Is buying a property in Holland Village a good investment?

Last updated on December 20, 2023

Yes, the analysis of Singapore's property market is included in our pack

If you've appreciated the trendy cafes and cultural charm of Holland Village, you might have considered establishing a residence in this bohemian part of Singapore, immersing yourself in its vibrant atmosphere and diverse community.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Singapore, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Holland Village?

Holland Village in Singapore stands out as a unique and attractive location for property buyers, thanks to a blend of factors that set it apart from other real estate markets in the city-state.

It's crucial to understand why this area has become a hotbed for property investments and who it appeals to, along with considering some potential drawbacks.

One of the primary attributes that make Holland Village appealing is its vibrant lifestyle and cultural offerings. Unlike some more residential-focused areas in Singapore, Holland Village is known for its eclectic mix of cafes, restaurants, and bars, providing a lively atmosphere that's particularly attractive to young professionals and expatriates.

This bustling vibe is somewhat akin to Tiong Bahru's artistic flair or the Orchard Road shopping belt, but Holland Village has carved out its unique niche with a more laid-back, bohemian feel.

Now, let's dive into how it compares with other areas. While places like Marina Bay and Sentosa Cove offer high-end luxury and prestige, Holland Village is seen as more down-to-earth and accessible while still maintaining a sense of exclusivity.

This balance is a significant draw, particularly for those who want a blend of lifestyle and comfort without the ultra-high-end price tag.

Holland Village's popularity as a residential choice began to rise notably in the early 2000s. This surge was driven by a combination of its growing reputation as a lifestyle hub and the government's efforts to enhance its appeal through urban redevelopment.

The question of whether it will retain its hype is interesting. Given its continued development and the steady demand for properties in areas that offer a unique living experience, it seems likely that Holland Village will remain a sought-after location. Its enduring appeal is backed by the consistent interest from a diverse group of buyers and renters.

Speaking of which, the type of people attracted to Holland Village is varied. It's particularly popular among expatriates and young professionals, who are drawn to its vibrant lifestyle and convenient location.

Families are also attracted to the area because of its proximity to reputable international schools and its relatively peaceful residential environment, which offers a respite from the hustle and bustle of the city center.

However, it's also essential to consider some potential weaknesses of Holland Village. For instance, the area can be quite busy, especially on weekends, which might not appeal to those seeking a quieter residential area.

Additionally, while property prices here are not as high as in the most exclusive parts of Singapore, they are still relatively steep compared to more suburban areas, which could be a deterrent for some buyers.

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Why is Holland Village a nice place to live?

Holland Village is often touted as a great place to live, and for good reason.

Its unique blend of lifestyle, culture, and convenience appeals to a wide range of residents, including a significant expatriate community. Let's explore what makes it so special.

The lifestyle and culture in Holland Village are vibrant and diverse. Known for its eclectic mix of eateries, boutiques, and art galleries, it offers a lively yet laid-back atmosphere that's quite rare in the fast-paced city. This area is a melting pot of local and international cultures, making it an exciting place to explore and live in.

The expatriate community in Holland Village is quite substantial, which adds to its cosmopolitan feel. Many expats are drawn to the area because of its Western-style amenities, combined with a distinctly Singaporean touch.

This blend makes it easier for those from overseas to settle in while still experiencing the local culture.

Living in Holland Village can be relatively costly, reflecting its popularity and the amenities it offers. Housing prices here are generally higher than in more suburban areas of Singapore. Many find the cost justified by the quality of life and convenience the area provides.

Safety is a key feature of life in Holland Village. Singapore, in general, is known for its low crime rates and stringent law enforcement, and this area is no exception. Residents can feel secure in their day-to-day activities, whether it’s a late-night stroll or leaving home for extended periods.

In terms of amenities and facilities, Holland Village scores high. It is home to several reputable schools, catering to both local and international communities.

For healthcare, there are clinics within the village, and larger hospitals like Gleneagles Hospital and Mount Elizabeth Hospital are a short drive away.

Shopping and entertainment options are plentiful, with Holland Road Shopping Centre and the nearby Star Vista offering a range of retail and dining options.

The infrastructure in Holland Village is well-maintained, with efficient road networks and utilities. Internet connectivity is excellent, as in most parts of Singapore, ensuring that residents can stay connected easily. This robust infrastructure adds to the comfort of living in this area.

Accessibility is another strong point for Holland Village. It’s well connected to other parts of Singapore via major expressways.

Additionally, the Holland Village MRT station on the Circle Line makes it easy to travel around the city. For international travel, Changi Airport can be reached by car or public transport within an hour, making it convenient for frequent travelers.

