622 Ang Mo Kio Avenue 9 HDB Investment Analysis: Understanding Growth Potential
622 Ang Mo Kio Avenue 9 presents a compelling investment case for Singapore property buyers seeking established HDB blocks with consistent appreciation and strong rental demand. This 1980-built block in the mature Ang Mo Kio estate offers a unique combination of affordability, strategic location, and proven market resilience that makes it worthy of serious consideration for both owner-occupiers and investors.
As Singapore's property market continues to evolve, understanding the specific investment dynamics of individual HDB blocks has become essential for making informed decisions. At Homejourney, we prioritize user safety and trustworthiness by providing verified, transparent data that helps you evaluate properties with confidence. This analysis examines 622 Ang Mo Kio Avenue 9 through the lens of investment potential, drawing on verified transaction data and market insights.
Block Overview and Key Investment Metrics
622 Ang Mo Kio Avenue 9 is a 12-storey HDB block containing 110 units, comprising primarily 4-room and 5-room flats with floor areas ranging from 100 to 125 square metres.[1][2] The block was completed in 1980 and operates under a 99-year leasehold tenure, meaning the lease commenced in 1980 with approximately 62 years and 5 months remaining as of February 2026.[2]
The Minimum Occupation Period (MOP) for this block is 1985, which is a critical consideration for investors planning to resell.[3] This means any unit purchased from HDB must be held for at least five years before it becomes eligible for resale in the open market. Understanding this timeline is fundamental to your investment strategy.
Location and Accessibility Advantages
The block's strategic position in Ang Mo Kio offers excellent connectivity. Lentor MRT Station is approximately a 5-minute walk away, providing direct access to the Thomson-East Coast Line (TEL).[3] Additionally, Yio Chu Kang MRT Station is within 580 meters, offering alternative connectivity via the North-South Line.[7] This dual MRT access significantly enhances the property's appeal to both owner-occupiers and tenants, supporting stronger rental demand and capital appreciation potential.
The proximity to multiple MRT stations is particularly valuable for investors targeting young professionals and families who prioritize commute convenience. This accessibility directly translates to higher rental yields and faster tenant turnover, which are key metrics for investment success.
Recent Transaction Analysis and Price Trends
Examining recent resale transactions provides crucial insights into the block's investment performance. The most recent verified transactions from 2023 show:
- September 2023: 4-room unit (100 sqm) sold for $515,000 at $5,150 per square metre[2]
- August 2023: 5-room unit (121 sqm) sold for $688,000 at $5,686 per square metre[2]
- July 2023: 4-room unit (100 sqm) sold for $415,000 at $4,150 per square metre[2]
- July 2023: 5-room unit (121 sqm) sold for $668,000 at $5,521 per square metre[2]
These transactions demonstrate the price variation within the block based on unit type, floor level, and market conditions. The 5-room units command premium pricing, reflecting their larger floor areas and appeal to families. More recent data from 2025 shows a 4-room unit sold for $608,888, indicating continued price appreciation in the block.[7]
Understanding Price Per Square Metre (PSM)
The PSM metric is essential for comparing value across different unit types and time periods. For 622 Ang Mo Kio Avenue 9, PSM ranges from approximately $4,150 to $5,686, depending on unit configuration and market timing. This range reflects the block's positioning within the broader Ang Mo Kio market and indicates healthy price stability. When evaluating investment potential, compare these PSM figures against other blocks in the same precinct to identify relative value.
Lease Decay and Its Impact on Investment Returns
One of the most critical factors affecting long-term investment viability is the remaining lease period. With approximately 62 years remaining, 622 Ang Mo Kio Avenue 9 is approaching the threshold where lease decay becomes a significant concern for investors.
Understanding Lease Decay: HDB flat values typically decline as the remaining lease period shortens, particularly when it falls below 60 years. This occurs because buyers' financing options become limited, and the property becomes less attractive to younger buyers planning to hold it long-term. Banks typically reduce loan-to-value (LTV) ratios for properties with shorter leases, making them harder to finance.
For investors, this means the window for capital appreciation at 622 Ang Mo Kio Avenue 9 may be more limited compared to newer blocks. However, for owner-occupiers planning to live in the property for 15-20 years, the remaining lease period remains adequate. This distinction is crucial when evaluating whether the block suits your investment timeline and exit strategy.
Lease Considerations for Different Buyer Profiles
- Owner-Occupiers (10+ year horizon): Remaining lease is adequate for most buyers, though resale options may narrow toward the end of your holding period
- Short-term Investors (5-10 years): Lease decay impact will be moderate; plan your exit carefully
- Long-term Investors (15+ years): Lease decay becomes a significant concern; consider if this aligns with your investment goals
Rental Market Performance and Yield Potential
For investors seeking rental income, 622 Ang Mo Kio Avenue 9 demonstrates consistent rental demand. Recent rental data shows monthly rents ranging from $3,800 to $4,300 for 5-room units.[6][7] This translates to gross rental yields of approximately 5.6% to 6.6% annually for a $688,000 5-room unit—a respectable return in Singapore's HDB rental market.
The block's proximity to Lentor and Yio Chu Kang MRT stations makes it particularly attractive to young professionals and small families seeking rental accommodation. This strong tenant demand is a positive indicator for investment viability, as it suggests consistent occupancy rates and reduced vacancy risk.
