Toa Payoh Planning Area is a well-established residential neighbourhood that is popular with homebuyers because of the numerous amenities in the area. There are 16 schools within the planning area, including several popular ones such as Marymount Convent School, St. Andrew’s Junior School, Cedar Girls’ Secondary School, Raffles Girls’ School (Secondary), Maris Stella High School (Primary and Secondary), CHIJ Primary and Secondary (Toa Payoh), St. Andrew’s Secondary School and St. Andrew’s Junior College. There are also two international schools in the neighbourhood, namely Stamford American International School and St. Joseph’s Institution International.

Other amenities in the planning area include The Poiz Centre, The Venue Shoppes, The Woodleigh Mall, Toa Payoh West Market and Food Centre, Toa Payoh Palm Spring Market, Toa Payoh Vista Market, Kim Keat Palm Market and Food Centre, Broadway Food Centre, Woodleigh Village Hawker Centre, HDB Hub, SAFRA Clubhouse (Toa Payoh), Toa Payoh Park and Bidadari Park.

Toa Payoh is also very well-connected because it is served by six MRT stations, namely Toa Payoh, Braddell, Potong Pasir, Woodleigh, Tai Seng and dual-line Caldecott. Combined, the six stations offer residents access to the North–South, Circle and Thomson–East Coast Lines. Other public transport hubs include Toa Payoh and Woodleigh Bus Interchanges. The Central and Pan-Island Expressways also run through the area.

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Toa Payoh’s most affordable 99-years leasehold condo

The average resale price for 99-year leasehold condos in the Toa Payoh Planning Area is $1,973 psf, which represents an increase of 41.3% since 2020 (see Chart 1). Demand is strong, with 269 resale units sold thus far this year, compared to 255 units for the whole of last year.

At the time of writing, Oleander Towers has the lowest average resale price of $1,548 psf, compared to other 99-year leasehold condos in the same planning area (see Table 1). Its average resale price is also significantly below the planning area’s average of $1,973 psf.

Among the 10 most affordable 99-year leasehold condos in Toa Payoh Planning Area, nine have an average resale price below the planning area’s average. The lone exception is The Tre Ver ($1,996 psf), whose average resale price is slightly above Toa Payoh’s average.

Oleander Towers is a 99-year leasehold condo located along Lorong 1 Toa Payoh. The 318-unit development features a mix of two-bedroom to four-bedroom units, with the majority measuring between 861 sq ft and 1,550 sq ft.

Residents of Oleander Towers benefit from its convenient location, which is within walking distance of Toa Payoh MRT Station, Toa Payoh Bus Interchange, Toa Payoh Town Centre, HDB Hub and Toa Payoh Park. The condo is also a short drive from the Pan Island Expressway (see Map 1).

The nearby Toa Payoh MRT Station is only two stops from the dual-line Bishan MRT Station, which serves the North–South and Circle Lines. Toa Payoh MRT Station is also two stops from the dual-line Newton MRT Station, which serves the North–South and Downtown Lines. Additionally, the dual-line Orchard MRT Station is three stops away, providing residents with quick access to Singapore’s main shopping belt as well as the Thomson–East Coast Line.

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Oleander Towers is also located within a 1 km radius of numerous schools, including Kheng Cheng School, Marymount Convent School, Raffles Girls’ School (Secondary), CHIJ Primary and Secondary (Toa Payoh) and St. Joseph’s Institution International.

A potential drawback of the condo could be its age, which may have contributed to its low average resale price. The condo obtained its temporary occupation permit (TOP) in 1997, making it 28 years old. Its land lease commenced in 1995, leaving it with a remaining lease of around 69 years. Notably, Oleander Towers is the only development among the 10 most affordable 99-year leasehold condos in Toa Payoh to have obtained its TOP before 2010, making it significantly older than the other nine condos (see Table 1).

Surrounded by freehold neighbours

Interestingly, there are no 99-year leasehold condos within a 500 m radius of Oleander Towers. Only Sky@Eleven and Trellis Towers are located within that distance, but both are freehold condos.

However, if the radius is expanded to 1 km, there are 50 nearby condos, representing approximately 6,200 units. Among these, only Trevista and the upcoming The Orie are 99-year leasehold developments (see Map 2). The other neighbouring condos are freehold developments, with Braddell View—having a tenure of 102 years—being the lone exception.

Leasehold condos in Toa Payoh are in demand

Interestingly, the average resale price for 99-year leasehold condos in Toa Payoh ($1,973 psf) is higher than that of their freehold ($1,922 psf) counterparts (see Chart 2). However, the price gap between the two property types is only $51 psf this year, down from $112 psf last year.

Despite having a lower price, the average resale price for freehold condos (13.3%) has been growing at a faster pace since 2023 compared to their 99-year leasehold (11.2%) counterparts.

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Notably, freehold condos have represented fewer than 25% of the combined resale volume for 99-year leasehold and freehold condos in Toa Payoh since 2021 (see Chart 3). So far this year, 59 freehold condo units were sold compared to 269 leasehold condo units.

Of the 39 condos in the Toa Payoh Planning Area, only 16 are 99-year leasehold developments. With the lone exception of Braddell View, which has a tenure of 102 years, the remaining 22 condos are freehold developments. However, the 16 leasehold condos account for approximately 7,600 units, or 68.9% of all condo units in the Toa Payoh Planning Area, which could explain the higher resale volume for leasehold condos.

The freehold condos in Toa Payoh tend to be smaller developments, each with fewer than 200 units. Blossoms @ Woodleigh (240 units), Sky@Eleven (273 units), Trellis Towers (384 units) and Thomson 800 (390 units) are the only freehold condos in Toa Payoh with more than 200 units each.

New 99-year leasehold condos in Toa Payoh are also in demand among homebuyers. The Orie was launched in January and achieved a stellar take-up rate of 86% at an average price of $2,704 psf. Based on caveats lodged at the time of writing, the take-up rate for 777-unit The Orie has since improved to 94%, with an average price of $2,701 psf. Additionally, The Orie is located within a 1 km radius of Oleander Towers.

Average resale price for Toa Payoh higher than islandwide average

The average resale price for Oleander Towers ($1,548 psf) is not only lower than that for similar condos in the Toa Payoh Planning Area ($1,973 psf), but also lower than that of its islandwide peers ($1,704 psf) (see Chart 4). Oleander Towers’ price may have been dampened by lease decay, which is not fully mitigated by the condo’s convenient location. The development has a remaining lease of around 69 years, as its land lease commenced in 1995. The condo also obtained its TOP in 1997, making it 28 years old.

Notably, the average resale price for 99-year leasehold condos in Toa Payoh Planning Area is significantly higher than that of their islandwide counterparts, reflecting the strong demand for condos in this popular neighbourhood. The area also achieved a robust price growth of 41.3% since 2020. In comparison, the average resale prices for Oleander Towers and 99-year leasehold condos islandwide grew by 39.6% and 39.3%, respectively.

This year’s transaction resulted in record-high profit of $1.77 million

Despite its affordable price, Oleander Towers has achieved 267 profitable transactions since its launch in 1995, significantly more than its 156 unprofitable transactions. Profits range from approximately $500 to $1.77 million, while losses are much lower, ranging from breakeven to around $778,500.

Notably, the most recent unprofitable transaction took place in 2020, yielding a loss of $60,000. There was also one unprofitable transaction in 2019, resulting in a loss of $18,000. Both were the only unprofitable transactions for their respective years, and there were no unprofitable transactions from 2011 to 2018.

So far this year, 12 units from Oleander Towers have been sold, all yielding profits ranging from $355,000 to $1.77 million. This year’s highest profit of $1.77 million is also a record high for the condo.

The seller sold the 1,819-sq ft unit for $2.6 million ($1,429 psf) in October, resulting in a profit of $1.77 million. They had purchased the four-bedroom unit for $830,000 ($456 psf) in January 2002.

The eye-watering profit can be attributed to its lower-than-average purchase price. The seller paid $456 psf in 2002 when the average resale price for Oleander Towers was $536 psf. The significantly lower purchase price mitigated the effect of a lower-than-average sale price. The unit was sold last month for $1,429 psf but the current average resale price for the condo is $1,548 psf.

Interestingly, the same unit was previously involved in an unprofitable transaction. The first owner bought it from the developer for $1.14 million ($627 psf) in December 1995 before selling it for $830,000 ($456 psf) in January 2002 (see Table 2). The resulting loss of $310,000 can be attributed to its lower-than-average sale price.

The record-high profit of $1.77 million surpasses the previous record of $1.02 million, which involved a 2,551-sq ft unit sold in April 2008 for $2 million ($784 psf). The owner had purchased it in March 2002 for $980,000 ($384 psf). Notably, these two units are the condo’s only transactions that yielded profits exceeding $1 million.

This year’s second-highest profit involved a 893-sq ft unit on the 16th storey. Last month, the seller sold the two-bedroom unit for $1.4 million ($1,567 psf), resulting in a profit of $930,000. The seller had bought the unit in April 2005 for $480,000 ($537 psf).

The seller purchased the unit at a higher price compared the average price for the condo in 2005 ($468 psf) but benefited from a higher-than-average sale price. The unit was sold at $1,567 psf, higher than Oleander Towers’ current average resale price of $1,548 psf.

Additionally, the seller benefited from holding the unit for approximately 20 years. From 2005 to this year, the average resale price of Oleander Towers surged from $468 psf to $1,548 psf, representing significant growth of 230.8%.

Conclusion

Due to its central location and proximity to several good schools, Toa Payoh is a popular residential enclave among homebuyers. Hence, it is not surprising that The Orie saw robust demand during its launch earlier this year.

Resale condo units in the Toa Payoh Planning Area also experience healthy demand, as evident from the higher average resale price enjoyed by 99-year leasehold condos in the area compared to their islandwide counterparts. Meanwhile, Oleander Towers has an average resale price that is not only lower than that of similar condos in the Toa Payoh Planning Area but also islandwide, attesting to its affordability in this popular neighbourhood.

The comparative affordability of Oleander Towers  exists despite its convenient location near Toa Payoh MRT Station, HDB Hub, CHIJ Primary and Secondary (Toa Payoh), St. Joseph’s Institution International, and Toa Payoh Park. The age and shorter remaining lease of this 99-year leasehold condo may have contributed to its lower price.

However, its lower price has not hindered sellers from making profits. This year, 12 units from Oleander Towers have been sold, and all have generated a profit for their sellers. Furthermore, the condo’s record-high profit of $1.77 million resulted from a transaction that took place in October.

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