How much is it to buy a house in Naomi Neo's neighbourhood?

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

Back on Dec 30 last year, she shared a teaser of her new house, announcing that she's moving in before the new year.

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Fast forward to three months later, and she's revealed an inside look of the new home. Like many netizens, we're awed by her new house, from the floor-to-ceiling glass panels to the swimming pool. And like many netizens, we also wonder how much it costs.

Naomi Neo’s new neighbourhood

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99.co understands that Naomi's new house is located in the Sunset Way area, which is located at the east of Holland Village and Bukit Timah.

While the Sunset Way subzone is part of Clementi and falls under the Outside of Central Region market segment, residents here enjoy a city-fringe location.

For instance, the CBD and Orchard shopping belt are around a 20-minute drive away from the area (based on Google Maps estimates). The subzone is also pretty close to nature, with Bukit Timah Nature Reserve a seven-minute drive away.

Residents here are also within close proximity to a variety of schools, such as Pei Hwa Presbyterian Primary School, Nan Hua Primary School, Methodist Girls' School, Ngee Ann Polytechnic, Singapore University of Social Sciences and SIM.

Meanwhile, the neighbourhood is known for its tranquillity and privacy, especially since most of the houses here are landed properties. But it's not exclusively a landed residential area; there are a few condos and HDB blocks here as well.

Price trend of Sunset Way

Here's a look at the price trends of homes in Sunset Way, segmented by the three main property types: HDB flat, condo and landed.

Over the past 10 years, all three types of properties here have seen double-digit price growths, some more than others. For instance, HDB flats here have seen a price appreciation of 14.89 per cent, followed by landed homes at 24.79 per cent.

Meanwhile, condos here have seen a whopping price increase of 75.61 per cent! But this is mainly driven by the sale of Ki Residences At Brookvale, a new condo that launched in 2020. It's expected to TOP in 2024.

How much to earn to afford a home in Sunset Way

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Based on the data of average prices that 99.co has, we can estimate how much one needs to earn to afford a home (HDB, condo and landed) in Sunset Way.

Since we're still in March and Sunset Way is a small area, there's insufficient data from this year to base our estimates on. So we'll be using average prices from 2022 instead.

Disclaimer: These estimates are based on the average prices for the respective property types, which may be higher or lower than the actual prices. To find out if a property is within your means, we recommend you to calculate with 99.co's affordability calculator based on the actual price.

HDB flat

Based on 99.co Researcher, 24 HDB flats in Sunset Way changed hands in 2022. The average price of these flats was S$735,150.

Assuming you're taking an HDB loan for 25 years, with a loan-to-value (LTV) ratio of 80 per cent and an interest rate of 2.6 per cent, this translates to a monthly instalment of $2,668.

For HDB flats, the authorities stipulate that the maximum amount you can incur on the monthly instalments of a home loan is 30per cent of your monthly household income. This is also known as the mortgage servicing ratio (MSR). On top of that, there's a stress-test rate of three per cent to calculate this MSR.

Based on this, the estimated monthly household income to afford an HDB flat here is $9,296.

Private condo

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As mentioned earlier, a new launch condo that's currently on the market at Sunset Way is Ki Residences At Brookvale. According to 99.co Researcher, 120 units were sold last year, at an average price of $1,977,474.

With a bank loan for 25 years, an LTV ratio of 75 per cent and an interest rate of four per cent, this translates to a monthly instalment of $7,828.

For private properties, the maximum amount you can incur monthly debt obligations is 55 per cent of your monthly household income.

For illustration purposes, let's assume you don't have any other loan obligations other than the home loan. This means you can max out the 55 per cent total debt servicing ratio (TDSR).

To afford a new launch condo in Sunset Way, you'll need an estimated monthly household income of $14,233.

The amount is even higher for resale condos, since the average price last year was $2,754,819.

Based on the same assumptions, this translates to a monthly instalment of $10,906 and a monthly household income of $19,829 (cries in poor).

Landed homes

For landed homes in Sunset Way, the average price last year was $11,197,600.

With a bank loan and based on the same assumptions above, this will translate to a monthly instalment of an eye-watering $44,329 and a whopping monthly household income of $80,598! (cries in poor again)

Now, we don't know how much Naomi and her family had spent on the house. What we know is that she got her keys in 2019, when the average price of landed homes in the area was lower at $6,888,750.

It's good news for her and her family though, because while her house was under construction for three years, prices of homes in the area have increased by 62.55 per cent to an average price of $11,197,600 in 2022!

ALSO READ: 4 biggest new-launch condos in 2023 you need to know about

This article was first published in 99.co.