental income throughout, an increasingly popular move among retirees. So on the off chance you plan to do this for either condo, which is better? 

While both condos are in a prime location, DUO performs much better. This is because, while both are in prime locations, DUO has its own commercial space (it's mixed-use), and has better immediate access to malls and entertainment. 

This isn't to say Robin Residences lacks such amenities — it's also in a prime District 10 area. But Robin Residences is more of a family condo, as its most immediate highlights are park spaces and schools (ACS, Singapore Chinese Girls School, and Raffles Girls School are all in priority enrolment distance). Check the listings, and you'll see this is what most agents prioritise in their marketing. 

A single expat worker or a young couple, however, would likely gravitate more toward DUO's location, along Bugis and Beach Road; and due to the larger number of offices here — including new office spaces introduced by Guoco Midtown — it's a good catchment area for young urban professionals.

That said, the arrival of Midtown Bay, Midtown Modern, and the upcoming redevelopment of Shaw Tower means DUO Residences will face more competition in the near future, compared to Robin Residences; so any predictions are hard to guarantee. 

2. Unit count

At 660 units, DUO Residences can be considered a mid-sized development, perhaps tending toward the higher end of the scale. Nonetheless, mid-sized is the perennial favourite among buyers: A count of 500 to 600 (only slightly exceeded by DUO) is considered sufficient to keep maintenance fees lower, while still preventing overcrowding of facilities. 

Robin Residences, by contrast, is small with just 134 units. While this ensures a higher degree of privacy, it also tends to mean fewer households to split the maintenance costs. The smaller unit count also results in lower transaction volumes, and a more volatile price history:

For the past few years, there may only have been a single transaction (or zero) in certain years. Due to price anchoring, the very latest transaction can have an inordinate impact on the next sale to follow.

While DUO Residences doesn't have huge volume transactions either, there tend to be at least two to three every year, which results in a more consistent price history:

In general pure owner-occupiers, who have no interest in the financial performance of the property, will tend to prefer small unit counts; these are more private, and facilities are never overbooked (not to mention the lack of screaming children and other visitors descending during the weekend, or festive seasons). 

Investors may prefer mid-sized projects (but they can be averse to projects that are too big, such as 1,000+ units, as these invite too much competition). 

So going by unit count, we feel investors will tend toward DUO, while those looking at own-stay use may still prefer Robin Residences. 

3. Access to train lines

Not all train stations are considered the same. The ones closer to major hubs (e.g., City Hall, Orchard, Dhoby Ghaut, Tanjong Pagar) are valued more than the stations which are a dozen or more stops from these hotspots. In addition, certain train lines — such as the NSL and ESL — are considered more favourable than newer counterparts like the CCL and TEL. 

In this sense, DUO has a slight edge. It has access to Bugis MRT (DTL, EWL) which is just one stop from City Hall, and two stops from Raffles Place. It's also within walking distance to Nicoll Highway MRT (CCL), which effectively provides access to three different train lines. 

Robin Residences is within close walking distance of Stevens MRT (DTL, TEL); and it can be considered to have NSL access since Newton MRT (one stop away) has an NSL connection. This is one stop from Orchard MRT. 

Again, you can see here why the office crowd would favour DUO, whilst families might prefer Robin Residences; DUO has generally better access to office areas, whilst Robin has better access to Singapore's main shopping belt.

4. Prospects of the surrounding neighbourhood

Robin Residences is along Bukit Timah Road, which is as developed as it's likely to get (at least for many decades to come). There may be a big upcoming change in terms of the redevelopment of Raffles Town Club, but unless there is a revision of plot ratios, the area isn't going to be changing that much. 

DUO Residences, however, is part of the still unfolding Ophir-Rochor Corridor. This project, which will move major offices and related commercial spaces to the area, even threatens to one day unseat the traditional CBD. In the decades to come, we might find the centre of gravity is slowly shifting to the midtown (Bugis/Rochor/Beach Road) area. 

Anecdotally, here's a bet we're willing to make: When you meet your friends in town for shopping, hot pot, movies, etc., you're probably going to Bugis as much as Orchard, if not moreso. 

So in the immediate sense, there is more to look forward to in DUO's surroundings for now, and there may be more growth potential compared to the prestigious — if more subdued — Bukit Timah area. 

Again though, this is something of a double-edged sword

This is one of the examples where what you don't see on the data may be more important than what you do. The chief concern about investing in DUO Residences is future competition — as the Ophir-Rochor corridor unfolds, there's no telling how stiff competition can get. 

There is also a case to be made here about selecting the right unit type within the development. For a two-bedroom unit in an area like Bugis — it probably is more suitable for tenants as compared to Robin Residences.

In a more residential area that Robin Residences is located in (near good schools, etc), a two-bedder may not be that high in demand. For such locations, a three-bedder and up would likely have done better given the focus on families with children. 

ALSO READ: Choosing between an HDB flat and a condominium: The deciding factors

This article was first published in Stackedhomes.