Bukit Timah is traditionally known to be a prime residential area consisting predominantly luxury private condominiums and landed homes, as well as being located near the Core Central Region (CCR). But this could soon change over the next 20 to 30 years.
So you see, the Urban Redevelopment Authority (URA) and the Housing & Development Board (HDB) has announced a development plan on May 2024 that will see the Bukit Timah Turf City being redeveloped into a new residential estate.
More importantly, Bukit Timah will see the inclusion of Build-to-Order (BTO) flats for the first time in almost 40 years!
Here is what you need to know about this upcoming estate.
Bukit Timah Turf City had a colourful past
Spanning 176 ha, Bukit Timah Turf City was once an area dedicated to sports and recreational activities, and most notably horse racing. Known formerly as the ‘Singapore Turf Club’, the site was used for horseracing from 1933 to 1999, and was a popular haunt for avid punters for over 66 years,
According to the Minister of National Development Desmond Lee, “the site was zoned for residential use since 1998, but was leased out for lifestyle and recreational use until the end of 2023”.
Since then, Bukit Timah Turf City has been home to a several sports associations such as a saddle club, country clubs, commercial spaces, and other sporting facilities.
When the Singapore Turf Club shifted to Kranji, the site transformed into a shopping complex serving the immediate residents of the private residential enclave.
Football match held at Turf Club
Why the Need to Redevelop Turf City?
Currently, the piece of land that was once home to Singapore Turf Club is not being utilised well, and has a high redevelopment potential to make the area lively like it once was. Additionally, Bukit Timah is made up predominantly of private residential properties, available only to a select few, which has cultivated the area’s reputation as a prestigious neighbourhood for the wealthy.
Thus, through integrating public and private housing in the upcoming housing estates, this will foster inclusivity among people of different financial background and help breakdown any stereotypes of the area. Furthermore, those working or schooling in the area would be interested in affordable properties that are conveniently located in an esteemed neighbourhood.
Diversify housing options in Bukit Timah
This area, together with the rest of Bukit Timah, is widely perceived as exclusive due to the surplus of private residential properties there, and its central and accessible geographical location.
Therefore, a greater diversity of housing types would be beneficial to a wider group of people who are looking to live in a centrical location nearer to their workplaces, schools and the CCR. Furthermore, by introducing public housing in this area will allow children from diverse backgrounds to attend popular schools in the area.
Better amenities and connectivity
Bukit Timah Turf City’s rich history can be seen in the many buildings and structures that represent the former Turf Club’s distinct aspects, and will be studied for retention and repurposing to integrated it with the new residential enclaves in the future.
Artist’s Impression of a repurposed Fairways Quarters and community space.
Other amenities will include recreational spaces and sports facilities, that will bring convenience to users and at the same time, showcasing the area’s distinct past. The new neighbourhood will be built around the former grandstand and the current oval shaped open space will be retained for recreational purposes.
As for transport nodes, Bukit Timah Turf City currently has no bus services, and the nearest MRT station is Sixth Avenue. Therefore, improving the connectivity of Bukit Timah Turf City with new bus services and MRT lines would benefit both new and existing residences living in that area.
What Can We Expect with the Upcoming Estate
Bukit Timah Turf City is expected to yield 15,000 to 20,000 residential homes, both private and public, across four distinct neighbourhoods, namely Racecourse Neighbourhood, Stables Commune, Saddle Club Knolls and Tinggi Hills.
Map of the 4 new neighbourhoods in Bukit Timah Turf City
To cater to the needs of future residents, these neighbourhoods will feature open public spaces integrated with historic buildings and structures, a variety of amenities including shops, community and recreational facilities, as well as improved transport connections.
Additionally, the Bukit Timah Turf City is planned to be car-lite, pedestrian friendly and well-served by public transport. Due to this, there will be fewer spaces dedicated to car parking to free up space for more greenery and community spaces.
