5 Things to Consider Before Buying Your First Private Property

Think about these factors before making that big purchase.

Updated on September 28, 2018 8:09 am

Fiona Ho

5 Things to Consider Before Buying Your First Private Property

Investing in property is a common Singaporean dream. Many people purchase private property as an upgrade from their current homes or as an investment vehicle to collect rental income, and perhaps to sell it off for profit at a later date.

Here are a few things to consider before buying your first private property:

1. Your eligibility to buy private property

Singaporeans who already own an HDB flat, DBSS flat, or Executive Condominium must first fulfil the Minimum Occupation Period (MOP) to be eligible to buy private property. The MOP is five years and you will be required to stay in the flat throughout the duration.

Meanwhile, permanent residents (PRs) will be required to sell their flat within six months of acquiring private property. Those who currently own private property or a Housing and Urban Development Company (HUDC) flat are not subject to such restrictions.

2. Your housing budget

Don’t look at property that costs way more than what you can afford. Instead, figure out your budget and work within it. As a guide, here’s how much new and resale private properties cost across different locations in Singapore. For simplicity’s sake, we only looked at transactions from 1H2018 to derive the average $psf price. We assumed that all units are 900 sq ft.

Market region

New Sale

Resale

Core Central Region

$2.54 mil ($2,820 psf)

$1.57 mil ($1,740 psf)

Rest of Central Region

$1.61 mil ($1,793 psf)

$1.27 mil ($1,413 psf)

Outside Central Region

$1.26 million ($1,399 psf)

$973,800 ($1,082 psf)

Source: URA, EdgeProp.sg. *Figures provided are mere estimates and should not be used for official purposes.

Photo courtesy of EdgeProp.sg

3. Your property’s location: central vs non-central homes

Properties located in the central or are in mature estates typically command higher prices as they tend to boast greater connectivity and a wider array of amenities like schools and shopping malls.

One example of such projects is the upcoming new condo, The Tre Ver. Located in the mature estate of Potong Pasir, the 99-year riverfront development will sit amidst a host of amenities that includes popular hangouts like NEX, and schools like St. Andrew's Junior School, Pei Chun Public School, and First Toa Payoh Primary School.

On the other hand, mass market condos or properties located in non-mature estates are usually more affordable. The trade-off is that they’ll likely be less accessible and you’ll have to fork out slightly more on cab fares if you don’t drive.

4. Amenities and connectivity

As well as the geographical location of the property, it is important to consider the type of amenities and public transport modes surrounding the area. What kind of amenities are a must-have for you?

For instance, if proximity to an MRT station is a key consideration, the upcoming Sixteen35 Residences might be a good match. The leasehold project on Lorong 35, Geylang is located just 442m from Paya Lebar MRT station. Scheduled to complete by end-2023, the 60-unit boutique development will offer residents resort-style living in Paya Lebar.

5. Present and future infrastructural planning

It’s not just the present amenities that matter, but future ones as well. Government plans concerning schools, hospitals, recreational hubs and public infrastructure such as a new MRT station, can have a potential uplifting effect on home values.

So, when shopping for a home, it pays to study the infrastructural the long-term infrastructural planning in the area before making a commitment. Find out if any new public, commercial or residential developments are planned and consider how these additions might enhance the desirability of properties in the surrounding area.

Article originally published on EdgeProp.sg. Edited and reposted with permission


What do you think of this article? Share your thoughts with us at hello@cromly.com.

Cover photo courtesy of EdgeProp.sg

DO YOU NEED HELP IN DESIGN?

Request a free quote from us!

REQUEST FREE QUOTE

Comments —