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).
​
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.

According to data from the Urban Redevelopment Authority (URA), condominiums in Punggol experienced the most capital appreciation over 5 years in District 19 while Serangoon is the worst faring neighbourhood. Read on to find out more.

By Khalil Realtor

If you are a condominium owner in Punggol, this may be the right time to sell your property.

This is because condominiums in Punggol enjoyed the highest capital appreciation in District 19, data from the Urban Redevelopment Authority (URA) showed.

According to resale transactions that we had analysed based from 2016 and up to 15 September 2021, condominiums in Punggol enjoyed the highest capital appreciation at 23.54 per cent.

This is higher than the average growth that was recorded in the entire District 19.
Coming second place are condominiums that are located in Hougang which saw a capital appreciation of 15.29 per cent followed by Sengkang at 10.88 per cent.

The worst faring area is Serangoon which recorded a depreciation of 6.75 per cent over the same period.

On the overall, District 19 saw 1,146 resale transactions at a median transacted price of $1,174.50 per sq ft in 2021.

This represents a capital appreciation of 19.14 per cent over five years when compared to the 168 resale transactions recorded in 2016 at a median transacted price of $985.82 per sq ft.

Let’s take a look in detail how each area have performed so far.
#1: Punggol

Despite its far-flung location, Punggol is the top performer in District 19.

In 2016, 14 condominium units had changed hands.

This comprises four units at River Isles and 10 units at A Treasure Trove that were transacted at a median price of $843 per sq ft and $995.20 per sq ft respectively.
​
For the entire Punggol, the median transaction price recorded in 2016 was $919.10 per sq ft.

Meanwhile, in 2021, a total of 189 condominiums were sold at a median price of $1,135.47 per sq ft.

Watertown is the most popular condominium and where the highest median price was recorded with 52 units sold at a median price of $1,372.37 per sq ft.

This was followed by A Treasure Trove with 47 units transacted at a median price of $1,075.62 per sq ft, representing a capital appreciation of 8.08 per cent over five years.

Third in place is Flo Residence with 36 units changing hands at a median price of $971.17 per sq ft - the lowest recorded in Punggol.

The fourth most popular condominium project is River Isles which saw 29 units sold at a median price of $1,010.64 per sq ft.

When compared to 2016’s transaction data, this represents an increase of 19.88 per cent.

Lastly, 25 units at Parc Centros were transacted at a median price of $1,2471.56 per sq ft.

With the upcoming Punggol Coast MRT station, 7.3 kilometre Cross Island Line (CRL) – Punggol Extension and the Punggol Digital District, we can expect demand for condominiums to remain robust in Punggol. 

#2: Hougang 

Hougang is a mature township with plenty of good schools, amenities and delicious local hawker food located within the neighbourhood.

Thus, it is no wonder it is one of the most sought after townships in District 19 ranking second in place in terms of capital appreciation.

In 2016, a total of 39 units were sold at a median price of $1,012.24 per sq ft.

The Minton leads the way with 11 units sold at a median price of $1,091 per sq ft, followed by Kovan Residences (six units sold at a median price of $1,114.17 per sq ft), Kovan Regency and Kovan Melody (five units each sold at a median price of $1,304 per sq ft and $1,017 per sq ft respectively), Terrasse (four units sold at a median price of $1,006 per sq ft), Parc Vera (two units sold at a median price of $956 per sq ft), Central View (two units sold at a median price of $878 per sq ft), Bliss @ Kovan (one unit sold at a median price of $1,386 per sq ft), Palm Haven (one unit sold at a median price of $654 per sq ft) and The Waterline (one unit sold at a median price of $654 per sq ft).

Meanwhile, in 2021, a total of 169 condominiums were sold at a median price of $1,167.03 per sq ft.

Again, The Minton is the most popular condominium with 53 units sold at a median price of $1,115.13 per sq ft.

This represents a price appreciation of 2.21 per cent over five years.

Second in place is Kovan Residences (22 units sold at a median price of $1,477.36 per sq ft), representing a price appreciation of 32.60 per cent over the same period.

Tied in third place are Kovan Melody and Kovan Regency (21 units each sold at a median price of $1,186.86 and $1,448.67 per sq ft respectively) with a capital appreciation of 16.70 per cent and 11.09 per cent respectively when compared to 2016.

