While it won’t happen overnight, Lentor will eventually shed its image as a quiet district in northeastern Singapore. Recent years have seen the release of multiple Government Land Sales (GLS) sites, which have drawn in developers. Between 2022 to 2024, at least five new residential projects were launched in Lentor, representing some 2,400 new private homes being brought to market.

Table 1: Past and upcoming new launches in Lentor

This steady influx of new housing options, including the much-anticipated launch of Lentor Central Residences this year, highlights the area’s long-term prospects as a liveable location with both green spaces and modern amenities. Even so, the possibility of condo sales in Lentor reaching a saturation point was raised after Lentoria’s debut in March last year.

But is the new launch market in Lentor truly at its limit? Or is there still the potential for fresh inventory to draw interested buyers?

A timeline of new launches in Lentor

In September 2022, the Lentor neighbourhood saw its first launch in Lentor Modern – an integrated mixed-use development with 605 units by Guocoland, which achieved a highly successful take-up rate of 84% on its launch day.

Following that, Lentor Hills Residences was launched in July 2023 nearly a year later. Jointly developed by Hong Leong Holdings, Guocoland and TID, the development sold 298 units (or approximately 50%) of its 598 units during its debut weekend.

Subsequently, Hillock Green (474 units) was launched four months later, followed by Lentoria (267 units) and Lentor Mansion (533 units) in March 2024. While Hillock Green and Lentor Mansion both saw take-up rates of 27.6% and 75% respectively, Lentoria saw a more measured response of nearly 20%.

These varied performances, along with slower reception at a number of more recent Lentor launches, raised concerns about buyer fatigue and market saturation within the area. However, this perspective might not hold true, as there are several reasons suggesting otherwise.

Why Lentor’s new launch market hasn’t reached its limit  

Reason #1: New launches in Lentor, both past and present, have seen strong take-up since their debut

Perhaps the most telling sign that oversupply concerns are unwarranted is the presently low stock of new non-landed private homes in Lentor. Among the five developments that have been launched thus far, Lentor Modern is completely sold out, with another two approaching 100% take-up, namely Lentor Hills Residences and Lentor Mansion.

Table 2: New launches in Lentor and units sold

Meanwhile, despite slower initial sales, both Hillock Green and Lentoria have made significant strides in their sales progress, with 85.9% and 70.8% of their units respectively sold as of 13 February 2025.

Moreover, as of 13 February 2025, 2,318 units or 93.6% of the 2,477 homes launched for sale across the five Lentor projects have already been taken up. Hence, with only a limited number of units left, Lentor’s market has sufficient room for future launches, which will also likely be sustained by the strong buyer demand and interest seen thus far.

Table 3: Breakdown of available inventory at Lentor new launches by room type

A closer look at available condo units in existing Lentor launches also reveals that one- and two-bedders are mostly sold out, with three- and four-bedroom homes making up a larger percentage of remaining inventory.

However, this observation does not suggest a lack of demand for three or four-bedders in Lentor. When looking at relevant unit totals across each development, it becomes clear that a significant portion has already been sold. For example, Lentoria’s 24 remaining three-bedroom units accounts for just 34% of the original supply.

Relating to this, slower sales for larger units can be attributed to buyer behaviour. Aspiring owner-occupiers, such as HDB upgraders, often delay buying their desired three- or four-bedroom units until closer to completion.

By timing their purchases this way, this group of buyers is able to move in faster, avoid paying rent in the interim, and potentially sidestep ABSD, making it a practical and more cost-effective path towards private homeownership.

Reason #2: Stock is low, not just in Lentor but also District 26

Examining the possibility of a supply glut in Lentor through the broader lens of District 26 and its inventory of non-landed private homes (excluding ECs) also reveals that the risk of oversupply is unlikely. With just 2,966 units available as of 4Q 2024, District 26 currently has the third-lowest inventory of non-landed private homes among local districts, thus supporting the view that supply in the area is still tight.

Chart 1: Stock of Non-Landed Private Homes (Excluding ECs) as of 4Q 2024

Reason #3: New homes in Lentor have been moving at a steady pace

Low inventory in Lentor and District 26 aside, yet another indication that Lentor isn’t at risk of oversupply is the steady transaction activity of various new launches in Lentor.

Barring exceptions, such as months coinciding with new project debuts or seasonal slowdowns, sales of new private homes in Lentor have maintained a steady rhythm.

Chart 2: Monthly sales of new non-landed private home units for Lentor projects

For instance, in 2024, following the launches of Lentoria and Lentor Mansion in March, overall monthly sales of new condos in Lentor hovered between 50 to 70 units. The only outliers were June and December, when buying activity typically slows down during the school holiday periods – a common trend in Singapore’s property market.

This consistency also suggests that there is genuine demand for new private homes in Lentor, even after the initial surge of excitement generated by new launches. Hence, with fresh inventory set to be introduced in the coming months, it is likely that both buyer demand and new homes sales in Lentor will keep up their momentum.

Why are homebuyers gravitating towards Lentor?

If the past sales performances of the above developments are anything to go by, Lentor is indeed shaping up to become a vibrant residential enclave, capable of drawing in today’s buyers. This naturally raises the question: why?

The answer lies mainly in Lentor’s location within Ang Mo Kio.

Considering its status as a mature estate, a significant portion of Ang Mo Kio’s housing stock consists of older properties, such as aging HDB flats from the 90’s and older condos built in the early 2000’s. Consequently, for aspiring HDB upgraders or landed property right-sizers looking for newer homes, Lentor represents a compelling opportunity of moving into a rejuvenated neighbourhood, while still being close to familiar amenities, schools and healthcare services.

Moreover, the promise of enhanced transport links, such as Lentor MRT station and the upcoming North-South Corridor, further elevates Lentor’s appeal in the eyes of homebuyers. This is in addition to Lentor’s existing connectivity to major arterial roads and expressways, such as the Central Expressway and Seletar Expressway, meaning that residents will enjoy even greater accessibility to the rest of Singapore in the future.

What can homebuyers look forward to in Lentor and District 26?  

Homebuyers keen on purchasing a new private condo in Lentor will be pleased to know that there will be at least one new project making its debut in the neighbourhood this year.

Located within the same residential cluster as its predecessors, Lentor Central Residences is the sixth and newest addition to the area’s diverse lineup of offerings. The 99-year leasehold development comprises of 477 units and shares many of the same locational attributes as nearby developments, like Hillock Green as well as a yet-to-be tendered site at Lentor Gardens.

Proximity to Lentor MRT station aside, Lentor Central Residences is also within reach of various recreational amenities. For instance, residents can easily access green spaces like Thomson Nature Park and sports facilities such as Yio Chu Kang Stadium & Sports Complex.

Additionally, the Lentor area is well-served by reputable schools, including Anderson Primary School, Presbyterian High School, and CHIJ St. Nicholas Girls’ School, making it ideal for families seeking convenience and suitable education options for their children.

Buyers exploring new options in District 26 can also consider the upcoming, but as-of-now unnamed condo project at Upper Thomson Road (Parcel B) estimated to launch in 2Q 2025. The 940-unit development, which will be jointly developed by GuocoLand and Hong Leong Holdings, represents a first-mover opportunity as it sits on the first land parcel to be released for high-rise residential development in the Springleaf precinct.

Could Lentor be at risk of an oversupply in new private homes in the future?

With a growing number of new launches in the area, concerns about a potential oversupply in Lentor might once again be raised down the road. However, for now, the consistent demand shown at new launches strongly suggests otherwise.

So long as future launches are adequately paced to meet current market demand, Lentor is well-positioned to maintain its mass appeal to a wide buyer audience – from HDB upgraders to families seeking new homes – without significant fear of excessive surplus.

Keen on knowing more about Lentor Central Residences or other exciting opportunities in the area? Reach out to one of our ERA Trusted Advisers today for expert insights and all the details you need to make an informed decision!

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Road and street names in Singapore tend to have literal roots. For instance, Temple Street is named after Sri Mariamman Temple situated there, whereas Old Airport Road derives its name from its location near the former Kallang Airport. Naturally, this begs the question: where exactly is the ‘beach’ in Beach Road?

The answer lies within its urban transformation.

Decades later, Beach Road’s evolution is far from complete. Even in the present, new urban projects continue to enhance its unique identity as a downtown junction where modern-day office clusters are juxtaposed against historical conservation areas.

Throughout the course of this ongoing evolution, Beach Road has also been home to numerous cultural and urban landmarks. Over the years, many of them have taken on a new lease of life, either as part of urban rejuvenation efforts or new downtown developments.

Examples include the original buildings of Beach Road Camp (currently preserved as part of the South Beach mixed-use development), as well as the now-defunct Shaw Towers, which itself was built on the site of two former cinemas.

Even more recently, Golden Mile Complex – arguably one of Beach Road’s most iconic developments and formerly ‘Little Thailand’ – was successfully sold en bloc for S$700 million in 2022. This transaction marked the first time a large-scale, conserved strata building was sold in Singapore, while also opening the door for future redevelopment possibilities.

Considering this potential, it’s worth taking a closer look at what Beach Road has to offer –both in the way of its old-world charm, as well as an array of current and upcoming modern developments.

What’s around Beach Road that makes it an ideal live-work-play location?  

In the present day, Beach Road extends across three planning areas: the Downtown Core, Rochor, and Kallang. Threading through Singapore’s commercial city centre and eastern districts, this route enables Beach Road to serve as a gateway to neighbouring locations, while also enhancing liveability within the area.

Road links and public transportation near Beach Road

Heading south from Beach Road’s easternmost junction with Crawford Street, motorists will take only 10 minutes or less to reach the Raffles City cluster.  Alternatively, they can opt for an even quicker drive along Nicoll Highway, which leads onwards into the Central Business District (CBD) via Esplanade Drive and Fullerton Road.

Eastwards, Nicoll Highway also provides a direct route to the Kallang area as well as notable sporting facilities, such as the National Stadium and a number of ActiveSG recreational sports centres. The same can be said for the Singapore Sports School in the future, following its relocation to Kallang as part of the Kallang Alive Master Plan.

Beyond car travel, Beach Road is also served by Singapore’s extensive MRT network. With both Nicoll Highway and Bugis station located within a 500m radius from the centre of Beach Road, commuters can easily make their way down to prominent stops on the Circle, East-West, and Downtown Lines in 10 minutes or less.

Examples include interchange stations, such as Paya Lebar, Raffles Place, City Hall, and Bayfront, which themselves provide access to other MRT lines.

Dining and retail options at Beach Road 

Amongst Singaporean foodies, dining at Beach Road is often synonymous with Thai cuisine, all thanks to Golden Mile Complex’s former identity as ‘Little Thailand’ with numerous eateries serving up authentic fare.

Since Golden Mile Complex’s closure, a handful of these businesses have found new life in Golden Mile Tower and City Gate mall, which are both within the Beach Road locale, as well as Aperia Mall in neighbouring Kallang.

For Singapore-centric hawker fare, hungry diners in the area can head on down to Beach Road Army Market instead. Known to locals and tourists alike, Beach Road Army Market serves up a medley of local delights (think Fried Hokkien Mee, tze char dishes, and more), while also doubling as a shopping spot for National Servicemen in search of military garb and gear.

Meanwhile, regular shoppers can instead turn their attention towards the aforementioned City Gate mall or the Bugis area. The latter is a 5-minute drive away from Beach Road and boasts a wide range of fashion, dining and entertainment options at Bugis Street, Bugis+, and Bugis Junction.

Heritage enclaves and buildings near Beach Road

Flavourful dining and retail experiences aside, Beach Road, and by extension the larger Kampong Glam heritage subzone, also offers a glimpse into Singapore’s rich history.

Bounded by Ophir Road, Victoria Steet, Jalan Sultan, and Beach Road, Kampong Glam was gazetted as a conservation area as far back as 1989. Originally a coastal village where the namesake Glam tribe lived, Kampong Glam eventually grew into a multi-ethnic commercial hub in the late-1900s.

Though no longer a bustling trade centre, Kampong Glam retains much of its historical and cultural significance in the 21^st century. This local heritage is largely reflected by a medley of cafes, restaurants and small businesses operating from conserved shophouses at Haji Lane, Arab Street, Baghdad Street and Bussorah Street, as well as the landmark Sultan Mosque built in the 1800s.

New developments supporting growth

In 2008, fresh attention was brought to Beach Road and the neighbouring Ophir-Rochor Corridor after URA’s announced its then-latest Master Plan. This roadmap envisioned both heritage areas as mixed-use precincts, accompanied by new developments complementing those in the Raffles Place and Marina Bay financial districts.

Additionally, plans to transform the Ophir-Rochor area into a “strategic transport hub” were unveiled – the most notable being the first phase of the Downtown rail line, intended to grant commuters easy access to destinations located within Singapore’s central core.

Since then, these projects at Beach Road and the Ophir-Rochor Corridor have largely taken shape, with South Beach and DUO Residences seeing completion in 2016 and 2017 respectively. The same applies to the Downtown MRT line, which now sees Bugis MRT station serving as a key interchange between city and suburban locations.

Within the broader landscape of District 7, encompassing Beach Road, Rochor and Bugis, recent mixed-use developments with elements catering to the live-work-play concept have also sparked a new wave of transformation.

For instance, Guoco Midtown – which features retail shops, Grade-A offices, and two residential developments (Midtown Modern and Midtown Bay) – has contributed to District 7’s growing appeal. Likewise, the redevelopment of the former Shaw Tower nearby will also inject a fresh stock of premium offices into the area.

Even with these milestones, District 7’s growth story is still unfolding – and its next chapter lies in the transformation of Golden Mile Complex, one of Singapore’s pioneering mixed-use developments.

The Golden Mile Transformation

Located near the fringes of Singapore’s downtown core, between Beach Road and Nicoll Highway, Golden Mile Complex is undoubtedly a local architectural landmark – one with a rich history dating back to the 1970s.

Conceived by Singapura Developments Pte Ltd as a strata-titled residential and commercial project, Golden Mile Complex was completed in 1973 as part of the government’s urban renewal efforts for Singapore’s city centre. This initiative sought to revamp the area, which was once dominated by squatter settlements, into a thriving modern district complementing the CBD.

However, by the 1980s, Golden Mile Complex itself fell into disrepair following Woh Hup’s (Singapura Development’s former parent company) exit from the real estate scene. This gradual degradation eroded the building’s status as a prime development, with many of its original corporate tenants eventually making way for Thai-centric establishments.

Golden Mile Complex’s identity of ‘Little Thailand’ would then persist for over four decades until it was sold en-bloc to the tune of S$700 million in 2022, following its gazettement as a URA conserved building in 2018.

The new owners – a consortium comprising Perennial Holdings, Sino Land, and Far East Organisation – have since pledged to retain Golden Mile Complex’s original façade, including its iconic terraced profile that takes cue from brutalist design.

Moreover, it has been disclosed that the building will be rebranded as ‘The Golden Mile’ following its transformation into a commercial development with brand-new office units, medical suites, and two floors of retail space. Alongside this, a new leasehold condominium named Aurea will also be built, housing 188 units spread across 45 storeys.

What could this transformation mean for District 7 and Beach Road?

Akin to Guoco Midtown’s transformative effect on Bugis, Golden Mile Complex’s revamp is set to usher in a new era of urban growth for Beach Road and District 7 as a whole.

Fresh opportunities for businesses and homebuyers in District 7 

Being the first mixed-use development launched in District 7 since Guoco Midtown in 2021, The Golden Mile and Aurea are expected to draw fresh interest from businesses and homebuyers seeking the rare opportunity to reside within a rejuvenated heritage icon.

Echoing its original intent as a prime mixed-use development in the 1970s, the redeveloped Golden Mile Complex will see it reimagined with 156 office units, bringing its legacy full circle. A new four-storey extension will also be built to house prestigious Crown Offices with panoramic views of the sea and the city.

Past performance of mixed-use developments in District 7

With modern lifestyles in mind, The Golden Mile could be the next success story in a series of mixed-use developments launched in District 7, benefiting from similar desirable traits like greater retail convenience and proximity to the city centre.

Chart 1: Median price performance ($psf) of mixed-use developments in D7

Price growth for past mixed-use developments in District 7 has remained positive from 2021 to 2024. Median unit prices (on a dollar per square foot basis) for these developments have annualised growth rates of between 0.5% to 6.8% across a holding period of three years; this surpasses the performance in District 7, where prices have trended downward over the same timeframe.

Moreover, projects recently completed last year, namely Midtown Modern and Midtown Bay, also saw steeper annual growth over the same period than their predecessors, such as DUO Residences and City Gate. Accordingly, this observation could bode well for Aurea’s growth prospects in the future.

A heritage icon, revived.

Finally, it’s worth highlighting that The Golden Mile marks a new milestone in Singapore’s urban rejuvenation efforts. Unlike previous redevelopment projects such as One Pearl Bank and Shaw Tower which were consigned to history, the transformation of Golden Mile Complex stands out as the first instance of a strata-titled conservation building being modernised yet still preserving its past.

In other words, this presents a “golden” opportunity to live in a revitalised heritage development at Beach Road – one that embodies the best of modern-day living and Singapore’s storied architectural legacy.

Wish to know more about living at Beach Road or at the revamped Golden Mile Complex? Get in touch with an ERA Trusted Adviser today to learn more

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Keep scrolling, because we’ve done the math for you!

It’s often said that location is the most important factor when buying a new home. While that is almost always the gospel truth, price is undeniably the next-most crucial point of consideration for any aspiring homeowner.

Amidst the current market where prices for private properties are on the uptrend, it’s more important than ever to carefully evaluate what you’re able to afford. Naturally, this process warrants checking out the sticker prices for condos (both new and resale), however you’ll also need to account for other considerations – not least your current financial commitments, interest rates, and borrowing limits.

To paint a complete picture, we break down the key factors that’ll determine whether your household income can afford you a condo in 2024, be it from the primary or secondary market.

How much does a condo cost in Singapore today?

Before delving deeper into the numbers, it’s important to note that condo prices can differ significantly across Singapore. This variance hinges on a whole slew of factors: a condo’s size, its proximity to amenities (think schools, malls, and public transport hubs), and of course, a development’s age which will affect the balance lease.

That said, location – or more specifically, the region where a condo is situated – is one of the strongest indicators of how much it’ll cost.

Broadly-speaking, condos in the Core Central Region (CCR) tend to command a higher price than their similarly-sized counterparts in the Rest of Central Region (RCR) and Outside Central Region (OCR); this is mainly due to the proximity of CCR homes to the prime business district, which increases their appeal and market value.

Likewise, RCR properties usually come with a bigger price tag than those in the OCR, as they are more centralised compared to OCR homes.

So, with that in mind, here’s an overview of how much new and resale condos could cost in 2024, based on official median price data from the Urban Redevelopment Authority (URA):

Table 1: Median price of new and resale condominiums by region*

Region	Median Price (New Condo)	Median Price (Resale Condo)
Core Central Region	$1,999,000	$2,486,000
Rest of Central Region	$2,373,000	$1,710,000
Outside Central Region	$1,958,000	$1,400,000

Source: URA, ERA Research and Market Intelligence (*Based on URA data from Jul to Dec 2024)

For purpose of the study, the numbers are rounded up to the nearest thousands.

Based on these figures—plus a few assumptions— you’ll get an approximate idea of whether one of these homes fits within your budget, given your current salary.

How much do you need to make to afford a condo purchase in Singapore?

With the latest prices listed above, determining the salary you’ll need to afford a condo would be a clear-cut process, right? But not quite.

Before diving into the numbers, it’s important to note that there are other considerations at play – and not just the price of your dream condo. For instance, condo buyers must consider the Total Debt Servicing Ratio (TDSR) and Loan-to-Value (LTV) ratio, which will certainly impact their affordability as well as the size of their downpayment.

