Is buying a property in Tiong Bahru 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 explored the historic streets and local culture of Tiong Bahru, you might have contemplated settling down in this charming part of Singapore, experiencing its cultural charm and relaxed ambiance.

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 Tiong Bahru?

Tiong Bahru, nestled in the heart of Singapore, has emerged as a highly sought-after location for property buyers, and there are several reasons for this.

Its charm and attractiveness lie in a unique blend of history, culture, and modern amenities, setting it apart from other real estate markets in Singapore.

Firstly, let's talk about what makes Tiong Bahru stand out. This area is a delightful mix of old and new. Its art deco style buildings and old shophouses exude a vintage charm that's rare in the rapidly modernizing cityscape of Singapore.

These historical elements give Tiong Bahru a distinctive character that you won't find in newer, more sterile developments. Imagine walking down streets lined with low-rise buildings, each with its own story, blending seamlessly with chic cafes and boutiques.

This blend of the old and the new has a unique appeal, especially to those who appreciate a sense of history in their living environment.

The popularity of Tiong Bahru began to surge in the early 2000s. It transformed from a quiet residential area into a trendy hotspot, attracting a vibrant mix of locals and expatriates.

This shift was driven by a wave of gentrification, with old properties being renovated and new businesses moving in. The area's charm is not just a passing trend.

The heritage value, coupled with thoughtful development, ensures that Tiong Bahru retains its appeal. This is backed by a consistent demand for properties in the area, indicating that its allure is more than just a temporary phase.

It's a magnet for a diverse group of people. You'll find young professionals, creatives, and expatriates drawn to its unique vibe. These residents appreciate the blend of cultural richness and modern lifestyle. It's perfect for those who want a neighborhood with character, not just a place to live.

However, Tiong Bahru is not without its drawbacks. One of the potential weaknesses is the price point. The popularity of the area has driven up property prices, making it less accessible for budget-conscious buyers.

Also, while the low-rise, heritage nature of the buildings adds charm, it also means that amenities like swimming pools and gyms, common in newer condos, are often missing.

Traffic and parking can be challenging, especially during weekends when the area becomes a hub for visitors exploring its cafes and shops.

Make a profitable investment in Singapore

Better information leads to better decisions. Save time and money. Download our guide.

Why is Tiong Bahru a nice place to live?

Tiong Bahru offers a unique living experience that combines a rich heritage with modern conveniences, making it an attractive place to live.

Let's delve into what makes Tiong Bahru so appealing, covering aspects like lifestyle and culture, expat community, cost of living, safety, amenities, infrastructure, and accessibility.

The lifestyle and culture in Tiong Bahru are a blend of nostalgia and contemporary urban living. The area is known for its pre-war Art Deco-style housing blocks and shophouses, which give it a distinctive charm.

This historic ambiance is complemented by a thriving scene of trendy cafes, bookstores, and boutique shops, creating a vibrant yet laid-back atmosphere. For those who appreciate a mix of old-world charm and modern urbanity, Tiong Bahru offers an enticing environment.

The expat community in Tiong Bahru is quite significant. Drawn by the area's unique character and central location, expatriates from various countries find it an ideal place to immerse themselves in Singapore's diverse culture while enjoying familiar comforts. Cafes and restaurants catering to international tastes contribute to this global feel.

Living in Tiong Bahru does come with a higher price tag compared to some other areas in Singapore. The demand for housing in this sought-after neighborhood means that rental and purchase prices for apartments can be quite steep.

However, many find the cost justified by the quality of life and the unique ambiance the area offers.

Safety in Tiong Bahru, like most of Singapore, is generally not a concern. Singapore is known for its low crime rate and efficient law enforcement, and Tiong Bahru is no exception. Residents can expect a safe living environment, which adds to the area's appeal for families and single professionals alike.

In terms of amenities and facilities, Tiong Bahru is well-equipped. For healthcare, the nearby Singapore General Hospital provides comprehensive medical services. Families with children will appreciate the proximity to schools like Zhangde Primary School and Gan Eng Seng School.

For shopping and entertainment, the Tiong Bahru Plaza offers a range of retail and dining options. Additionally, the Tiong Bahru Market is a popular spot for fresh produce and local food.

The quality of infrastructure in Tiong Bahru is excellent, as is typical throughout Singapore. Roads are well-maintained, and utilities like water and electricity are reliable. Internet connectivity is top-notch, with Singapore having one of the fastest and most stable internet infrastructures in the world.

Accessibility is one of Tiong Bahru's strong points. It's conveniently located near the Central Business District and is well-connected to other parts of Singapore.

The Tiong Bahru MRT station on the East-West Line makes it easy to travel across the city. Several bus services also operate in the area, enhancing its connectivity.

How much does it cost to buy real estate in Tiong Bahru?