Public transportation options are abundant. Besides the MRT, numerous bus services run through the area, providing easy access to various parts of the city. This makes it convenient for residents who prefer not to drive or those who want to minimize their carbon footprint.

How much does it cost to buy real estate in Holland Village?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Singapore.

Buying a property in Holland Village, is an investment that requires a deep understanding of the local real estate market.

This neighborhood offers a variety of residential properties, including apartments, condominiums, and in some cases, landed houses. The area is particularly known for its modern condominiums and apartments, which are in high demand due to the lifestyle and convenience Holland Village offers.

When it comes to the types of properties that are most sought after in Holland Village, apartments and condos take the lead. The reason for this is multifaceted.

Firstly, these types of properties fit well with the cosmopolitan and vibrant lifestyle of the area. They appeal especially to young professionals, expatriates, and small families who value the blend of comfort, style, and accessibility that Holland Village provides.

In terms of the market composition, Holland Village has a mix of both new developments and resale properties. New developments are usually snapped up quickly due to the high demand in the area, while resale properties also maintain a steady appeal due to their established surroundings and often larger floor space.

Discussing the price range in Holland Village, it's important to note that property prices here tend to be on the higher side, reflecting the area's desirability and prime location.

Prices per square meter for properties in Holland Village can vary widely, but you could expect a range from around S$15,000 to S$25,000 per square meter, depending on the property's age, size, and exact location within the neighborhood.

However, these figures can fluctuate based on market conditions and specific property attributes.

Over recent years, property values in Holland Village have shown a general upward trend. This increase can be attributed to the area's continuous popularity, limited supply of new properties, and the overall robustness of the Singaporean real estate market.

Looking ahead, there are several factors that could influence the real estate market in Holland Village. For instance, any upcoming developments or changes in city planning, such as enhancements in transportation infrastructure or new commercial projects, can positively impact property values.

One such development is the ongoing expansion of the Holland Village area, with new residential and commercial spaces, which is expected to further increase the allure of the neighborhood.

Predicting the future of the real estate market in Holland Village involves considering various factors. Given its enduring popularity, limited space for new developments, and the constant demand for properties in centrally located areas of Singapore, it's likely that the market in Holland Village will remain robust.

Property values are expected to continue their upward trend, though the pace of this increase may vary depending on broader economic conditions and specific developments in the area.

Specific factors that indicate potential increases in property value in Holland Village include its sustained popularity as a residential area, the ongoing demand from both local and expatriate buyers, and the limited supply of new properties in the area.

Additionally, any improvements in infrastructure and amenities, as well as the overall stability of the Singaporean economy, play crucial roles in enhancing property values.

Where is the best area to buy a property in Holland Village?

When considering the best area to buy a property in Holland Village, it's important to understand that this neighborhood, though relatively compact, offers diverse options that cater to different preferences and budgets.

The choice of the 'best' area can vary depending on what you're looking for in a home and your lifestyle needs.

Holland Village is known for its vibrant and eclectic atmosphere, but this ambiance varies slightly across different parts of the neighborhood. The central area, often buzzing with cafes, shops, and restaurants, is perfect for those who enjoy being in the heart of activity.

Here, you'll mostly find condominiums and apartments, which offer modern living spaces. These properties are typically pricier due to their central location and the convenience they offer.

As you move away from the center, the atmosphere becomes more relaxed and residential. These areas are more appealing to those who prefer a quieter environment but still want to be within easy reach of the hustle and bustle of the village center.

You can find a mix of older and newer condominiums here, often with a slightly lower price tag compared to the heart of Holland Village.

In terms of up-and-coming areas within Holland Village, recent developments have focused on expanding the residential and commercial spaces around the outskirts of the central area.

These new developments are worth keeping an eye on as they offer modern amenities and are likely to appreciate in value as the area continues to develop.

If you're looking to buy a property, areas like Jalan Merah Saga and the surroundings of Holland Avenue are good places to start. These areas strike a balance between accessibility to the vibrant village center and the tranquility of a residential neighborhood.

They are also well-connected to public transport and other parts of Singapore, making them convenient for both living and investment purposes.

On the contrary, areas immediately adjacent to the main commercial streets might not be advisable for those seeking peace and quiet. These areas can get quite busy and noisy, especially during evenings and weekends.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Singapore.

Area	Atmosphere	Property Types	Price Level
Central Holland Village	Vibrant and bustling	Condominiums, Apartments	Higher
Outskirts of Central Area	More relaxed, residential	Mix of older and newer Condominiums	Moderate to High
Jalan Merah Saga and Holland Avenue	Balanced, accessible	Variety of residential options	Moderate to High
Areas Adjacent to Main Commercial Streets	Busy and noisy	Close to commercial activities	Varies
Up-and-coming Developments	Modern, evolving	New Condominiums and Apartments	Potential for appreciation

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Is there a strong rental demand in Holland Village?