Hence for simplicity’s sake, here are some assumptions that we’ll be using to guide our calculations and estimates:

1. The buyer(s) has no existing loan obligations, be it a mortgage, car loan or credit loan; this is so that they will be able to maximise the TDSR of 55% for their future home mortgage.
2. The current stress test rate of 4% is applied when determining the maximum loan quantum.
3. Other home-related and/or miscellaneous costs are not factored into the calculation (e.g. stamp duties, legal fees, home renovation/furnishing costs).

Based on median price data of transactions in each region and the pointers above, here’s what you’ll need to earn to afford a new/resale condo in Singapore today…

Table 2a: Approx. income needed to afford a new condo in each Singapore region*

Region	Median Price (New Condo)	Corresponding Size (Sqft)	Approx. Household Income Needed	Approx. Monthly Repayment
Core Central Region	$1,999,000	732	$13,100	$7,200
Rest of Central Region	$2,373,000	904	$15,500	$8,500
Outside Central Region	$1,958,000	743 – 1,012	$12,800	$7,100

Source: URA, ERA Research and Market Intelligence (*Based on URA data from Jul to Dec 2024)

For purpose of the study, the numbers are rounded up to the nearest thousands.

Table 2b: Approx. income needed to afford a resale condo in each Singapore region*

Region	Median Price (Resale Condo)	Corresponding Size (Sqft)	Approx. Household Income Needed	Approx. Monthly Repayment
Core Central Region	$2,486,000	1,281	$16,200	$8,900
Rest of Central Region	$1,710,000	764 – 969	$11,200	$6,200
Outside Central Region	$1,400,000	635 – 1,421	$9,200	$5,100

Source: URA, ERA Research and Market Intelligence (*Based on URA data from Jul to Dec 2024)

For purpose of the study, the numbers are rounded up to the nearest thousands.

For a deeper dive, here are your options…

While the salary figures listed above are a useful starting point for condo buyers, they certainly don’t reflect the full diversity of costs and affordability for private homes in Singapore. To provide a more complete picture, here’s a breakdown of new and resale property prices across regions, paired with various salaries and home sizes.

Chart 1a: New and resale property prices in CCR by size and salary levels (Jul-Dec 2024)*

Chart 1b: New and resale property prices in RCR by size and salary levels (Jul-Dec 2024)*

Chart 1c: New and resale property prices in OCR by size and salary levels (Jul-Dec 2024)*

(*Estimates are based on assumptions of a stress test rate of 4%, interest rate of 3%, TDSR of 55%, LTV of 75%, and a 30-year mortgage loan tenure.)

For example, referencing the chart above, the most affordable new private home under 600 sq ft (i.e. a 2-bedder or smaller unit) in the OCR would cost at least $883,000, while the priciest could reach approximately $1.4M. Correspondingly, you would need an income of about $5,800 to cover the cost of the most affordable option, while the higher-priced unit would require a salary of around $9,200.

As for the RCR, a new private home sized between 600 and 899 sqft (typically a 2-room unit) would cost between $1.38M and $2.7M. This means buyers would need a monthly income of around $9,000 to afford a smaller unit in this range, and approximately $17,600 for a larger one.

Alternatively, if you’re looking to purchase a resale or sub-sale property in the CCR between 900 and 1,199 sqft (i.e. 2- to 3-bedder units), the corresponding price range would start at around $980,000 and could go up to approximately $3.5M. As a result, the salary range needed to afford these properties would be roughly between $6,400 to $23,000.

Salary aside, what else should you take note of when budgeting for a condo?

No doubt, price tags are certainly the top concern on any prospective condo buyer’s mind, but there’s more to the picture than meets the eye when it comes to determining affordability.

As with any property purchase, aspiring condo owners will want to consider their downpayment, which determines their upfront costs. Based on the current Loan-to-Value ratio, which stands at 75%, condo buyers will have to pay up to 25% of their new property’s price initially, of which 5% must be in cash.

The starting cash outlay for condo purchases also consists of stamp duties, such as the Buyer’s Stamp Duty which is computed based on progressive rates. The Additional Buyer’s Stamp Duty may also apply depending on whether buyers intend to purchase an additional private home on top of their existing non-HDB dwelling.

So, is it possible to afford a Singapore condo with your salary?

To put it simply, the answer is a firm “yes”. With proper financial planning and a clear understanding of your affordability range, purchasing a condo in Singapore is certainly an achievable dream.

However, if you aren’t a seasoned buyer, it’s best to seek professional advice to ensure your numbers are accurate and up to date. Once again, keep in mind that while the above estimates are a useful starting point, there are also other factors at play. For instance, fluctuations in loan interest rates or adjustments to debt thresholds (i.e. TDSR) will affect the amount you can secure for a home loan, and thus, the size or type of property you can afford.

Want to get a better idea of your buying power and explore your options for private homes? Be sure to reach out to an ERA Trusted Adviser today and start your journey to condo ownership on the right foot!

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

This article was brought to you in conjunction with FRX Capital and ERA Property Megashow – the premier event for discovering valuable investment opportunities in Singapore.

How does the idea of living near a heritage tourist attraction, business hubs with Grade-A offices, and one of Singapore’s largest coastal redevelopment projects sound to you?

If your answer is “Great!” or anything similar, The Hillshore may just be the private residential project to tick all (or most) of the proverbial boxes for your ideal home.

Launched just this year by real estate investment firm and developer FRX Capital, The Hillshore is a boutique development sited at Pasir Panjang in District 5. This places it in close proximity to Haw Par Villa, various business nodes in Singapore’s city core, and perhaps most crucially, the Greater Southern Waterfront, which is part of a larger plan to revitalise “an entire stretch of 120 kilometres of prime waterfront coastline”.

As highlighted during Prime Minister Lawrence Wong’s maiden National Day Rally speech, this transformation will begin in “the West all the way to Pasir Panjang” (i.e., the Greater Southern Waterfront) before “stretching out to the East” where the future ‘Long Island’ is located.

These projects for Singapore’s southern coastline, along with other salient selling points, make The Hillshore a viable option for discerning buyers. So, here’s a ‘tour’ of everything that it has to offer.

Oh, but before that, did we also mention that The Hillshore is a freehold condo too?

Why does The Hillshore’s location offers great accessibility and potential?

1. The transformative potential of the Greater Southern Waterfront

First announced in 2013, The Greater Southern Waterfront will see the rise of a “new major gateway and location for Singapore’s southern coast”. As outlined by the Urban Redevelopment Authority (URA), this long-term plan will see a land mass “three times the size of Marina Bay” being revitalised with more residential options, offices, and recreational spaces.

With specific regards to housing, the biggest transformation along the Southern coastline is undoubtedly the influx of new homes. Over 9,000 HDB and private residences will be built, breathing new life into Bukit Timah.

Additionally, with the relocation of container terminals at Tanjong Pagar, Keppel, and Pulau Brani, as well as Pasir Panjang Terminal by 2027, this will result in an additional 1,000ha of land being freed up for further development. This change could lead to new waterfront residential precincts with lifestyle attractions being built, bolstering the prospects of future capital appreciation for nearby developments including The Hillshore.

2. Proximity to key business nodes in Singapore’s core city and its fringes

As its name suggests, The Hillshore is located near Singapore’s western shores, placing it directly within the boundaries of the Rest of Central Region (RCR) while also granting access to key commercial nodes surrounding its Pasir Panjang address.

For future owners, this locational attribute could translate into two positive outcomes: convenient access to locations with promising job opportunities, as well as a pool of potential renters keen on residing near their workplaces.

Towards the East of The Hillshore, the Alexandra precinct is where Mapletree Business City and mTower (a.k.a. the former PSA Building) are located. Also, with them are major corporations like Google, as well as Government entities such as Singapore’s Ministry of Transport and the Maritime and Port Authority of Singapore.

Likewise, future residents will find the Central Business District accessible, being just a 13-minute drive from The Hillshore. Needless to say, this proximity will make it easy for professionals to travel from their homes to their workplaces in Singapore’s city core.

Over the next two decades, residents at The Hillshore will also stand to benefit from the rise of the Jurong Lake District (JLD). Located 16 minutes away by car, the JLD is poised to become the nation’s largest business district outside of the city core, where flexi-use sites and business parks will be incorporated to form a one-stop commercial centre.

3. A well-connected address with convenient access to public transportation

Apart from the West Coast highway (12 minutes away) and Ayer Rajah Expressway (14 minutes away), which connect The Hillshore to the abovementioned business nodes, future residents will also get to experience convenient access to stops on the Circle Line (CCL).

Thanks to The Hillshore’s location, Haw Paw Villa station is just 500m from its doorstep, allowing residents to enjoy a short commute to key CCL stations like Harbourfront and one-north. In particular, one-north stands out as a destination for working professionals in the tech and R&D sectors due to it being a key science hub in Buona Vista.

Moreover, with the completion of the CCL’s final extension in 2026, the line’s loop will finally be closed, giving residents direct access to even more centrally-located stations, including Dhoby Ghaut and Bayfront.

4. Ample dining and recreational options in the vicinity

In terms of dining options, residents have the choice to explore Pasir Panjang Food Centre, a culinary haven offering a wide variety of local delights just a short walk from the MRT station sharing its namesake. They can also choose to venture to Seah Im Food Centre, a popular lunchtime and dinner spot for residents and workers in the Harbourfront area.

Nature-lovers, on the other hand, will come to appreciate The Hillshore’s proximity to Kent Ridge Park, Pasir Panjang Park and Labrador Nature Reserve. Most notably, a new 2.2km section of Pasir Panjang Park was opened just last year, giving visitors a continuous 17km walking/cycling route along Singapore’s West Coast extending all the way to Jurong Central Park.

5. Though The Hillshore is a boutique condo, it offers a mix of unit options

Among the new developments launched in District 5 between 2023 and 2024, only four have unsold units remaining as of the time of writing. In total, there are just 332 available units between them, with 56 units located at The Hillshore.

