You’ve heard about the cooling measures for Singapore’s property market, you probably know a thing or two about the ABSD and the TDSR, and you wonder if there are any good property buys available right now?
Well, to find out, I got in touch with Jeffrey from Huttons (the company I worked at when I was a property agent some 8 years ago). He recommended 3 different developments, shared his take on the ABSD and property market trends, and also told me something rather interesting that he’d heard about how buyers try to get around the ABSD or TDSR (Perhaps there’s a loophole?).
Recommendation #1: Village @ Pasir Panjang
Jeffrey described this development as “the next Sentosa of SG” and I can see why. Lots of greenery and open spaces, and apartments overlooking the water. It’s freehold, near NUS and NUH, and it’s located very near Google and Microsoft offices too.
As you can tell from the name ‘Village @ Pasir Panjang’, it’s great for families, especially those who are selling their landed property in search of a better environment near good schools and lots of greenery. What I think is a great plus is how the layout of the units is fully functional, with no bay windows and planters! And freehold property will always be my preferred choice.🙂
Recommendation #2: Skywoods
Jeffrey recommends Skywoods both to investors and home owners. While it isn’t freehold property, there is immense potential for capital appreciation as it is located near the Good Class Bungalows (GCB), other landed properties and private condominiums. And you get to enjoy the ‘first mover advantage’ as Skywoods is set to be the price-setter for future residential developments in the area.
Also, the MRT station is barely 400m away, there’s a German International School nearby, and 3000 hectares of Nature Reserve to enjoy. Investors may opt for the 3-bedroom units (around S$1.1million) while the 4-bedroom units are great for your own stay (at about S$1.3million). With the German International School in the area, your rental yield is largely secured and there are exciting opportunities for capital appreciation! Jeffrey’s clients who favor Skywoods are usually the ‘HDB upgraders’, investors, and those who are ‘downgrading’ after selling their landed properties.
Recommendation #3: Sol Acres
I love swimming pools, and Sol Acres, being the largest Executive Condominium (EC) in Singapore, has 3 pools! It has 1327 units, so it’s important to know who will be your neighbors if you intend to buy a unit here! Jeffrey tells me that the people living here are the typical young Singaporean couples in their late 20s or early 30s, who are buying their first home. Also, there are the investors who want to get a third property for investment. Another group would be the HDB upgraders as well as the ‘landed downgraders’ who don’t want to climb stairs anymore and want peace of mind when they go on a holiday (no need to worry about burglaries).
Do note, though, that buyers must first form a family nucleus and ensure they meet the S$14,000 income ceiling eligibility requirement. Jeffrey expects that older couples who are experiencing what is known as the “empty nest syndrome” with their children overseas, and when they don’t need such a big space to live in anymore, would enjoy living among the younger crowd here. He believes that HDB upgraders would also appreciate the (perceived) “higher social status” of living in an EC and enjoy having a bigger home.
~ Q&A with Jeffrey ~
Grace: What do you think about the ABSD and the government’s cooling measures? Will there be a reversal soon, you think?
Jeffrey: It is unlikely that the government will review these cooling measures. Our government won’t be changing for the next five years at least so I think the status quo is here to stay. There is also no need to wait anymore, investors! The election is over. And for the next five years, there will likely be no significant changes in policy.
G: You’ve mentioned that some buyers have tried to get around the ABSD (Additional Buyer’s Stamp Duty) or TDSR (Total Debt Servicing Ratio) by exploiting what seems to be ‘loopholes’. What is it you have heard?
J: I’ve heard that some buyers engage in creative “decoupling” when it comes to the ABSD, while others use their children’s names for the purchase.
If you have a question about the cooling measures, the current property market and/or the 3 developments recommended by Jeffrey, feel free to contact him at +65 9090 4005 OR fill out the contact form below: