First-timers households and singles can get up to $190,000 and $95,000 in CPF Housing Grants respectively.

Khalil Adis

If you are looking to buy a resale HDB flat but are concerned about whether you can afford it, fret not.

Announced as part of Budget 2023 on 14 February 2023, more help is on the way for first-time homebuyers be they singles or families.

In the face of inflation and rising property prices in Singapore, the government has allocated more housing subsidies to make public housing more affordable and accessible for young families buying their first homes 

“Against the backdrop of the broad-based increase in demand for housing in recent years, these measures will help more families with children and young married couples own their first home,” said the Ministry for National Development and Housing & Development Board in a joint statement.

Here are three things first-time homebuyers can look forward to:

#1: Increased CPF Housing Grant for first-timers households

First-timers households buying resale 2- to 4-room flats will receive up to $80,000 up from $50,000.

Meanwhile, those buying 5-room or larger flats will receive up to $50,000 up from $40,000.

When including the Enhanced Housing Grant (EHG) and Proximity Housing Grant (PHG), families can enjoy up to $190,000 in CPF Housing Grants.

#2: Increased CPF Housing Grant for first-timers singles

First-timers singles buying resale 2- to 4-room flats will receive up to $40,000 up from $25,000. while those buying 5-room or larger flats will receive up to $25,000 up from $20,000.

When including the Enhanced Housing Grant (EHG) and Proximity Housing Grant (PHG), singles can enjoy up to $95,000 in housing subsidies.

#3: Greater priority for first-timers families

First-timers families with children and young married couples aged 40 years and below who are buying their first home will be given greater priority during their Built-To-Order (BTO) applications.

According to HDB and MND, this will be implemented later this year.

This category of first-timers will receive additional support in securing their flats via an additional ballot chance for their BTO applications.

“More details of the scheme as well as eligibility criteria will be shared at the Ministry of National Development Committee of Supply debate,” said the MND and HDB in their joint statement.

Rising property prices

Property prices in the Lion City have been on the uptrend figures from the HDB showed.

According to HDB’s fourth quarter of 2022 data, the Resale Price Index (RPI) is at 171.9 points which is an increase of 2.3 per cent over that in the third quarter of 2022.

While the RPI has been rising, HDB notes that this is a slower increase than the 2.6 per cent increase in the third quarter of 2022.

It is worth noting that this is the slowest increase in the past year.

Meanwhile, the median price for 4-room HDB flats in Queenstown is the most expensive at $870,000 while those in Jurong East are the cheapest at $465,000.

While prices have been rising, resale transactions fell by 12.6 per cent, from 7,546 cases transacted in the third quarter of 2022 to 6,597 cases in the fourth quarter of 2022.

No impact on the price of resale HDB market

While the budget is generous, it will not have a significant impact on the price of resale HDB flats.

This is because the price is determined by demand and supply.

Rather, the slew of new measures aims to reduce the cost of public housing ownership via the various subsidies, if applicable.

Nevertheless, with HDB committed to launching up to a total of 100,000 flats from 2021 to 2025, we could see resale flat prices correcting this year onwards. 

More leasing activities are reported as the office market starts to pick up post-COVID-19. However, tenants are also very specific in their office space requirements.

​By Khalil Adis

In May 2022, I secured my very first corporate leasing deal.

Although I was elated to finally secure a tenant for the landlord, it was not an easy process especially since the office market was affected by Covid-19.

I was faced with a challenging period when marketing the office space in late 2021 as Singapore was battling the delta variant then.

While interest in office space at first increased, the Omricon variant threw the wrench for potential tenants looking for office space in November 2021.

As a result, enquiries started to decrease until the early part of 2022.

Fast forward, a year ahead, the office leasing market appears to pick up steam as more employees returned to work.

Data from CBRE confirmed this showing strong positive office net absorption in the third quarter of 2022, bringing the year-to-date take-up to 0.56 million sq ft and surpassing the total take-up of 0.32 million sq ft for the whole of 2021.

“Key demand drivers are expansions by tech firms, flexible workspace operators and non-banking financial companies, which took up significant secondary office space in the Core CBD (Grade A). Fresh pre-commitments to upcoming new projects such as Guoco Midtown and Central Boulevard Towers were also inked during the quarter,” its research notes.