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 Tiong Bahru is an investment that requires a keen understanding of the local real estate market.

In Tiong Bahru, the types of residential properties available vary, including apartments, condominiums, and a unique selection of pre-war Art Deco shophouses. These shophouses, with their historical and architectural significance, are particularly distinctive to this area.

The high demand in Tiong Bahru is primarily for apartments and condominiums. This demand is driven by the neighborhood's blend of historical charm and modern urban conveniences.

Making it appealing to a diverse group of buyers, including young professionals, expatriates, and families. These properties offer a lifestyle that combines the area's rich heritage with the comfort of contemporary living.

In terms of property types, Tiong Bahru is known more for its resale properties than new developments. This is largely due to the area's mature, built-up nature and the preservation of its historical buildings. New developments are relatively rare, but when they do occur, they tend to attract significant attention due to the limited availability.

As for the price range, properties in Tiong Bahru can be quite costly, reflecting the area's desirability and limited supply. Prices per square meter can vary widely depending on the type and condition of the property.

For example, renovated shophouses and modern condominiums at prime locations command higher prices. It's not uncommon to see prices in the range of several thousand Singapore dollars per square meter.

However, these figures can fluctuate based on market trends and the specific characteristics of each property.

Over recent years, property values in Tiong Bahru have shown a general upward trend. This increase is attributed to the neighborhood's growing popularity, limited supply of new properties, and the appeal of its unique character.

The area's historical value and the lifestyle it offers continue to draw interest, supporting robust property values.

Looking ahead, the real estate market in Tiong Bahru could be influenced by any upcoming developments or city planning changes. While specific future projects might not be widely known, any such developments could either enhance the area's appeal or impact its current charm, thus affecting property values.

Keeping an eye on the Urban Redevelopment Authority's plans for the district can provide insights into potential changes.

Predicting the future real estate market in Tiong Bahru involves considering several factors. The limited availability of new properties, combined with the area's historical and cultural appeal, suggests that demand is likely to remain high, potentially driving up prices further.

Specific factors indicating a potential increase in value include the ongoing interest in living in culturally rich and well-located neighborhoods, the limited supply of properties, and Tiong Bahru's status as a prestigious and sought-after address in Singapore.

For those considering investing in Tiong Bahru, it's essential to keep these dynamics in mind, as they play a crucial role in shaping the area's real estate market.

Where is the best area to buy a property in Tiong Bahru?

Identifying the best area to buy a property in Tiong Bahru depends on what you're looking for in terms of atmosphere, property types, and prices.

Tiong Bahru, known for its unique blend of heritage and modernity, offers various options that cater to different preferences.

Firstly, let's talk about the atmosphere and property types. The heart of Tiong Bahru, around the Tiong Bahru Market and the conservation area, is known for its Art Deco-style shophouses and low-rise apartment blocks.

This area exudes a vintage charm and has a lively atmosphere, thanks to its trendy cafes, independent bookstores, and boutique shops.

For those who love a vibrant, culturally rich environment and don't mind the hustle and bustle, this central area is ideal. Properties here are mostly older apartments and shophouses, which have a unique character but may lack some of the modern amenities found in newer developments.

On the other hand, the outskirts of Tiong Bahru, closer to the edges of the Bukit Merah area, offer a more contemporary living experience. Here, you'll find newer condominium developments that come with additional amenities like swimming pools, gyms, and security services.

The atmosphere in these parts is more tranquil and residential, appealing to those who prefer modern living spaces and a quieter environment.

In terms of prices, the central conservation area of Tiong Bahru generally commands higher prices due to its historic significance and limited availability of properties.

The newer condominiums on the outskirts, while still pricey, might offer more value for money in terms of modern facilities and space.

As for up-and-coming areas within Tiong Bahru, the region near Kim Tian Road and the areas bordering the Central Business District are gaining attention. These areas are increasingly popular due to their proximity to the city center and potential for future development, making them worth considering for buyers looking for long-term value.

If you're looking for a property in Tiong Bahru, focusing on the central conservation area and the outskirts near Bukit Merah can be a good idea. The central area is perfect for those who value historical charm and a lively community, while the outskirts offer more modern living spaces and a quieter atmosphere.

On the contrary, areas that are closer to major roads like Tiong Bahru Road or Lower Delta Road might be less advisable due to higher traffic and noise levels.

These areas, while still offering the benefits of a Tiong Bahru address, might not provide the same tranquil living environment as the more interior parts of the neighborhood.

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	Relative Prices
Central Tiong Bahru (near Tiong Bahru Market)	Vintage charm, lively, cultural	Art Deco-style shophouses, older apartments	Higher
Outskirts near Bukit Merah	Tranquil, residential	Newer condominiums with modern amenities	Moderate to high
Kim Tian Road and bordering CBD	Emerging popularity, proximity to city	Varied, potential for new developments	Varies, potential for growth
Near major roads (e.g., Tiong Bahru Road)	Busier, higher traffic	Diverse, including both old and new properties	Moderate

Don't lose money on your property in Singapore

100% of people who have lost money in Singapore have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Is there a strong rental demand in Tiong Bahru?

Tiong Bahru, with its unique blend of heritage and modernity, has indeed a strong rental demand.

Understanding the nature of this demand – whether it's more for short-term or long-term rentals, who the target demographic is, and what type of properties are most sought after – is key for anyone considering investing in rental properties in this area.

Firstly, the rental demand in Tiong Bahru leans more towards long-term rentals. This trend is driven by the area's appeal to professionals, both local and expatriate, who are drawn to its unique character, convenient location, and vibrant lifestyle.

These individuals often seek stable, longer-term accommodation that allows them to fully enjoy the Tiong Bahru experience.

The target demographic in Tiong Bahru is quite diverse, but primarily includes young professionals, expatriates, and small families. These potential tenants are often attracted to the area's blend of historical charm and modern amenities.

They typically look for properties that offer a comfortable urban living experience but with a touch of character that sets Tiong Bahru apart from other neighborhoods in Singapore.

In terms of property types, apartments and condominiums, especially those with a modern aesthetic or those situated in refurbished historical buildings, are in high demand.

Tenants in Tiong Bahru appreciate properties that blend the area's heritage feel with contemporary comforts. The most sought-after areas include those around the Tiong Bahru Market, Eng Hoon Street, and the vicinity of the Tiong Bahru MRT station, as these locations offer easy access to the neighborhood's renowned cafes, bookstores, and boutiques.

Amenities play a crucial role in reducing vacancy rates. Properties that offer modern conveniences such as well-equipped kitchens, air conditioning, and internet connectivity are more likely to attract and retain tenants.

Furthermore, facilities like a swimming pool, gym, or security services, especially in condominium complexes, add to the appeal. The presence of these amenities not only meets the lifestyle expectations of potential tenants but also enhances the overall living experience in Tiong Bahru.

Regarding the potential returns on investment, properties in Tiong Bahru can yield attractive rental incomes, though this depends on several factors including the property's condition, location, and size.

Given the area's popularity and limited supply of new developments, landlords can expect a steady demand, which can translate into a healthy rental yield.

Estimates of specific numbers vary, but with the right property and in the right location within Tiong Bahru, landlords can expect a competitive return on investment.

In terms of future trends, properties that offer a mix of historical charm and modern amenities are likely to see increasing demand and potentially better yields.

As the appeal of Tiong Bahru continues to grow, especially among those who value a unique living experience, investing in properties that embody the neighborhood's distinctive character could be a wise decision.

Make sure you understand the real estate market in Singapore

Don't rush into buying the wrong property in Singapore. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

Is it easy to buy a property as foreigner in Tiong Bahru?

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 property in Tiong Bahru, Singapore, as a foreigner involves navigating a set of specific regulations and understanding the local real estate market.

Firstly, foreign buyers in Singapore face certain restrictions and additional costs. One key regulation is the Additional Buyer's Stamp Duty (ABSD), which is higher for foreigners compared to local buyers.

This is an additional tax imposed on top of the standard buyer's stamp duty and can significantly increase the initial cost of purchasing a property.

Additionally, foreigners are generally not allowed to purchase landed properties, such as houses or bungalows, without specific approval. However, buying condominiums or apartments in Tiong Bahru is usually straightforward for foreign buyers.

The purchasing process in Singapore is quite systematic and transparent. It typically involves engaging a real estate agent, viewing properties, making an offer, signing an Option to Purchase (OTP), paying a booking fee, and finally completing the transaction with the payment of the remaining amount and applicable taxes. The entire process, from making an offer to completion, can take a few months.

When it comes to the risks associated with property investment in Tiong Bahru, foreign buyers should be aware of the potential for fluctuating property values, influenced by the general property market trends in Singapore.

Additionally, as Tiong Bahru is a mature area with a lot of historical buildings, maintenance costs for some properties might be higher.

A common pitfall for foreign buyers in Singapore is underestimating the total cost of purchasing a property, including taxes like the ABSD and legal fees. Another unique aspect to be mindful of is the leasehold nature of many properties in Singapore.

Unlike freehold properties, leasehold properties (commonly 99-year leases) depreciate over time, which can affect long-term investment value.

Working with a local real estate agent or lawyer is highly advisable for foreign buyers. They can provide invaluable guidance through the complexities of the Singaporean real estate market, ensure compliance with local regulations, and assist in navigating the administrative aspects of the purchase.

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

Given the area's popularity and the limited supply of new properties, Tiong Bahru can be a lucrative location for investment, but it's important to consider factors like market trends, potential rental yields, and the property's condition and location when planning an exit strategy.