Discover the vibrant District 5 (D5), a well-established area in Singapore's western region that offers excellent connectivity to all parts of the island, particularly the central region.

Covering Pasir Panjang, Hong Leong Garden and Clementi New Town, this vibrant western part of the island, enjoys excellent accessibility to workplaces, shopping malls, reputed schools and recreational amenities. It is poised to thrive even further with the upcoming transformations in the region.

There are 3 key reasons why private homes in D5 offer a lucrative prospect for investors who are looking to grow their wealth:

1. Strong profitability of private homes

2. Attractive rental potential

3.  Extensive redevelopment plans in Clementi & Queenstown

1. Strong profitability of private homes in D5

District 5 ranks third among all districts in non-landed home sales, positioning it as an excellent choice for future sellers. According to the Urban Redevelopment Authority (URA), a total of 13,887 condos were sold in District 5 from 2015 to 2024, following transactions in Districts 19 and 15.

Private homes in D5 are both in high demand and offer strong profitability. According to historical URA data, an impressive 86.5 per cent of private home sales in D5, up to the third quarter of 2024, were profitable, exceeding the island-wide profitability rate of 82.4 per cent.

        Further, among districts within the Outside of Central Region (OCR), D5 homes ranked second in terms of achieving the largest number of profitable homes, with about 92 per cent of them making profits.

Among these profitable homes, 629 units made a gross profit of at least S$500,000, while 214 units made more than S$800,000. A total of 97 units made profits of at least S$1 million!

The highest profit achieved in OCR within D5 was a private condominium at The Stellar purchased in 2006 at about S$1.03 million and resold in 2024 for S$3 million, making a profit of nearly S$2 million!

The second-highest profit was a unit at Varsity Park Condominium with a purchase price of slightly over S$900,000 in 2006 and a resale price of S$2.79 million in 2023, resulting in a gross profit of about S$1.9 million.

Most profitable deals in D5 (OCR)

The high prices will enable many homeowners to upgrade to private properties in the area. According to statistics from data.gov.sg, there has been a significant increase in the median prices of newer HDB flats in certain towns near District 5.

For example, the median resale flat prices in Clementi and Queenstown for flats aged 20 years and below appreciated by 40.6 per cent and 29.5 per cent, respectively, from 2015 to 2024. By 2024, the median resale prices reached S$930,000 in both towns, respectively.

With several transformation plans for the area expected in the coming years, these resale prices for HDB flats are likely to remain strong, further encouraging HDB owners to upgrade to private homes in the vicinity.

With the recent change in the classification of new Built-To-Order (BTO) flats, most of these new units will now come with a 10-year Minimum Occupation Period (MOP). As a result, buyers interested in purchasing an HDB flat may prefer to look at the resale market instead.

Many people place a high value on location when buying a home. This is especially true for units in District 5, which are surrounded by numerous amenities and provide convenient access to other areas of the island through public and private transport. As a result, current homeowners are likely to find potential buyers easily, giving them the opportunity to upgrade to private condos within the district.

2. Attractive rental potential

Apart from its attractive resale value, the rental potential of private homes in D5 (OCR) remains strong.

Data from URA showed that for the past five years (2020 to 2024), the median monthly rents of non-landed units in D5 (OCR) climbed by 44.3 per cent, reaching a median rent of $4,200. This value matches the median rent in District 21, a prime district known for its prestigious homes and is highly sought after by buyers and tenants.

Data also showed that the number of rentals in D5 homes increased by 20.6 percent during the same period. These homes are likely to attract tenants who want to be close to various amenities and have convenient access to the city, where many workplaces are situated.

The upcoming transformation plans aimed at enhancing the already thriving District 5 are expected to provide a steady pool of potential renters, benefiting investors in the long term. This makes private homes in D5 a more appealing investment opportunity.

3. Extensive redevelopment plans in Clementi & Queenstown

New amenities and facilities are expected to be constructed to support one of Singapore’s oldest housing towns, Clementi. This includes a new Eldercare facility at West Coast, and the linking of green networks, such as between Sunset Way and West Coast Park, to create more seamless walking and cycling for residents.

 Several plans were proposed to improve the recreational facilities in Clementi. A new park connector along Sungei Ulu Pandan connecting Boon Lay Way and Ghim Moh, as well as the new waterfront community space located at Sungei Pandan Kechil, will bring current and future residents closer to nature and encourage community building.

URA has developed extensive plans to create more recreational facilities in D5. There are plans to establish employment hubs in the area to enhance the existing innovation district at One-North. For example, the government has proposed the creation of a new Dover Knowledge District, which will connect the innovation cluster at One-North, the Singapore Science Park, and the National University of Singapore (NUS). This initiative aims to foster spaces for integrating education, research and development (R&D), economic activities, and entrepreneurship. This aligns with the government's push for decentralization, allowing current and future residents to access employment opportunities while living in the vicinity.

Distinctive Features of District 5

Based on the investment potential and upcoming development plans, buyers should not wait too long. They should take advantage of today’s opportunity to buy a condo within District 5. Doing so will not only allow them to enjoy the attractive locational benefits and future developments, but also guarantee that their investment will yield financial benefits in the long run.