Improved connectivity
The area is currently served by Sixth Avenue MRT Station on the Downtown Line (DTL), which is 15 minutes away from the site. By 2032, Turf City will have its own MRT station on the upcoming Cross Island MRT Line. Residents will be within a 10-minute walk from either MRT station, increasing convenience and connectivity between Bukit Timah Turf City and the rest of the island, without the need for a private vehicle.
Furthermore, new bus services may also be added to allow future residents to have more choices when travelling within and outside the Bukit Timah Turf City estate.
Road improvement works will also be carried out along Dunearn Road, Bukit Timah Road and Eng Neo Avenue to accommodate anticipated traffic to and from future developments at Bukit Timah Turf City. Concurrently, a study is being conducted on the technical feasibility and impact of implementing a new exit ramp from the Pan Island Expressway (PIE) towards Tuas at Bukit Timah Turf City.
BTO flats in Bukit Timah could be a’ golden ticket’ to enter popular schools
After almost 40 years, URA and HDB has announced that HDB flats will be included in this area. The inclusion of HDB flats aims to provide a more affordable housing option for Singaporeans who wish to live in this area.
Existing HDB flats are older and area limited in supply
For HDB buyers looking to stay at Bukit Timah, their only option will be the flats at Toh Yi Gardens estate. With an estimated 2,555 HDB flats in Bukit Timah which were built in 1988, HDB flats in Bukit Timah Turf City will definitely be of high demand, given the area’s prestigious and convenience, as well as the presence of several notable schools in the area.
HDB Transactions At Toh Yi Drive (1H 2024)
Parents with young kids will also be eyeing future properties in Bukit Timah Turf City in hopes of securing a placement in popular schools in the vicinity.
Looking at OneMap, assuming there are BTO flats located on the former Grandstand, they could potentially fall within 1-2km radius of popular schools like Methodist Girls’ School, Pei Hwa Presbyterian Primary School, and Raffles Girls’ Primary School.
Map of schools within 1km of Bukit Timah Turf City
In Closing
Once deemed as a place that is out of reach for most Singaporeans to live in, the upcoming HDB flats in Bukit Timah Turf City will provide a more diverse living community in Singapore. Both current and new residents will benefit from the new amenities, especially the improved connectivity to the rest of the island via public transport links. “Un-priming” the area can bring about a more equitable community.
That said, existing residents may be may expose to some inconvenience from the upcoming construction works. Regardless of that, existing residents will benefit from the future development in the vicinity.
So, would you consider making Bukit Timah Turf City your next home?
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.
For almost anyone doing it for the first time, buying a home in Singapore can be a confusing process. Throw in a bunch of acronyms, like ABSD (Additional Buyer’s Stamp Duty) and MOP (Minimum Occupation Period), and things can get baffling real quick. However, if you’re intending to take out a loan on a new home purchase, two terms that you’ll absolutely need to know are TDSR and MSR.
In their full form, TDSR stands for ‘Total Debt Servicing Ratio’, whereas MSR means ‘Mortgage Servicing Ratio’, and they’re both Government initiatives to promote responsible borrowing. Below, we explain how TDSR and MSR came about, their purpose, and how to determine your housing affordability using both ratios.
What exactly are TDSR and MSR? And how did they come to be?
Introduced by the Monetary Authority of Singapore (MAS) in 2013, the TDSR is a framework applying to all property loans extended by banks to borrowers. Its rollout is to promote prudency amongst individuals taking loans, so that they don’t end up borrowing more than they could afford.
Therefore, the TDSR, which limits debt repayments to a certain percentage of gross monthly income, is first and foremost a safety net. When the TDSR was first introduced in 2013, borrowers were allowed to spend up to 60% of their gross monthly income on loan servicing.
Subsequently, that limit was tightened to 55% in 2021. Put differently, this means that under TDSR guidelines, a borrower should have a total debt value of under 55% of his or her monthly salary to be able to take out a mortgage.
Similarly, for the MSR, it places a cap on the percentage of monthly income that borrowers can use for mortgage repayments. In 2013, the MSR threshold was set at 30% for HDB flat purchases that are financed by bank loans, and it has stayed that way since.
How are TDSR and MSR applied differently for home purchases?