Broad-based demand in all micro markets

In addition to the growth sectors, CBRE notes that tenant displacement from planned redevelopments such as Clifford Centre and Robinson Point has also contributed to a broad-based recovery.

According to the firm, islandwide vacancy declined further to 4.9 per cent in the third quarter of 2022 from the previous high of 6.8 per cent from the same period last year.

“Despite hybrid working arrangements likely to stay, total leasing volume from renewals, new setups and expansion over the past three quarters has been resilient, a testament that physical office still plays an integral role in the workplace ecosystem,” CBRE’s research cites.

With more leasing activities reported in the third quarter, here are the five things corporate tenants look for in an office space.

#1: A prestigious address

From my experience, certain tenants, particularly those in the banking, real estate, energy, legal and tech sectors, would only look for a prestigious office address right in the CBD.

This is because their corporate image is important especially since they mostly deal with multinational companies and government agencies.

Some are also particular about the look and feel of the building’s main lobby as they may sometime hold meetings with important clients in their office.

Others cite improving their staff’s morale and confidence in the company when having a prestigious Grade A CBD address.

#2: Accessibility 

Accessibility is also a key consideration for corporate tenants as most of their staff rely on public transportation while some drive to work.

Therefore, being connected within walking distance to the MRT stations and expressways are important.

As the office unit that I was marketing is located within the CBD, accessibility is not an issue as it well-served by various train stations such as Tanjong Pagar and Raffles Place MRT stations on the East-West and North-South Line, Chinatown, Telok Ayer MRT stations and Downtown on the Downtown Line as well as newly opened Maxwell and Shenton Way MRT stations on the Thomson-East Coast Line.

The office building is also easily accessible via the Ayer Rajah Expressway (AYE), Marina Coastal Expressway (MCE), Central Expressway (CTE) and East Coast Parkway (ECP) for those who drive.

#3: Amenities

Amenities or the lack of them can either make or break an office leasing requirements for a corporate tenant.

Some of the important amenities they look for include banking, dining, hawker centres, clinics and car parking facilities.

I recall one particular tenant who insisted on having several car parking lots.

Unfortunately, due to the limited car parking space for season parking holders, this proved to be difficult.

If you require ample car parking space, then make sure you ask the agent in advance to check with the building management before asking for a viewing.

#4: A column-free space

A column-free space ranks highly as it enables the potential tenant to use the entire space efficiently.

This is from my experience when conducting viewings on the ground.

This is because such space offers them flexibility in how they would like to utilise the space just like drawing from a blank canvas.

You can ask the agent for a copy of the floor plan so you can plan the office planning with your interior designer.

#5: Facilities

With an increased emphasis on staff’s mental health and wellness, I noticed that corporate tenants now prefer office buildings that offer recreational facilities such as green, open spaces, gyms or swimming pools where their staff can feel relaxed.

As one potential tenant puts it, “when an office feels like home, our staff are more likely to be comfortable and productive at their workplace.

With many rental scams out there, here are the checks to protect yourself as a tenant.

​By Khalil Adis

The September 2022 cooling measures will translate to a red-hot property market as ex-private property owners will now have to wait out a 15 months period before they can buy a resale HDB flat.

This means demand in the rental market for both both private properties and HDB flats will pick up in the coming months ahead.

Unfortunately, rental scams appear to also be on the rise.

According to the Singapore Police Force (SPF), there were at least 144 victims of such scams who had lost around S$190,000 since January 2022.

Modus operandi

As the rental market heats up, scammers are taking advantage of the situation by posting fake listings on social media to lure unsuspecting tenants.

Such listings are often too good to be true, depicting beautiful apartments at bargain prices.

However, there is one catch.

In order to secure viewings, the bogus property agents will often ask potential tenants to transfer money.

This is where potential tenants may lose their monies.

They will also ask you to send a copy of your identification card to confirm your viewing.

Such requests are in fact dubious and not in line with market practice.

They may also open you to identity thefts.

4 due diligence checks that you must do as a tenant

To prevent yourself from being scammed, here are the four thing you must do:
​
#1: Do not transfer any monies for viewings

​Instead, you should request for a physical viewing to verify that the property does indeed exist.

