​

NARRA RESIDENCES

Investment Analysis & 10-Year Exit Strategy

Dairy Farm Walk, District 23 | 99-Year Leasehold | 540 Units | Expected TOP: January 2030

Information and market observations updated to September 2026. Prices, rental estimates and future values are indicative and should not be regarded as guaranteed returns.

 

PROJECT, COST & UNIQUE INVESTMENT PROPOSITION

 

1. Executive Investment View

Narra Residences is a 540-unit condominium development at Dairy Farm Walk, District 23. The project sits within the established Dairy Farm residential enclave and is positioned around three main investment themes: nature, spacious family-sized homes and long-term precinct transformation.

 

The development occupies a large site of approximately 21,881 sqm, with a maximum permissible GFA of approximately 45,951 sqm. The land was acquired for S$504.515 million, equivalent to S$1,020 psf per plot ratio, indicating a relatively high land cost for the area.

 

Narra has 540 residential units together with four commercial units. The development comprises seven residential blocks, with several blocks rising to 13 and 16 storeys. The lease commenced on 1 July 2025, with expected vacant possession on 20 January 2030.

 

Overall Investment Assessment

FactorAssessment

Location: Good – established Dairy Farm enclave

Nature / greeneryExcellent

Unit sizes: Good – particularly 3-bedroom layouts

Facilities: Strong

MRT accessibility: Moderate

Rental yield: Moderate to low

Entry pricing: Fair to full

Future development potential: Good

Capital appreciation potential: Moderate to good

10-year investment suitability: Good

Short-term investment: Less attractive

 

The principal investment case is therefore capital preservation and appreciation over a longer holding period, rather than maximising immediate rental yield.

 

2. Understanding the Cost Structure

For the project as a whole, the S$504.5 million land acquisition is an important consideration. At S$1,020 psf ppr, the land component is substantial.

 

Construction costs are not publicly disclosed. As a broad industry-based working assumption, construction and associated development costs could be in the region of approximately S$450–600 psf of construction GFA, although the actual developer contract may differ materially.

 

Using approximately 494,600 sq ft of maximum GFA, this would imply an indicative construction cost of approximately: S$223 million – S$297 million

 

Adding land, construction, financing, professional fees, marketing, taxes, infrastructure and other development costs means the developer's eventual all-in cost is considerably higher than the land purchase price alone.

 

This explains why Narra cannot realistically be compared with older Dairy Farm condominiums purely on current psf.

 

3. Example Buyer Cost – 3-Bedroom Unit

For an illustrative 1,023 sq ft 3-bedroom unit at S$2.359 million, the purchase price is approximately:S$2,306 psf

 

Based on current transaction data, Narra's 1,023 sq ft 3-bedroom units have been transacted across a broad range, with recent project transactions reaching approximately S$2,370,000.

For a S$2.359 million purchase, the current Buyer's Stamp Duty would be approximately S$87,550, before any applicable ABSD.

 

ABSD depends heavily on the buyer's citizenship, existing residential property ownership and whether any remission or special circumstances apply. Therefore, investors should calculate ABSD separately rather than treating it as part of the project pricing.

 

The important point is that transaction costs make Narra more suitable for a medium- to long-term holding period than a short-term speculative purchase.

 

4. Narra Residences' Unique Selling Points

: Large development site

The approximately 21,881 sqm site gives Narra a relatively spacious development environment compared with many newer city-fringe projects.

 

: Nature-oriented location

Narra is beside the Dairy Farm nature environment and close to Dairy Farm Nature Park, the Dairy Farm Park Connector and the wider Bukit Timah nature area.  This is one of its most difficult attributes for competing developments to replicate.

 

: Family-sized units

The 3-bedroom configuration of approximately 1,023 sq ft is particularly relevant to HDB upgraders and families who want a genuine increase in living space.

 

: Strong lifestyle positioning

Facilities include a 50m lap pool, tennis court, gym, family facilities and other lifestyle amenities. The development is designed more as a family residential environment than simply a compact investment condominium.

 

: Quality specifications

The project incorporates brands including SMEG kitchen appliances, Franke fittings, Duravit sanitaryware and Geberit concealed flushing systems.

 

: Limited unit count

With only 540 residential units, Narra is not an extremely large mass-market development.

This can help maintain a relatively identifiable development identity when the project enters the resale market.

 

RENTAL PROSPECT & COMPETITIVE POSITION

 

5. Rental Investment Potential

The biggest caution for investors is rental yield.

Narra is not expected to be a high-yield property because its entry price is already above many older developments in the area.

 

A reasonable working assumption for a 1,023 sq ft 3-bedroom unit when Narra reaches TOP would be approximately:  Estimated rent: S$4,800–S$5,500/month

 

This gives:

Purchase Price   Monthly Rent   Gross Annual Yield

S$2.359m           S$4,800           2.44%

S$2.359m           S$5,200           2.65%

S$2.359m           S$5,500           2.80%

 

These are scenario estimates, not guaranteed rents.