If there’s a key difference between TDSR and MSR that’s worth highlighting, it’s that TDSR applies to all types of housing loans, whereas MSR applies only to loans for buying an HDB flat OR an Executive Condominium (EC) that still hasn’t completed its MOP.
Hence, supposing that you’re a homebuyer who wishes to take out a home loan for an HDB flat or EC purchase, you’ll have to comply with both the MSR and TDSR limits. The differences of both ratios are summarised in the table below.
Table 1: Summary of the differences between TDSR and MSR
| TDSR | MSR | |
| Definition | Refers to the portion of a borrower’s gross monthly income that goes towards repaying the monthly debt obligations, including the loan being applied for | Refers to the portion of a borrower’s gross monthly income that goes towards repaying all property loans, including the loan being applied for |
| Properties that this loan applies to | All property types | HDB flats and ECs only |
| Threshold | 55% of borrower’s gross monthly income | 30% of borrower’s gross monthly income |
| Debt Obligations included | All debt obligations (e.g. Car loans, student loans) | Only property loans (Including the one being applied for) |
| How it is calculated | TDSR = (Total monthly debt)/(Gross monthly income) x 100% | MSR = (Total monthly mortgage repayment(s))/(Gross monthly income) x 100% |
It’s also worth bringing up (again) that both TDSR and MSR account for different financial considerations. TDSR factors in all of a borrower’s unsettled debt, including loans taken out for housing, cars, education, credit cards, and so forth.
In comparison, MSR is more straightforward as it’s solely calculated on a borrower’s monthly income. For borrowers buying an HDB or EC unit, their household monthly income will first be assessed using the MSR on their loan quantum to calculate the maximum amount they can repay monthly.
Thereafter, buyers will be further subject to a second round of assessment, which will consider all their debt repayments are within the TDSR limits. Should the borrowers have outstanding debts such as car loans, it may affect the amount they borrow and they may not get the maximum MSR loan amount.
How do you calculate MSR based on your household income?
In general, a borrower’s MSR can be derived by dividing their total monthly mortgage repayments by their gross monthly household income.
Assuming Party A has a gross monthly income of $10,000, his MSR calculations would be so…
$10,000 x 30% = $3,000
In another scenario, if Party A has an existing debt of $4,000 and a gross monthly income of $10,000, his MSR calculations would be so…
Maximum MSR loan amount = $10,000 x 30% = $3,000
Maximum TDSR loan amount = $10,000 x 55% = $5,500
Maximum MSR loan amount that can be taken to meet TDSR limit = $5,500 – $4,000 (Existing debt) = $1,500
In other words, even though Party A’s maximum mortgage affordability is $3,000 (based on the current MSR threshold of 30%), their existing debt of $4,000 limits their borrowing capacity to just $1,500.
To gauge the estimated loan quantum a household can secure based on MSR, one can refer to the sensitivity analysis table below. With a monthly household income of $16,000, a family can afford a home of up to $1.01mil, which works out to the price of a 2-room condo in the OCR.
Table 2: MSR Sensitivity Analysis- Based on Value Of Property on Household Income and Mortgage Rates for a 25 Year Loan
| Interest Rates | |||||
| Household Income | Monthly Payment | 3.00% | 3.50% | 4.00% | 4.50% |
| $10,000 | $3,000 | $633,000 | $600,000 | $569,000 | $540,000 |
| $11,000 | $3,300 | $696,000 | $660,000 | $626,000 | $594,000 |
| $12,000 | $3,600 | $760,000 | $720,000 | $683,000 | $648,000 |
| $13,000 | $3,900 | $823,000 | $780,000 | $739,000 | $702,000 |
| $14,000 | $4,200 | $886,000 | $839,000 | $796,000 | $756,000 |
| $15,000 | $4,500 | $949,000 | $899,000 | $853,000 | $810,000 |
| $16,000 | $4,800 | $1,013,000 | $959,000 | $910,000 | $864,000 |
| $17,000 | $5,100 | $1,076,000 | $1,019,000 | $967,000 | $918,000 |
| $18,000 | $5,400 | $1,139,000 | $1,079,000 | $1,024,000 | $972,000 |
| $19,000 | $5,700 | $1,202,000 | $1,139,000 | $1,080,000 | $1,026,000 |
| $20,000 | $6,000 | $1,266,000 | $1,199,000 | $1,137,000 | $1,080,000 |
Source: ERA Research and Market Intelligence (*Rounded to the nearest thousand)
How do you calculate TDSR?