The fourth bestselling project was Parc Vera with 15 units sold at a median price of $1,028.47 per sq ft, representing a price appreciation of 7.58 per cent over the same period.

This was followed Terrasse where 12 units were transacted at a median price of $1,084 per sq ft in 2021 - a capital appreciation of 7.75 per cent over the same period.

When compared to the median transacted price of $1,012.24 per sq ft in 2016, Hougang witnessed price appreciation of 15.29 per cent ($1,167.03 per sq ft in 2021) over five years, earning it second place.

By 2030, this could go higher as Hougang MRT station will be upgraded to an interchange station with the CRL.

The Land Transport Authority (LTA) anticipates more than 100,000 households will benefit from this new line which will make Hougang even more attractive for investors.

#3: Sengkang ​

Just across the Tampines Expressway (TPE) from Punggol is Sengkang.

Served by two MRT stations (Buangkok and Sengkang) and a network of LRT stations, Sengkang is considered the most populous planning area in the North-East Region.

In 2016, a total of 12 units had changed hands at a median transacted price of $965.79 per sq ft.

Leading the pack is The Quartz (seven units sold at a median price of $877.86 per sq ft), followed by The Luxurie (four units sold at a median price of $1,123.50 per sq ft) and Riversound Residence (one unit sold at a median price of $962 per sq ft).
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Meanwhile, in 2021, a total of 169 condominiums were sold at a median price of $1,135.47 per sq ft.

La Fiesta is the most popular condominium with 55 units sold at a median price of $1,263.53 per sq ft followed by Flo Residence with 36 units changing hands at a median price of $971.17 per sq ft.

Third in place is The Luxurie (34 units sold at a median price of $1,167.88 per sq ft). When compared to 2016, it saw a capital appreciation of 3.95 per cent.

This was followed by Riversound Residence where 28 units were transacted at a median price of $1,001.11 per sq ft (a capital appreciation of 4.07 per cent), and Jewel @ Buangkok (27 units at a median price of $1,326.11 per sq ft).

Fifth in place is The Quartz and Rivervale Crest where 24 units each were transacted at a median price of $1,026.71 and $753.88 per sq ft in 2021.
For The Quartz, this represents a price appreciation of 16.97 per cent over five years.

For the entire Sengkang area, the median transacted price in 2021 is $1,070.91 per sq ft, representing a price appreciation of 10.88 per cent since 2016.

By 2040, a new MRT station may be added to Sengkang which will improve its connectivity further to the rest of the island.

According to Land Transport Master Plan 2040, there is a possibility that an eighth MRT line will run from Woodlands to the Greater Southern Waterfront with a station passing through Sengkang.

Estimated to be about 30 km long, the line will potentially benefit 400,000 households, if the plan were to materialise.

This could uplift property prices further.

#4: Serangoon ​

Though Serangoon is located closer to the city and is served by Serangoon MRT interchange station that connects to the Circle Line and North East Line, the private property sector lags behind those of Punggol, Sengkang and Hougang.

In fact, it is the only area in District 19 that recorded negative growth.

In 2016, a total of 20 units were sold at a median price of $1,113.48 per sq ft.

Chiltern Park is the most popular project (seven units sold at a median price of $989 per sq ft), followed by Cardiff Residence (four units sold at a median price of $1,308.2 per sq ft), Casia Cambio and Chuan Park (three units each sold at a median price of $1,420.66 and $752.67 per sq ft respectively) and Casa Rosa (one unit sold at a median price of $837 per sq ft).

In 2021, a total of 73 units were sold, comprising 27 units at Boathouse Residences (at a median price of $1,049.26 per sq ft), 12 units at Cardiff Residence (at a median price of $1,301.33 per sq ft), nine units at Chiltern Park (at a median price of $1,054.44 per sq ft), seven units each at Casa Cambio and Cherryhill (at a median price of $1,366.42 and $1,105.86 per sq ft respectively), five units at Amaranda Gardens (at a median price of $1,492 per sq ft), four units at Chuan Park (at a median price of $1,013.25 per sq ft) and two units at Casa Rosa (at a median price of $1,005.50 per sq ft).

When compared to 2016, Cardiff Residence, Chiltern Park and Casa Cambio witnessed a price depreciation of 0.53, 30.24 and 3.97 per cent respectively.

