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At S$2,350,000 for 1,227 sqft, this property works out to approximately S$1,915 per square foot. In the Farrer Park and Serangoon Road corridor, freehold or long-lease units typically range from S$1,800 to S$2,100 psf depending on age, condition, and proximity to the MRT. Tessensohn Road properties sit at the mid-to-upper end of this range, reflecting their desirable location between the City and established residential neighbourhoods. This pricing suggests the unit is either newly refurbished, in a newer building, or benefits from superior finishes compared to older stock in the vicinity.
With the property priced at S$2,350,000, a market rental of S$4,200–S$4,600 per month for a 3-bedroom unit in this location would yield approximately 2.1–2.4% gross annual return. However, net yield after property tax, maintenance, insurance, and a 6–8% vacancy buffer typically falls to 1.4–1.7% per annum. The Farrer Park area attracts quality expatriate tenants and young professionals, which supports relatively steady rental demand, though the yield is modest compared to HDB or suburban private condominiums. Investment here is primarily capital appreciation-driven rather than income-focused, particularly given the freehold status and the district's ongoing urban regeneration.
Second property buyers in Singapore currently pay ABSD at 5% on the first S$180,000 and 10% on the remainder, totalling approximately S$131,500 on a S$2,350,000 purchase. This represents a significant cost on top of conveyancing fees and should be factored into your total acquisition cost and cash-on-cash return calculations. ABSD can be mitigated if you sell your first property before completing the purchase, though the timing and legal implications require professional advice. For investor profiles considering this property, the ABSD burden reduces net yield materially and may justify exploring alternative investments with higher rental yields or lower entry costs.
Tessensohn Road's proximity to Farrer Park MRT is a significant asset, placing it within the highly desirable 500–700 metre radius that maximises tenant demand and reduces time-to-lease. The North-East Line provides direct access to Orchard and the CBD, making the location attractive to working professionals and expatriate families who value convenience. Historically, properties within 5–10 minutes of major MRT nodes in this district have appreciated 4–6% annually, driven by stable tenant demand and limited new supply in the immediate vicinity. The MRT accessibility also supports long-term hold strategies, as transit-oriented properties are less vulnerable to obsolescence or changing commuting patterns.
At S$2,350,000, this 3-bedroom unit appeals to both owner-occupiers and investors, though the buyer profile differs based on housing needs and financial strategy. Owner-occupiers aged 35–50 seeking a well-positioned home close to the CBD, schools, and lifestyle amenities will find the Tessensohn Road location appealing, with the Serangoon Road corridor offering restaurants, clinics, and shops. First-time upgraders or downsizers from larger homes or HDB may view this as a sweet spot in terms of size and price, particularly if they value freehold tenure. Investors, conversely, may prefer the stable rental yield and freehold appreciation potential, though they should model the property against higher-yielding alternatives in suburban locations or high-rise condominiums with larger tenant pools.
On a S$2,350,000 purchase price, a 75% LTV loan amounts to approximately S$1,762,500, requiring a down payment of S$587,500 plus ABSD (c. S$131,500) for a total cash outlay of around S$719,000 for a second-property buyer. Monthly mortgage instalments on a 25-year tenure at approximately 3.2–3.5% would be roughly S$7,800–S$8,200, which counts towards your TDSR ceiling (currently 60% of gross monthly income). To comfortably service this loan without breaching TDSR limits, you would need a gross household income of around S$13,000–S$13,700 per month; finance your own debt obligations and household expenses within the remaining TDSR budget. Bank valuations for Tessensohn Road properties typically align closely with market price given the location's strength, so LTV approval is usually straightforward, though personal credit profile and employment stability remain critical.
Tessensohn Road occupies a unique position—quieter and more residential than Serangoon Road's busier commercial frontage, yet more established and centrally located than newer suburban developments further north. Competing 3-bedroom units on Serangoon Road typically range from S$2,200,000 to S$2,500,000 depending on finishes and floor levels, whilst Lloyd Road properties (slightly further south) may be S$2,100,000–S$2,300,000 with similar specifics. The key differentiator is neighbourhood character: Tessensohn Road offers tree-lined streets and lower traffic, whilst Serangoon Road units provide more retail and F&B activity within walking distance. For investors seeking tenant stability, Tessensohn Road's quieter, family-friendly vibe may outperform noisier locations, though Serangoon Road commands marginally higher rents from those prioritising convenience and nightlife access.
Without specific building data provided, general principles for Farrer Park-area units suggest that mid-to-high floors (8–15) command 8–15% price premiums over lower floors, driven by better light, views of the Central Business District, and reduced street noise. Units on the eastern or northern aspects facing away from the main road typically attract stronger tenant interest and command higher rents, particularly for family tenancies. Lower floors (1–3) often appeal to elderly or mobility-conscious buyers and can be easier to lease quickly, though capital appreciation potential is moderately lower; avoid ground-floor units with road frontage, which suffer noise and exhaust exposure. The optimal strategy for capital appreciation is selecting a well-positioned mid-to-high floor unit with cross-ventilation and views; for rental yield, prioritise lower-to-mid floors with strong family appeal and quick leasing turnaround.
The property listing does not specify whether the unit is freehold or leasehold; this is critical information you must verify immediately with the agent or title deed, as it fundamentally affects long-term value retention. If the property is leasehold with less than 70 years remaining, capital appreciation slows markedly in the final decades as institutional buyers (funds, REITs) withdraw from shorter-lease properties, and older homebuyers avoid the renewal cost. HDB lease decay typically impacts resale significantly beyond the 60-year mark; private residential leasehold properties face similar but less acute challenges, though below 60 years, buyers will increasingly demand discounts to reflect renewal uncertainty. For a property at this price point, freehold tenure is strongly preferable for capital preservation, whereas leasehold with 80+ years remaining is acceptable if priced accordingly; anything below 70 years warrants careful modelling of future exit scenarios and potential buyer pool contraction.
The Farrer Park area has limited new supply expected in the next 3–5 years, with most development activity concentrated in adjacent Novena and Aljunied, approximately 1–2 km away. Urban Redevelopment Authority plans for the district focus on retail and mixed-use intensification along Serangoon Road rather than large new residential towers, which supports supply scarcity and price resilience. Existing housing stock comprises older walk-ups, modest condominiums, and scattered freehold units, most built 20–40 years ago; limited demolition or en-bloc activity is anticipated given collective ownership complexity and land value relative to GFA returns. This structural supply constraint is favourable for long-term value retention: there is pent-up tenant demand with few new units entering the market, supporting both rental stability and modest but consistent capital appreciation of 2–3% annually, making the Tessensohn Road unit a defensible holding even if overall Singapore property markets soften.