Hence, with fewer launches and the limited availability of units in District 5, The Hillshore could emerge as a standout option for condo buyers planning to live in Pasir Panjang – especially those who are interested in exploring different unit types and/or having more options to choose from within a development.

This appeal is further enhanced by The Hillshore’s freehold tenure; a characteristic shared only by one other recent new launch located in the Pasir Panjang subzone. Alongside new commercial and entertainment options brought forth by the Greater Southern Waterfront, this combination could pave the way for future price growth at The Hillshore.

What are the units at The Hillshore like?

Table 1: Unit types available at The Hillshore

Type	Size (sqft)	Starting Price*	Psf starting price*	Total no. of units
2-Bedroom	743	$1,855,000	$2,497	22
3-Bedroom	1,055 – 1,109	$2,628,000	$2,491	27
4-Bedroom (Dual Key)	1,475	$3,808,000	$2,582	3
4-Bedroom (Penthouse)	1,647 – 1,776	$3,968,000	$2,506	7

Source: ERAPro, ERA Research and Market Intelligence (*Data as of 24 Aug 2024)

With only just 59 units across two blocks of five-storey towers, The Hillshore is by definition a boutique development; these smaller-scale residences offer exclusivity and tranquillity, making them attractive options for either young couples, empty nesters/retirees, or even investors who prefer smaller units with higher rental yield.

These demographics are likely to align with the target market for The Hillshore, considering that its unit mix predominantly features two-bedder (22 units) and three-bedder (27 units) apartments, with a smaller number of upscale four-bedroom homes (10 units).

Here’s a closer ‘look’ at what some of The Hillshore’s units are like on the inside:

Two-bedroom units: Suitable for young couples

The Hillshore offers a choice of four two-bedroom unit options: standard two-bedders, premium two-bedders, and penthouse versions of both.

In particular, the Type A1 standard two-bedders may be a draw for young couples seeking a space-efficient, easy-to-upkeep home. With their dumbbell-shaped layout, these 743 sqft units eliminates dead space by having the junior and master bedrooms located on opposite sides of the apartment. In turn, this layout does away with the need for a long hallway, which prevents precious square footage from going to waste.

The Type A1 two-bedders at The Hillshore feature a dedicated kitchen as well, taking the place of hallway meal prep areas found in some two-bedders on the market. This practical inclusion ensures a separate space for food preparation, while also making low-maintenance less tedious by preventing cooking fumes from spreading into other zones.

Three-bedroom units: Suitable for families with children

Compared to their two-bedder counterparts, the Type B1 three-bedders (1,055 sqft) at The Hillshore come with an even greater range of indoor features, making them suitable for three-to-four-person households. These include an additional bedroom, a utility bathroom, as well as a balcony, which bring offer up even greater convenience and comfort.

Though Type B1 units at The Hillshore are missing the dumbbell layout of Type A1 two-bedders, the linear configuration and rectangular shape of their rooms opens up the possibility of creating a considerably more spacious communal zone.

With some renovation, it’s possible to merge the dining area and its neighbouring bedroom (if it isn’t occupied) to form a large, open-plan living area complete with an open-air balcony. However, if a separate space is desired, there’s always the option of transforming the spare bedroom into an amply-sized private study.

Four-bedroom units: Suitable for multi-generational families

Plausibly due to The Hillshore being a boutique development, its four-bedders are all higher-end offerings, with seven out of the ten units being penthouses, and the remaining three being dual-key units that allow for tenant accommodation. These four-bedders command price tags upwards of $3.8M, and possess various features expected of an upscale home able to house multi-generational families.

For starters, the Type B1 four-bedder penthouse units have a floor size of 1,701 sqft, making them at least 60% large.r than their three-bedroom counterparts.

The extra square footage primarily comes in the form of a junior master bedroom with its own attached bathroom, as well as an even larger master bedroom on the upper floor. The latter also comes complete with a walk-in wardrobe and a bathroom spacious enough to accommodate a his-and-her sink configuration.

In addition, a roof terrace adjoining the master bedroom serves as a private patio. Thanks to The Hillshore’s elevated position on a downwards slope, this feature gives occupants a bird eye’s view of the neighbourhood, as well as scenic views of Singapore’s western coast.

The Hillshore: A freehold opportunity offering an elevated living experience

Rooted in the legacy of the renowned Tong Eng Group, FRX Capital has established itself as a nascent real estate firm in Singapore, with a $350M portfolio in property investment and development projects locally and internationally.

Leveraging the extensive domain knowledge and expertise of its founders, FRX Capital is dedicated to offering quality investment opportunities for investors, while also creating valuable real estate assets for buyers. This ethos has culminated in The Hillshore – FRX Capital’s first-ever freehold condominium project, nestled within the serene neighbourhood of Pasir Panjang.

With its strategic location along the Greater Southern Waterfront and bespoke units that reflect comfort, luxury, as well as thoughtfulness, The Hillshore is a compelling choice for aspiring homeowners and discerning investors alike.

Interested in learning about The Hillshore? Connect with an ERA Trusted Adviser today for more information.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Slightly more than a decade ago, the Urban Redevelopment Authority (URA) released its Draft Master Plan 2013, revealing the then-current blueprint that would guide Singapore’s land use over the next 10 to 15 years.

Within it, several projects were outlined to further anchor Woodlands’ status as an up-and-coming regional hub. This entailed fully transforming the Northern town into a vibrant residential and commercial district, not unlike its contemporaries in the East and West, Tampines and Jurong.

Subsequently, when the curtains were pulled back for URA Master Plan 2014, several exciting projects were confirmed for Woodlands. The core developments include Woodlands Regional Centre, Woodlands Health Campus, as well as new stations on the Thomson-East Coast line.

Ten years on, how have these projects unfolded to shape Woodlands’ identity as a “star destination of the North”?

Woodlands Regional Centre

As part of bigger plans to pair quality living with career opportunities in the North, Woodlands Regional Centre will serve as a cornerstone for the zone’s development. Doing so sets the stage for Woodlands’ emergence as a key location for fostering closer business links with neighbouring Malaysia, as well as the rest of the ASEAN region.

In large part, the decision to make Woodlands Regional Centre a reality is driven by its strategic position near the Johor-Singapore Causeway, granting it the potential to be developed into a vital economic gateway accompanied by housing opportunities in neighbouring areas.

First announced by then-Minister for National Development Khaw Boon Wan, Woodlands Regional Centre is collectively comprised of 100ha of developable land sub-divided into two precincts: Woodlands Central and Woodlands North Coast.

Woodlands Central– A Thriving Community and Business Node

Envisioned as a new lifestyle and commercial hub, Woodlands Central is slated to house a range of office spaces, retail malls, entertainment options, and residential developments.

The precinct’s 30ha teardrop-shaped site also encompasses existing key destinations in the neighbourhood. These include Causeway Point shopping centre, Woodlands Civic Centre, as well as Woodlands MRT station.

To support the residential needs of future residents, Woodlands Central was also announced in 2017 to be one of three towns to receive an injection of new HDB flats. As part of the third phase of the ‘Remaking Our Heartland’ (ROH) programme, Woodlands will see 10,000 new units built at developments sited near Woodlands Central and Woodlands North Coast.

Woodlands North Coast – Housing Precinct and Economic Hub by the Waterfront

Woodlands North Coast, on the other hand, spans across a larger 70ha plot located further up of Woodlands Central, putting it in close proximity to Republic Polytechnic, and more crucially, the Woodlands waterfront. This location positions it as a gateway to Malaysia, while also setting the stage for future coastal residential projects in the neighbourhood.

In 2013, plans for the North Coast Innovation Corridor (NCIC) were announced as well. Stretching from Woodlands to Punggol, this planned commercial belt will see Woodlands Regional Centre coming to the fore as Singapore’s primary business park cluster in the North with the potential to provide as many as 100,000 new jobs upon its completion.

What’s happening at Woodlands Regional Centre presently?

At present, plans to rejuvenate Woodlands Regional Centre are well underway, with several key milestones from its Master Plan already successfully met during the intervening years since it was initially announced in 2014.

Woodlands Central: New office spaces and homes for residents

In 2020, Woodlands witnessed the opening of Woods Square, its first mixed-use development featuring Grade A office spaces. Jointly developed by Far East Organisation, Far East Orchard, and Sekisui House, Woods Square comprises four commercial towers with a total of 494 office units and 39 retail units.

Apart from providing businesses a viable location for setting up branch offices in North Singapore, Woods Square’s debut also complements the Government’s aim to decentralise employment centres by bringing employment opportunities and office amenities closer to suburban towns away from the city core.

Relating to this objective, two Build-to-Order (BTO) projects have already been launched in the Woodlands Central precinct: UrbanVille @ Woodlands (1,785 units) and Urban Rise @ Woodlands (848 units). UrbanVille was introduced during August 2020’s BTO exercise and is expected to be completed by 2026. On the other hand, Urban Rise, launched in December 2023, is slated for completion in 2028.

Woodlands North Coast: Fresh opportunities and infrastructure for businesses

Though it may be some time before Woodlands North sees BTO flats of its own along the country’s northern coastline, the area has experienced growth in other areas, particularly in its industrial capabilities. This progress will contribute to the NCIC’s goal of transforming Singapore’s northern coast into a vibrant commercial hub brimming with new technologies and ideas.

Industrial projects completed by Jurong Town Corporation (JTC) thus far, such as 1 North Coast and 7 North Coast, represent a progressive step forward to realising this vision.

Both developments offer unique advantages for Singapore businesses; while 1 North Coast’s flexible zoning of 30-70% allows for both manufacturing and non-industrial functions to be housed under the same roof, 7 North Coast is optimised to serve as a strategic hub for industrialists operating locally and regionally.

Thus far, notable companies with a presence at Woodlands North Coast include Micron, a semiconductor giant with global reach, and Illumina, a biotechnology firm and manufacturer of DNA sequencing machine technology.

