Mr. He, who refused to reveal his full name, purchased a double-storey terrace house in Jalan Chempaka Kuning for $600,000 six years ago.
The 72-year-old retiree said that just a few months ago, he rejected a $600,000 offer for his house, which is about 2,200 square feet.
One property agent said that the value of the house is under $500,000 in today’s market. This is much cheaper compared to some five-room HDB flats in prime areas.
However, Mr. He is not bothered with this. He said that “It’s hard to find such nice and quiet places in Singapore now. At $600,000, I’ll be hard pressed to find even a five-room flat.”
He added that the close proximity of many amenities and the spacious garden are a big factor for him.
Terrace houses in Jalan Chempaka Kuning are just a 15-minute walk away from Tanah Merah MRT station. Conveniences are within a five-minute walk, like 24-hour coffee shops, a petrol station and a supermarket.
About 140 terrace homes and semi-detached houses, which are leasehold properties, are located in the area. They sit on a large freehold land plot owned by Mr. Koh Sek Lim.
In the 1960s, Mr. Koh sold a 70-year lease of the land to several developers who built and marketed the houses in the area. It is unclear what will happen to the estate when the lease ends. But residents said the short lease period does not bother them.
The main advantage of the properties is the low prices and the ample space for gardening. For $600,000, homebuyers can purchase a five-room HDB flat in Marine Parade.
ECG Property CEO Eric Cheng said that although properties in this area are cheap, buyers would have to pay in cash, as banks usually do not approve home loans with less than 30 years left on the lease.
Mrs. Y M Ye, who is also a retiree living in the area, said that “most of the residents in the area are retired and enjoy living in the area.”
“It is convenient – I can walk to the market at Simpang Bedok and I have space for gardening,” she added.