Similar to MSR, it’s possible to derive a borrower’s TDSR with the help of a formula, which is as follows…
So, for instance, if Party B earns a fixed income of $10,000 a month and owes $2,000 in car loans as well as $1,000 in credit card loans, their maximum remaining capacity for monthly mortgage payments, based on the current TDSR threshold of 55%, would be…
Maximum loan based on TDSR limits = $10,000 X 55% = $5,500
Maximum remaining borrowing capacity = $5,500 – car loan ($2,000) – credit card loan ($1,000) = $2,500
However, if a borrower’s income varies from month to month, their TDSR can be slightly trickier to calculate. And that’s because they’re only permitted to use 70% of their gross monthly income for TSDR calculations. Or as MAS puts it: “financial institutions are required to apply a haircut of at least 30% to all variable income (e.g. bonuses) and rental income”.
Therefore, if we’ve Party C who has a similar debt situation as Party B, along with a gross monthly income of $10,000 – consisting of a fixed component of $7,000 and $3,000 in commissions – their TDSR calculations will look like this…
Maximum loan based on TDSR limits = [$7,000 + ($3,000 X 70%)] X 55% = $5,005
Maximum remaining borrowing capacity: $5,005 – car loan ($2,000) – credit card loan ($1,000) = $2,005
To gauge the estimated loan quantum a household can secure based on TDSR, we can refer to the sensitivity analysis table below. Under TDSR, a family earning a monthly household income of $16,000 can purchase a home of up to $2.4mil which is a rough cost for a sizable 3-bedroom OCR condo presently.
Table 3: TDSR Sensitivity Analysis– Max Value of property value based on household income and mortgage rates for a 25 Year Loan
| Interest Rates | |||||
| Household Income | Monthly Payment | 3.00% | 3.50% | 4.00% | 4.50% |
| $10,000 | $5,500 | $1,547,000 | $1,465,000 | $1,390,000 | $1,320,000 |
| $11,000 | $6,050 | $1,702,000 | $1,612,000 | $1,529,000 | $1,452,000 |
| $12,000 | $6,600 | $1,856,000 | $1,758,000 | $1,668,000 | $1,584,000 |
| $13,000 | $7,150 | $2,011,000 | $1,905,000 | $1,807,000 | $1,716,000 |
| $14,000 | $7,700 | $2,165,000 | $2,051,000 | $1,946,000 | $1,848,000 |
| $15,000 | $8,250 | $2,320,000 | $2,198,000 | $2,084,000 | $1,980,000 |
| $16,000 | $8,800 | $2,475,000 | $2,344,000 | $2,223,000 | $2,111,000 |
| $17,000 | $9,350 | $2,629,000 | $2,491,000 | $2,362,000 | $2,243,000 |
| $18,000 | $9,900 | $2,784,000 | $2,637,000 | $2,501,000 | $2,375,000 |
| $19,000 | $10,450 | $2,939,000 | $2,784,000 | $2,640,000 | $2,507,000 |
| $20,000 | $11,000 | $3,093,000 | $2,930,000 | $2,779,000 | $2,639,000 |
Source: ERA Research and Market Intelligence (*Rounded to the nearest thousand)
Scenarios where the TDSR Ratio is not applied
Although it’s safe to say that TDSR and MSR will almost certainly be applied to the majority of home loan calculations, there are certain scenarios where borrowers can be exempted from TDSR rules too. For example, TDSR is currently waived for owner-occupiers when they refinance their housing loans. Likewise, bridging loans where the outstanding balance will be repaid within 6 months are also exempted from TDSR rules.