 

The rental assumption is supported by the surrounding market. For example, a 1,033 sq ft 3-bedroom unit at The Botany at Dairy Farm was being marketed around S$4,800–S$4,900/month in 2026, while available rental transaction data for 3-bedroom units shows rents broadly within the S$4,100–S$5,650 range depending on size and unit.

 

Expected Net Yield

After allowing for property tax, maintenance fees, repairs, vacancy and other ownership expenses, an investor should not assume that a 2.6% gross yield translates into a 2.6% net yield.

A reasonable long-term planning assumption would be approximately:

1.8%–2.2% net yield before financing and personal income tax

Consequently, the investment thesis should not depend on rental income alone.

 

6. Comparison With Surrounding Developments

 

The Dairy Farm

This is an older freehold development and therefore has an important tenure advantage.

However, its age, facilities and product specifications are different from a new development such as Narra.

 

Investment implication: Older freehold stock may attract buyers seeking tenure, while Narra appeals more strongly to buyers seeking a modern project and contemporary lifestyle.

 

Dairy Farm Residences

Dairy Farm Residences is a useful direct benchmark because of its proximity and similar family-oriented positioning.

 

Its median transaction price was approximately S$1,747 psf in Q2 2026, with recent 2026 transactions around S$1,770–S$1,830 psf for various unit types.

 

This means Narra commands a meaningful new-project premium.

However, that premium partly reflects:

• Newer development

• Newer facilities

• Modern specifications

• Longer remaining lease at launch

• Current buyer preference for new projects

• Developer pricing structure

 

The important question for Narra investors is whether this premium can be maintained when Narra becomes a resale property.

 

The Botany at Dairy Farm

The Botany is the more important new-generation comparison.

Its median price was approximately S$2,226 psf in Q2 2026, while recent transactions included approximately S$2,197–S$2,255 psf for smaller units and approximately S$2,147 psf for a 1,292 sq ft unit.

 

This provides useful evidence that the Dairy Farm market has already demonstrated an ability to support prices above S$2,000 psf for newer projects.

 

Therefore, Narra's approximately S$2,300 psf pricing is not isolated from the market, although it remains toward the higher end of the local price spectrum.

 

7. Narra's Main Competitive Advantage

The strongest differentiation is not simply price.  It is the combination of: New project + large site + family-sized layouts + greenery + modern facilities + established Dairy Farm location.

 

This combination gives Narra a distinct target market:

• HDB upgraders

• Families

• Nature-oriented owner-occupiers

• Affluent professionals

• Buyers seeking larger layouts

• Long-term investors

 

The main weakness remains MRT distance.  Although Hillview MRT is accessible by walking/cycling, Narra does not enjoy an MRT-at-doorstep advantage. This may limit its rental premium compared with developments directly beside an MRT station.

 

FUTURE DEVELOPMENT, EXIT STRATEGY & VALUE UPSIDE

8. Future Development in Dairy Farm

The most important development for Narra investors is the new Dairy Farm Walk GLS site.

URA awarded the site in January 2026 for S$427 million, equivalent to approximately S$10,358.55 per sqm of GFA / S$962 psf ppr. The site has a maximum GFA of 41,222 sqm and was planned for residential development.

 

This is important because the new land parcel was acquired at a land rate only about 5.7% below Narra's S$1,020 psf ppr. Knight Frank noted the comparison between the two land tenders.

​

What does this mean for Narra?

It creates both competition and validation.

 

Potential negative

A new condominium can compete directly with Narra for:

• New-project buyers

• HDB upgraders

• Investors

• Tenants

If the new development is launched at a similar or higher price, Narra may benefit from the established resale benchmark.  If it is priced aggressively, Narra could face greater competition.

 

Potential positive

The successful land tender confirms that developers continue to see value in the Dairy Farm precinct.  More residential population can eventually bring:

• Better amenities

• More retail demand

• Larger tenant pool

• Greater neighbourhood recognition

• Improved resale liquidity

 

The 2026 tender attracted five bidders, although CBRE noted that the top bid was relatively measured and that the area remains relatively far from MRT and has limited surrounding amenities.

 

9. The Most Important Issue: Exit Strategy

For Narra, the exit strategy should be planned before buying.

I would not recommend buying Narra on the assumption that the property will generate an attractive return simply through rental income.

 

The stronger strategy is:

Phase 1 — 2026–2030

Acquire and hold through construction

The objective is to enter at a reasonable price and allow the development to move from new-launch status towards completion.  During this period, avoid excessive speculation about short-term price movements.

 

Phase 2 — 2030–2033

TOP and rental stabilisation

 

After TOP, the property becomes a completed condominium.

At this stage, the investor should assess:

• Actual achieved rental

• Tenant profile

• Vacancy rate

• Resale transactions

• Competing projects

• Performance of the new Dairy Farm development

• MRT/transport improvements

• Actual condition and reputation of Narra

The first two to three years after TOP will provide much better evidence of the property's true market position.

 

Phase 3 — 2034–2036

Review the exit window

This is the period I would regard as particularly important.

By then, Narra will no longer be a new launch. The investor should compare its resale price against:

• The Botany

• Dairy Farm Residences

• Newer competing Dairy Farm developments

• District 23 new launches

• Comparable 3-bedroom units

If Narra's resale price has appreciated substantially while rental yield remains relatively low, selling may become more attractive.

