The 10 Cheapest Homes in Singapore

November 27, 2010

HDB blocks

From the comments from my last article on the Top 10 Most Expensive Houses in Singapore, it seems many readers felt it would be useful to look at the most affordable choices instead. I have thus compiled this list of the 10 most affordable homes currently on the market in Singapore. As with the last time, I used PropertyGuru to filter these out (the prices below are the asking prices).

My findings? Amongst the top 10, all but one are HDB flats, and no surprise but they tend to be in the faraway corners of Singapore such as Yishun, Marsiling and Boon Lay, although there are also flats in prime neighbourhoods such as Ang Mo Kio. The cheapest home on the market in Singapore is, surprise, a landed property – but with a fatal flaw (read on to find out more).

Here are the 10 cheapest homes in Singapore in descending order:

10. For $252,000 you get a 721 sqft ($350psf) 3NG (New Generation) HDB flat at Blk 118, Potong Pasir Avenue 1.  It comes with 2 bedrooms and bathrooms and is a windy, bright and unblocked unit that is near to amenities and Saint Andrew’s, an SAP school. The asking price implies a Cash Over Valuation (COV) of around $22,000.

9. For $250,000 you get a 740 sqft ($338psf) 3I HDB flat at Block 25 Tanglin Halt Road. It comes with 2 bedrooms and 1 bathroom, is a corridor unit in “simple move in condition”, and is near to amenities and a school.

8. Also for $250,000 you can get a 721 sqft ($347psf) 3NG (Modified) HDB flat at Blk 111, Yishun Ring Road. It has 2 bedrooms and bathrooms, is a corner unit on a high floor, and has designer décor. There is no COV payable.

7. In seventh place is a 3NG (Modified) HDB flat at Block 202 Marsiling Drive, also going for $250,000. At 731 sqft ($342psf) it has 2 bedrooms and bathrooms, has a great unblocked view, and is in move-in condition. You will be minutes away from amenities and within walking distance of the Woodlands checkpoint.

6. In sixth place is a 3NG (New Generation) HDB flat at Blk 565, Ang Mo Kio Avenue 3, going for $247,000. For that price you get 2 bedrooms and bathrooms and 743 sqft ($332psf) of space. The $235,000 valuation implies a COV of $12,000.

5. For just $238,000 you can buy a 3NG (Modified) HDB flat at Block 103 Yishun Ring Road. At 721 sqft ($330psf) you get a flat which has 2 bedrooms and bathrooms, and is near to the MRT, shops and schools. The apartment is in move-in condition, and is near to amenities and schools.

4. In fourth place is a $238,000 721 sqft ($330psf) 3NG (Modified) HDB flat at Block 24 Marsiling Drive. It has 2 bedrooms and bathrooms, is on a high floor, and is near to Admiralty MRT station and the Woodlands checkpoint.

3. On another end of the island you can pick up a 3I (Improved) HDB flat in Blk 185, Boon Lay Drive for $235,000. Space will be a bit tighter as it is only 624 sqft ($377psf), but still has 2 bedrooms and 1 bathroom. The asking price implies a COV of $20,000. It is near to the market, schools and Boon Lay MRT.

2. For $215,000 you can buy a 3I (Improved) HDB flat at Block 187 Boon Lay Avenue.  The ad claims that you get 2 bedrooms and bathrooms in 635 sqft ($339psf) of space. The apartment is next to Boon Lay MRT and Boon Lay Shopping Center, and can achieve a potential rental yield of 5%.

