February 2025 will see the first of three Build-to-Order (BTO) launches of the year, as well as the yearly Sale of Balance Flat (SBF) exercise. This launch will offer about 5,000 BTO flats, as well as 5,500 SBF flats, totalling a supply of over 10,000 flats in this joint exercise.

Interested applicants will require an approved HDB Flat Eligibility (HFE) Letter in order to participate in this exercise.

For those who have a valid HFE letter, they will be able to choose from five projects across Kallang/Whampoa (800 units), Queenstown (1,110 units), Woodlands (1,540 units), and Yishun (two projects of 840 and 670 units). Likewise, a HFE letter will be required to apply for flats under the SBF exercise.

They will likely be a mix of Standard (Yishun and Woodlands) and Prime (Kallang/Whampoa and Queenstown) flats, based on their location. It is unlikely that any of these projects will be classified under Plus. Therefore, if you are looking for a Plus flat, there will likely be a greater number of them launched in latter parts of the year.

Let’s go over these projects, as well as their location attributes and unit mixes.

Kallang Whampoa – 800 units

Source: HDB

This project is located within the upcoming Tanjong Rhu area, which saw its first BTO flats in the June 2024 BTO launch. Similar to the previous project in this area, we expect this to be a Prime project.

There will be a mix of 2-room flexi, 3-room and 4-room units, typical of Prime projects.

Located a 7-minute walk from Tanjong Rhu MRT station, the main Plus point of this project would be the easy, sub 10-minute commute to the Central Business District (CBD) via the Thomson-East Coast Line. Additionally, the higher floor units will have access to views of East Coast Park facing the south, as well as downtown and the Marina Reservoir to the north-west.

Additionally, there are plans to construct amenities to transform Tanjong Rhu into a new housing estate.

The previous projects at Tanjong Rhu received 3,963 applicants for 1,296 units, with a 2.1 first timer and 22.3 second-timer application rate for 4-room flats, which make up a majority of these Prime flats. We can expect to see similar demand for this project, following the success of the prior launch.

It is also worth noting that singles will be able to apply for 2-room units here, following the change in policies allowing singles to apply for Prime location 2-room flats that took place in the October 2024 BTO launch.

While the application rates for the exercise have yet to be revealed, it is likely that there is a strong and healthy demand for these Prime 2-room units, due to the oversubscribed nature of the flat type.

Queenstown – 1,110 units

Source: HDB

The other likely Prime project in this launch is this Queenstown BTO project, offering 2-room flexi, 3-room and 4-room units.

Off the bat, we can expect a much stronger demand for this project among Prime flat buyers as compared to the Tanjong Rhu development. This is due to Queenstown being a mature estate – looking at the map we can see that the project site is surrounded by amenities, such as a neighbourhood centre and library nearby.

Another major Plus for this site is that it falls within the 1km priority enrolment distance for both Queenstown and New Town Primary Schools. Compared to the Tanjong Rhu project which does not have the same benefits, couples planning to have kids are likely more inclined to apply for this project, especially given the lengthy 10-year minimum occupation period that they are obligated to stay for.

The previous BTO project that took place at Queenstown was Holland Vista, which saw a staggering 2,233 applicants for 228 4-room units. This consisted of a 6.6 application rate for first-timers, and 72.8 for second-timers.

We can expect a strong demand for this project, given its proximity to the nearby MRT station, as well as the access to nearby primary schools and a variety of amenities. This extends to the 2-room flexi units, where singles are likely to be drawn to the central location and conveniences.

Woodlands – 1,540 units

Source: HDB

This BTO project, which happens to be the largest among the February bunch, is located in Woodlands North, in the Marsiling area, and near the causeway.

The project will be standard project, offering a mixture of 2-room flexi, 3-room, 4-room and 5-room units.

As the area has yet to be developed, there is a lack of amenities in the area, which affected the application rates for the project in Marsiling during the June 2024 BTO launch. The launch received 581 applications for 429 units for 4-room, and 406 applicants for 362 units in 5-room.

The project is about a 5-minute walking distance from Woodlands North MRT station once walkways are paved, which will grant commuters a direct line into the city centre, albeit with a commuting time of about 45 minutes.

Given the large number of units available, there should be muted demand for this project – as it the most undeveloped and far out location of all the launches.

If you are looking to increase your chances at securing a BTO, this might be the project to gun for.

Yishun (Chencharu) – 840 and 670 units

Source: HDB

The last BTO launch that took place in this new estate of Chencharu was in the June 2024 BTO launch, which saw 1385 applicants for 420 4-room units, and 1,609 applicants for 390 5-room units respectively.

Being an entirely new housing zone, there are no nearby facilities. The project will come with amenities such as eating houses and shops, as well as a childcare centre. The surrounding area will be redeveloped to introduce amenities like a park, nursing home, and place of worship.

As this development is to be built as part of an upcoming estate, the area currently suffers from a lack of connectivity. It is a 15-minute walk from Khatib MRT station.

We will also see new bus services providing transit options from this estate to other parts of Yishun, providing further access to amenities for residents.

There should be a healthy response for these standard flats, from the positive previous response and the future development plans of the region – something the HDB has promised about in a recent announcement.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

 

The Toa Payoh Lorong 1 GLS site that made headlines when it was awarded a year ago, and will be launched in 1Q 2025, as a condo called The Orie.

The new development will be built in place of an old police compound, which was an iconic structure that’s a key part of Toa Payoh’s rich and colourful history.

The town is one of the oldest estates in Singapore that frequently sees many high value public housing transactions. Despite this, private housing developments in this town are few and far between.