Meanwhile, Casa Rosa, Cherryhill and Chuan Park saw a price appreciation of 20.13, 11.82 and 34.62 per cent respectively.

For the entire Serangoon area, the median transaction price in 2021 was $1,043.12 per sq ft, representing a capital depreciation of 6.75 per cent over 5 years.

Under the URA Master Plan 2019, the URA envisages Serangoon Central to be “the heart of the North East region with excellent connectivity via the North-East Line, Circle Line, and Serangoon Bus Interchange.”

However, there are no plans so far for Serangoon’s rejuvenation nor any new infrastructure developments under the master plan.

This could be a dealbreaker for property investors looking for potential upsides. 

Summary

Based on our analysis, it may be an opportune time to either sell your condominium or invest in one in Punggol.

This is because there are potentially new upsides arising from the completion of the Punggol Digital District, Punggol Coast MRT station and the upgraded Punggol MRT interchange station to the CRL.

The URA Draft Master Plan 2019 anticipates Punggol Digital District to be a new smart city by 2023 that will create around 28,000 jobs.

The innovation hub is expected to house technology firms involved in key growth fields as well as the new Singapore Institute of Technology Campus.

That’s not all.

The LTA expects the new Punggol Coast MRT station to provide enhanced connectivity to the rest of the island via the CRL which will link Punggol Digital District to Jurong Lake District and Changi by around 2030.

Collectively, all these infrastructure projects are expected to have a positive spillover impact for Punggol.

Freshly MOP-ed HDB resale flats are in hot demand especially in growth areas like Punggol.

By Khalil Realtor

In case you don’t already know, HDB flats with a fresh lease are in high demand especially in growth areas like Punggol.

This is because they are not subjected to a pro-rated CPF usage unlike in older estates like Toa Payoh.

This means you can use 100 per cent of your CPF up to the Valuation Limit and 120 per cent of the Withdrawal Limit if you are taking a bank loan to finance your purchase. 

If you are taking an HDB loan, you can use 100 per cent of your CPF up to the Valuation Limit.

It also means should you wish to sell your resale HDB flat, the pool of buyers are not restricted to a pro-rated CPF usage as long as your flat has a remaining lease of more than 60 years.

With a number of HDB flats reaching their Minimum Occupation Period (MOP) in 2022, here are three things you can do:

#1: Rent it out

You will be eligible to rent out your entire HDB flat upon reaching your MOP.

In fact, HDB flats offer a good rental yield of more than 5 per cent per annum when compared to a private property.

When looking at rental yield, we are looking at the difference between the cost of purchasing the property (including monthly mortgage, maintenance fee, property tax etc) and the income you receive when renting out your property, 

A good rental yield in Singapore would be anything above 5 per cent.

You can calculate your rental yield by calculating your annual rent and divide it with your purchase price times 100. 

For a property that was purchased at $143,000 with an annual rental income of $21,000, your rental yield would be 14.68 per cent.

Do note, you must rent out your HDB flat for at least 6 months.

If your tenants are all Singaporeans or Malaysians, you can apply to rent out your flat for a maximum period of 3 years per application.

For an application involving non-Malaysian non-citizens, the maximum rental period per approval is 2 years.

Your tenant must be any of the following to rent a flat or bedroom as a tenant:
- Singapore Citizen
- Singapore Permanent Resident
- Non-citizen legally residing in Singapore who holds an Employment Pass, S Pass, Work Permit, Student Pass, Dependant Pass, or Long-Term Social Visit Pass. The pass must have a validity period of at least 6 months as at the date of application by the flat owners:
- Work Permit holders from the construction, marine, and process sectors must be Malaysians. Work Permit holders from the manufacturing sector must also be Malaysians if they are renting a whole HDB flat

If your tenant is a non-Malaysian non-citizen (Singapore Permanent Resident or foreigner) renting the HDB flat, they will be subject to the Non-Citizen Quota for Renting Out of Flat. The quota is to help maintain a good ethnic mix in HDB estates. Malaysians are not subject to this quota in view of their close cultural and historical similarities with Singaporeans.

The quota is set at 8 per cent at the neighbourhood level and 11 per cent at the block level, and applicable if any of your tenant renting your flat is a non-Malaysian non-citizen. 

If the quota is reached, only Singaporeans and Malaysians can rent a flat in your neighbourhood/ block. This quota does not apply to the renting out of bedrooms.