#2: Verify the agent is registered with Council for Estate Agencies (CEA)

If you are dealing with an agent, ask for the agent’s registration number. You can also check the agent’s details via CEA’s Public Register here. ​

#3: Ask for proof of ownership

The unit received several offers signifying a robust rental market.


By Khalil Adis

A 2-bedroom unit at The Paterson Edge has been successfully tenanted at an above average median price when compared to similar sized units.


Data from the Urban Redevelopment Authority (URA) showed that 17 2-bedroom units at The Paterson Edge were transacted at an average price of $4,501 per month from January to June 2022.


The highest transacted price was $6,151 per month in March 2022 followed by $6,000 per month in May 2022.


Measuring 990 sq ft, the unit received several offers signifying a robust rental market.


Situated within walking distance to the shopping belt of Orchard Road and right opposite the upcoming Orchard MRT station via the Thomson East Coast Line (TEL), The Paterson Edge is located in a prestigious neighbourhood.


A low-density development that has often been described as a "doll house”, The Paterson Edge offers discerning families or individuals a quiet, private retreat while being a stone throw's away to luxury boutiques, high-end stores, shopping malls, supermarkets and top-notch medical centres. 


This mid-floor unit is located at the corner to ensure the utmost privacy. 


The unit comes with Miele refrigerator & freezer, Miele cooker hood/hob, built in refrigerator & freezer, built in conventional oven, built in wardrobe, curtains and blackouts, roller blinds and energy saving lighting features. 


The unit has been property maintained and is in good condition.


Facilities at The Paterson Edge include a swimming pool, gym, covered carpark and 24-hour security

​Data from Squarefoot showed that the transacted price is the highest so far for SBF Center and along Robinson Road.

By Khalil Adis

Two office units at SBF Center were transacted for $8 per sq ft per month in May 2022 or at $16,500 per month.

According to data from Squarefoot, the median rental for SBF Center is $7.18 per sq ft per month while the historical rental along Robinson Road ranges from $6.5 per sq ft per month in January 2022 to $7.18 per sq ft per month in May 2022.

This means the office units were the highest price transacted so far for SBF Center and along Robinson Road.

The units face Cecil Street with an awe-inspiring view of the conserved shophouses of Tanjong Pagar, office buildings and the nearby Raffles Place CBD.

Grade A office rents in the CBD projected to grow by 4.6 per cent

With the government now mandating that starting from 1 January 2022, fully vaccinated employees can return to work, demand for Grade A office space is now slowly returning to pre-pandemic level.

A report released in February 2022 by Cushman and Wakefield predicts that Grade A office rents in the Central Business District (CBD) will grow.

“The Singapore office market bottomed out in 2021 as demand continues to recover amidst a flight to quality. Looking ahead, Singapore’s CBD Grade A office rents are projected to grow by 4.6 per cent year-on-year with vacancy rates tightening to below 4 per cent by end-2022, against a backdrop of projected sustained demand of 0.9 million sq ft (msf) and limited supply of 0.8 msf this year,” said Wong Xian Yang, head of research, Singapore at Cushman & Wakefield.

Data from Cushman and Wakefield also showed that Grade A and B office spaces are seeing growths after six consecutive quarters of decline since the first quarter of 2020, although this was still lower than the growth that was recorded before the pandemic began.

“CBD Grade A office rents rose by 1.7 per cent quarter-to-quarter in the fourth quarter of 2021, marking three consecutive quarters of growth. For the whole of 2021, CBD Grade A rents grew 2.3 per cent year-on-year to reach $9.81 per sq ft per month, although this remains about 8.0 per cent below pre-pandemic (fourth quarter of 2019) levels,” its report cites.

The latest mixed-use property launch that is located in the Rest of Central Region (RCR), Piccadilly Grand offers the benefits of living close to the city but at the Outside Central Region's (OCR) entry price.

By Khalil Realtor

​Piccadilly Grand is the latest launch for 2022 that is located in the Rest of Central Region (RCR) in District 8 with direct access to Farrer Park MRT station via the North East Line (NEL).

Located at the doorstep of the vibrant Little India district, this 99-year leasehold mixed-use development will comprise 407 residential units ranging from one- to five-bedrooms with commercial units on the first storey.

According to URA Space, Piccadilly Grand sits on site area of 8,732.9 sq m with a maximum gross floor area (GFA) of 36,679 sq m with a gross plot ratio of 4.2.

