This is a review of how a real estate investor would use real estate investing formulas and calculations to decide if buying a 2 bedroom at Perfect Ten is a real estate investment or not. At this point, there is not much information given out by the developers. Everything I have to date (30th August 2021) will be given out here for your reference. If you are interested to find out more, fill up the contact form at the end of the post or Whatsapp me at the bottom right corner, I will keep you updated whenever I receive any latest news about Perfect Ten.
Japura Development Pte Ltd
2 Blocks of 24 Storey Residential Flats (Total 230 units) with Landscape Deck, 2 Basement Carparks, Swimming Pool and Communal Facilities on Lot 00211X TS 26 at Bukit Timah Road
Location – Address
321 & 323 Bukit Timah Road
No. of Storeys
Total No. of Units
9,711.3 sqm (104,531 sqft)
26 November 2026
Estimated Date of Legal Completion
26 November 2029
No. of Parking Lots
No. of Lifts
For the real estate investing calculations, I will assume that I am purchasing a mid floor 2 Bedrooms at Perfect Ten and will calculate and compare with the nearest condo called Palm Springs.
Ewe Boon Road, 259324
321 Bukit Timah Road 259711
323 Bukit Timah Road 259713
Number of Units
2 – 4 Bedrooms
2 – 3 Bedrooms
Things to note of
As mentioned, we do not have many variables which are confirmed on the Perfect Ten side. So there are many assumptions we have to take. Here are the major ones
- We haven’t received the room size of Perfect Ten for the 2 bedrooms and 3 bedrooms. The size is important for real estate investing. I am assuming 800sqft for the 2 bedrooms at Perfect Ten
- The Palm Springs consist of 167 units whereas the upcoming Perfect Ten consists of 230 units. I chose Palm Springs because it was the closest in the number of units available. The rest of the condos surrounding Perfect Ten have less than 50 units. Trying to compare similar units are also important for real estate investing
- There are not many transactions for the particular unit we are studying at Palm Springs. The 947 sqft unit was transacted on 4th August 2017.
As mentioned above, we are assuming that I am interested to buy a mid-floor, 800sqft, 2 bedrooms Perfect Ten and will use real estate investing formulas to calculate and see if it’s a real estate investment or not.
This calculation is done by comparing it with a similar 2 bedroom unit at Palm Springs which is located at a straight line distance of 150m away.
Palm Springs Transaction
1st April 2001 at S$850,000
4 August 2017 at S$1,500,000
Number of Months
Calculation of Growth Rate (Central Region)
The annual growth rate for the central region based on SRX Property Index from July 2011 to July 2021 is 3.04%
Let’s just take this at face value. There are many ways we can discuss if we meet why the growth rate should be higher or lower.
Real Estate Investing Formulas used
Before we begin, note that these formulas are usually used for properties which are already existing, similar in age and size. Perfect Ten is only due to be completed in 2026 and will be 29 years newer than Palm Springs by then. See more in the conclusion section.
Gross Rent Multiplier
The Gross Rent Multiplier Formula for Palm Springs for a 2 bedrooms unit at 947 sqft are as follows
Gross Rent Multiplier
With the following assumptions taken
- Assumption of the monthly rent of 3,000 SGD based on the worst-case scenario to lower the risk (No stats are given for the floor level, lowest was 3,000 SGD/ Month and highest was 3,200 SGD/Month on both transacted on 1st March 2021.)
Income Capitalisation Method (Modified)
Using the Income Capitalisation Method Formula, the Cap Rate for Palm Springs is calculated as follows
Annual Net Operating Income
= (Rent Income – Property Tax – Property Insurance – Annual Maintenance Fees – expected Maintenance and Repair – Vacancies Loss) / Market Value
Assuming the following
- Expected Maintenance and Repair is 0
- The maintenance fee for Palm Springs is assumed to be 480 SGD
Calculation for Perfect Ten using Cap Rate and Gross Rent Multiplier
Using Gross Rent Multiplier for Perfect Ten
The monthly rent for Perfect Ten is calculated at S$2,534.32 as we are assuming the 2 bedroom units for Perfect Ten to be at 800 sqft.
Using the average GRM of 41.6667 to find the sales price for Perfect Ten
Sales Price = 41.6667 * (2,534.32 * 12)
= S$1,267,159.45 SGD
Using Income Capitalisation Method for Perfect Ten
Market Value for Perfect Ten = Net Operating Income / Cap Rate
= (Rent Income – Property Tax – Property Insurance – Annual Maintenance Fees – expected Maintenance and Repair – Vacancies Loss)
= S$16,413.77/ 0.0136
= S$1,206,894.81 SGD
Where the following assumptions are made
- The maintenance fee is 480 SGD (Assumed)
- Expected Maintenance and Repair to be 0
Using the Time Value of Money Formula
To show you how I use the Time Value of Money Formula to calculate the price per square feet we should be looking to pay for a 2 bedrooms 800 sqft mid to high floor unit in 2021, do contact me via Whatsapp or at the contact form below so I can share with you my findings or you can wait for the review to come out for a more accurate number.
You can see how I use the same real estate investing formulas to calculate for Queens and Queens Peak Condominium at Commonwealth. Using these formulas can show you whether or not the property or new launch sales price is justifiable.
Congratulations! If you’ve read to this point, you are probably really looking at buying Perfect Ten for your future residential property for investment or for your homestay. If I’m right, I would like to be considered as your representative real estate agent to purchase your next home.
There are several advantages when I represent you in buying a residential property (Resale or New Launch)
- No commission required to be paid by you for Private Properties (Resale or New Launch). Probably the biggest advantage. If I represent you, either the developer or the owner pays me the commission, not you.
- A free real estate investing report with calculations on your preferred unit will be done for you upon meetup. For new launches, I will also pass you all the floor plans, e-brochures, pricing and launch price discounts (if any).
- If you are looking to buy a unit for investment, I will research the best unit type this condo has to offer to provide you with the maximum returns from your investment money.
- If you are looking to buy for your own stay, I will research and let you know the best floor level and direction facing and layout type within your budget to maximise your future sales price. If the calculations are not favourable, at least you will know how much extra you will be paying for. Then you will know whether or not it is worth it to purchase.
My obligation is only to you and the real estate investing formulas I use are not some secret formulas that only I possess. These real estate investing formulas are widely available and used by real estate investors all over the world and are taught at the world’s top universities teaching real estate investing.
You can look for me for truthful and honest advice for anything real estate related, any time and any day. I don’t work for anyone else and have no obligation to sell this development for them and therefore, I have no need to pressure you to buy anything. If you want to buy, buy, otherwise, we move on and will look out for another unit that is more suited for your needs.
I am part of a team that is very strong in financial calculations. If you are really looking to buy, my team will find different ways and different means to make sure you will be able to afford it. Throw us questions and problems you are currently facing and which your previous agents are unable to answer, let us impress you with what we can do to get you your next home.
Buying a condominium (especially for a new launch) for anyone is most probably one of the biggest ticket purchases in their lifetime
Think of me as your friendly and knowledgeable real estate investor friend who’s doing you a favour to make sure the purchase of your new condo is really something worthwhile to purchase or at the very least, something that won’t lose you money in the future.
What are you waiting for? Let me know how I can help you
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