Calculating Your Rental Yield
To evaluate rental yield potential, use this formula: (Annual Rental Income ÷ Purchase Price) × 100. For example, a 5-room unit purchased at $688,000 with monthly rent of $4,000 generates annual income of $48,000, resulting in a 6.98% gross yield. Remember to deduct property tax, maintenance fees, and potential vacancy periods to calculate your net yield.
Comparative Market Position Within Ang Mo Kio
622 Ang Mo Kio Avenue 9 occupies a competitive position within the Ang Mo Kio estate. The block's 1980 completion year places it in the "mature HDB" category, which typically commands lower prices than newer blocks but offers established communities and proven appreciation patterns.
The block's pricing aligns with other similar-age HDB blocks in the estate, making it a benchmark for value comparison. For investors comparing multiple blocks in Ang Mo Kio, 622 Avenue 9 offers competitive pricing combined with superior MRT accessibility, which is a significant advantage.
Investment Decision Framework: Is 622 Ang Mo Kio Avenue 9 Right for You?
Before committing to an investment, evaluate these key factors:
Factors Supporting Investment
- Dual MRT accessibility: Lentor and Yio Chu Kang stations provide excellent connectivity
- Established community: 45+ years of proven residential stability
- Strong rental demand: Consistent tenant interest supports income generation
- Competitive pricing: PSM aligns with market value for similar blocks
- Mature estate amenities: Well-developed hawker centres, shopping, and community facilities
Factors Requiring Careful Consideration
- Lease decay risk: 62 years remaining means future resale options may narrow
- Aging building: Expect higher maintenance costs as the block ages
- Limited capital appreciation: Mature blocks typically appreciate slower than newer developments
- Financing challenges ahead: As lease shortens, LTV ratios will decrease, affecting future buyer financing
Financial Planning for Your Investment
When evaluating 622 Ang Mo Kio Avenue 9 as an investment, consider the complete financial picture. Beyond the purchase price, factor in:
- Stamp duties and transaction costs: Approximately 3-4% of purchase price for resale transactions
- HDB loan interest: Compare current rates at Bank Rates to understand financing costs
- Annual property tax: Based on annual value, typically $150-300 for HDB flats
- Maintenance and sinking fund: Expect $100-150 monthly as the block ages
- Rental management costs: If hiring an agent, budget 5-8% of rental income
Homejourney's commitment to user safety means providing transparent cost breakdowns so you can make informed decisions without hidden surprises.
Growth Potential Assessment: 2026 and Beyond
The growth potential for 622 Ang Mo Kio Avenue 9 should be evaluated realistically. Unlike newer HDB blocks or private properties with longer growth runways, mature blocks like this typically experience:
- Moderate capital appreciation: 2-3% annually, aligned with overall HDB market growth
- Stable rental demand: Consistent but not explosive income growth
- Increasing maintenance costs: As the building ages, sinking fund contributions may rise
For investors with a 10-15 year horizon, this block offers steady, predictable returns rather than aggressive capital gains. This profile suits conservative investors prioritizing income stability over rapid appreciation.
Related Resources and Next Steps
To deepen your investment analysis, explore these complementary resources:
- Financing options: Review Ang Mo Kio HDB Buying Guide: Loans & CPF Usage | Homejourney for CPF usage strategies and loan optimization
- Lifestyle considerations: Understand 622 Ang Mo Kio Avenue 9: Amenities & Lifestyle Guide | Homejourney to assess tenant appeal
- Historical price trends: Review 622 Ang Mo Kio Ave 9 HDB Price Trends & Resale Analysis | Homejourney for detailed market analysis
- Resale process: Learn the complete process in 622 Ang Mo Kio Ave 9 HDB For Sale: Ultimate Resale Guide | Homejourney
For comparative analysis of other mature HDB blocks with similar investment profiles, explore 97 Bedok North Ave 4 HDB Investment: Growth Potential Analysis | Homejourney to understand how different estates perform.
Frequently Asked Questions About 622 Ang Mo Kio Avenue 9 Investment
Is 622 Ang Mo Kio Avenue 9 a good investment in 2026?
622 Ang Mo Kio Avenue 9 is a solid investment for owner-occupiers and conservative investors seeking stable rental income. However, the 62-year remaining lease and mature building status mean capital appreciation will be moderate. It's less suitable for aggressive investors seeking rapid gains. Evaluate your investment timeline and return expectations before committing.
What is the typical rental yield for units in this block?
Based on recent rental data, gross rental yields range from 5.6% to 6.6% annually for 5-room units. This assumes monthly rents of $3,800-$4,300 on purchase prices around $688,000. Net yields will be lower after deducting property tax, maintenance, and vacancy provisions. Consult Bank Rates for current financing costs to calculate your true investment returns.
How does the remaining lease affect my investment?
With 62 years remaining, the lease is adequate for owner-occupiers but approaching the threshold where decay becomes significant. Banks may reduce loan-to-value ratios for future buyers, potentially limiting your resale market. If you plan to hold for 15+ years, lease decay will increasingly impact resale value. For 10-year horizons, the impact is manageable.
What are the main risks of investing in this block?
Primary risks include lease decay limiting future appreciation, aging building infrastructure requiring higher maintenance costs, and limited capital gains compared to newer blocks. Additionally, as the lease shortens further, future buyer financing becomes more difficult, potentially narrowing your resale market.
