R&F Princess Cove Phase 3

 Lately been looking at Phase 3 for f this development as it has been launched on sale for quite some time now.

Generally for less than SGD200K, I can now get a 500+sqft high floor 1bed1bath. That is huge!

I will not talk about the benefits as I don’t want to bother with the hype, a lot of it is all over the internet, specifically with the RTS completion and SEZ incoming.

Four key issues with this property compared to the rest I’ve been looking at.

1) R&F the China developer is facing financial difficulties. There is real insolvency risk. What if Phase 3 cannot be completed if the developer goes bankrupt?

Having been onsite, most Phase 3 towers are more than 30 floors built now. So there is high probability that construction will be completed. Both Phase 1 (2018) and Phase 2 (2024) have been completed and were buzzing the numerous I’ve been there. That said I have to acknowledge that there are still implications if R&F goes bankrupt.

2) If R&F goes bankrupt AFTER completion, the township will still be impacted, Phase 4 and Phase 5 will not even start and the property might be abandoned?

Again my assessment is that this is highly unlikely. It is the face of Johor as you enter Malaysia via the Woodlands Causeway. There is no way the Johor government will let such a prominent project suffer unlike what has happened to Forest City.

3) The unit I’ve been looking at suffers from overcrowding density. 10 units a floor, 49 floors, and only three lifts to service everyone?! 

This is a risk I am willing to accept. It is prevalent in China and many other countries facing such congestion and they can find ways to make it work.

4) SGDMYR FX Risk is real. Currently at around 3.15, if MYR continues to weaken to let’s say 3.50 or even 4! A SGD200K property even at same MYR value might be worth SGD150K to a Singaporean owner thereafter!

Again this is a risk I have to accept. The reverse could also happen, who knows?

Anyway these are the risks of buying overseas properties and there are many others so it’s just good to document the considerations before I make any actual plunge.

Huat ah!