Pinetree Hill has caught our attention, and we believe the 2-bedroom units present a great opportunity for potential buyers.
In this review, we’ll break down why the price point for these units feels like a smart, secure investment for anyone looking to enter the property market.
Whether you’re a first-time homebuyer or a seasoned investor, the value and future growth potential here are worth considering.
SUPPLY
In real estate, supply is always one of the key factors we carefully consider.
Let’s take a closer look at the supply of 2-bedroom units in the Pinetree Hill area and its surrounding neighborhoods. Understanding the availability of similar units nearby helps provide insight into competition and potential demand, both crucial factors in determining long-term value and investment security.
In summary, the supply of 2-bedroom units in the Pinetree Hill area is quite limited, with only 94 units available that are between 10-15 years old. This low supply highlights a scarcity in the area of Pinetree Hill, which can potentially drive up demand and create a favorable environment for price appreciation over time.
Another important factor to consider is the comparison with new launches in the surrounding area. In this case, we’ll be comparing Pinetree Hill’s 2-bedroom units with those in the nearby development, Blossoms by the Park. Pinetree Hill and Blossoms by the Park are located approximately 11 minutes’ drive away from each other. This proximity makes it relevant to compare the two developments, as they may attract similar buyer profiles while offering distinct advantages based on location, pricing, and amenities.
However, this might not be an entirely fair “apple-to-apple” comparison due to the difference in proximity to the MRT stations. Blossoms by the Park is just a 4-minute walk from Buona Vista MRT, while Pinetree Hill is around a 20-minute walk from Dover MRT.
So why do we still believe Pinetree Hill is a strong product to invest in? The key reason is the significant entry price gap between the two developments. There’s approximately a 8% price difference, which creates a valuable safety buffer when considering future resale potential. This lower entry price at Pinetree Hill allows buyers to enter the market at a more competitive rate, positioning it as an appealing choice for those looking for long-term capital appreciation.
Take a look at this transacted unit in Blossom by the Park. The PSF is $2,730.
As of writing, there is still an available unit in Pinetree Hill #20-15 which has a PSF of $2,511. When comparing the price gap based on price per square foot (PSF), there’s a notable 8.7% margin between the two developments.
The potential profit that you will see after 3 years :
The price differential between Pinetree Hill and Blossoms by the Park presents a substantial safety buffer, ranging from $211,000 to $276,000.
One might question whether the distance to the MRT station at Pinetree Hill could undermine its investment potential compared to Blossoms by the Park, especially since proximity to an MRT station is traditionally viewed as a key driver of price appreciation.
While MRT access is undoubtedly a factor influencing property values, historical transaction data and market trends indicate that this proximity does not always translate into superior price growth. In fact, there are numerous instances where properties located further from MRT stations have outperformed their closer counterparts in terms of capital appreciation and profit margins. A deeper analysis of these trends reveals that the relationship between MRT distance and price growth is not as straightforward as it may appear. For more detailed insights, you can explore the data here.
The 8% price gap in PSF (per square foot), coupled with the $211,000 to $276,000 buffer, provides a compelling investment case for Pinetree Hill. These factors offer substantial downside protection and the potential for higher risk-adjusted returns compared to developments in closer proximity to the MRT. Given this price advantage and the solid market fundamentals, properties like Pinetree Hill are well-positioned to outperform in the long term, regardless of the MRT distance.
