http://www.straitstimes.com/Money/St...ry_778522.html

Many opt for homes in old neighbourhood

Buying trend shows many prefer to stay close to familiar shops and people

Published on Mar 17, 2012


About a third of buyers of The Greenwich in Seletar are from other parts of District 28, such as Yio Chu Kang. Having family nearby is a key reason for staying put in the neighbourhood. -- ST PHOTO: SEAH KWANG PENG

By Gan Yu Jia


YOU might think that buying a new home generally means packing up and moving to a new part of town.

But a fairly large proportion of those buying new homes opt to stay in their old neighbourhoods, close to familiar shops and people, according to local developers.

The trend suggests that far from breeding contempt, familiarity with one's local neighbourhood is often just the ticket.

Take the case of the recently launched Bedok Residences. A spokesman for developer CapitaLand estimates that 30 per cent of buyers were already living in Bedok and neighbouring Kembangan.

And it is understood that about 45 per cent of buyers of The Tennery in Bukit Panjang, launched last year by Far East Organization, came from nearby Hillview, Choa Chu Kang and Bukit Panjang, all in District 23.

A similar proportion - 43 per cent - of buyers of Woodhaven in Woodlands came from elsewhere in District 25 such as Admiralty and Kranji, while about a third of buyers of The Greenwich in Seletar came from other parts of District 28 such as Yio Chu Kang.

A woman who wishes to be known only as Ms Tee, a teacher in her mid-30s, said that she and her husband wanted a bigger place for themselves and their three dogs but were not keen to leave the East Coast area.

'We've been staying there for a long time. We didn't want to have to get used to a new area,' she said.

HSR Property Group special adviser Donald Han believes that familiarity with nearby amenities means people have an affinity with the area in which they live.

'You know where the conveniences and the potential developments are, compared with going to a new neighbourhood where you've got to scout for the value propositions,' he added.

And of course old friends and family are another key reason for staying put in the old neighbourhood.

A retiree in his 70s, who wished to be known only as Mr Tan, rented out his Hillcrest property after moving into a smaller apartment in Dairy Farm Road about 14 years ago. He said: 'I bought my Dairy Farm property so that we can be near our elder son.' His son lives in the same condominium.

Mr Teo Hong Lim, executive chairman of developer Roxy-Pacific Holdings, noted that nine out of 29 buyers of its recent Treescape project in Telok Kurau came from elsewhere in District 15, though he did not specify where.

He said it was typical of extended families: 'No matter how, parents still prefer to have the children stay nearby... They try to buy a second property in a similar area when the son or daughter gets married.'

Chesterton Suntec International research head Colin Tan said children often feel the same way about their parents. 'If you rely on your parents for childcare support, then you may want to move to a place close to them,' he said.

For others, staying put may simply mean they are sold on the lifestyle in the neighbourhood where they have lived for some time.

The East Coast area has plenty of selling points such as being close to the beach, close to the airport, and close to good eateries.

And it's not just home buyers. Investors often like a place they know, and are glad to be able to keep tabs on the tenants, if the need arises.

Housewife Mrs Wong, 59, rents out a semi-detached house a stone's throw from her own home in Bukit Timah. 'It's close by, so easier to check on the tenant,' she said.

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, said first-time investors may find it easier to gauge demand in areas they know well.

'They are more likely to be more familiar with the locality, so it's the comfort they find,' he said.

However, Mr Ku Swee Yong, chief executive of International Property Adviser, urged property investors to look outside their comfort zone.

'Investors need to understand the attributes of the location: traffic, demographics, (and) upcoming developments,' he said.

Mr Ku said investors 'should also do more homework around price comparisons with older developments as well as developments in better locations of Singapore which may offer even better value'.

He noted that homes in new mass-market projects out in the suburbs have been selling for up to $1,400 to $1,600 per sq ft in the last two years.

However, buyers might like to consider the fact that the same money could secure them a property in a so-called premium area, closer to town - the only thing being that the property would be somewhat older, such as Valley Park condominium along River Valley Road.

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