How Piccadilly Grand compares with similar properties in the vicinity

As a fair comparison, we will compare Piccadilly Grand with SOHO 188 as it is the closest private residential property located within the vicinity.

Data from the Urban Redevelopment Authority (URA), showed that the average transacted price per sq ft for SOHO 188 was $1,626 in August 2021.

With an estimated indicative price starting from around $1,950 per sq ft, Piccadilly Grand is priced at around 20 per cent higher when compared to SOHO 188.

When compared to the average price entry price for a two-bedroom unit at Pasir Ris 8 at $2.050 per sq ft, Piccadilly Grand appears to offer an attractive OCR price for an RCR project.

Data from URA also showed the indicative average rental range for SOHO 188 is around $4.49 per sq ft per month.

For a one-bedroom (484 sq ft) unit priced at $1,950 per sq ft, the unit quantum price translates to $943,800. 

Based on a rental of $4.49 per sq ft per month, the expected rental is around $2,173.16.

Based on our calculation, the estimated rental yield will work out to the following:

$2,173.16 x 12 / $943,800 x 100 = 2.76 per cent

Here are eight compelling reasons to invest in Piccadilly Grand:
​
#1: Established developer with a good track record

Data from URA Space showed that Piccadilly Grand is zoned for residential use with commercial units on the first storey.

With a gross plot ratio of 4.2, Piccadilly Grand will span three blocks of 23-storey where investors and residents can look forward to a plethora of lifestyle options such as retail, food & beverage and childcare centre all under one roof.

Connected directly to Farrer Park MRT station, residents can enjoy seamless connectivity to the rest of the island.

We will discuss this in detail in the next paragraph.

#3: Connected to Farrer Park MRT station

URA’s master plan shows that Piccadilly Grand will be directly connected to Farrer Park MRT station via Exit E.

Whether you are working in the Central Business District, Changi Region, Greater Southern Waterfront, Jurong Lake District, Punggol Digital District or Woodlands Regional Centre, Piccadilly Grand connects you to these major economic hubs.

From here, residents can hop onto the NEL and then transfer to the Downtown Line (DTL) one stop away at Little India MRT station, the North-South Line (NSL) two stops away at Dhoby Ghaut MRT station, the Circle Line (CRL) four stops away at Serangoon MRT station, the East West Line (EWL) and the Thomson-East Coast Line (TEL) five stops away at Outram Park MRT station.

Such ease of commute will make the property highly desirable and convenient for owner-occupiers and prospective tenants.

#4: Near several good schools

Distance requirements are dictated by the Ministry of Education (MOE) and these will affect your children’s priority admission to nearby schools.

According to the MOE, priority is given to Singapore Citizens and Permanent Residents who live closer to the preferred school when balloting.

You may check the full requirements here.

Parents with school-going children will be pleased to know that several notable good schools are located within 2 km from Piccadilly Grand.

Here are the full lists of primary and secondary schools:

• Farrer Park Primary School (0.23 km)
• Northlight School (0.93 km)
• Stamford Primary School (1.04 km)
• St. Joseph's Institution Junior (1.05 km)
• St. Margaret's Primary School (1.1 km)
• Anglo-Chinese School (Junior) - Winstedt Road (1.2 km)
• Hong Wen School (1.29 km)
• School of the Arts, Singapore (1.4 km)
• Bendemeer Secondary School (1.75 km)
• Bendemeer Primary School (1.84 km)
• Balestier Hill Primary School (1.85 km)

#5: At the doorstep of the Little India Arts Belt

Steeped in local culture and tradition, Singapore’s Little India is an ethnic enclave that exudes a hip, bohemian vibe while preserving its authentic Indian identity.

Home to many trendy cafes and traditional Indian restaurants, Little India boasts street-style shops selling flowers, garlands, spices and fresh produce. 

Lined with rows and rows of colourful shophouses and murals, the area comes alive on weekends and during Deepavali when crowds will throng the area for festive shopping.

Little India also boasts an arts belt on Kerbau Road where several local performing arts companies call these vibrant shophouses home.

For a truly authentic Indian cultural and dining experience, Little India offers a plethora of Indian restaurants serving curry on banana leaves topped with crispy naan bread or rice with a glass of refreshing lime juice or lassi.