 

Phase 4 — 2038–2040

Target long-term exit

A potential target exit around 2040 gives the investor approximately ten years after TOP.

This is where the investment thesis becomes more interesting.

 

Narra would still have approximately 84 years of lease remaining, assuming the 99-year lease commenced in 2025.

 

That is still a relatively long remaining lease for a 2040 resale property.

 

10. Potential Future Value

No future property price can be guaranteed, so it is more useful to examine scenarios.

For an illustrative purchase price of S$2.359 million:

 

Annual Capital GrowthApprox. Value in 2040

1%                                               S$2.71m

2%                                               S$3.12m

3%                                               S$3.57m

4%                                               S$4.13m

5%                                               S$4.67m

These are mathematical scenarios, not price forecasts.

 

At a 3% annual appreciation rate, the property would reach approximately S$3.57 million before selling expenses.

 

If rental income averages approximately S$5,200/month over the long-term holding period, the gross rental collection over ten years could be approximately S$624,000, before vacancy, maintenance, property tax, repairs, agent fees, financing and income tax.

 

This illustrates why Narra should be viewed as a combination of:

capital appreciation + rental income + long-term property ownership

rather than rental yield alone.

​

11. Where Could the Future Upside Come From?

: Dairy Farm precinct transformation

Additional residential developments can increase the scale and maturity of the neighbourhood.

 

: New-project price benchmarks

If future developments in the area are launched at higher prices because of rising land and construction costs, existing projects such as Narra can benefit from a higher resale benchmark.

 

: Limited availability of large family units

A 1,000+ sq ft three-bedroom unit remains attractive to families who are upgrading from HDB.

 

: Nature premium

Greenery and proximity to Bukit Timah/Dairy Farm nature areas are relatively scarce attributes in Singapore and cannot easily be reproduced.

 

: Improved neighbourhood amenities

More residents can eventually support more retail and lifestyle services.

 

: Long remaining lease at the planned exit

At a 2040 exit, Narra should still have approximately 84 years remaining on its lease, which reduces the immediate lease-decay concern compared with much older District 23 properties.

 

12. Risks That Investors Should Not Ignore

High entry price

At around S$2,300 psf, Narra is already priced at a substantial premium to older Dairy Farm projects.

 

Low rental yield

The gross yield is likely to remain around the mid-2% range unless rental rates rise substantially.

 

MRT accessibility

The project does not have the strongest MRT connectivity in the OCR.

 

Future competing supply

The new Dairy Farm Walk GLS development will eventually compete for buyers and tenants.

 

View risk

For units enjoying greenery or open views, investors should not assume that today's view is permanently protected if the opposite land is zoned for residential use.

 

Interest-rate and financing risk

A highly leveraged investor may experience negative cash flow even when the property is appreciating.

 

Exit timing

Property prices do not rise in a straight line. The investor may need to hold longer than planned if market conditions at the intended exit date are weak.

 

FINAL CONCLUSION — IS NARRA RESIDENCES WORTH INVESTING IN?

My overall assessment: Narra Residences can be a worthwhile long-term investment, but it is not a high-yield or short-term investment.

 

The investment case is strongest for a buyer who:

✔ Can hold for 8–12 years or longer

✔ Is comfortable with a 2%–3% gross rental yield

✔ Is looking for capital appreciation rather than rental income alone

✔ Values the Dairy Farm/Bukit Timah nature environment

✔ Prefers a modern development with larger family-sized units

✔ Has sufficient financial capacity to withstand periods of negative or low cash flow

✔ Selects the unit carefully rather than buying purely because it is a new launch

 

For the specific 1,023 sq ft 3-bedroom unit at approximately S$2.359 million / S$2,306 psf, I would classify the entry price as fair to full rather than cheap. However, its investment case is strengthened if the unit has a higher floor, good orientation, useful separation from neighbouring blocks and an attractive open/green outlook.

 

The key is therefore unit selection.

 

Investment strategy I would favour

Buy selectively → hold through TOP → rent for income → reassess around 2034–2036 → consider exit around 2038–2040 depending on market valuation.

 

I would not buy Narra primarily for rental yield.

 

I would buy it for the possibility that Dairy Farm's land scarcity, nature-oriented positioning, rising replacement cost and precinct development can support higher capital values over the next 10–15 years.

 

The most important factor to monitor is the new Dairy Farm Walk development. If future developers are forced to launch at significantly higher prices because of land and construction costs, Narra's existing stock could benefit from a higher replacement-cost benchmark.

 

Conversely, if the new project is aggressively priced or the local rental market remains weak, Narra's capital-growth potential could be more limited.

 

Bottom line: Narra Residences is better viewed as a long-term capital-growth investment with moderate rental support, rather than a cash-flow investment. For an appropriately selected 3-bedroom unit and a financially strong buyer prepared to hold through market cycles, the risk/reward profile is reasonable, with the greatest potential upside likely to come from precinct development and long-term resale appreciation rather than rental yield.