Woodlands Health Campus: A dedicated healthcare complex in the North

In addition to the developments mentioned above, 2014 also marked the announcement of the Woodlands Health Campus—the town’s first-ever public hospital to be constructed on a 7.7ha site near the then-upcoming Woodlands South MRT station.

Plans were laid out for Woodlands Health’s creation to address the healthcare needs for the North Region’s growing population, with a focus on providing access to acute, community, and elderly care services.

Close to a decade later, Woodlands Health welcomed its first patients in December last year. Though only specialist outpatient clinics and a limited number of community hospital beds were made available during the first phase of its opening, the hospital has since fully opened the rest of its facilities as of May 2024, ranging from critical care units to a healing ‘Parkland’ designed in collaboration with the National Parks Board.

Thanks to its interconnected medical spaces, Woodlands Health is able to implement an innovative care model. Such an approach enables patients to access a full spectrum of health services—including medical examinations and rehabilitation—without needing to visit different hospitals for follow-up treatments.

In total, Woodlands Health houses 1,000 acute and community beds, along with nearly 400 beds in its long-term care tower. The hospital’s infrastructure allows it to expand its capacity to up to 1,800 beds in response to future demand and/or bed crunches as well.

Improved transportation links: North-South Corridor and Thomson-East Coast MRT Line

Beyond the improved precincts and healthcare facilities, URA’s Master Plan 2014 envisioned Woodlands as a well-connected regional hub following the development of two key transportation projects: the Thomson-East Coast Line and the North-South Corridor.

A key component in enhancing Woodlands’ transportation network, the Thomson-East Coast Line (TEL) will introduce three new MRT stations: Woodlands North, Woodlands (TEL extension), and Woodlands South.

As of January 2020, all of the abovementioned stations are open to the public. Collectively, these new stops provide end-to-end train connectivity for the entirety of the Woodlands Regional Centre, while also giving residents a new direct route from their homes to the heart of Singapore’s downtown business core.

Similarly, the North-South Corridor (NSC) is set to enhance multi-transport access, offering not just an improved vehicular route, but also a smoother commute for cyclists and pedestrians traveling downwards from the upper reaches of Singapore.

Initially envisioned as the North-South Expressway in 2011, this 21.5km vehicular route was re-designed into its current form comprising a viaduct, a tunnel, as well as ground-level streets. Doing so would allow more space to be allocated towards pedestrian corridors, including footpaths, cycling routes, priority lanes for public transport, and even green community spaces.

At present, the NSC is still under construction and it is slated to open in phases starting from 2027, with the viaduct from Admiralty Road West to Lentor Avenue being the first section to become operational.

Once it’s fully completed, the NSC will streamline travel to and from the city, thus relieving road congestion and improving commute times for residents living in towns situated along Singapore’s North-South transport spine—Woodlands included.

What’s next for Woodlands?

Beyond the projects outlined in past and present Master plans, further developments are on the horizon for Woodlands and its surrounding areas.

For starters, the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) will aid cross-border travel by offering a fast and efficient alternative to the Causeway by end-2026. This new Light Rail Transit (LRT) system connects Woodlands North Station to Johor’s Bukit Chagar Station, and is capable of accommodating up to 10,000 commuters per hour in each direction during peak travel periods.

In 2025, works to expand Woodlands Checkpoint to five times its current size will also commence, bringing it from 19ha to 95ha with redeveloped infrastructure at the Old Woodlands Town Centre. The future extension is set to become fully operational by 2032, contributing to faster customs clearance times, while relieving congestion from high traffic volumes.

Viewed collectively with ongoing Master Plan initiatives, these projects will strengthen Woodlands’ position as the North’s primary regional centre, hence potentially spurring property growth in the area as well.

While Woodlands currently has one of the lowest inventories of non-landed private homes (excluding executive condominiums) among the various planning areas in Singapore as of 2Q 2024, the upcoming launch of Norwood Grand, a 348-unit, 99-year leasehold development, is set to provide a timely injection of brand-new stock in the area.

As such, homebuyers, particularly those keen on a private condo, may find Woodlands appealing as a promising location.

With additional private and public housing, new infrastructure, and transportation upgrades on the horizon, Woodlands is poised for future growth and development in more ways than one.

Not only do these projects aid in unlocking Woodlands’ potential as a highly desirable town for residents, they’ll also set the stage for its eventual transformation into a dynamic industrial hub – one where businesses are able to expand their operations, both within and beyond Singapore’s borders.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Given their on-site facilities, like swimming pools and gyms, as well as the “condominium” label, it’s not hard to see why Executive Condominiums (EC) are an attractive option for homebuyers in Singapore.

Besides offering similar value propositions as regular condominiums, such as the privacy and security of a gated compound, ECs also possess a comparable sense of exclusivity. However, if you were to examine ECs in greater detail, you’ll notice several unique characteristics.

For instance, while new ECs are constructed by private developers, they are subject to similar rules and regulations as public housing (read: HDB flats). This applies to important concerns, including but not limited to, purchase eligibility, Minimum Occupation Period (MOP), and property rental.

So, where exactly do the similarities end and the differences begin for ECs? And more importantly, are they worth buying? For answers, and more, keep scrolling!

What is an Executive Condominium?

In a nutshell, ECs can be viewed as affordable alternatives to conventional non-landed private housing, albeit with key differences in buyer eligibility, as well as selling and renting restrictions.

For instance, ECs are subject to the same MOP as HDB flats, meaning that owners are prohibited from selling or renting out the entire unit during the holding period, which lasts five years from the date of obtaining the Temporary Occupation Permit.

Upon completion of the five-year MOP, these resale and rental restrictions are loosened, allowing EC owners to sell their home – but only to Singaporeans and Permanent Residents – as well as to rent them out entirely as a unit.

After a further five years from the end of an EC’s MOP, it’ll will achieve full privatisation, making it legally-purchasable by foreigners.

Also, in case you are wondering how ECs came to be as a ‘middle ground’ between HDB flats and private condos, their origins can be traced way back to the nineties.

In 1995, then Prime Minister Goh Chok Tong announced the introduction of a new housing concept to “satisfy the demands of those who aspire to own private property but cannot afford to do so”.

The end result is as we know it – strata-titled residences offering the best of both worlds, in terms of affordability and exclusivity.

How are Executive Condominiums different from private condos?

Besides being subject to the abovementioned regulations by HDB, there are several other notable ways that ECs differ from private condos:

However, if we were to set everything else aside, perhaps the most significant difference (for homebuyers) is the comparatively lower price tag of ECs.

Table 1a: Median psf prices for Executive Condominiums in District 23

Table 1b: Median psf prices for private condominiums in District 23

A quick glance at recent EC and new private condo launches in the same locality lends credibility to this observation.

Units at Altura and Lumina Grand, both ECs, have median prices of $1,479 and $1,525 respectively, whereas homes at their new private condo counterparts in District 23 command median prices of $1,799 and upwards.

Generally, this gap in prices between ECs and private condos can be chalked up to the substantial subsidies provided by the Singapore government, which may amount to as much as $30,000 for eligible first-time EC buyers.

Location, or more specifically, lower land costs associated with quieter sections of Singapore, likely play a contributing role in the greater affordability of ECs as well. And that is because ECs are typically built in up-and-coming areas, away from bustling mature towns where human activity, and also, land prices are higher.

What is the buying journey for a new Executive Condominium like?

Step 1: Find out about your desired EC and eligibility

For buyers in Singapore, the journey of purchasing a brand-new EC begins from the point that a developer announces the launch of a new EC project; this typically takes place 15 months after an EC site has been tendered during a Government Land Sales exercise.

But aside from visiting an EC showroom, buyers will also want to find out if they are eligible to purchase an EC at this stage.

This can be done by checking against the EC applicant eligibility conditions listed on the official HDB website, but generally, these criteria include:

Step 2: Submitting an application to the EC’s developer and waiting for balloting outcome

After completing the initial homework, the next step for buyers would be to apply for a developer’s balloting exercise; this process can be completed online via an e-application or in-person.

At this stage, buyers will also likely be required to provide copies of their identity, income, and marriage documents. So, keep them handy!

Step 3: Unit booking and receiving an Option to Purchase

Following the ballot, successful buyers will be informed and they can schedule an appointment to book their desired unit.

Once done, buyers will then have to pay an Option Fee amounting to 5% of the EC unit’s purchase price – do take note that this amount has to be paid in cash. In exchange, buyers will receive an Option to Purchase (OTP) from the EC’s developer, which is a legal document that grants a buyer the choice to purchase a property within a set option period.

In addition, buyers who wish to utilise their CPF Housing Grant and/or CPF savings will need to apply to the CPF Board at this stage too. Doing so will allow them to use said CPF monies for their downpayment as well.

Step 4: Hire a solicitor and finalise housing loan arrangements 

By this point, buyers will want to engage a solicitor (a.k.a. a lawyer) to handle the conveyancing process, which will involve lodging a caveat. Doing so ensures that no other interested buyers will be able to purchase their chosen property during the caveat’s validity (i.e., this is the legal equivalent of declaring: “I chope this unit.”).

This is also the stage where buyers should finalise their housing loan arrangements. As ECs cannot be financed using an HDB loan, buyers will have to search for a suitable mortgage package from a bank.

Step 5: Sign the Sales & Purchase Agreement and make stamp duty payments

The Sales & Purchase Agreement is a binding legal contract that documents the intentions and terms of a home purchase, and it will be provided by the EC’s developer when HDB approves a successful application.

Upon receiving a Sales & Purchase Agreement, the next steps for buyers would be to sign it and exercise the OTP. This step will require buyers to pay for the following:

• Booking Fee (5% of the EC’s price)
• Downpayment (15% of the EC’s price)
• Stamp duties (payable where relevant, e.g., Buyer’s Stamp Duty)

Once done, all that is left is waiting for the keys to a brand-new EC home!

How much can you borrow for an Executive Condominium purchase?  

If you are taking up a mortgage to pay for an EC purchase, the maximum amount that you can borrow is determined by the Loan-to-Value (LTV) limit.

