One of the important factors when considering good resale projects is the presence of HDB upgraders.These households usually aim to sell their current HDB flats to upgrade to larger or upscale homes, which are the neighbouring resale projects.

Firstly, we'll explore the locations of Build-to-Order (BTO) projects set to reach their Minimum Occupation Period (MOP) in three years time.

Why three years? No Seller Stamp Duty (SSD) is payable after three years of purchasing a property.

Source: Google Maps, HDB

In this series of articles, we would be focusing on three areas, namely Yishun, Punggol, and Tampines.

In the Yishun area, there are four BTO projects set to hit their MOP in 2027. There are two private developments near these projects, namely Symphony Suites and North Gaia EC.

While North Gaia EC is currently under construction, it is anticipated to obtain its Temporary Occupation Licence (TOP) in 2027.

Source: Google Maps, HDB

Symphony Suites

Source: Symphony Suites

Symphony Suites, a music-themed development, reached completion in 2018, boasting a substantial size with 660 units.

This expansive project offers a diverse range of amenities, featuring pool areas, lush lawns, a dedicated playground for children, a tennis court, and a clubhouse for residents to enjoy.

Being a larger development also means there would be more transactions occurring, making the prices of the units more competitive. The management fee would also be lower.

Source: Symphony Suites

The 3-Bedroom Premium unit at Symphony Suites has a dumbbell layout and a lack of balcony which optimises the full 915 sq ft of space. While this design maximises interior functionality, it may not cater to buyers seeking outdoor balcony space.

Notably, what sets this 3-Bedroom Premium unit apart from a standard 3 Bedroom unit is the inclusion of a yard space behind the kitchen, accompanied by a water closet and utility space.

Source: Edgepro, PropertyGuru

Symphony Suites and North Gaia EC have similar pricing for their 3-Bedroom units but Symphony Suites has no MOP and income ceiling restrictions.

Moreover, Symphony Suites is a completed project, allowing buyers the immediate option to rent out their units and start earning rental income. This stands in contrast to North Gaia EC, where buyers must wait until 2027 for its completion before having the opportunity to generate rental returns.

Source: Edgeprop Market Trends

Symphony Suites units are priced at an average of $1,289 per square foot (psf), significantly lower than the average price of $1,488 psf for units of similar size in the Outside of the Central Region (OCR) of Singapore. This positions Symphony Suites as one of the most affordable developments within OCR.

While Symphony Suites boasts several favourable aspects, it's important to note some potential drawbacks.

Firstly, with the construction of North Gaia EC right beside Symphony Suites, units facing the construction site may encounter increased noise and dust.

Additionally, on the opposite side, just across the road, a large industrial area may pose concerns for homebuyers, considering the potential impact on the overall living environment.

Source: URA

Another consideration for potential buyers is that the location of Symphony Suites may not be the most ideal for those seeking developments near MRT stations. The journey from Symphony Suites requires a 22-minute walk to the nearest MRT station, or 17 minutes by public transport.

Source: Google Maps

Lastly, as mentioned before, if buyers are looking for development with balconies, Symphony Suites does not provide that as all their units do not have balconies.

Local Affordability

An essential factor to consider is the affordability of HDB upgraders in the region. This step is crucial as it makes sure investors have a secure exit strategy.

Assuming a couple, Mr and Mrs X, who are both aged 32 taking in a monthly income of $4,500 each. Their total household income would total up to $9,000.

Both of them bought a 4-room HDB BTO flat in Forest Spring @ Yishun for $250,000 in 2017. With an average growth of 2% per annum, they managed to sell it for around $530,000 in 2027.

Source: HDB, Edgeprop Market Trends

With a combined income of $9,000 and factoring in a TSDR of 55%, the couple could take a maximum loan of $994,351 and purchase a property with a quantum of $1,325,802.

Source: I Quadrant App

If Symphony Suites were to grow at a similar average rate of 2.375% per annum for the next 4 years, the price would grow to around $1,292,100.

Source: Edgeprop Market Trends

Source: PropertyGuru

Hence, the couple would have found it affordable to purchase the 3-bedroom unit, successfully upgrading from an HDB to a condominium.

Despite the price growth of Symphony Suites, HDB upgraders in the region could still comfortably afford it, establishing a viable exit strategy for investors, making Symphony Suites a promising investment opportunity in the Yishun area.

The next article will delve into another area, Punggol which explores whether integrated developments are worth the hype. Stay tuned for Part II for a comprehensive exploration of potential investment prospects.