Do note the maximum number of tenants allowed for 1-room and 2-room and 3-room and bigger flats is 4 and 6 respectively.

As a landlord, you are required to check original NRIC or FINS of your tenants and occupiers for forgery and make copies, check photographs on NRICs or FINS against the actual persons to confirm identity and verify the validity of the passes with MOM database and/or ICA database. 

As an added due diligence, you may also ask for letter of employment from employer. This is to deter illegal immigrants or vice activities. This is required by the Council of Estate Agencies for compliance with the Immigration and Women's Charter.
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You will be required to apply for the subletting approval from HDB should you wish to rent out your whole flat.

A processing fee of $20 is applicable.

#2: Sell it in the open market

To protect their assets, some HDB flat owners prefer to sell their newly MOP-ed flat.

This is because as HDB flats come to the tail end of their lease, their value drops significantly.

This can already be seen in the transacted price of older HDB resale flats in Toa Payoh, especially those with a remaining lease of less than 60 years.

When selling your flat in the open market, you will first need to apply for an Intent To Sell via HDB's Resale Portal here: 
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The buyer will first need to pay an option fee of an amount not exceeding $1,000. 

Your agent can then issue an Option to Purchase (OTP) form after 7 days from the date of the Intent to Sell.

Your agent can then submit the OTP to HDB to request for a valuation. An assigned valuer will then inspect your HDB flat to determine its valuation. 

The buyer will be given 21 days to think over the intended purchase and to check his/her eligibility, financing aspects and other issues such as whether your flat is affected by redevelopment or upgrading, the liability to pay for upgrading costs, levy and so on and then to exercise their option. 

To exercise the option, the buyer must sign the 'Acceptance' portion on the OTP by ensuring that the date of issue of the HDB Loan Eligibility or bank's Letter of Offer is before the date of acceptance. 

The buyer must then deliver the OTP to your agent and pay the Option Exercise Fee (which is a sum not exceeding $5,000 - less the deposit already paid) to you. 

All this must be done within the 21-day option period.

Upon exercising the Option, a binding contract is formed between the seller and buyer for the sale and purchase of your flat. 

The next information is crucial as many sellers are not aware of it.

If you plan to buy another HDB flat and apply for a second HDB concessionary rate loan, your housing loan will be reduced by the CPF monies refunded and up to 50 per cent of the cash proceeds from the disposal of your existing or previously owned HDB flat. This is to ensure financial prudence. 

You can keep the greater of $25,000 or half of the cash proceeds. The HDB will take into account the remaining part of the cash proceeds when determining the amount of the second loan to be granted to you.

#3: Invest in a private property

​Now that you have met your MOP, you are free to invest in a private property without any restrictions.

This is also a popular option among HDB upgraders as a private property is considered an investment whereas an HDB flat is for long-term occupation.

If you have an outstanding HDB loan, your loan-to-value (LTV) limit will be reduced to 45 per cent with a minimum 25 per cent cash downpayment.

The remaining 30 per cent will be via your cash and/or CPF Ordinary Account.

If you do not have any outstanding loan, your loan-to-value (LTV) limit will be 75 per cent with a minimum 5 per cent cash downpayment.

The remaining 20 per cent will be via your cash and/or CPF Ordinary Account.

When purchasing a private property, you will be subjected to the Total Debt Service Ratio (TDSR), Valuation Limit and Withdrawal Limit. Your TDSR should be less than or equal to 60 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 monthly debt of $1,000, this is your TDSR:

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

Your monthly mortgage will be included in this TDSR calculation and cannot exceed the 60 per cent threshold.

You will be subjected to Valuation Limit. Valuation Limit is the lower of the purchase price or valuation at the time of purchase. Assuming the valuation and purchase price is $1 million, your Valuation Limit is $1 million.

For a bank loan, you will be subjected to Withdrawal Limit: 120% of the Valuation Limit. 

120% x $1,000,000 = $1,200,000 

$1.2 million is your Withdrawal Limit.

Do note, you will also need to set aside a Basic Retirement Sum (BRS) of $93,000 in 2021 if you are reaching 55-years-old. 

You can use the remaining amount in your CPF Ordinary Account after setting aside your BRS.

Also, a Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) of 12 per cent will be applicable for your second property purchase. 

As you can see from the examples above, renting, buying and selling a property requires extensive knowledge and financial calculations.