Would You Live Next To A Cemetery?

It's the seventh month of the lunar calendar, so you know what that means: the Hungry Ghost Festival is finally upon us. The gates of hell are wide open and ghosts are roaming free in our realm, which means the spooky season has officially begun here in Singapore! To join in the festivities, burn some joss paper, lay some offerings, and answer this for me:

Would you live next to a cemetery?

Any sane person would say no, and I wouldn't blame you. Traditionally, cemeteries haven't exactly screamed "prime location" and they certainly don't have the best view. So how do these homes stack up against those in less grim settings? Let's take a look at the data.

According to PropNex Investment Suite, properties near cemeteries, crematoriums and columbariums often come with a slight discount compared to the standard value in the area. This discount can vary depending on the proximity to the cemetery and overall market conditions.

For instance, let's take a look at HDB estates near the Yin Goh Kuan Cemetery (also known as Shuang Long Shan), namely the 7 Commonwealth Avenue project, the 7A Commonwealth Avenue project and the 32 Holland Cl project. Do note that these projects are pretty old so there aren't many units being sold today.

Source: Google Maps

Regardless, these properties are valued at about 12.9% to 34.2% less than the standard price in the district. That's $120 to $317 per square foot cheaper!

Source: PropNex Investment Suite

And believe it or not, despite the lower prices, the rate of appreciation for these properties isn't necessarily going down. In fact, they can still experience substantial growth over time, especially when the market is doing well. Just take a look at how much these HDB projects have grown in the past 20 years. Block 7 Commonwealth Avenue saw a 105% increase, Block 32 Holland Cl went up by 126%, and Block 7A Commonwealth Avenue experienced a staggering growth of 171%.

Source: PropNex Investment Suite

Here's another example. Condos near Kubur Kassim, namely Flamingo Valley and Park East, are priced 10.8% and 19.5% lower than the market standard for condos in the same district, which translates to a $214 to $387 discount per square foot.

Source: PropNex Investment Suite

But here's the kicker: the condos have appreciated well over the past two decades, with Flamingo Valley surpassing the market standard at a rate of 313.8%! And Park East isn't doing too bad either. The project is growing at a rate of 234.3%, just shy of the market standard, which is growing at a rate of 262.9%.

Source: PropNex Investment Suite

On top of that, some cemeteries are located in areas surrounded with businesses, which remain unaffected by their proximity to the grave yards. For example, the Muslim cemetery and Old Malay cemetery at Jalan Kubor are close to numerous hotels that are absolutely thriving.

Source: Google Maps

These hotels continue to attract tourists and guests and mind you, two of them are directly facing the cemeteries. This just goes to show that having good amenities and a convenient location can outweigh the perceived stigma of being near such establishments. Just take a look at these hotels, why wouldn't anyone want to stay there?

Source: Hotel Boss

Source: Rest Bugis Hotel

In the end, it all comes down to superstitious beliefs, which are still very prominent here in Singapore, especially among older generations. Cemeteries are believed to be a source of negative energy or paranormal activities, so living near one is a big no-no. Some people even went so far as to demand a refund from HDB after finding out there would be a columbarium to be built near their residence.

However, I must point out how ironic it is that places like Bishan and Bidadari have become some of the hottest places to live in despite literally being built over former cemeteries. Yup, you read that right! The Bishan we know today used to be Peck San Theng Cemetery which housed over 100,000 graves before it was exhumed in the late 1970s for urban development. 120,000 graves were also exhumed from Bidadari Cemetery before it was turned into a housing estate.

And believe it or not, there's a huge surge in price for properties in these areas. Bishan loft itself grew by 260% over the past 20 years. Today, property prices in these areas range from around $1,700 psf to $2,500 psf. Also note that more and more projects are being launched over time, indicating a rise in housing demand in these regions.

Source: PropNex Investment Suite

Many cemeteries have also been repurposed into public spaces, but no one bats an eye on that either. For example, Ngee Ann City, one of Singapore's most popular shopping malls, was built on what used to lay 30,000 graves. Novena MRT Station was built on Jewish cemetery and so was the Dhoby Ghaut exchange. I'm sure many of us pass by these places all the time without getting cold chills down the spine.

All things considered, properties near cemeteries might be an affordable option for those of you looking to buy your first-ever place (hopefully not your last resting place). Living with the dead doesn't sound too bad when you can get a good bang for your buck, am I right? Granted, it might not be a good fit for the extremely superstitious, nor would it make the best investment. But hey, who knows, maybe it'll be marked for an en bloc sale and you might get some benefits out of the purchase after all. If you're interested in that, I have just the article for you.

Views expressed in this article belong to the writer(s) and do not reflect PropNex's position.