What Can You Buy with $800,000 in Singapore?

What Can You Buy with $800,000 in Singapore?

Last week, I had the pleasure of sharing an article comparing the investment opportunities in Melbourne versus Singapore, titled “Singapore vs. Melbourne: Where Should You Invest Next?” , and I received inquiries from some of you interested in exploring investments abroad.

But for those not ready to take that leap and prefer to invest your $800,000 in Singapore, how do you make the right choice?

Should you go for a resale HDB, BTO with long waiting periods, or opt for the flexibility and potential gains of a private property?

Are you concerned about long waiting periods and potential relationship changes affecting your investment?

Do you want immediate possession and flexibility in your property?

Are you looking for the best way to maximize your returns without being tied down by marriage or other restrictive regulations?

Join me as we delve into these questions and uncover the best investment options for your $800,000 in Singapore..

The Allure and Limitations of HDB Flats

HDB flats are often seen as the more affordable option for most Singaporeans.

These government-built homes offer stability, a sense of assurance and choosing to invest in an HDB flat with your $800,000 may seem like a sensible option given their affordability and government support. However, significant drawbacks can take a toll on your financial and emotional well-being if you are single and under 35 years old.

One of the biggest drawbacks of buying an HDB flat is the long waiting period. On average, you’ll wait around four years for your Build-To-Order (BTO) flat to be ready. During this time, you’re required to make a down payment and commit to a property that you can’t move into or sell until it’s completed.

Singapore couples are marrying earlier to buy homes.

Serena Wong and her boyfriend discussed on their second date when to buy an apartment together. Six months later, they applied for a public housing flat and put down a S$40,000 deposit. This began a five-year wait for a S$620,000 three-bedroom apartment in Queenstown.

Serena, a 28-year-old business development manager, explained, “We already knew what we wanted in the relationship and had marriage in mind. But housing prices pushed things forward much faster.” The couple will need to submit their marriage certificate within three months of getting the keys to their flat.

Phyllis Kum, a 25-year-old accountant, met her boyfriend in June 2022. The combined salary cap and long waiting time for new flats led her to bring up the housing discussion early on. “I popped the question,” Kum said. They secured a flat costing S$550,000 in December 2023 that will be ready in 2027.

This decision, driven by financial and housing pressures, can lead to emotional stress and potential regret if circumstances change.

                                                                                                                                       SOURCE: The Business Times

These stories are not unique. Many young couples are rushed into marriages to secure an HDB flat.

But eligibility depends on marital status and income. What if your circumstances change within those years?

What if you and your partner decide to go separate ways?

You might experience relationship breakdowns, job changes, or shifts in your financial situation.

"Life is unpredictable, and this uncertainty can
lead to regret and a sense of being trapped in a commitment that no longer suits your needs."

The Flexibility and Potential of Private Properties

In contrast to the challenges of HDB flats, investing in a private property offers immediate possession and greater flexibility. With your $800,000 budget, you can explore a range of private properties that provide better financial security and peace of mind.

  • Immediate Possession and Flexibility

Private properties offer the advantage of immediate possession. You can buy today and, if necessary, sell tomorrow, providing you with the flexibility to respond to changing circumstances without the lengthy wait times associated with HDB flats

Pro Tip: Imagine the possibilities! Need a temporary place to stay while you renovate your current home? Private property ownership gives you that option. Looking to capitalize on Singapore's booming rental market? Rent out your property and start generating income immediately.
  • Potential for Quick Gains

Private properties don't have waiting periods or limitations on selling like HDB flats.

This means you can sell whenever you want. Imagine the market prices go way up – you can quickly sell your property and potentially make a big profit!

Note: While there's flexibility to sell, remember that Singapore imposes Seller's Stamp Duty (SSD) on properties sold within the first three years of ownership. The SSD rate decreases the longer you hold the property, ranging from a hefty 12% in the first year to zero if you hold it for more than three years.

As of Q2 2024, the average gross rental yield for private condominiums in Singapore is 4.35%, a slight decrease from 4.65% in Q1 2024.

