Is buying a property in Tanjong Pagar 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 admired the modern skyscrapers and central location of Tanjong Pagar, you might have considered making this dynamic part of Singapore your cosmopolitan and vibrant residence.

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 Tanjong Pagar?

Tanjong Pagar, nestled in the heart of Singapore, has emerged as a highly sought-after location for property buyers, and there are several reasons why it stands out.

Think of Singapore's real estate landscape as a vibrant tapestry, and Tanjong Pagar is like one of its most vivid and appealing sections.

Firstly, let's delve into what makes Tanjong Pagar uniquely attractive compared to other real estate markets in Singapore. The area is a perfect blend of the old and the new, rich in heritage yet pulsating with modernity.

Here, you'll find traditional shophouses standing alongside sleek skyscrapers. This contrast isn't just aesthetically pleasing; it reflects a neighborhood that respects its past while embracing the future.

This mix is not as prevalent in other parts of Singapore, where the focus might be more on either modern development or maintaining traditional aspects.

As for its popularity, Tanjong Pagar started gaining attention in the late 20th century, especially after the development of the Tanjong Pagar Port.

Over the years, with the government's focused development plans, it transformed from a predominantly industrial and dockyard area into a modern, cosmopolitan hub. This shift played a significant role in its rising popularity.

Well, given the steady development, constant rejuvenation, and the government's commitment to urban planning, it's likely that Tanjong Pagar will continue to be a hotspot. The area's continuous evolution is a strong indicator that its appeal isn't just a passing trend.

Talking about the kind of people it attracts, Tanjong Pagar has a magnetic pull for a diverse crowd. Young professionals are drawn to its dynamic urban lifestyle and proximity to the Central Business District. It's not just about work; the area's vibrant food scene, cultural spots, and nightlife options are big pluses.

On the other hand, families appreciate the blend of modern amenities and historical charm. There's something for everyone, which makes it a melting pot of cultures and lifestyles.

However, it's also important to consider some potential weaknesses. The very factors that make Tanjong Pagar attractive can also be seen as downsides by some. For instance, the bustling nature of the area might not appeal to those seeking a quieter, more laid-back environment.

Additionally, the property prices in Tanjong Pagar tend to be on the higher side due to its prime location and popularity, which might not be feasible for every buyer.

And, while the area is rich in history and culture, those looking for more spacious, suburban-style living might find it lacking in that aspect.

So, when you're thinking about Tanjong Pagar, picture a place where history meets modernity, where the hustle and bustle of city life is balanced with cultural richness.

It's a neighborhood that has something for almost everyone, but it's also important to weigh its characteristics against your personal preferences and needs.

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Why is Tanjong Pagar a nice place to live?

Living in Tanjong Pagar, one of Singapore's most vibrant neighborhoods, offers a unique blend of modern lifestyle, rich culture, and convenience.

Starting with the lifestyle and culture, Tanjong Pagar is a melting pot of traditions and modernity. It's famous for its heritage shophouses, which now host a variety of trendy cafes, bars, and restaurants.

The area is bustling with life, offering a cosmopolitan lifestyle that's hard to match. It's a place where you can enjoy a diverse range of cuisines, partake in cultural festivals, and explore art galleries, making it an exciting and dynamic place to live.

For expatriates, Tanjong Pagar is particularly appealing. The expat community here is thriving, thanks to the neighborhood's proximity to the Central Business District and multinational companies.

Expats find it easy to blend in, with many amenities catering to international tastes and lifestyles. This cultural diversity enriches the neighborhood, making it an inclusive and welcoming place for people from all over the world.

However, living in such a prime location comes at a cost. Tanjong Pagar is known for its relatively high cost of living, especially when it comes to real estate. Renting or buying property here can be more expensive than in other parts of Singapore. But many find the price worth it for the convenience and lifestyle it offers.

Safety is another key aspect of Tanjong Pagar. Singapore, in general, is known for its low crime rate, and Tanjong Pagar is no exception. Residents feel safe walking the streets at any time of the day, which adds to the appeal of the area.

Regarding amenities and facilities, Tanjong Pagar is well-equipped. For healthcare, there's the Singapore General Hospital nearby, known for its excellent medical services. Families with children will appreciate the proximity to reputable schools like Cantonment Primary School.

Shopping enthusiasts will find plenty of options, from the iconic Tanjong Pagar Plaza to the 100 AM shopping mall, offering a range of retail and dining choices.

The quality of infrastructure in Tanjong Pagar is top-notch. Roads are well-maintained, utilities function seamlessly, and the internet connectivity is among the best in the world. These factors contribute significantly to the ease of daily life in the area.

Accessibility is another strong point for Tanjong Pagar. It's well-connected to the rest of Singapore. The Tanjong Pagar MRT station, part of the East-West Line, makes commuting to other parts of the city a breeze. For international travel, Changi Airport is easily accessible via public transport or a short drive.

