The Orie QPE Analysis

Considering a new home in Toa Payoh? Let's break down 'The Orie' using the QPE framework to see if it fits your family's needs and investment goals.

Quality

• Land Size & Facilities:
  The Orie spans over 15,743 sqm, featuring two 40-storey towers with 777 units. Residents can expect a comprehensive suite of facilities, including swimming pools, gyms, and landscaped gardens, enhancing the living experience.

• Facade & Layout:
  Developed by reputable firms—City Developments Ltd, Frasers Property, and Sekisui House—The Orie boasts modern architecture with efficient and functional layouts, catering to various family sizes.

• Location & Accessibility:
  Situated just a 5-minute walk (approximately 400 meters) from Braddell MRT station on the North-South Line, The Orie offers seamless connectivity to key areas like Orchard Road and the Central Business District. Its central location ensures easy access to major expressways, enhancing convenience for drivers.

• Amenities & View:
  Residents will benefit from proximity to shopping centers such as Junction 8 and Toa Payoh HDB Hub, as well as local markets and hawker centers. The high-rise nature of the development provides potential for panoramic views of the city skyline, depending on unit selection.

Pricing

• Price Per Square Foot (PSF) & Entry Level:
  While exact pricing details are pending, the developers' land bid suggests competitive pricing in line with recent market trends. Prospective buyers should compare The Orie's PSF with nearby resale properties and recent launches to assess value.

• Comparison with Surrounding Properties:
  The Orie is the first new launch in Toa Payoh since 2016, indicating potential for appreciation due to pent-up demand. Analyzing prices of nearby developments like Gem Residences can provide insights into The Orie's market positioning.

• GFA Harmonization Benefits:
  The Urban Redevelopment Authority's (URA) Gross Floor Area (GFA) harmonization has led to more efficient unit layouts, reducing overall unit sizes and, consequently, the quantum price. While the price per square foot (PSF) may appear higher, the lower quantum enhances affordability. Notably:

• Banks assess loans based on quantum, not PSF.

• Government affordability metrics also focus on quantum. This means a lower quantum makes units more accessible, increasing buyer interest.

• Competitive Pricing Compared to OCR Developments:
  Consider this:

• A 3-bedroom unit at Chuan Park (Outside Central Region - OCR) sold for over $2.5 million.

• In contrast, The Orie (Rest of Central Region - RCR) offers 3-bedroom units starting from $2.09 million, with an estimated PSF of $2,400. This positions The Orie as a more attractive option, offering centrality at suburban prices.

• Developer's Prudent Pricing Strategy:
  City Developments Limited (CDL) is known for:

• Reasonable entry prices that balance quality and cost.

• A strong track record of profitable projects, ensuring sustained value for buyers. Investing in a CDL project like The Orie offers confidence in both quality and price sustainability.

Exit Strategy

• Supply & Demand
  With limited new developments in Toa Payoh over the past decade, The Orie addresses a niche market, suggesting strong demand. The mature estate status and central location further bolster its appeal.

• HDB Upgraders Driving Demand
  Nearby, 5-room HDB flats in Bidadari are transacting above $1 million, indicating a minimal affordability gap. This trend suggests that more families can transition to private properties, boosting demand for developments like The Orie.

• Area Transformation & Schools
  Upcoming government redevelopment projects in Toa Payoh aim to enhance public infrastructure, transportation, and recreational spaces, potentially increasing property values. Proximity to reputable schools like Pei Chun Public School and CHIJ Primary (Toa Payoh) makes it attractive for families, broadening the target audience.

• Target Audience
  The Orie appeals to a diverse group, including families seeking quality education options, professionals desiring central connectivity, and investors looking for properties with strong rental potential due to its strategic location.

In summary, The Orie presents a compelling opportunity with its strategic pricing, making it a noteworthy consideration for both homeowners and investors.