The Draycott in District 10 is back in focus, and not just because it's a nice address. Units are hitting the market from $2,404 per square foot, which sits about 12% below what new launches in the area are asking. For HDB upgraders and investors watching the market carefully, this is worth paying attention to. But before you call your banker, there's a bigger picture to understand about what's really driving these prices.
Here's what I'm seeing on the ground. We've had a supply crunch become a supply glut in the past 18 months. New launches in District 10 have brought over 1,200 units to market between 2024 and 2026, and that's pushed motivated sellers to get real with their pricing. The Draycott, completed back in 2017 with 78 units, sits in a sweet spot geographically, Orchard walk and Tanglin MRT minutes away. But it's also competing with brand new stock that buyers are naturally drawn to.
What's making this interesting is that the gap between resale and new launch has widened. We're not seeing the 3-5% discount you'd normally expect. Instead, we're looking at closer to 12%, and that's shifted buyer psychology. Private home sales volumes dropped 15% last year, hitting 82,500 units against nearly 97,000 the year before. When volume falls like that, sellers start pricing to move.
I need to be straight with you on this one. If you're thinking investment, the ABSD hit is real. The 60% Additional Buyer's Stamp Duty for third property buyers has fundamentally changed investor appetite in prime districts. That's not a small cost to absorb, and it's shifted money away from pure investment plays into owner-occupied territory.
Rental yields in The Draycott are sitting around 2.8% to 3.2% gross, and with inflation running at 2.5%, you're barely ahead. Yes, vacancy rates are tight at under 2% because expatriate demand is steady, and rents are holding at around $8.50 psf per month for a 3-bed unit. But here's the thing, yields like that don't justify the ABSD hit anymore, not when you're also facing mortgage stress testing that's tighter than it was two years ago. About 35% of loan applications in District 10 got rejected last year on debt servicing grounds. The rules changed, and the math changed with it.
Now, if you're a HDB owner with MOP completed and you've got $800,000 to $1.2 million to spend, The Draycott entry point looks inviting. You've probably pocketed around $350,000 in average profit from your HDB sale, and you're ready to step up. The $2,404 psf pricing versus the $2,900 psf asking at newer launches is a real $150,000 to $200,000 difference on a 1,500 square foot unit.
But here's where you need to pause and think long term. The Draycott is 99-year leasehold. That's not a deal-breaker at 69 years remaining from today, but it's also not the same as a freehold alternative or something with a longer tenure. When you're looking at holding for 15 to 20 years, lease decay does matter. Banks get nervous, future buyers get nervous, and resale value gets impacted. There are freehold options in District 10, and while they'll cost you more today, they won't face lease risk down the road.
If you're moving on a tight timeline and you'll hold for 5 to 10 years before selling again, this is workable. If you're thinking multi-generational, you should be looking at longer-lease alternatives, even if it means stretching your budget.
I've seen this pattern repeat over 25 years. A 99-year lease property can be great value when it's new and you've got 95 to 99 years left. But once you hit 70 years or below, the profile changes. Lenders tighten, buyer pools shrink, and price momentum stalls. The Draycott is at 69 years remaining, and you'll need to factor that into your exit strategy.
The timing question is equally important. Mortgage rates are steady around 3.5% at OCBC and major banks, but affordability stress is real. The debt servicing ratio cap at 55% of income is tighter than it was pre-2024, and that's filtering out about 25% of potential buyers in this segment. If your numbers only work when rates stay exactly where they are, you're taking a risk. Build in margin.
One thing I'm monitoring closely is the en bloc talk. There have been three collective sale tenders in District 10 over 2025, though The Draycott itself has no tender history. That's low risk on the en bloc front, but it's worth checking. If a successful en bloc happened nearby, it could reset pricing expectations, and older leasehold properties sometimes underperform in that environment.
If you're an HDB upgrader: The $2,404 psf entry point is genuinely attractive right now compared to new launches at $2,900 psf and above. Get your mortgage pre-approval done and stress test it against 5% rate scenarios, not just today's rates. Factor the 69-year lease into your 10-year exit plan. If you're buying to stay 15 years or longer, look for alternatives with stronger lease tenure. The $300,000 to $400,000 you save now might not feel worth the lease risk later.
If you're an investor: The 2.8% to 3.2% yields don't justify the 60% ABSD unless you're playing a very long hold or expect significant capital appreciation. District 10 resale appreciation has been running at 4% to 6% annually, which is respectable but not exciting after tax and ABSD costs. The rental stability is real, occupancy is strong, and expatriate demand is durable. But this is a yield play only if you're patient and your cash flow can absorb the ABSD cost upfront.
If you're selling: You're in a decent position right now. District 10 has 18% more listings year-on-year, and that's creating some price pressure. If you're thinking of moving in the next quarter or two, pricing competitively now makes sense. Don't wait for a bounce that might not come if new supply continues flowing in.
The Draycott at $2,404 psf is honestly priced, fairly positioned, and viable for the right buyer. But it's not a no-brainer. Do the math, test it against your holding timeline, and make sure the lease tenure aligns with your exit plan. That's how you avoid paying for a discount today that costs you later.
Questions on your specific situation? Drop me a message on WhatsApp at +65 97501055 or visit keithtanboonkee.com. I'm here to help you make sense of the numbers.
25 years experience · 1,000+ transactions · 4,379 TOP units managed
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