Presently, the maximum LTV borrowing limit for an EC purchase is 75% for first-timer buyers who do not have an outstanding housing loan. This is also provided that the loan tenure is limited to 25 years, and does not extend beyond the age of 65 for the borrower.

Additionally, EC buyers who are taking up a bank loan are also subject to Mortgage Servicing Ratio (MSR) and the Total Debt Servicing Ratio (TDSR). These thresholds respectively determine how much of a borrower’s gross monthly income can be used to pay off a property loan (MSR of 30%) and all debt obligations (TSDR of 55%).

So, for instance, a family with a total household income of $16,000 and no outstanding loans will…

• Have a monthly housing loan eligibility of $16,000 x 30% = $4,800 based on the current MSR limit.
• Be able to allocate up to $16,000 x 55% = $8,800 for all loan repayments based on the current TDSR limit.
• Be able to borrow up to $1,005,000 for an EC on a 30-year bank loan, based on the maximum applicable LTV of 75% and a stress test rate of 4%.

How can you pay for an Executive Condominium?

Broadly, there are two ways that EC buyers can pay for their new home purchase: 1) the Progressive Payment Scheme (PPS) and the 2) Deferred Payment Scheme (DPS).

The PPS, also sometimes referred to as the Normal Payment Scheme, is a progress-based system where instalments are paid only when certain construction milestones are reached. For instance, when an EC attains its Temporary Occupation Period (TOP), a buyer will be required to make a payment amounting to 30% of a property’s value.

As for the DPS, it essentially allows buyers to push back the bulk of their repayments (usually 80% of the property’s value) until their EC achieves its TOP.

Table 2: Difference in payment between PPS and DPS for a $1.5m EC, assuming 75% of the loan is paid

While this approach typically results in the total repayment being 2 to 3% higher than the PPS, the DPS could prove valuable for buyers who wish to shore up their cash savings.

The same applies for parties with an existing home loan as the DPS will enable them to service one mortgage at a time, instead of juggling two.

What housing grants are available for Executive Condominiums?

Although EC purchases aren’t eligible for CPF/HDB Housing Loans, it’s still possible for buyers to qualify for the CPF Housing Grant – provided they satisfy the eligibility conditions.

There are two types of CPF Housing Grants available for EC buyers, the Family Grant and Half-Housing Grant.

The Family Grant is applicable to Singapore Citizen (SC) households as well as joint SC and Permanent Resident households, whereas the Half-Housing Grant is applicable for couples consisting of a first-timer (who hasn’t taken any housing subsidies) and a second-timer.

The average gross monthly household income (HHI) stipulated for different tiers of the Family Grant and Half-Housing Grant are summarised as follows:

Table 3a: Family Grant tiers based on average gross monthly HHI 

Table 3b: Half-Housing Grant tiers based on average gross monthly HHI 

So, should you buy an Executive Condominium? What are your options?

Between their attractive price points, comprehensive facilities, and eventual privatisation, ECs have plenty going for them! So, if you are a buyer who is in the market for a new home, these affordably-priced properties should most definitely be on your radar.

At present, there are not one, but three EC developments that buyers can take their pick from. These include:

In real estate, the phrase “location, location, location” is a frequently-heard mantra echoing the importance of location when buying a new property. While that’s undeniably true, the next most-important consideration for the conscious homebuyer is most assuredly, price.

After all, with ongoing concerns about HDB resale flats hitting the million-dollar mark – one of the latest, and also priciest, being a $1.45m Cantonment Road 4-room unit– it isn’t surprising that some homeowners are feeling discouraged about finding their dream HDB flat for an affordable price on the secondary market.

Turning back the clock to 2012, news about the first-ever million-dollar HDB flat broke when it was reported that an executive flat in Queenstown was sold for seven figures. And ever since, the number of resale HDB flats sold at the million-dollar mark has steadily risen. 

In 1Q 2024, a total of 183 resale HDB flats were sold in the million-dollar range based on lodged transactions, with a further 236 units recorded for 2Q 2024.

Should you be worried?

In a vacuum, these figures are daunting for anyone concerned about affordable homeownership in Singapore. Be that as it may, this perspective deserves a second look, this time on a wider scale. 

Based on the total number of 13,203 resale HDB flats sold in 1H 2024, only 419 of them were transacted at over the million-dollar mark; this amounts to only 3.2% of all resale HDB transactions.

Or put another way, for every million-dollar HDB flat sold during the first half of 2024, there were approximately 31 other HDB flats transacted across a spectrum of prices – all below the seven-figure benchmark. 

Hence, in response to the million-dollar question of whether you can find affordable resale HDB flats in the market today, we are inclined to give a firm “yes”. 

Still, the proof of the pudding is in the eating (yum!). Below, we spotlight several locations in Singapore where not just 4-room resale HDB flats, but also their 5-room counterparts, are available for less than a million dollars. 

But first, how did the resale HDB flat market fare for the first half of 2024? 

Before we start exploring where affordable resale HDB flats can be found, here are some quick facts about the current market as of 1H 2024: 

• More resale HDB flats were transacted in the first six months of 2024 compared to the same period last year

As of 30 June, based on transactions lodged, resale HDB flat sales had achieved modest year-on-year growth in the first half of 2024. With 13,203 resale HDB flats sold in 1H 2024, this marks a 2% increase in transaction volume over 1H 2023, which had 12,940 resale HDB transactions recorded. 

This year-on-year increase indicates a steady growth in demand for resale HDB flats. 

• The average price for a 4-room resale flat was $608,299 whilst the average price for a 5-room resale flat was $712,604 in 1H 2024. 

Hence, referring to these average prices, we’ve set the thresholds for what qualifies as “affordable prices” at $650k for 4-room flats and $750k for 5-room flats.

• There were 5,663 4-room resale HDB flats sold in the first six months of 2024

In the first half of this year, there were a total of 5,663 4-room resale flats transacted. Amongst them, 4,244 units (or roughly 75% of them) were sold for under $650k. 

Let us examine the segment of affordable flats by flat age: 

Chart 1: Breakdown of 4-room resale HDB flats sold for under $650k in 1H 2024 by ages than a million dollars.

Units that are 15 years and below (32%) made up the bulk of 4-room resale HDB flats transacted under the $650k mark. This is followed by units that are 36 – 45 years old (27%) and 26 – 35 years old (20%).

• There were 3,050 5-room resale HDB flats sold in the first six months of 2024

As for 5-room resale HDB flats, 3,050 units changed hands in the first half of 2024. And of this number, 2,133 units (or approximately 70% of them) were transacted with a price tag that’s less than $750k.

Below, a more detailed overview by flat age:

Chart 2: Breakdown of 5-room resale HDB flats sold for under $750k in 1H 2024 by age

Unlike the 4-room resale HDB market for 1H 2024, the majority of affordable 5-room HDB homes sold are between 16 – 25 years in age (38%); this is followed by units between 26 – 35 years (25%) and 36 – 45 years (18%) age brackets.

Where can you find affordable 4-room resale HDB flats for less than $650k? 

Of the 26 towns where 4-room resale HDB flats under $650k can be found, the top three towns with the greatest number of such resale units in 1H 2024 are Yishun (416 units), Woodlands (406 units), and Sengkang (373 units).

Map 1: Locations of 4-room resale HDB flats sold for under $650k in 1H 2024

In these satellite towns, residential properties tend to be sold at more pocket-friendly prices than those in the heart of Singapore. 

However, that isn’t to say that your odds of finding 4-room HDB flats for under $650k in mature towns are poor. In 1H 2024, Tampines, Bedok, and Pasir Ris each saw 277, 144, and 113 units sold, but take note: the clock may be ticking on these units as a large number of them are likely to be 35 years old and above. 

Which towns saw the most sales of 5-room resale HDB flats under $750k? 

Similarly, amongst the 21 towns where 5-room resale HDB flats under $750k can be found, the bulk of sales activity mainly took place in suburban locales. 

Map 2: Locations of 5-room resale HDB flats sold for under $750k in 1H 2024

In 1H 2024, Sengkang (292 units) emerged as the town with the highest number of 5-room units sold for less than $750k. Tailing closely behind are Woodlands (265 units) and Jurong West (259 units), which also saw significant volumes of 5-room resale flat transacted below the $750k price point. 

And once again, Tampines, Bedok, and Pasir Ris topped the charts for mature towns with the most number of 5-room HDB units transacted for under $750K, clocking in at 158 units, 60 units, and 70 units respectively. 

In which towns can you find affordable 4-room and 5-room resale HDB flats that are also relatively young (15 years old and below)?

While price is definitely on the minds of most resale HDB flat buyers in Singapore, it’s also crucial that they consider the age of the homes that they are interested in. Ideally, a resale property that offers good value should be 15 years old or younger; this is to ensure that it has a longer remaining lease, and thus retains its worth in the future.

Map 3: Resale 4-room HDB flats, 15 years and below, sold for under $650k in 1H 2024

In the case of 4-room resale HDB flats that are 15 years old and younger, these units are most likely to be available in non-mature towns. Topping this list is Punggol with 254 units, followed by Sengkang with 211 units, and Yishun with 191 units.

Map 4: Resale 5-room HDB flats, 15 years and below, sold for under $750k in 1H 2024 

Compared to other towns where 5-room HDB flats sold for below $750K in 1H 2024, Yishun, Punggol, and Choa Chu Kang stand out for having the greatest number of transacted units that are 15 years old or younger; Yishun accounted for 58 of such units, Punggol had 52, and Choa Chu Kang had 50.

Or in other words, budget-conscious homebuyers have a greater chance of finding a resale HDB flat with more time left on its lease in the abovementioned non-mature estates, and for a reasonable price too! 

So, what can aspiring resale HDB flat buyers take away from these findings?

To sum it all up, if you’re in the market for an affordable 4-room or 5-room HDB resale flat, you’d do best to start your search in suburban Singapore. This is due to generally lower home prices in these newer, less-developed estates, making it easier to find an HDB resale flat that suits your budget there. 