Here's a breakdown of rental yields across different regions:

  • Tanglin/Holland/Bukit Timah: 3.85%
  • Hougang/Punggol/Sengkang: 5.03%
  • Alexandra/Commonwealth: 4.85%
  • Orchard/River Valley: 3.98%
  • East Coast/Marine Parade: 4.12%
  • Newton/Novena: 4.25%

The rental market is stabilizing but unlikely to return to pre-COVID levels.

This data suggests strong rental demand, making private properties an attractive option for investors seeking both capital appreciation and steady income streams.

The Financial Edge: Why Private Properties Might Make More Sense for Your $800,000

Let's face it, $800,000 is a significant investment, and you deserve the flexibility and potential for growth it can offer. Here's how private properties might give you an edge over HDB flats.

HDB Flats: A Long Wait, Lower Returns

If you are planning to get a BTO flat, you would have heard about the Minimum Occupation Period (MOP).

MOP is the period that you must live in your HDB flat before you can sell it on the open market. As HDB flats are primarily for owner-occupation, this policy safeguards flats for households with genuine housing needs.

Non-occupation of your flat during the MOP is an infringement of HDB’s rules and regulations, and enforcement action will be taken against errant flat owners. This could range from a financial penalty to compulsory acquisition of the flat.

The MOP of an HDB flat is calculated from the date you collect the keys to your flat and excludes any period when you do not occupy the flat, such as when the whole flat is rented out or when there has been an infringement of the flat lease.

The length of the MOP depends on the purchase mode, flat type, and date of flat application.

  • Flat bought from HDB (e.g. BTO/ SBF flat): 5 years
  • Flat bought from the resale market, either with or without grants: 5 years
  • Flat under the Prime Location Public Housing (PLH) model: 10 years

During the MOP, you cannot sell your HDB flat, rent out your whole HDB flat (You will still be able to rent out your spare bedrooms during the MOP, if you are able to meet the eligibility criteria), acquire a private residential property and apply for another BTO flat.
  • The Minimum Occupation Period (MOP) of 5 years, coupled with the average 4-year wait for completion, means you're locked in for at least 9 years. This can limit your ability to react to changing markets or pursue other investment opportunities.

  • Additionally, HDB flats tend to appreciate in value at a slower rate compared to private properties.

Private Properties: Shorter Commitments and Higher Returns

Private properties, on the other hand, don’t have an MOP. You can buy, sell, or rent your property at any time, giving you the freedom to adapt to market trends. You have the opportunity to diversify and maximize your returns.

While the upfront cost of private properties may be higher, they offer significant long-term financial benefits. The potential for capital appreciation and rental income can provide a steady return on your investment

The Emotional and Practical Decision

Choosing between an HDB flat and a private property isn’t just a financial decision—it’s an emotional one. It’s about where you see yourself living, the kind of lifestyle you want, and the flexibility you desire in your investments.

The Emotional Toll of Waiting

Waiting for an HDB flat can be emotionally draining. The anticipation, the uncertainty, and the potential for regret if your personal circumstances change can take a significant toll.

Imagine the stress of waiting for years, worrying if your relationship will hold, or if your financial situation will change.

The emotional burden of such uncertainty can be overwhelming, leading to sleepless nights and constant worry.

The Practical Benefits of Flexibility

With private properties, you have the practical benefit of flexibility.

The ability to make quick decisions based on market conditions and personal circumstances provides peace of mind. You can respond to life’s changes without being tied down by rigid regulations.

“Consider Michael and Sarah, a couple who chose to invest in a private property. Recently, Michael received a job offer overseas. They sold their condo quickly, made a profit, and used the funds to purchase a new home abroad. “

This flexibility allowed them to seize new opportunities without being held back by long waiting periods or restrictive regulations.

So, What Can You Buy with $800,000 in Singapore?

Condos and apartments are common finds for the $800,000 range, but here's the great news!

There have been some new listings pop up recently that might be the perfect fit for your $800,000!

