The 5room flats for SkyVille @ Dawson and SkyTerrace @ Dawson and ranges between $532,000-$643,000.
According to HDB estimates, taking a midpoint pricing for the 5room flats, with a median salary of $6,500, the monthly installment over 30 years would be $2,108.
Gross pay: $6,500
Nett pay (after CPF): 0.8*6500 = $5,200
Mortgage payble via CPF = approx $856
Remaining pay (after mortgage): 5200-(2108-856) = $3,948
Going to the extreme end, because only applicants with salaries $8k and below can apply for new HDB flats, the people buying the most expensive HDB flats would be making at most $8k. Monthly installment would be $2,317.
If you have a car, petrol, car installments, insurance and maintenance costs could easily knock off $1,500 from the remaining pay, making it really tight for a family to get by on. Add in a maid to care for the kids, and that’s another $512 gone. The remaining pay has to pay for property tax, conservancy fees, mobile lines, gas/electricity/water, food, cable, holidays etc.
If the family is debt-free (ie. no credit line or credit card loans to pay off, no car installments to pay), the monthly installments are quite still manageable. If laden with huge financial responsibilities, it’s wiser to get a cheaper flat.
What about looking at it from an investment standpoint?
Comparing the Dawson flat prices with recent sales of resale HDB flats at Strathmore Ave, which is right next to the Dawson site, 5room flats sold between $618,000-$750,000. Comparing to Duxton launch prices of $532,000-$643,000, it’s considered getting the flats at a discount, especially with the 5room-loft units.
Pinnacle @ Duxton is the most recent ‘expensive’ project to be completed. There were some left over units after the 1st round of balloting in 2004, and these units were released in 2008. A $439,400 flat rose 47% over the 4.5 years of construction. Imagine what these flats would be worth, with it’s prime location, in 5 years time, when these new flat owners are then eligible to sell off their flats?
So is Dawson worth subscribing for? If you can afford it, and from an investment standpoint, it seems to make sense. But yet on the other hand, it is a gamble if you’re stretching yourself to pay for the flat. HDB prices could always take a tumble if something happens in future.