#6: Various amenities nearby

Speaking of Little India, the Tekka Market, located within Tekka Centre, is conveniently sited next to Little India MRT station where you can find the freshest produce and ingredients for your wet market shopping.

For delicious local cuisines, head to the Tekka Food Centre located at the back of the building where you can find a variety of affordable hawker fares to suit your taste buds.

Meanwhile, at the other end of Little India is Mustafa Centre, located on Syed Alwi Road, which is popular among the bargain-hunting crowd.

A favourite haunt among locals and tourists alike, Mustafa Centre is where you can find anything and everything under one roof.

Known for its chaotic atmosphere, Mustafa Centre boasts a selection of luxury goods, jewellery, perfumes, clothing and even a supermarket spanning two buildings at extremely competitive pricing.

Best of all, it is open 24 hours a day.

Recently, one of the buildings for Mustafa Centre (facing Farrer Park MRT station) has been newly refurbished and renamed Centrium Square offering consumers even more shopping options.

For a family-friendly experience, pop over to City Square Mall located just across Mustafa Centre.

Owned and managed by CDL, City Square Mall enjoys direct access to Farrer Park MRT station and features over 450,000 sq ft of net lettable area, spread over five retail levels, two basements and four levels of lifestyle services.

Some of its key anchor tenants include NTUC Fairprice, Mc Donald’s and Challenger Mini.

#7: Healthcare

Top-notch healthcare is available right opposite Piccadilly Grand at Farrer Park Hospital.

This private hospital integrates current developments in medical technology and treatments in its hospital design and architecture to better serve patients.

Offering a myriad of services from Anesthesiology to Sports Medicine, the hospital comes with a medical centre attached to it.

This is part of a lifestyle concept that combines healthcare and hospitality.

Like Piccadilly Grand, the hospital enjoys direct access to Farrer Park MRT station via Exit C.

Meanwhile, the KK Women’s and Children’s Hospital is within 5 minutes drive from Piccadilly Grand.

Founded in 1858, the hospital has since then evolved into a leader in Obstetrics, Gynaecology, Paediatrics and Neonatology.

Offering 830 beds, the hospital is also a referral centre providing tertiary services to manage high-risk conditions in women and children.

Equipped with a team of about 500 specialists, they adopt a compassionate, multi-disciplinary and holistic approach to treatment, and harness the latest medical innovations and technology to deliver the best medical care possible.

#8: URA Master Plan

The URA has made a concerted effort to preserve the unique culture and heritage of Little India.

According to its latest master plan, certain pockets and spaces within the historic area have been earmarked to preserve the local arts, culture and heritage.

For instance, URA's Project Oasis Little India (POLI) has transformed the vacant state land into public spaces where the community can come together for activities organised by Little India Shopkeepers and Heritage Association (LISHA).

Meanwhile, the charming heritage buildings at Chitty/ Veerasamy Road and Hindoo Road have been earmarked for refurbishment and repurposement with innovative uses, that activate public spaces and plug gaps in pedestrian experience along Kampong Kapor Road.

As such, investors can anticipate such regenerative project led by the government to have a potentially positive impact for the capital appreciation for Piccadilly Grand.

Since the Lee Kuan Yew era, Singaporeans have been ingrained with the idea that our HDB flat is an asset. While you can make a profit from your HDB flat, this depends on the lease that is remaining on your property. Based on our research and analysis, we found that HDB flats in older estates with a remaining lease of fewer than 60 years saw their property values diminish. Meanwhile, those that have around 80 years of lease left were able to fetch far higher prices. This is according to data captured on HDB’s website.

On the other end of the spectrum, HDB flats that are located in newer estates did not see that much price variation. In conducting this study, we had looked into HDB transactions for 4-room flats that were recorded between January 2021 to January 2022 and then compared it with the remaining lease. The estates chosen included the mature estates of Toa Payoh and Ang Mo Kio as well as the non-mature HDB estates of Punggol and Jurong West.

Here are some quick snapshots based on our findings.
#1: Toa Payoh: Older HDB flats changed hands at lower prices 

When it comes to buying an HDB flat, most Singaporeans will prefer to buy in a mature estate such as in Toa Payoh or Ang Mo Kio. However, if you have a flat that with a remaining lease of fewer than 54 years this may have an impact on your resale value. According to data captured on HDB’s website, there were 302 transactions for 4-room HDB flats in Toa Payoh during this period.

The data showed a strong correlation between the price versus the remaining lease. For instance, older HDB flats (71) with 54 years or less of the remaining lease were transacted at an average price of S$395,787. Meanwhile, newer HDB flats (114) with 80 to 95 years of the remaining lease were transacted at an average price of S$725,032. This represents a price difference of 83.2 per cent.

#2: Ang Mo Kio: Newer HDB flats fetched higher selling prices

Ang Mo Kio is also another favourite estate among buyers explaining why Built-To-Order (BTO) launches have always been oversubscribed. Like Toa Payoh, Ang Mo Kio also witnessed a strong correlation between price versus the remaining lease. According to data captured on HDB’s website, there were 297 transactions for 4-room HDB flats in the estate during this period. Newer HDB flats (57) with 80 to 95 years of the remaining lease were transacted at an average price of S$683,937.

On the other hand, older HDB flats (216) with 59 years or less of the remaining lease were transacted at an average price of S$438,143. This represents a price difference of 56.1 per cent.
​
#3: Punggol: A non-mature estate where capital values experience fewer fluctuations

Punggol is a non-mature estate with a relatively young population. While it may seem far-flung, Punggol is among the top ten estates in Singapore where HDB resale homes have changed hands.

According to data captured on HDB’s website, there were 1,486  transactions for 4-room HDB flats in the estate during this period. The remaining lease in Punggol ranges from 79 to 95 years.

As such, there is not much price variation as seen in the case of Toa Payoh and Ang Mo Kio. For example, HDB flats (232) with between 82 to 89 years of the remaining lease were transacted at an average price of S$400,862. Meanwhile, newer HDB flats (1,254) with 90 years or more of the remaining lease were transacted at an average price of S$503,186. This represents a price difference of 25.5 per cent.
​
This suggests that newer estates like Punggol may be ideal if you want to protect the capital values of your property.
​
#4 Jurong West: A semi-mature estate with a price gap similar to Punggol

Jurong West is a semi-mature area and as such the remaining lease here is between 47 and 95 years. According to data captured on HDB’s website, there were 571 transactions for 4-room HDB flats in the estate during this period. Similar to Punggol, there is not much price variation as seen in the case of Toa Payoh and Ang Mo Kio.
​
For example, HDB flats (179) with less than 70 years of the remaining lease were transacted at an average price of S$395,934. Meanwhile, newer HDB flats (100) with 90 years or more of the remaining lease were transacted at an average price of S$535,366. This represents a price difference of 35.2 per cent.
​
#5 Price gap is widest in Toa Payoh

Toa Payoh makes an interesting case study. We decided to zoom into this estate as property agents have long complained that they have had a hard time selling older HDB flats in the area. Our analysis seems to concur with our findings on the ground when speaking to agents as they appear to diminish in value nearing the end of the lease. In the case of Toa Payoh, the price gap is a whopping 83.2 per cent compared to Ang Mo Kio, Jurong West , and Punggol at 56.1 per cent, 35.2 per cent and 25.5 per cent respectively.

Summary: Capital values appear to be better protected in non-mature estates

While HDB is an asset, older HDB flats in mature estates will likely see their value decline as the data showed. As such, prospective homebuyers might want to think twice before purchasing such flats. On the other hand, the data suggests that the capital values of your HDB flat are better protected in non-mature estates like Punggol and Jurong West. As such, you may want to consider selling your property after five years once you have fulfilled your MOP and then upgrade to private property or downsize according to your lifestyle needs.
​
Having said that, I would like to stress that your HDB flats are for long-term occupation and not for you to make a quick profit. In closing, housing is a delicate issue. The government will need to address their diminishing value sensitively especially to the older generation who are currently living in mature estates.

First-time homebuyers will see marginal impact while multiple property investors will have to pay a higher ABSD rate.


By Khalil Realtor

On 16 December 2021, the Ministry for National Development (MND) announced a slew of cooling measures in the property market.

Targeted mainly towards multiple property owners and foreign purchases, the measures are aimed to moderate property prices in both the resale HDB and private property markets to ensure they are in tandem with wages.

Therefore, first-time homebuyers are less likely to be impacted.

We list down 5 ways the cooling measures may impact you 

#1: Higher downpayment for HDB flats

If you are taking an HDB loan, do note that the Loan-to-Value (LTV) limit has been increased from 90 per cent to 85 per cent.

This means you will need to prepare 15% in cash and/or CPF for your downpayment.

However, if you are taking a bank loan, the LTV limit remains unchanged.

You can still get up to 75 per cent financing with 5 per cent downpayment in cash and 20 per cent in cash and/or CPF.

#2: No change for ABSD for first-time homebuyers

If you are a first-time Singapore Citizen homebuyer, good news!

The Additional Buyer’s Stamp Duty (ABSD) remains unchanged at 0 per cent.

Likewise, for first-time Singapore Permanent Resident buyers, the ABSD remains unchanged at 5 per cent.

However, for foreigners buying a residential property in Singapore, they will have to pay 30 per cent ABSD.

#3: Higher ABSD rate for second-time homebuyers

For Singapore Citizens buying their second property, the ABSD rate has now been increased from 12 per cent to 17 per cent.

Likewise, for Singapore Permanent Residents buying their second property, the ABSD rate has now been increased from 15 per cent to 25 per cent.

For foreigners buying any number of residential property in Singapore, they will have to pay 30 per cent ABSD.

#4: Higher ABSD rate for third and subsequent homebuyers

For Singapore Citizens buying their third and subsequent property, the ABSD rate has now been increased from 15 per cent to 25 per cent.

Likewise, for Singapore Permanent Residents buying their third and subsequent property, the ABSD rate has now been increased from 15 per cent to 30 per cent.

For foreigners buying any number of residential property in Singapore, they will have to pay 30 per cent ABSD.

#5: Higher TDSR threshold at 55 per cent

When purchasing a private property, you will be subjected to the Total Debt Service Ratio (TDSR).

The TDSR has now been reduced from 60 per cent to 55 per cent.

Your TDSR should be less than or equal to 55 per cent.

The TDSR formula is as follows: 

(Borrower's total monthly debt obligations / Borrower's gross monthly income) x 100%

Assuming you have a total mostly debt of $1,000, this is your TDSR:

$1,000/$10,000 x 100% = 10%

If you wish to purchase a private property, it will be wise to pare down your existing debt obligations to below 55 per cent so that you will not be overly leveraged.

Moving forward
#1: Decoupling

If you are thinking of buying a second property but are concerned about paying a higher ABSD rate, you may consider decoupling.

This frees up your spouse’s name to buy a property solely under their name.

However, do note that decoupling is not allowed for HDB flats.

The legal fees can be quite exorbitant (up to $10,000). 

A Buyer's Stamp Duty (BSD) of up to 4 per cent will apply for the shares that were sold to the other party.

You may also be liable to pay for Seller's Stamp Duty (SSD).

#2: Buying under a trust

You may also consider buying a property under a trust arrangement.

This is a relatively expensive option that is common among the wealthy. 

A trust is an arrangement that authorises a trustee to hold assets on behalf of a beneficiary (or beneficiaries). 

The beneficiary shall have an equitable interest in the trust assets. 

The trustee has the responsibility to manage the trust assets for the benefit of the beneficiaries.

You can buy a private property under trust and list your child as the beneficiary. 

However, the property must be paid for in cash. 

There is no ABSD payable

Punggol is one of the most sought after districts for HDB resale flats and private properties. Here are the lowdowns you should take note of when buying a property here.

By Khalil Realtor

Punggol has indeed come a long way from being an ‘ulu’ area.

Once known as a rural settlement complete with kampungs and farms, Punggol has since 1998 transformed itself from a backwater area to a vibrant, modern yet green satellite district.

Amid Punggol’s oasis of calm, you can see LRT trains whirring through the residential areas, passing by the ample lush natural landscape before taking you directly to the heart of the district, Punggol Central.

While Punggol’s rustic charms may appeal to outdoor lovers, there are certain downsides about living here.

Here are the pros and cons of buying a property in Punggol:
The good:
#1: It’s oh so quiet

Punggol has an estimated population of 174,450 as of 2019 with a projected 96,000 housing units once the entire "Punggol 21-plus” master plan is completed.

Despite its high density, Punggol is surprisingly very quiet at night save for the traffic whizzing by the Tampines Expressway (TPE).
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This is definitely good news for those wanting some peace and quiet but bad news if you want the buzz of city life.

If you still want to move to Punggol, fret not as Waterway Point has all the modern conveniences and amenities for your city living.

#2: Well landscaped parks and gardens 

Nature and outdoor lovers will revel in the many landscaped parks and gardens that Punggol has to offer, including the award-winning My Waterway@Punggol.

From the Matilda District, you can enjoy a stroll or jog by the Punggol River before reaching Punggol Dam and Punggol Point. 

This is part of the comprehensive Park Connector Network (PCN) linking the entire island.

The view is awe-inspiring and enough to make even the laziest couch potato get up and explore nature.

#3: Properties here are in demand

Being a relatively new township development with a young demographic, Punggol has proven to be popular among homebuyers as a few HDB housing projects are now eligible to be sold in the resale market.

According to the third quarter of 2021 data from the HDB, the Resale Price Index (RPI) increased by 2.9 per cent, from 146.4 points in the second quarter to 150.6 points in the fourth quarter in 2021. 

On the overall, resale statistics from the HDB showed that the median prices of three, four and five-room flats were transacted at S$395,000, S$498,400 and S$600,000 respectively in the third quarter of 2021.

In comparison, in the fourth quarter of 2018, they were transacted at S$343,000, S$455,000 and S$445,000 respectively.

This shows a healthy demand and capital appreciation of HDB flats in Punggol.

#4: Comprehensive public transport network

Commuting in and around Punggol is very convenient as there is a comprehensive transport network comprising MRT, LRT and buses.

In fact, the township has been planned such that each housing estate is located within 300 m away from any LRT station.

An exception, however, is the new housing area at the Matilda district.

#5: Punggol Digital District

Come 2023, a new smart city is set to rise in Punggol called the Punggol Digital District. Housing technology firms involved in key growth fields as well as the new Singapore Institute of Technology Campus, Punggol Digital District will create around 28,000 jobs while providing residents with more lifestyle and dining options.

In the pipeline includes the new Punggol Coast MRT Station which will be an extension of the North-East Line and the upgrading of the Punggol MRT station to an interchange station to connect to the Cross-Island Line (CRL).

Punggol Digital District will also enjoy enhanced connectivity via the CRL which will link it to Jurong Lake District and Changi by around 2030.

Collectively, they will act as property boosters for Punggol.

The bad:
#6: Lack of good hawker food

Food. That’s our favourite national past time that defines if we love or hate or neighbourhood.

Having lived in Taman Jurong, I must say I was spoilt for choice with various options of mouth-watering hawker fares such as the famous Boon Lay Power Nasi Lemak.

However, the choices have become extremely limited in Punggol unless you are into fast food.

While there are coffee shops serving local cuisines, they pale in comparison to the well-established hawker fares that you can find elsewhere.

You are better off cooking your own meals. 

#7: Dust

If you hate spring cleaning, be prepared for a rude shock.

With many construction works going on, you will find yourself dusting up every single day.

Windows, top of shelves, cupboards and other surfaces collect dust easily.

This certainly isn’t good news if you are asthmatic or are prone to allergies.

If so, you might want to invest in a good ioniser to keep your indoor air free of particles and other irritants.

The ugly:
#8: Get ready to jostle with the early morning crowd

If you think Singaporeans are a kiasu lot, be prepared to see that word taken to new heights when you commute to work in the morning.

In fact, many would play ‘musical chairs’ as they hustle for seats at on the MRT.

Meanwhile, getting a Grab or taxi would be almost impossible.

#9: That acrid smell in the air

While Punggol may be planned as a green township development, be prepared for a strong burning smell that would emanate from time to time.

Located just opposite the industrial area of Pasir Gudang, Johor, the smell has become increasingly acrid over the past few days that it will linger from night till dawn.

In fact, it can get so bad that you might have to get up in the middle of the night to close the windows.

#10: Noise pollution from aeroplanes

Having lived in Punggol for almost four years, I would say my biggest gripe is the noise pollution every morning from the military aeroplanes and jet-fighters flying over the neighbourhood from Paya Lebar Airbase.

They would start as early as 8am at 5 minutes interval.

This is enough to disrupt your sleep especially if you intend to sleep in on a weekday.

​This is something perhaps developers and HDB will not tell you.