Singapore is known for being one of the best places in the world for education, with a strong emphasis on academic achievement and a diverse range of prestigious schools. It’s little wonder, then, that many parents look to invest in property close to these institutions, both for their families and as a potentially lucrative opportunity for the future. In this blog, we’ll explore some of the top property investment opportunities near top primary schools in Singapore, highlighting what makes these areas so attractive and the potential returns they could offer. Whether you’re a parent looking for a family home or an investor seeking to capitalise on the country’s thriving rental market, there’s sure to be something here to pique your interest.
Introduction: The Significance of Primary Schools in Singapore
In Singapore, primary schools hold a significant role in the lives of parents and children. The education system in Singapore is highly competitive, and parents aspire to enroll their children in the best possible schools for their future prospects. As such, proximity to primary schools has become a crucial factor in the decision-making process of property purchases. This has led to increased demand for properties located near top primary schools, thereby driving up property prices in these areas. Given the importance of primary education in Singapore, it is not surprising that parents are willing to invest more in properties that offer them a better chance at enrolling their children in prestigious institutions.
The Ministry of Education Guidelines for School Admissions
The Ministry of Education in Singapore has guidelines in place for school admissions. These guidelines prioritize children who live within 1km of the school and have siblings already enrolled in the school. For those who live beyond 1km, but within 2km of the school, priority is given to children with siblings in the school, followed by children who are Singapore citizens or Permanent Residents. After that, children living beyond 2km of the school are considered. However, priority is still given to those with siblings in the school, followed by Singapore citizen or Permanent Resident children. These guidelines ensure fairness in the admissions process and help to allocate places in schools fairly.
Rosyth School: A Brief Overview
Rosyth School is a highly revered educational institution located in District 19. Founded in 1956, Rosyth School was relocated to Serangoon North Avenue 4 in 2001 to accommodate the increasing student population. The school has won several awards and accolades. It is surrounded by a mix of public and private residences making it a desirable location for parents looking to enrol their children in a top school. Serangoon offers several amenities including the Nex shopping mall and Chomp Chomp food centre. The area is well connected to various transport nodes, making it an ideal location for families looking for a convenient lifestyle.
Stable Growth in Condominium Prices
Over the years, the prices of condominiums have remained stable in the vicinity of Rosyth School, with a 4.4% year-on-year growth from 2020 to 2021. Despite a limited number of new launches in recent years, there continues to be sustained demand for properties in the area. The most recent launches were in 2018 and 2019, including Affinity At Serangoon, The Garden Residences, The Gazania, and The Lilium. This stability in prices can be attributed to the high demand for properties near top schools like Rosyth School, which proves to be a crucial factor for families planning their child’s education and residing near the school.
Limited Number of New Launches near Rosyth School
Due to a limited number of new launches around Rosyth School in recent years, the prices of existing condominiums have remained stable and have even experienced a moderate growth in price. The most recent new launches include Affinity At Serangoon, The Garden Residences, The Gazania, and The Lilium, which were launched between 2018 and 2019. However, despite the shortage of new properties, the demand in the area remains high due to the school’s reputable standing among parents. So, investing in a resale property within the 1km radius of Rosyth School could provide a promising return on investment, especially with the school’s continued success in producing top-performing students.
Higher Number of Freehold Resale Transactions
The Serangoon area has seen a higher number of freehold resale transactions, indicating that it is a desirable location for property investment. According to data, the number of freehold resale transactions in Serangoon has increased by 23.4% from 2019 to 2020. This could be attributed to the area’s proximity to top schools such as Rosyth School and Nanyang Junior College, as well as its convenient location near amenities and transportation. As freehold properties are a valuable investment that can offer long-term benefits, this trend could be encouraging for those looking to invest in Serangoon.
Healthy Demand for HDB Resale Flats in Serangoon
Serangoon, home to Rosyth School, has been experiencing a healthy demand for HDB resale flats in recent years. This can be attributed to the increasing popularity of the area and its convenient location with easy access to amenities and transportation nodes. In the first 11 months of 2021, demand has been observed for 4-room, 5-room, and executive flats with an average remaining lease of 66 to 69 years. Prices are marginally higher in Serangoon compared to neighboring Hougang, but still fall within a reasonable range. With the upcoming Cross Island Line MRT station set to improve connectivity in the area, the demand for properties in Serangoon is expected to continue to grow.
Comparing Resale Prices of Serangoon and Hougang
In comparing resale property prices in Serangoon and Hougang, it was found that prices for 4-room and 5-room flats in Serangoon are slightly higher than those in Hougang. However, both areas offer reasonable prices for those intending to buy a property. The average remaining lease for flats in Serangoon and Hougang is around 66 to 69 years. In the first 11 months of 2021, there was an increase in demand for 4-room, 5-room, and executive HDB flats in Serangoon, which is where Rosyth School is located. This indicates healthy demand for properties in the area, which could be attributed to its location and accessibility to amenities and transport nodes.
Improving Connectivity in the Serangoon Area
The upcoming improvements in the connectivity of Serangoon are exciting news for residents and investors alike. The Cross Island Line, set to be completed in 2030, will provide faster and more convenient travel routes for those living in the area, as well as connect with all of Singapore’s existing radial MRT lines. In addition, a new residential precinct in Lorong Chuan will be developed to meet increased demand for property in Serangoon, with new linkages and amenities planned for the community. Despite these future developments, Serangoon already boasts a wide range of amenities, including the largest shopping mall in the North East region, Nex, and a robust transportation network with three MRT stations.
Changing Property Investment Strategies: A Comprehensive Review
The property market has undergone significant changes over the last decade, making long-term investment strategies less viable. One such change is the reduced appeal of buying shoebox units for rental, as the higher Additional Buyer Stamp Duty (ABSD) on second or third properties has increased their cost. Cash-flow positive properties are also less common, with rental income now covering only mortgage interest and maintenance fees for many investors. Location is now a crucial factor to consider, with properties in Districts 1, 2, 4, 6, 7, 9, 10, and 11, particularly near prestigious schools, presenting good investment opportunities. The Core Central Region (CCR) is also a recommended sub-market, with the potential for significant profit margins on high-class properties.