Kassia, a condominium at Loyang/Changi
The same applies to mortgage equity withdrawal loans too, provided the Loan-to-Value ratio, combined with any other loans secured against the same property, does not exceed 50%. Lastly, another important term to know is the Loan-to-Value ratio.
Loan-to-Value Ratio
The LTV ratio is the percentage of the property value an individual is allowed to borrow to finance their home mortgage. Implemented by the government, this ratio serves to limit how much money can be borrowed by individuals to ensure the borrower is able to repay all their loans and not over-leverage.
The LTV limit for an individual with no existing housing loans is capped at either 75% or 55%, with a minimum cash down payment of 5% or 10% respectively. The table below will delineate the differences in LTV limits based on the number of outstanding housing loans.
Table 4: LTV Limits Applied based on Outstanding housing loans
| Number of Outstanding Housing Loans | LTV Limit | Minimum Cash Down Payment |
| 0 | 75% or 55% | 5% (for 75% LTV) or 10% (for 55% LTV) |
| 1 | 45% or 25% | 25% |
| 2 or more | 35% or 15% | 25% |
Source: MAS, ERA Research and Market Intelligence
The lower LTV limit should be applied if the loan tenure exceeds 30 years, or 25 years for HDB flats, or if the loan period extends beyond the borrower’s age of 65 years. For HDBs, the maximum loan an individual can take to finance their flat has been tightened.
With effect from 20 August 2024, the Loan-to-Value (LTV) limit for HDB loans will be lowered from 80% to 75%, akin to mortgage loans granted by financial institutions. The revised HDB LTV limit will apply to complete resale applications received by HDB on or after 20 August 2024.
A complete resale application is one where HDB has received both the sellers’ and buyers’ portions of the application. For applicants who were successful in the June BTO exercise, the LTV limit for their housing loans will not be affected and will remain at 80%.
Keen to learn more about how this applies to your homebuying journey? Or about TDSR and MSR in general? Feel free to speak to an ERA Trusted Adviser today!
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.
Following the recent submission and closure of a joint bid in March this year, we will be seeing five major real estate players — CapitaLand Development, City Developments, Frasers Property, Mitsubishi Estate and Mitsui Fudosan (Asia) – joining hands to drive a singular visionary goal for Singapore.
That is to propel the development of the Jurong Lake District over the next two decades – bringing it one step closer to becoming the nation’s next largest business hub outside Central Singapore.
This undertaking is by no means an easy feat, but it is well within reach of a consortium whose members have played pivotal roles in shaping Singapore’s landscape amidst shifting demands.
Today, the evolving needs of businesses and consumers have translated into new requirements, whereby the prevalence of hybrid work, omnichannel retail and a focus on sustainability are expected to shape the JLD’s future as well as that of its properties.
Late last year, the market witnessed the successful launch of J’den – a mixed-use development in the heart of the Jurong Lake District. Buyers snapped up 88% of available units on launch day, with an average price of $2,451 per square foot (psf) thus setting an unprecedented benchmark for new launches in the West.
With this notch in its belt and status as a regional centre, perhaps Jurong could make the West side the best side – not unlike its counterpart in the East, Tampines.
Tampines’s emergence as a regional centre
Tracing all the way back to the early 1990’s, Tampines emergence as a regional centre first arose from the Government’s plans to decentralise economic activity, driving business and growth from the Central Business District (CBD) to other areas in Singapore.
This was primarily achieved by constructing homes, offices, transport networks and shopping malls – interspersed throughout Tampines to uplift its vibrancy as an urban hotspot for corporations and workers alike.
In the present day, Tampines is now a thriving town with no fewer than three shopping centres, namely Tampines Mall, Tampines 1, and Century Square. On the commercial front, Tampines is also within distance of key employment gateways, such as Tampines Regional Centre, Changi Business Park, and Changi Airport.
Furthermore, with the inclusion of Our Tampines Hub in 2017, an integrated community and lifestyle centre, Tampines is on the right track to becoming a compelling live-work-and-play destination in the East, transcending its former identity as a quiet commune in the 1980s.