Let's take a closer look at some of the best private properties you can buy with $800,000 in Singapore:

Parc Rosewood

  • 99-year Leasehold
  • Size: 581 sqft
  • Type: Condominium
  • Price: S$800,000 (S$1,377 psf)
  • Bedrooms: 2
  • Bathrooms: 1
  • Location: Admiralty / Woodlands (D25)

This exclusive 2-bedroom, 1-bathroom unit in a low-rise, resort-style condominium offers a premium stack with a quiet facing, an open-concept kitchen, and a dedicated storeroom. It is conveniently located near Causeway Point, Civic Centre, and schools, making it an attractive investment opportunity with a tenant in place until August.

Note: This 2-bedroom unit is the only one currently available in the market right now that are priced $800,000.

The Water Edge @ Geylang

  • Leasehold: Freehold
  • Size: 388 sqft
  • Type: Condominium
  • Price: S$720,000 (S$1,856 psf)
  • Bedrooms: 1
  • Bathrooms: 1
  • Location: Geylang Eunos / Geylang / Paya Lebar (D14)

This spacious 1-bedroom unit offers a breezy, convenient location just 7 minutes from Dakota MRT, with nearby amenities like NTUC, coffee shops, and eateries, as well as condo facilities like BBQ pits and a garden lounge, making it an ideal investment or cozy own-stay option.

Kassia

  • Freehold
  • Size: 474 sqft
  • Type: Condominium
  • Price: S$800,000 (S$1,688 psf)
  • Bedrooms: 1
  • Bathrooms: 1
  • Location: Changi Airport / Changi Village (D17)

This brand new freehold condominium at Kassia offers a rare opportunity to own a unit starting from just $8XX,000, with spacious layouts, full condo facilities, and a convenient location near major expressways, reputable schools, and shopping malls, making it an excellent direct developer purchase with early bird discounts.

Rezi 26

  • Freehold
  • Size: 495 sqft
  • Type: Condominium
  • Price: S$800,000 (S$1,616 psf)
  • Bedrooms: 1 + Study
  • Bathrooms: 1
  • Location: Geylang, Eunos / Geylang / Paya Lebar (D14)

This 1-bedroom plus study unit offers an efficient and bright layout with no afternoon sun, conveniently located near Aljunied and Dakota MRT stations, as well as a variety of amenities, including retail shops, wet markets, supermarkets, restaurants, and educational institutions, making it an attractive option for those seeking a comfortable and well-connected living space.

Airstream

  • Freehold
  • Size: 474 sqft
  • Type: Condominium
  • Price: S$799,999 (S$1,688 psf)
  • Bedrooms: 1 + Study
  • Bathrooms: 1
  • Location: Balestier / Toa Payoh (D12)

This freehold 1-bedroom plus study unit offers a nice pool view in a quiet neighborhood, conveniently located near amenities, an MRT station, and a park connector, making it an ideal investment or own-stay option for young couples or singles seeking a move-in ready home in a city fringe location.

Smart Suites

  • Freehold
  • Size: 484 sqft
  • Type: Condominium
  • Price: S$800,000 (S$1,653 psf)
  • Bedrooms: 1 + Study
  • Bathrooms: 1
  • Location: Eunos / Geylang / Paya Lebar (D14)

This freehold 1-bedroom plus study unit at Smart Suites offers a quiet facing behind the development, conveniently located near Aljunied MRT station and surrounded by various amenities, including schools, shopping malls, and expressway access, making it an attractive option for those seeking a well-connected and peaceful living space.

28 Imperial Residences

  • Freehold
  • Size: 441 sqft
  • Type: Condominium
  • Price: S$780,000 (S$1,769 psf)
  • Bedrooms: 1 + Study
  • Bathrooms: 2
  • Location: Eunos / Geylang / Paya Lebar (D14)

This well-designed 1-bedroom plus study unit with two bathrooms, located on the upper floors with a regular layout and a northwest-facing main door and southeast-facing balcony, offers a high rental yield with a tenant in place until December 2025, making it an attractive investment opportunity.

The Interweave

  • Freehold
  • Size: 441 sqft
  • Type: Condominium
  • Price: S$799,999 (S$1,814 psf)
  • Bedrooms: 1
  • Bathrooms: 2
  • Location: Balestier / Toa Payoh (D12)

This freehold 1-bedroom unit at The Interweave @ Balestier Heritage Trail offers a high-floor location with a good rental yield, convenient access to Toa Payoh MRT and Zhong San Park shopping, and proximity to Marina Bay Integrated Resort and Suntec City, making it an attractive city fringe investment opportunity with a ready tenant pool and a selling price with tenancy until May 2024.

Viva Vista

  • Freehold
  • Size: 377 sqft
  • Type: Condominium
  • Price: S$730,000 (S$1,936 psf)
  • Bedrooms: 1
  • Bathrooms: 1
  • Location: Buona Vista / West Coast / Clementi New Town (D05)

This freehold 1-bedroom unit with an attached bathroom and balcony offers an unblocked view facing landed houses, conveniently located near NUS and within a short distance to Haw Par Villa and Pasir Panjang MRT stations, as well as various bus routes, reputable schools, and shopping malls, making it an attractive investment opportunity with easy rental potential.

Parc Botannia

  • 99-year Leasehold
  • Size: 431 sqft
  • Type: Condominium
  • Price: S$ 788,888 (S$1,830 psf)
  • Bedrooms: 1
  • Bathrooms: 1
  • Location: Seletar / Yio Chu Kang (D28)

This super high-floor 1-bedroom, 1-bathroom unit at Parc Botannia offers excellent value at SGD 788,888 for 431 sq ft of cozy and modern living space, conveniently located near the Thangam LRT station, Fernvale CC and Hawker Centre, and The Seletar Mall, making it an attractive option for young professionals, small families, or investors seeking a well-connected home in a peaceful neighborhood.

Kingsford Hillview Peak

  • 99-year Leasehold
  • Size: 517 sqft
  • Type: Condominium
  • Price: S$780,000 (S$1,509 psf)
  • Bedrooms: 1
  • Bathrooms: 1
  • Location: Dairy Farm / Bukit Panjang / Choa Chu Kang (D23)

This spacious 1-bedroom unit offers a bright and windy layout with a north-south orientation, high ceilings, and a mint condition with minimal renovation needed, conveniently located beside HillV2 Mall and Hillview MRT station, providing a high rental yield of 4.9% with a tenant in place until 2025, making it an attractive investment or own-stay option near amenities and schools.

Avant Residences

  • 99-year Leasehold
  • Size: 484 sqft
  • Type: Condominium
  • Price: S$780,000 (S$1,612 psf)
  • Bedrooms: 1 + Study
  • Bathrooms: 1
  • Location: Eunos / Geylang / Paya Lebar (D14)

This corner unit 1-bedroom-plus-study at Aljunied offers privacy, good ventilation, and a balcony with invisible grills, along with convenient access to the Aljunied, Mountbatten, and Dakota MRT stations, making it an ideal property for commuting to the CBD and exploring the city.

Cardiff Residence

  • 99-year Leasehold
  • Size: 420 sqft
  • Type: Condominium
  • Price: S$699,000 (S$1,664 psf)
  • Bedrooms: 1
  • Bathrooms: 1
  • Location: Hougang / Punggol / Sengkang (D19)

This 1-bedroom unit offers a serene retreat in the heart of Serangoon Central, with a spacious 420 sq ft layout, convenient access to Lorong Chuan and Serangoon MRT/LRT stations, and proximity to reputable schools, making it an attractive option for those seeking a cozy and modern living space in a tranquil enclave.

Make the Smart Choice with Your $800,000: Limited Units Available

Investing in private properties offers exclusivity, privacy, and amenities that HDB flats simply can’t match. But it’s not just about finding a good deal; it’s about making a thoughtful, well-informed decision.

With only a few listings available in the market right now, the choices are limited but promising.

It’s crucial to carefully consider each option to ensure it aligns with your financial goals and personal circumstances.

Whether you're looking for a cozy 1-bedroom unit or a more spacious 2-bedroom home, I can help you navigate the market to find the perfect fit for your investment.

Don’t let this opportunity slip away. Contact us now!