Speaking of public transportation, Tanjong Pagar offers excellent options. Besides the MRT, there are numerous bus services running through the area. This makes it incredibly convenient to navigate around Singapore without a car.

How much does it cost to buy real estate in Tanjong Pagar?

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.

In Tanjong Pagar, the cost of buying a property varies widely, reflecting its status as a prime location in Singapore.

The types of residential properties available here mainly include apartments, condominiums, and a limited number of landed houses. You won't find sprawling luxury villas due to the urban nature of the area, but what you will find are high-rise condominiums that offer luxury living with modern amenities.

The properties in high demand in Tanjong Pagar are predominantly condominiums, especially those with views of the city skyline or close proximity to the Central Business District (CBD).

This demand is driven largely by professionals who work in the CBD and desire a short commute, as well as by investors who recognize the area's growth potential.

As for the types of properties available, Tanjong Pagar features a mix of both new developments and resale properties.

In recent years, there has been a trend towards new, upscale condo developments that cater to those seeking a modern urban lifestyle. These new developments often come with premium amenities like sky gardens, swimming pools, and fitness centers.

When it comes to pricing, the range can be quite broad. Generally, prices per square meter in Tanjong Pagar can vary significantly based on factors such as the age of the property, its condition, and the specific amenities offered.

Prices in Tanjong Pagar could range from approximately SGD 2,000 to over SGD 3,000 per square foot, depending on these variables. It's important to note that these prices are subject to change and can fluctuate based on market conditions.

Over the recent years, property values in Tanjong Pagar have shown a tendency to increase. This trend is attributed to the area's ongoing development, its proximity to key commercial areas, and the general upward trend in Singapore's property market.

With continuous urban renewal and development, such as the Greater Southern Waterfront project, property values in Tanjong Pagar are likely to be positively impacted.

This ambitious project is set to transform the southern coastline of Singapore and will likely increase the attractiveness of nearby areas like Tanjong Pagar.

Predicting the real estate market's future can be tricky, but for Tanjong Pagar, the outlook seems promising. Given its strategic location, ongoing developments, and the government's commitment to urban transformation, it's plausible that property values in the area will continue to rise.

Factors that indicate a potential increase in value include the area's continued popularity among expats and professionals, infrastructural improvements, and large-scale projects like the Greater Southern Waterfront.

So, if you're considering investing in Tanjong Pagar, you're looking at a dynamic real estate market with a strong potential for growth. The key is to thoroughly research the specific properties and developments that align with your investment goals and budget.

Keep in mind that while historical trends can guide us, the real estate market is influenced by a myriad of factors, and it's always wise to stay informed and consider professional advice.

Where is the best area to buy a property in Tanjong Pagar?

When considering the best area to buy a property in Tanjong Pagar, it's important to understand the nuances of this vibrant neighborhood.

Tanjong Pagar, known for its blend of historical charm and modern urban development, offers a range of options, each with its own unique atmosphere, types of properties, and price points.

Firstly, the area closest to the Central Business District (CBD) is highly sought after, especially among professionals who work in the city. This part of Tanjong Pagar is bustling, with high-rise luxury condominiums dominating the landscape.

Properties here are typically more expensive due to their prime location and the modern amenities they offer, like state-of-the-art fitness centers, pools, and breathtaking city views. If your priority is a lifestyle of convenience and luxury, coupled with a short commute to the CBD, this is the area to focus on.

Moving away from the CBD, you'll find parts of Tanjong Pagar that offer a more laid-back atmosphere. These areas are characterized by a mix of old and new, with traditional shophouses and mid-rise apartment buildings.

Here, the vibe is more cultural and less corporate. The properties tend to be slightly more affordable than those right in the heart of the CBD. This part of Tanjong Pagar is ideal if you're seeking a blend of cultural heritage and urban living.

As for up-and-coming areas within Tanjong Pagar, keen buyers should keep an eye on the fringe areas bordering the neighborhood.

These areas are currently experiencing development and may offer more attractive prices with a good potential for future appreciation. These could be particularly appealing if you're looking for investment opportunities or a place with growth potential.

When looking for a property in Tanjong Pagar, areas like Wallich Street and Tras Street are worth considering. These streets are well-known for their upscale residential buildings and proximity to amenities like trendy cafes, restaurants, and shopping centers.

The properties here are ideal for those who appreciate a vibrant lifestyle with easy access to leisure and entertainment options.

On the contrary, areas closer to the outskirts of Tanjong Pagar might not be as advisable for those who prioritize convenience and immediate access to the CBD. These areas might offer lower prices, but they also come with a slightly longer commute and fewer amenities right at your doorstep.

Additionally, parts of Tanjong Pagar closer to major roads might be less desirable for those seeking a quieter living environment, as these areas can be quite busy and noisy.