Also, finding a resale HDB flat that’s relatively young will give you the most value for your money. This matters, since remaining tenure is a key determinant of a leasehold property’s sale value – especially if you have plans to upgrade down the road. 

And finally, not to forget what could be the most important takeaway of all: Don’t lose hope. Because even with the constant buzz surrounding million-dollar housing transactions, affordable resale HDB flats do exist out there somewhere. 

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval.

If you’ve been paying notice to the latest news about Singapore’s property market, you’d likely have seen headlines such as “IRAS to claw back S$60 million from buyers who used ’99-to-1’ loophole to avoid ABSD” and “Why using ’99-to-1’ is illegal in avoiding Additional Buyer’s Stamp Duty” making the rounds recently.

Naturally, these announcements have generated much buzz online, while also drawing much attention to the 99-to-1 arrangement, its legality, as well as the ongoing crackdown on Additional Buyer’s Stamp Duty (ABSD) tax avoidance by the Inland Revenue Authority of Singapore (IRAS).

But what exactly does this all mean for private homebuyers locally?

To shed light on the issue, we had Eugene Lim (Key Executive Officer) and Nicholas Poa (Senior Vice President, Legal and Compliance) explain more, as well as answer the burning question on everyone’s mind: “What exactly are the situations where IRAS has clawed back ABSD for properties that are held in a 99-to-1 shareholding arrangement?” 

Can you explain what 99-to-1 shareholding arrangements are? 

Eugene (E): So, before we dive into exactly what 99-to-1 shareholding arrangements are, we must first talk about property co-ownership in Singapore.

Essentially, there are two ways that property can be held. The first is joint tenancy, whereby both parties co-own a property equally – there are no distinct shares. Joint tenancy is common amongst parties who are family or between husbands and wives.

The other form of co-ownership is tenancy-in-common. Under such arrangements, each co-owner holds a prescribed number of shares in the property. In a straightforward scenario, this proportion can be equal, whereby Party A holds 50% of the property and B holds the other 50%.

However, it’s up to the owners to decide how they’d want to split the shares in a tenancy-in-common arrangement, whether it’s by a 50:50 ratio, or 99:1.

Nicholas (N): So, the bottom line that we want to highlight here is that co-owning a property in any proportion – even in a 99-to-1 structure – under tenancy-in-common isn’t illegal.

You can think of tenancy-in-common as being like a commercial joint venture, but for residential property. Each owner holds a proportionate share, often based on their financial contribution.

It’s just like partners in a business where each person’s share is separate and distinct, and they are each entitled to make independent decisions about their assets.

For example, under tenancy-in-common, each co-owner is free to pass on their share of the property to chosen beneficiaries. This is unlike joint tenancy where property ownership automatically vests in the surviving co-owner when one of them passes away.

If 99-to-1 shareholding arrangements aren’t illegal, why then did the authorities classify some cases as tax avoidance? 

N: The type of cases that IRAS has cracked down on are ‘two-step’ transactions that are structured to avoid ABSD.

‘Two-step’ transactions work by splitting up a single purchase into two (or more) steps to reduce the amount of ABSD paid, and they involve at least one co-owner who already owns and/or has a stake in another residential property.

 

For instance, instead of purchasing a new house as co-owners from the outset, Party A buys 100% of the property as a first-timer, after which they will sell 1% of their share to Party B – who is an existing property owner – within a very short period.

In doing so, Party B avoids paying ABSD on the full purchase price of the new property. Instead, they pay ABSD only on the 1% share which was transferred.

E: That’s exactly how the ABSD loophole works. Considering this explanation, perhaps it’s more accurate to describe such two-step purchases as ‘100-sell-1,’ as opposed to the ’99-to-1′ phrase often used by the media to refer to schemes that exploit the ABSD loophole.

That’s because ‘100-sell-1’ more correctly illustrates the exact method that exploits the ABSD loophole, whereas ’99-to-1’ is potentially misleading since it conveys the wrong impression that all 99-to-1 holding arrangements are illegitimate.

Are there any legally valid uses of 99-to-1 shareholding arrangements? 

N: Broadly speaking, there are three legitimate commercial reasons for holding a property in a designated ownership split, regardless by a 99:1 proportion or any other ratio.

The first reason would be to ensure fairness when a property is co-owned under tenancy-in-common from the start, allowing each co-owner to own a share of the property proportionate to the amount that they invested.

Second, would be to maximise loan eligibility. Using the example of Party A and B again, if Party A were to purchase a property by themselves, their loan eligibility will be evaluated solely based on Party A’s income.

However, with co-ownership, both owners’ incomes will be assessed, allowing them to secure a bigger loan while also reducing the amount of cash needed for their downpayment.

Finally, the third legitimate use of co-ownership is for future planning. If co-owners – such as married couples – wish to expand their property portfolio, they’ll be able to exit their first property more easily with a 99:1 arrangement.

This exit process is sometimes referred to as decoupling, and it usually starts off when the co-owner with a minority stake in the property transfers his share to the majority co-owner. As a result, the minority co-owner is no longer a property owner at the point that they purchase a new property, allowing them to be treated similarly as a first-time homebuyer.

I’d also want to highlight that even though decoupling makes use of the 99-to-1 shareholding structure, it’s also quite different from the ‘100-sell-1′ scheme.

For decoupling, both co-buyers don’t own any other property when purchasing their first home in a shareholding structure. In other words, they won’t have any ABSD obligations in the first place.

Furthermore, decoupling involves purchasing a property jointly with a predetermined shareholding structure from the beginning, meaning that there isn’t a second step where a minority stake is sold soon after the purchase.

Considering the recent scrutiny by IRAS, how should homebuyers approach 99-to-1 shareholding arrangements going forward?  

N:  It goes without saying, but homebuyers should exercise extreme caution before engaging in any 100-sell-1 arrangements going forward.

As of May 2024, the Government has made its stance clear on disregarding two-step transactions with 99-to-1 ownership structures as it will be clawing back approximately S$60 million from cases that constitute tax avoidance.

Furthermore, IRAS has also announced that it will be implementing a 50 per cent surcharge that’ll be applied on the payable ABSD amount.

E: Hence, if you’re considering buying a property using any shareholding structures, it’s important that you must consult with a qualified tax advisor or legal professional before you proceed with the transaction. Doing so will give you a better understanding of ABSD laws, and possibly save you from potential pitfalls.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Every Singapore district has its highlights. District 9 has a world-renowned shopping belt in Orchard Road, District 11 has a growing medical hub, and District 14 has Paya Lebar which will be redeveloped as a “highly liveable and sustainable new town”. The list goes on.

So then, what does District 15 have to offer?

Located in the eastern corner of Singapore, District 15 consists of popular enclaves such as Marine Parade, Joo Chiat, and Katong – areas that are both rich in heritage and prime real estate.

However, those aren’t the only features contributing to the appeal of these towns, and also, not the only reasons why you should consider owning a home in District 15.

1. Plans are in place to improve the liveability of District 15

Though all neighbourhoods in District 15 have their own rich history, that’s not to say they aren’t seeing change.

One of the biggest transformations coming to District 15 is the addition of new MRT stations along the Thomson-East Coast Line (TEL) which will bring greater travel convenience to residents in the east. These include Katong Park station and Tanjong Katong station, both located in the larger Marine Parade planning area.

Meanwhile, Marine Parade MRT station, which too is a stop along the TEL, will bring District 15 residents closer to various suburban shopping malls.

Some examples that long-time east-siders will surely identify with are Parkway Parade and i12 Katong Mall – the latter of which was recently reopened in June last year after a two-year revamp.

 

Also, located in the vicinity of District 15 enclaves is East Coast Park. With a history dating back all the way to the 1970’s, this 15km-long coastline, which is wholly-built on reclaimed land, has long been a favourite weekend destination among Singaporeans who want some sun and sea in their lives.

Given the Government’s proposed “Long Island” plan to marry coastal protection measures with new homes, coastal parks, and recreational spaces, it’s likely that further changes will be coming to the area in the future.

More recent improvements to East Coast Park include Costal Playgrove, a renovated water play area, as well as the construction of a brand-new Cyclist Park.

Completed in 2021, Costal Playgrove is sited where Big Splash once stood, and like its predecessor, has water play areas that bring relief from the heat. On the other hand, the Cyclist Park, which is found in Area D of East Coast Park, has riding paths for both amateurs and professionals.

Though unrelated to either transport or recreation, the redevelopment of Paya Lebar Airbase is another ‘upgrade’ that’ll potentially change what it’s like to live in District 15.

In his 2022 National Day Speech, Prime Minister Lee Hsien Loong shared plans to relocate Paya Lebar Airbase to make way for more housing space, along with the lifting of building height restrictions in nearby towns. These include Hougang, Punggol, and most crucially, Marine Parade, which falls under District 15.

Ultimately, what this could mean for District 15 residents is the modernisation of existing residential properties either through the Selective En Bloc Redevelopment Scheme (SERS) or a private en bloc sale to create taller homes.

2. Returns on private homes in the area tend to outperform the regional average

District 15 may be best known for its coastline and leisure offerings, but what its residents may not be aware of are the relatively high returns that they can earn on their homes.

Considering that District 15 is primarily located in the Rest of Central Region (RCR), per square foot (PSF) prices for non-landed private residential properties in the latter would serve as a fair benchmark for the performance of equivalent property sale prices in the former.

Data from ERA’s SALES+ app shows that there has been a steady rise in PSF prices for both 99-year and freehold RCR non-landed private properties across the last decade.

Between 2013 to 2023, PSF prices for 99-year private homes in the RCR grew by 26.95% whereas those for freehold private homes rose by 10.36%.

In contrast, average PSF prices for 99-year private properties in District 15 grew 37.17% across the same period, while freehold private homes in the area rose by 32.89%.

These observations are good cause to believe that present owners of private properties in District 15 will enjoy better-than-usual yields on their real estate sales.

Then what about future owners and developments? There’s the possibility that they too will experience positive outcomes due to further price uplifts from the MRT effect following Phase 4 of the TEL’s opening.