1. And the cheapest property currently being marketed on Propertyguru is, unexpectedly, a landed property. How much would you pay for a 3+1 double-storied terrace house at Geylang Lorong 3 with 1,100 sqft of built-in area and sitting on 725 sqft of land? At an asking price of $188,000 you are paying just $171psf (built-in) and $259psf (land). You are located just minutes away from Kallang MRT and town, and have amenities and a community center nearby. Sounds too good to be true? Well, this property does have a fatal flaw – it has only 9+ years of lease left. So if you buy it, you’ll be house hunting again before the decade’s up…

by Propwise.sg on November 27, 2010 · 15 comments

Posted in Buying Singapore Property,HDB flats (public housing),Singapore Property Market

{ 15 comments… read them below or add one }

Francis Ng November 28, 2010 at 3:15 pm

Hi

Thanks for compiling this, very useful info for my hse hunting (first timer)

Btw on the landed property, what would happened to the property once the lease is up?

cheers

Reply

Mr. Propwise November 28, 2010 at 4:46 pm

Hi Francis,

Thanks for your kind comment!

As for the landed property, once the lease is up it will revert back to the government (or lease owner).

Reply

David December 5, 2010 at 12:46 am

thanks for the compilation. As I have a few properties up north but I am a singaporean. Will I meet problem purchasing those outskirts that you had mention with the recent measures by the goverment?
Regards
David

Reply

Mr. Propwise December 5, 2010 at 12:43 pm

Hi David, if you already have a few properties you will not be eligible to purchase any HDB flats.

Reply

Wei Peng December 5, 2010 at 3:21 pm

Hi Mr. Propwise,
Regarding the landed property for 188k, how much value will it be at the end of the lease, reverting back to the government (or lease owner).

Reply

Mr. Propwise December 5, 2010 at 5:08 pm

My understanding is zero, although I have not had any experience or heard of a case where the lease expired.

Reply

Francis Ng December 5, 2010 at 7:47 pm

That is true since in most cases the property would have been sold off before lease expired. However I understand we can ask for extended lease but it will be costly to warrant the effort.

Reply

Bubble December 9, 2010 at 12:05 pm

Hi,

Can I ask what happens after the end of the 9 year lease? While it should be return to state or owner, but it should be return at what state? As in does the last owner need to demolish the property to return it to the state?

Reply

Mr. Propwise December 9, 2010 at 1:38 pm

I’m guessing you don’t have to demolish the property, but I’ve not come across a case where the lease has expired so I honestly do not know.

Reply

Jenny December 24, 2010 at 1:05 pm

What do you foresee will happen to those landed 99 year LH properties when these reach the end of the lease?

Reply

Mr. Propwise December 24, 2010 at 2:00 pm

The most likely scenario is that the lease will revert to the government and you will have to move.

Reply

Mrs Lakshmi January 7, 2011 at 1:15 pm

Hi Mr Propwise

I(49yrs Singaporean) am residing in Chennai(India) from 1981(married) and wish to buy a HDB flat(first timer). I am interested in the above mention 6th paragraph which is located in Ang Mo Kio Blk 565 Ave3 as where my mother is residing .
As my husband and I have plan to settle in S’pore in 5yrs time after winding up our family business here.
I need your advice regarding how to purchase the above mention flat.

Ps. I would like to mention that this site is so informative esp for Singaporean who are residing overseas .

Reply

Mr. Propwise January 7, 2011 at 5:33 pm

Hi Mrs. Lakshmi, the best way to find out if the flat is still available is to go to http://www.propertyguru.com.sg and search for it.

Reply

Mrs Lakshmi January 10, 2011 at 2:18 pm

Hi Mr Propwise
The above site is helpful and useful site for a first timer buyer. Thanks . Actually I am unable to understand the terms when I key in for three bedrooms( resale) option . Terms like 3A, 3NG (New Generation), 3NG Modified , 3A Modified, 3I Improved and 3I Modified.
Can you please enlighten me regarding this or is there any site where I can visit and clarify my doubts and also know the age of the flat.
I am keeping my option open to purchase a new HDB or a resale flat.
As I am still weighing my pros and cons for new and resale flat as your site has provided valuable and practical( approach) information.

Reply

MJ Hii November 5, 2011 at 10:09 am

Hi Propwise,
I have found a Condo unit ( 12 years old) which I like very much.Before I agree to the sale,I would like to find out the history of the unit such as any crime,dead,illegal loan committed?
How?

Reply

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