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 Range	Recommended For
Near CBD	Bustling, Urban	High-rise Luxury Condominiums	Higher	Professionals, Luxury Lifestyle Seekers
Traditional Shophouse Areas	Cultural, Laid-back	Traditional Shophouses, Mid-rise Apartments	Moderate	Culture Enthusiasts, Those Seeking Urban-Cultural Blend
Fringe Areas	Developing, Potential Growth	Various, Including New Developments	Varies, Generally More Affordable	Investors, Growth Potential Seekers
Wallich Street, Tras Street	Vibrant, Convenient	Upscale Residential Buildings	Higher	Those Seeking Vibrant Lifestyle, Convenience
Outskirts of Tanjong Pagar	Less Busy, More Commute	Varied, Fewer Amenities	Lower	Those Preferring Quieter Environment, Budget-Conscious Buyers

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Is there a strong rental demand in Tanjong Pagar?

Tanjong Pagar is indeed an area with strong rental demand, and understanding the nuances of this demand is key for anyone considering investing in rental properties there.

The rental demand in Tanjong Pagar tends to lean more towards long-term rentals. This trend is primarily driven by the area's proximity to the Central Business District (CBD), making it a preferred location for professionals working in the city.

The target demographic typically includes expatriates, young professionals, and sometimes small families or couples who appreciate the convenience and lifestyle that Tanjong Pagar offers.

The profiles of potential tenants in Tanjong Pagar are quite specific. Expatriates, often in managerial or executive roles, are a significant portion of the rental market. They usually look for modern, well-maintained apartments or condominiums that offer a blend of comfort and convenience.

Similarly, young professionals, attracted by the urban lifestyle and easy commute to work, also seek out these types of properties. Small families or couples might prioritize proximity to amenities like schools, parks, and shopping centers.

When it comes to property types, high-rise apartments and condominiums with modern amenities are in high demand. Tenants are particularly attracted to properties that offer facilities such as gyms, swimming pools, and security services.

The areas within Tanjong Pagar that are closest to the CBD, like those around Wallich Street and Tras Street, are especially popular due to their prime location and the lifestyle they offer.

Amenities play a crucial role in reducing vacancy rates. Properties that offer not just basic facilities but also added luxuries like a concierge service, high-speed internet, or smart home features are more likely to attract and retain tenants.

These amenities align with the lifestyle expectations of the target demographic and thus make the property more attractive.

Regarding potential returns on investment, properties in Tanjong Pagar can offer attractive yields, although specific numbers can vary based on factors like property size, condition, and exact location.

Generally, you can expect a competitive rental yield compared to other prime areas in Singapore, thanks to the consistent demand.

Looking ahead, properties that are likely to see increasing demand and potentially better yields are those that cater to the evolving needs of the tenant demographic.

This includes properties with sustainable and smart features, as well as those offering flexible living spaces that can serve as both a home and a workspace, reflecting the growing trend of remote and hybrid work arrangements.

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Is it easy to buy a property as foreigner in Tanjong Pagar?

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 Tanjong Pagar, Singapore, involves navigating a set of specific regulations and being aware of the unique aspects of the local property market.

Firstly, it's important to know that Singapore does have certain restrictions and additional duties for foreign property buyers. Foreigners are allowed to purchase condominium units without seeking prior approval, which is a common type of property in Tanjong Pagar.

However, if a foreigner wishes to buy landed property, such as a house with a garden or yard, they would need to get approval from the Singapore Land Authority.

Additionally, foreign buyers are subject to Additional Buyer's Stamp Duty (ABSD) in Singapore, which is significantly higher than the duty paid by locals or Permanent Residents.

The purchasing process generally involves selecting a property, making an offer, signing an Option to Purchase (OTP) agreement upon acceptance of the offer, and paying a booking fee.

Subsequently, the buyer typically has a period (often 14 days) to exercise the option by signing a Sale and Purchase Agreement and paying the balance of the down payment. This process is followed by completing legal formalities, securing financing if needed, and finally, the property handover.

There are primary risks associated with property investment in Tanjong Pagar. The property market can be subject to fluctuations, influenced by economic factors, government policies, and market sentiments.

Additionally, foreign investors need to be cautious about the regulatory changes that might affect their investment, such as alterations in stamp duty rates or changes in rules governing foreign property ownership.

Common mistakes made by foreigners when buying property in Singapore include not accounting for the Additional Buyer's Stamp Duty, underestimating the total cost of ownership (which includes maintenance fees, taxes, and potential property agent fees), and not fully understanding the legal and financial implications of their purchase.

Some buyers might also overlook the importance of location within the neighborhood, which can significantly affect the property's value and rental potential.

Working with a local real estate agent or lawyer is highly advisable. A knowledgeable local agent can provide invaluable insights into the Tanjong Pagar property market, assist in navigating the regulatory landscape, and help identify properties that match the buyer's criteria.

A lawyer, on the other hand, can ensure that all legal aspects of the transaction are handled correctly, which is crucial given the complexities involved in international property purchases.

Common exit strategies for property investors in Tanjong Pagar include selling the property after a period of capital appreciation or renting it out to generate rental income.

Given the area's popularity and growth, both strategies can be viable, though they depend on market conditions and individual investment goals.