Holland Village does have a strong rental demand, and understanding its dynamics is key for potential investors or landlords.

The rental demand in Holland Village leans more towards long-term rentals. This is primarily because of the lifestyle and convenience that the area offers, making it a desirable place to live for extended periods.

The target demographic for rental properties in Holland Village is quite diverse but generally includes young professionals, expatriates, and small families.

These groups are attracted to the area for its vibrant culture, excellent dining options, and proximity to key business districts and international schools.

The profiles of potential tenants in Holland Village are quite specific. Expatriates often look for properties here due to the Western-style amenities and the English-speaking community, which makes the transition to living in Singapore smoother.

Young professionals, both local and international, are drawn to the area for its lively atmosphere and the work-life balance it offers.

Small families, particularly those with connections to international schools, also find Holland Village appealing for its safe environment and community feel.

When it comes to the type of properties these tenants are looking for, modern condominiums and well-maintained apartments are highly sought after. These properties, especially those with amenities like a gym, a pool, or a security system, are in high demand.

The central areas of Holland Village, such as those around Holland Avenue and Jalan Merah Saga, are particularly popular due to their proximity to shops, cafes, and the MRT station.

Amenities play a crucial role in reducing vacancy rates. Properties with modern amenities like high-speed internet, air conditioning, a well-equipped kitchen, and facilities like a pool or gym are more attractive to potential renters. These features not only provide comfort but also align with the lifestyle aspirations of the target demographic.

Regarding potential returns on investment, properties in Holland Village can offer attractive yields, although specific numbers can vary depending on the property type and market conditions.

Generally, you could expect a rental yield of around 3% to 5% annually, but this can fluctuate. The strong rental demand and the premium location of Holland Village contribute to these potentially favorable returns.

In terms of property types gaining more demand and potentially better yields, smaller units like one or two-bedroom apartments, especially in modern condominiums, are increasingly popular. These properties cater well to the majority of the rental market in Holland Village, which comprises singles and small families.

The lower total rental cost of smaller units, combined with the lifestyle benefits of living in Holland Village, makes them particularly attractive to tenants and can lead to higher occupancy rates.

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Is it easy to buy a property as foreigner in Holland Village?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Singapore.

Buying a property as a foreigner in Holland Village, Singapore, is certainly feasible, but it comes with specific regulations and considerations that are unique to Singapore.

Firstly, it's important to note that Singapore has certain restrictions and regulations for foreign property buyers. Foreigners can freely purchase condominium units and apartments, including those in Holland Village, without requiring government approval.

However, for landed properties, which are scarce in Holland Village, foreigners need to obtain permission from the Singapore Land Authority, and these approvals are generally granted under exceptional circumstances.

The purchasing process for foreigners in Holland Village is similar to that for local buyers, but with some additional steps. Once you have selected a property, you will need to sign an Option to Purchase agreement and pay an option fee, usually 1% of the purchase price.

This gives you the exclusive right to buy the property within a specified period, typically 14 days. If you decide to proceed, you'll pay an additional 4% to 9% for the Sale and Purchase Agreement and then settle the remaining amount at completion.

One of the primary risks associated with property investment in Holland Village, as with any major city, includes market volatility. Property prices in prime areas like Holland Village can be sensitive to economic trends, both local and global.

Another risk is regulatory changes, as the Singapore government occasionally adjusts property-related policies to manage market stability.

Common pitfalls for foreign buyers often include a lack of understanding of the local market and regulatory environment. Unique aspects in Singapore include the Additional Buyer's Stamp Duty (ABSD), which is higher for foreigners and can significantly add to the purchase cost.

Another potential mistake is underestimating the total cost of ownership, which includes maintenance fees, taxes, and possible renovation costs.

Working with a local real estate agent or lawyer is highly advisable. A knowledgeable agent can provide valuable insights into the Holland Village market, help navigate the complexities of the buying process, and ensure compliance with all legal requirements.

A lawyer, on the other hand, will handle the legal aspects of the transaction, ensuring that all documentation and procedures are correctly executed.

As for exit strategies, property investors in Holland Village typically consider either selling the property or renting it out. The choice depends on market conditions and personal investment goals.

Selling can yield a significant return, especially if property values have risen. Renting out the property is a popular option due to the high demand for rental units in the area, providing a steady income stream.

However, it's important to stay updated with market trends and regulatory changes to make informed decisions about the timing and nature of the exit strategy.