Despite a steep drop in prices of non-landed properties in the city fringes, rental prices in these districts seem to be holding up well. In 2014, sale prices in the Rest of Central Region (RCR) fell 5.3 per cent, more than the 4.1 in the central region and 2.2 per cent in the suburbs. Sale prices between city fringe and suburban properties are narrowing, especially with the large number of new city fringe properties introduced last year, paired with the increased ABSD (additional buyers’ stamp duty) and TDSR framework (Total debt servicing framework).
Expatriates may be steering towards the city fringe regions with their exclusivity, proximity and more price-friendly options. Rental prices in the city fringes are around $3.50 to $4.50 psf, compared to $5 sf in the city centre and $3 psf in the suburbs.
With city fringe homes becoming more affordable, and rental prices still considerably high, these properties may be a good investment as resilience in demand and rental seem consistent. One of the latest city fringe residential development to go on sale is the Sims Urban Oasis, just a stone’s throw away from Aljunied MRT station and the future Paya Lebar Central Sub-regional Centre. Prices are starting at $628,000 for a 440 sq ft one-bedder to $1.55 million for a 990 sq ft four-bedder. Other properties in various city fringe districts include TRE Residences in Geylang, Eight Riversuites in Whampoa East, Highline Residences in Tiong Bahru and Sky Vue and Sky Habitat in Bishan.
