How a lot to afford to purchase a home in Naomi Neo’s neighbourhood

Over the weekend, influencer Naomi Neo dropped a video tour of her new home — a three-storey indifferent home.

Again on 30 December final 12 months, she shared a teaser of her new home, asserting that she’s shifting in earlier than the brand new 12 months.

Quick ahead to a few months later, and he or she’s revealed an inside look of the brand new residence.

Like many netizens, we’re awed by her new home, from the floor-to-ceiling glass panels to the swimming pool.

And like many netizens, we additionally surprise how a lot it prices.

Naomi Neo’s new neighbourhood

99.co understands that Naomi’s new home is positioned within the Sundown Means space, which is positioned on the east of Holland Village and Bukit Timah.

Whereas the Sundown Means subzone is a part of Clementi and falls underneath the Exterior of Central Area (OCR) market section, residents right here take pleasure in a city-fringe location.

As an illustration, the CBD and Orchard purchasing belt are round a 20-minute drive away from the world (primarily based on Google Maps estimates). The subzone can be fairly near nature, with Bukit Timah Nature Reserve a seven-minute drive away.

Residents listed below are additionally inside shut proximity to a wide range of colleges, corresponding to Pei Hwa Presbyterian Major College, Nan Hua Major College, Methodist Women’ College, Ngee Ann Polytechnic, Singapore College of Social Sciences (SUSS) and SIM.

In the meantime, the neighbourhood is understood for its tranquility and privateness, particularly since a lot of the homes listed below are landed properties. But it surely’s not completely a landed residential space; there are just a few condos and HDB blocks right here as properly.

Worth pattern of Sundown Means

Right here’s a take a look at the value developments of houses in Sundown Means, segmented by the three predominant property sorts: HDB flat, condominium and landed.

Over the previous 10 years, all three kinds of properties right here have seen double-digit worth growths, some greater than others. As an illustration, HDB flats right here have seen a worth appreciation of 14.89%, adopted by landed houses at 24.79%.

In the meantime, condos right here have seen a whopping worth improve of 75.61%! However that is primarily pushed by the sale of Ki Residences At Brookvale, a brand new condominium that launched in 2020. It’s anticipated to TOP in 2024.

How a lot to earn to afford a house in Sundown Means

Based mostly on the information of common costs that 99.co has, we will estimate how a lot one must earn to afford a house (HDB, condominium and landed) in Sundown Means.

Since we’re nonetheless in March and Sundown Means is a small space, there’s inadequate knowledge from this 12 months to base our estimates on. So we’ll be utilizing common costs from 2022 as a substitute.

(Disclaimer: These estimates are primarily based on the typical costs for the respective property sorts, which can be larger or decrease than the precise costs. To seek out out if a property is inside your means, we advocate you to calculate with 99.co’s affordability calculator primarily based on the precise worth.)

HDB flat

Based mostly on 99.co Researcher, 24 HDB flats in Sundown Means modified palms in 2022. The typical worth of those flats was S$735,150.

Assuming you’re taking an HDB mortgage for 25 years, with a loan-to-value (LTV) ratio of 80% and an rate of interest of two.6%, this interprets to a month-to-month instalment of S$2,668.

For HDB flats, the authorities stipulate that the utmost quantity you may incur on the month-to-month instalments of a house mortgage is 30% of your month-to-month family revenue. That is often known as the mortgage servicing ratio (MSR). On prime of that, there’s a stress-test fee of three% to calculate this MSR.

Based mostly on this, the estimated month-to-month family revenue to afford an HDB flat right here is S$9,296.

Non-public condominium

As talked about earlier, a brand new launch condominium that’s presently available on the market at Sundown Means is Ki Residences At Brookvale. In line with 99.co Researcher, 120 models have been bought final 12 months, at a median worth of S$1,977,474.

With a financial institution mortgage for 25 years, an LTV ratio of 75% and an rate of interest of 4%, this interprets to a month-to-month instalment of S$7,828.

For personal properties, the utmost quantity you may incur month-to-month debt obligations is 55% of your month-to-month family revenue. For illustration functions, let’s assume you don’t have every other mortgage obligations aside from the house mortgage. This implies you may max out the 55% complete debt servicing ratio (TDSR).

To afford a brand new launch condominium in Sundown Means, you’ll want an estimated month-to-month family revenue of S$14,233.

The quantity is even larger for resale condos, for the reason that common worth final 12 months was S$2,754,819.

Based mostly on the identical assumptions, this interprets to a month-to-month instalment of S$10,906 and a month-to-month family revenue of S$19,829 (cries in poor).

Condos on the market in Sundown Means

Landed houses

For landed houses in Sundown Means, the typical worth final 12 months was S$11,197,600.

With a financial institution mortgage and primarily based on the identical assumptions above, this can translate to a month-to-month instalment of an eye-watering S$44,329 and a whopping month-to-month family revenue of S$80,598! (cries in poor once more)

Now, we don’t understand how a lot Naomi and her household had spent on the home. What we all know is that she received her keys in 2019, when the typical worth of landed houses within the space was decrease at S$6,888,750.

It’s excellent news for her and her household although, as a result of whereas her home was underneath development for 3 years, costs of houses within the space have elevated by 62.55% to a median worth of S$11,197,600 in 2022!

Should you discovered this text useful, 99.co recommends Right here’s how a lot it is advisable to earn to afford a condominium (2023) and Need to Construct-Your-Personal Landed Property? Right here’s What You Must Know.