Mori was purchased from an en-bloc of 15 terraced houses, based on this purchase price, after factoring in construction, financing, professional and marketing costs, we estimate Roxy’s breakeven at the $1,430-1,500 psf range. With a 15-20% profit margin, selling prices of around $1,800 psf gives developers a great competitive edge to any RCR project in Singapore. Additionally, with the comfortable margin, developers are also able to offer more in terms of aesthetics, function and layout in the design and detailing of each unit.

Design and concept

Mori takes pride in its concept of Wabi-Sabi living by encompassing key elements such as off-form concrete and timber look aluminium, focusing on beauty in its most natural and raw form. Blended in with a nature-inspired landscape, the architects have created a hidden meditative cum retreat home environment amid the hustle and bustle of the city.

Inspired by the Japanese art of Kintsugi, the architects were bold to show timeless statements of beauty in imperfection in their show units through streaks on the walls lined with gold and selections of burnt wood and tarnished metal.

We love how the land plot has been carefully thought out to create an inviting atmosphere with facilities displayed at the roof garden. An onsen hideaway to watch the stars at night, grill and dine pavilion at the roof top, lap pools and various other small pools for swimming and relaxing in, Mori definitely fulfils most of what a modern development has to offer and more. The minor down-side I’d say due to their design is the lack of an indoor gym, though they do have an outdoor fitness area. Also, the swimming pool at 23m may be a tad small for those looking for a more intensive workout.

Capital appreciation and investment potential

Depending on whether we are entering for our own stay or investment, we’d have to consider Mori’s surroundings and future transformation plans. Some may feel the location near to Geylang is not something they’d want to consider due to the perception of it being shady and commonly known to have a higher concentration of vice-related activities. The good news for savvy investors who can overlook the current or gradually dissipating vice in the area, is that the masterplan has huge plans to gentrify the area. First off, let’s have a look at the two masterplans below (Figure B):

On the previous masterplan in 2014, we see the large plot of land next to Mori being zoned Residential/Institution. With facilitation of online platforms to advertise and solicit for vice-related services, these activities are increasingly being conducted in residential estates. We see that a large plot has been changed into Commercial/Institution in the 2019 Masterplan. This not only cuts down vice activity in the vicinity, but also reduces the supply of residential housing in the area, thus boosting the value of existing residential properties.

Additionally, a check on URA’s website showed that URA has stopped issuing licenses for new hotels along most part of Geylang (See Figure C) . As the government steps up efforts to clean up the region, it is a matter of time before Geylang gets spruced up and its image transforms to a residential haven, emulating Bugis Street or Keong Saik Rd, which used to be a Red Light District as well.

Significant transformation not yet priced in

In terms of the potential for the location, the transformation we currently see is far from the end, firstly Kallang River boasts several large white sites, and we know white-sites as the most valuable pieces of land where prominent hotels such as Marina Bay Sands is built on. With the development of these plots into world renowned icons, Mori naturally enjoys the transformative impact being situated in such a close proximity.