When it comes to investing in a condo, financing is a crucial factor to consider. Singapore has a variety of mortgage choices available, but it is important to be familiar with the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can obtain based on their income and current debt commitments. By understanding the TDSR and seeking guidance from financial advisors or mortgage brokers, investors can make well-informed choices about their financing and prevent over-leveraging. Condos are no small investment and it is important to carefully consider all financial aspects before making a decision.
A 99-year leasehold HDB shophouse at 214 Serangoon Avenue 4 will be up for auction at SRI on Feb 26. The property is a two-storey building with living quarters on the second floor, and a total floor area of around 1,668 sq ft. It has been listed with a guide price of $1.98 million, which translates to $1,187 psf on the floor area. This will be the second time the property appears at SRI’s auction, as it was also listed last month with a higher guide price of $2.08 million, but did not find a buyer. The shophouse is prominently located in front of a bus stop, giving it good visibility from the road.
According to Jansen Kee, assistant manager of auctions at SRI, the property is currently tenanted and generating a gross rental yield of approximately 6.2% based on the guide price. He also adds that the unit will be sold with its existing lease, which ends in 2026, providing the new owner with an immediate stream of rental income. Kee notes that the listed guide price for the HDB shophouse is one of the lowest for this type of property in the area, making it an attractive value proposition for both investors and owner-occupiers.
The most recent commercial shophouse transaction in Serangoon was the sale of a 999-year leasehold shophouse along Lichfield Road in November 2024. The two-storey property spanned a land area of 2,319 sq ft and was sold for $4 million ($1,725 psf). The shophouse up for auction is located within a cluster of HDB flats that border the Serangoon Gardens landed residential estate. It is situated directly across the road from Serangoon Swimming Complex and Serangoon Sports Centre, which provide the area with a steady supply of foot traffic. There are also car park lots available behind the shophouse for convenience.
Based on URA records, the completion year for Serangoon Garden Estate was in November 2024. The buyer profile for properties in Serangoon Garden Estate includes investors, owner-occupiers, as well as foreigners looking for rental properties or longer-term investments. The price trend chart for Serangoon Garden Estate shows a gradual upward trend in the past few years, with new sale condos generally more expensive than resale condos. However, the rental yield for properties in Serangoon Garden Estate is relatively high, making it an attractive option for investors.