What new condominium launches are there in District 15 for 2023?

With over 40 new launches happening in 2023, there are plenty of options available for home buyers to select from. But for those who are looking specifically for options in D15, here’s a mini-list of upcoming projects to keep an eye out for:

Tembusu Grand

Located in the vicinity of Tanjong Katong and Mountbatten, Tembusu Grand is a 99-year, 638-unit private residence that’s jointly developed by CDL and MCL Land.

A lush green landscape envelops Tembusu’s Grand 19,560 sqm compound, which is within reach of Tanjong Katong MRT station on the Thomson-East Coast Line as well as Paya Lebar MRT station, an interchange situated on both the East-West Line and Circle Line.

The Continuum

The Continuum sits between Haig Road and Tanjong Katong Road, making it an attractive choice for anyone who wishes to settle down in a suburban Singapore enclave.

What’s also notable about The Continuum is that it’s both a freehold development as well as a large project consisting of over 800 units. This bodes well for interested parties, regardless of whether their goal is investment or owner-occupation.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

 

By and large, February has been an eventful month for the local housing market and Singaporeans in general.

Headlining the news was an increase in rental demand, as well as the latest changes in housing policies that were announced by Deputy Prime Minister and Finance Minister Lawrence Wong during Singapore Budget 2023. Also, of note are expectations that Chinese buyers are returning to the local market.

What do these happenings bode for Singapore’s real estate scene moving forward? For answers, insights, and more, read on for a lookback at February 2023 with ERA senior management team member Eugene Lim (Key Executive Officer)!

What are your takes on the new property-related policies announced during Budget 2023?

Eugene: I think Singaporeans, especially new homeowners, will be happy about some of the new policies as they’ll end up benefitting from the changes.

During his Budget 2023 speech, Minister Lawrence Wong announced that the maximum CPF housing grant amounts would be increased for both first-timer families and singles who are buying a resale HDB flat.

With this adjustment, first-timer families can now receive up to $190,000 in CPF grants. First-timer singles, on the other hand, will get up to half the housing grants that families can receive.

Generally speaking, many first-timers will tend to favour buying a BTO flat over a resale flat due to factors like purchasing power and the lower quantum involved. So, for the man on the street, these changes will mean having a broader range of housing choices beyond BTOs.

Or in other words, with the additional support, more first-timers will have a better chance of affording a resale HDB flat. This can be advantageous for certain consumer segments, such as buyers who prefer to live in specific estates to look after their aged parents or individuals who have more urgent housing needs and are unable to bear out the waiting time of 4 to 5 years for a BTO flat.

On that note, Minister Wong also mentioned in his speech that “construction activities are back in full swing”. I believe that this too is a good sign for first-time homebuyers. A recovering construction industry is likely to translate into shorter waiting times for BTO flats as well as a bigger housing supply down the road.

Talking about Budget 2023 announcements, buyers-to-be are probably going to be concerned about the changes related to the Buyer’s Stamp Duty (BSD). Those who have been paying attention to the news are probably aware that the BSD has been raised for both residential and non-residential properties.

Before the Budget 2023 announcement, residential properties were taxed at a rate of 4% beyond $1M of their value, but that has since increased to 5% beyond $1.5M and 6% beyond $3M from 15 Feb 2023 onwards.

As for non-residential or commercial properties, the BSD rate was increased by 1 percentage point, from 3% to 4% on the value of a property above $1M and up to $1.5M. Any value exceeding the $1.5M point will be taxed at a rate of 5% from now onwards.

At first glance, these new BSD rates may come across as alarming, but when looked at in perspective, it’s unlikely that they’ll cause that much of a shift in market sentiments.

For example, if you were buying a resale HDB flat, or say, a studio apartment that’s under $1.5M, there’s no change to the amount of BSD that you’ve to pay. And even if you’ve bought a condo, if it’s not more than $2M, you’ll only have to pay $5,000 more, which is about a 0.3% increase on the property’s price.

So, will this change deter homebuyers in Singapore much? I think not, especially if they’ve a genuine need for housing or have clear intentions to invest.

Furthermore, considering that the revised BSD tax rates are scaled by property values, and also how the impact is felt more strongly at the higher tiers, one can possibly interpret this change as the Government’s effort to create a more progressive tax regime on wealth, rather than a cooling effect.

Do you have any observations to share about the current trend of rising rents in Singapore?

Eugene: One of the biggest real estate-related stories to make news since the start of this year is the trend of rising rents. Or to put it in another way, it’s undeniably a landlord’s market right now.

If we were to look at official data from HDB for Q4 2021 and Q4 2022, we’ll immediately see that median rents for 3-, 4-, and 5-room flats have risen markedly year on year in almost every town.

Median rents for 3-, 4-, and 5-room HDB flats by town (Q4 2021, Q4 2022)

Towns	3-room (Q4 2021)	3-room (Q4 2022)	4-room (Q4 2021)	4-room (Q4 2022)	5-room (Q4 2021)	5-room (Q4 2022)
Ang Mo Kio	$1,900	$2,300	$2,300	$2,900	$2,600	$3,150
Bedok	$1,900	$2,300	$2,250	$2,800	$2,480	$3,000
Bishan	$2,100	$2,600	$2,400	$3,200	$2,650	$3,550
Bukit Batok	$1,800	$2,200	$2,100	$2,650	$2,250	$3,200
Bukit Merah	$2,000	$2,600	$2,670	$3,500	$3,000	$3,800
Bukit Panjang	$1,600	$2,700	$2,000	$2,850	$2,200	$3,000
Central	$2,300	$2,800	$2,800	$3,850	*	*
Choa Chu Kang	*	$2,800	$2,000	$2,800	$2,100	$3,000
Clementi	$2,000	$2,500	$2,550	$3,200	$2,600	$3,400
Geylang	$1,900	$2,350	$2,400	$3,000	$2,600	*
Hougang	$1,800	$2,300	$2,150	$2,750	$2,250	$2,700
Jurong East	$1,800	$2,500	$2,200	$2,900	$2,400	$3,100
Jurong West	$1,800	$2,200	$2,200	$2,900	$2,300	$3,030
Kallang/ Whampoa	$2,000	$2,450	$2,550	$3,100	$2,800	$3,700
Marine Parade	$2,000	$2,400	$2,480	$3,350	*	*
Pasir Ris	*	*	$2,100	$2,700	$2,200	$3,000
Punggol	*	$2,850	$2,100	$3,000	$2,100	$3,100
Queenstown	$2,100	$2,730	$2,730	$3,600	$3,000	$4,200
Sembawang	*	*	$2,000	$3,000	$2,050	$2,870
Sengkang	$1,830	$2,550	$2,100	$3,000	$2,200	$3,100
Serangoon	$1,900	$2,500	$2,300	$3,200	$2,500	$2,800
Tampines	$1,850	$2,500	$2,200	$2,800	$2,400	$3,200
Toa Payoh	$2,000	$2,400	$2,500	$3,450	$2,600	$3,200
Woodlands	$1,800	$2,200	$2,000	$2,650	$2,100	$3,100
Yishun	$1,800	$2,400	$2,000	$2,800	$2,200	$3,150

 

Source: HDB
(* denotes cases where the median rent isn’t shown due to undersized populations i.e. <20 transactions.)

In some parts of Singapore, such as the Central area, the year-on-year increase in median rent for 4-room flats was as much as $1,050 or 37.5%.

Outside of the Core Central Region, median HDB rents have grown significantly in neighbourhoods such as Bedok and Tampines. For instance, based on official HDB figures for Q4 2021 and Q4 2022, median rents for 4-room flats in Bedok and Tampines had risen by 24.4% ($2,250 to $2,800) and 27.3% ($2,200 to $2,800) respectively.

Median rents ($PSF) for non-landed private residential properties, excluding ECs (Jan 2022 to Jan 2023

Source: URA

Likewise, between January 2022 to the start of 2023, a similar trend of rent growth was observed for private residential properties in Singapore.

Nationwide data from the Urban Redevelopment Authority (URA) reflect a year-on-year hike in median PSF rental cost from $3.72 PSF to $4.90 PSF, which translates into a 31.7% increase.

The present market appetite for rentals is the result of various factors; these range from the cumulative knock-on effect of COVID-19 construction delays to last year’s cooling measures, which brought about increased rental demand because of the 15-month wait out period imposed on private property downgraders. But in the end, it all comes down to supply and demand.

The public housing market will see over 20,000 HDB flats being completed in 2023 – the highest number in the past 5 years. Where the private residential market is concerned, there’ll also likely be an increase in supply in 2023 as URA estimates that 17,394 units will be completed this year. Thus, is there a chance that pressure on the rental market will ease? It’s possible.

With more Chinese property buyers returning to Singapore, what can we expect?

Eugene:  It’s no secret that the Chinese are one of the largest, if not the biggest, group of foreigners buying real estate in Singapore. This popularity can be largely attributed to Singapore’s reputation as a “safe harbour” for wealthy mainlanders as well as their money.

Although there was a drop in the number of Chinese buyers at the beginning of the COVID-19 pandemic, Singapore’s property market has since felt their return. As it stands, the number of transactions made by Chinese buyers last year exceeds that of pre-pandemic levels.

 

In 2022 alone, Chinese mainlanders bought 1,479 residential properties, more than 2019 and 2020, which saw 1,248 and 1,150 transactions respectively. It’s possible that we could see higher, or at the minimum, similar transaction numbers in 2023 as COVID-19 travel restrictions are loosened domestically and in China.

 

With a new wave of Chinese buyers entering Singapore’s property market this year, what we might also see is an uptick in buyer activity in the Outside Central Region (OCR) and Rest of Central Region (RCR).

That may be the case given that in 2022, Chinese buyers made more property purchases in the OCR and RCR compared to the Core Central Region (CCR) where the majority of premium properties are located.

Hence, given the current state of population movements and purchase patterns of Chinese buyers, it would be wise for property investors and realtors to keep a watch on new launches occurring in the OCR and RCR, especially if they wish to capitalise on potential future trends.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval.