Grand Dunman for HDB Upgraders — Affordability, ABSD & Financing Guide
Grand Dunman · By Alvin Tan, ERA · CEA R072324C
For HDB upgraders eyeing a prime District 15 address, Grand Dunman presents a compelling opportunity, though careful financial planning around ABSD, loan eligibility, and downpayment is crucial for a smooth transition.
Understanding these financial aspects early can help you determine the affordability and feasibility of making Grand Dunman your next home.
Is Grand Dunman a good option for HDB upgraders?
Grand Dunman, with its 1008 residential units and 99-year leasehold tenure, is situated in the highly sought-after District 15. This mature estate is known for its amenities and proximity to the East Coast, making it an attractive proposition for families looking to upgrade from their HDB flats.
The development offers a wide range of unit types, from 1-bedroom to 5-bedroom penthouses, which means there’s likely a layout that fits various family sizes and needs. Its direct opposite Dakota MRT station on the Circle Line provides excellent connectivity, a significant draw for many Singaporean households.
Furthermore, the presence of reputable schools nearby, such as Kong Hwa School, Tanjong Katong Primary School, and Chung Cheng High School (Main), adds to its appeal for families with school-going children. The extensive communal facilities, including multiple swimming pools, a gymnasium, and various recreational spaces, also contribute to a desirable lifestyle.
How does ABSD affect HDB upgraders buying Grand Dunman?
The Additional Buyer’s Stamp Duty (ABSD) is a significant consideration for HDB upgraders. If you are a Singapore Citizen and you purchase Grand Dunman as your second residential property, you will be liable for ABSD on the purchase price or market value, whichever is higher.
However, there is a way to potentially avoid or remit ABSD for HDB upgraders. If you plan to sell your existing HDB flat within six months of purchasing Grand Dunman, you may be eligible for ABSD remission. This is a critical timeline to manage carefully.
The exact process involves paying the ABSD upfront and then applying for a refund once your HDB flat is sold. It’s essential to understand the eligibility criteria and the strict deadlines involved for this remission.
What are the loan and TDSR considerations for Grand Dunman?
When purchasing a private property like Grand Dunman, your loan eligibility will be assessed based on several factors, including your income, existing debts, and age. The Total Debt Servicing Ratio (TDSR) framework limits the amount you can borrow.
Currently, the TDSR cap is set at 55% of your gross monthly income. This means your total monthly debt obligations, including your new home loan, car loans, and any other personal loans, cannot exceed 55% of your income.
Financial institutions will also assess your Mortgage Servicing Ratio (MSR) if you still have an outstanding HDB loan. However, for private property, TDSR is the primary framework. It’s advisable to get an In-Principle Approval (IPA) from a bank before committing to a purchase to understand your borrowing capacity.
What downpayment is required for Grand Dunman?
For your first private property, the minimum downpayment is generally 25% of the purchase price. Of this, at least 5% must be paid in cash, with the remaining 20% payable via cash or CPF Ordinary Account (OA) funds.
If you are taking a bank loan, the Loan-to-Value (LTV) limit typically stands at 75% for your first housing loan. This means the bank can lend you up to 75% of the property’s valuation or purchase price, whichever is lower.
For HDB upgraders who are still servicing an existing HDB loan, the LTV limit for your second housing loan might be lower, potentially at 45% or 25%, depending on whether you have an outstanding housing loan at the point of application. This significantly impacts the cash and CPF downpayment required.
What is the timeline for HDB upgraders moving to Grand Dunman?
Managing the timeline is crucial for HDB upgraders, especially concerning ABSD remission and the sale of your existing flat. The indicative TOP for Grand Dunman is 2028, but this should be confirmed with the developer at the showflat.
Here’s a simplified timeline overview:
- Booking Grand Dunman: You will pay the booking fee (typically 5% of the purchase price).
- Signing the Sale and Purchase Agreement: This usually happens within 3 weeks of booking, and you will pay the remaining portion of the 20% downpayment (less the booking fee).
- Selling HDB Flat: If you are applying for ABSD remission, you must sell your HDB flat within six months of completing the purchase of Grand Dunman (i.e., collecting keys).
- Key Collection: Upon TOP, you will collect the keys to your new Grand Dunman unit.
From my experience as an agent, many HDB upgraders find the six-month ABSD remission window to be the most challenging aspect. It requires careful planning and often means listing your HDB flat for sale even before Grand Dunman is ready for key collection. It’s vital to have a clear strategy for selling your HDB flat to avoid unnecessary financial penalties.
Key Financial Considerations for HDB Upgraders at Grand Dunman
| Consideration | Impact on HDB Upgraders |
| Additional Buyer’s Stamp Duty (ABSD) | Pay upfront, potential remission if HDB sold within 6 months of Grand Dunman completion. |
| Loan-to-Value (LTV) Limit | Up to 75% for first loan; potentially lower (45% or 25%) if existing housing loan not fully paid. |
| Total Debt Servicing Ratio (TDSR) | All monthly debt repayments capped at 55% of gross monthly income. |