Foretelling Jurong’s future through present-day Tampines
Keeping pace with Tampines’s transformation into a mature town, property prices in the neighbourhood have also grown across the years.
Over the last two decades, resale HDB prices have shown exponential growth, increasing by more than two-fold from an average price of $243 per square foot (PSF) in 2004 to $575 PSF in 1Q 2024. Similarly, non-landed private homes in Tampines more than tripled in price, growing from an average of $450 PSF in 2004 to $1,532 in 1Q 2024.
Chart 1: Average Home Prices in Tampines Versus OCR Non-Landed Home Prices
Additionally, the increase in resale HDB prices for Tampines has closely mirrored that of the national average, having risen by 32.4% since 2014 – a growth rate comparable to the 33.9% uptick exhibited by the HDB Resale Price Index.
The growth of private home prices in Tampines also outpaced that of non-landed properties in the Outside Central Region (OCR), with both respectively increasing by 240.4% and 198.7% since 2004.
Table 1: Growth in Property Prices since 2004
Accordingly, the sustained price growth and demand for Tampines homes can be attributed to a number of driving factors – which Jurong also shares:
1. Tampines and Jurong are close to key business clusters
For starters, Tampines is located in close proximity to prominent business and heavy industrial hubs, such as Changi Business Park and Tampines Industrial Park, which in turn function as the hub of operations for major businesses.
Big names that have chosen to plant their roots at these locations include:
- Hitachi High-Tech
- OCBC Bank
- Standard Chartered Bank
- Government agencies (Central Provident Fund Board, Housing and Development Board)
Additionally, Tampines is home to a wafer fab park that houses businesses specialising in semiconductor and electronic component production, such as Jabil Circuit and Hoya Electronics.
Brought in by the Economic Development Board, the entry of these firms has led to the creation of approximately 1,200 jobs as of 2023, with 1,000 of them located at Tampines Wafer Park alone.
In comparison, Jurong is conveniently located between two of Singapore’s prominent business hubs, namely one-north and Tuas.
The former is home to major tech firms, like Grab, Google and Shopee, whereas the latter is where industrial companies, like Norwegian paint manufacturing business Jotun and American oil service company Haliburton, are located.
There is also the Tuas Biomedical Park in the vicinity. Alone, it accounts for nearly 7,000 jobs in Jurong, owing to the fact that it houses facilities for global pharmaceutical companies like Abbott Manufacturing, Pfizer Asia Pacific, and MSD International.
2. Tampines and Jurong both have reputable schools
Further contributing to housing demand in Tampines is the presence of reputable educational institutes, including Poi Ching School, Chongzheng Primary School, St. Hilda’s Primary School and Temasek Polytechnic – ideal options for young families interested in moving into the neighbourhood.
In the same vein, families with school-going children are likely to find Jurong attractive, thanks to learning institutions like Rulang Primary School, Westwood Primary School, and Jurong Primary School in the vicinity.
The West is also home to world-renowned tertiary institutions, such as Singapore Polytechnic, the National University of Singapore (NUS), and Nanyang Technological University (NTU).
3. Tampines and Jurong are amongst the biggest towns in Singapore
It is also worth noting that Tampines is the third largest township in Singapore, housing some 94,000 HDB flats and non-landed private homes; this is a critical mass of housing that translates into substantial transaction volumes, which in turn drives organic price growth.
Likewise, Jurong houses over 110,000 HDB flats and non-landed homes; this too equates to a fairly significant population density and thus points to the likelihood of healthy transaction activity.
As for retail and entertainment options, Jurong offers a diverse selection of malls, including the popular Jurong Point, Westgate, JEM, and IMM.
So, will the future Jurong make the West side the best side?
Distance apart notwithstanding, both Tampines and Jurong clearly demonstrate how a combination of factors – proximity to key business hubs, job creation, credible schools, substantial populations, and perhaps most crucially, future plans for urban development (specifically those involving the Jurong Lake District) – can fuel the popularity of residential towns.
Hence, given the right qualities, it is possible for any prime location in Singapore, not just Jurong and Tampines, to showcase their region’s best side.
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.