Here are five exciting facts about the estate of Toa Payoh that should convince you that buying a condo here is the right choice!

1. Few Condo Projects in Toa Payoh

If you look at the neighbourhoods of Toa Payoh, you will find that private housing developments in this town are few and far between.

We can count only four private condos: Trellis Towers, Oleander Towers, Trevista, and the Gem Residences with its location in the town of Toa Payoh. An upcoming development, The Orie will launch in early 2025 as the fifth condo in Toa Payoh.

The most recent Toa Payoh launch prior to The Orie is the 576-unit Gem Residences was launched in 2016.

Coincidentally, the site is also located right opposite Gem Residences. Based on a land parcel size of 15,743 square meter (sqm) and a plot ratio of 4.2, the Orie will offer some 777 housing units, making it the largest condominium development in Toa Payoh to date.

Larger condos have their benefits, such as a wider range of facilities, and higher resale transaction volume, which in turn drives prices. 

2. There is a strong HDB market ready to supply upgraders in the area

One of the most interesting things to consider when buying into a project in a high-demand, low-supply area like the Toa Payoh is the potential exit strategy.

Chart 1: Million-dollar flat transactions in Toa Payoh and Bishan (as of Nov 2024)

Source: data.gov.sg as of 4 Dec 2024, ERA Research and Market Intelligence

Firstly, there are many million-dollar flats being transacted in Toa Payoh, and the neighbouring city fringe town of Bishan. These two towns rank among the top 5 HDB towns for million-dollar flat transactions, with 104 and 71 respectively.

Unless drastic cooling measures come into play, this is a trend that is likely to stay in the future, especially as newer flats in these towns remain scarce.

With a short supply of private condo upgrade options in these towns, a new condo development in the area is likely to catch the eyes of some of these million-dollar flat upgraders!

Furthermore, the median resale prices of 4-room and 5-room flats in Toa Payoh are $800,000 and $920,000 respectively, putting prices across the board in the upper percentile of HDB prices islandwide.

Chart 2: Price ranges of HDB flats in Toa Payoh and Bishan (3-room and larger) up to 3Q 2024

Source: HDB as of 4 Dec 2024, ERA Research and Market Intelligence

The high resale price tags that these resale flats go for means that these homeowners will have the capability to upgrade to new condo developments in these areas that they have previously lived in.

3. Mature estate with lots of amenities

Toa Payoh is one of the oldest districts in Singapore, and the second satellite town to be developed by the HDB in the 1960’s.

A major benefit of staying in a mature estate is that they are well developed, and chock full of amenities. One of the best parts about staying in Toa Payoh is without a doubt, the makan available. Just look at the seven hawker centres that are dotted around the town!

1. Toa Payoh Lor 8 Market and Food Centre
2. Kim Keat Palm Market and Food Centre
3. Blk 75 Toa Payoh Lor 5 Market and Food Centre
4. Toa Payoh Vista Market
5. Toa Payoh Palm Spring Market
6. Toa Payoh West Market and Food Centre
7. Toa Payoh Hub

Image 1: Map of amenities located around condos in Toa Payoh

Source: OneMap, ERA Research and Market Intelligence

Alongside the great number of markets and food centres, Toa Payoh’s HDB estates are home to many shops and merchants, offering goods and services such as bakeries, supermarkets, sundries stores and more.

On the horizon is a new integrated development at the site of the old Toa Payoh Swimming Complex. The development will house a polyclinic, sports centre, and library – all directly connecting to the transport hub.

The upcoming integrated development will feature a polyclinic, sports centre, and library – all directly connecting to the transport hub.

This development is envisioned to be an extension of Toa Payoh Town Centre and a lifestyle destination with community facilities and space.

The development of amenities like this shows that despite being a mature estate, there is always room to modernise and improve upon the facilities in these estates and make better use of Singapore’s scarce land space!

4. Proximity to many good schools

Being within close proximity to well-known and reputable primary schools is a major consideration among those looking to purchase a property, particularly HDB upgraders who have (or plan to have) younger children.

There are four primary schools located within Toa Payoh. Some of these schools are well known for the holistic educational experience they provide their students, and for their academic and co-curricular activity performance.

CHIJ Toa Payoh (Primary) is a popular choice, especially among parents who were former alumni of convent schools. Trellis Towers, Oleander Towers, Trevista, and the upcoming Orie will fall within 1km priority enrolment distance of this school.

Pei Chun Public School is another popular primary school, having a strong multilingual focus in their academic program and producing strong national exam results. Gem Residences, Trevista, and the upcoming Orie will fall within 1km priority enrolment distance of this school.

 

Source: OneMap, ERA Research and Market Intelligence as of 4 Dec 2024.

First Toa Payoh Primary School has Gem Residences, Trevista, and upcoming The Orie listed within 1km, and Kheng Cheng School, noted for its strength in chinese performing arts has Gem Residences, Oleander Towers, Trellis Towers, Trevista and upcoming The Orie listed within 1km.

With the intricate feeder bus network in Toa Payoh, students can easily commute to any school within Toa Payoh. This extends to when they graduate and attend secondary schools in the town, such as Beatty Secondary School, Raffles Girls School and CHIJ Toa Payoh Secondary.

5. City fringe region with good connectivity

It comes without question that the connectivity and location of Toa Payoh is excellent, being a city fringe region, located in the RCR.

Image 4: Map of Toa Payoh’s MRT stations near condos

Source: OneMap, ERA Research and Market Intelligence as of 4 Dec 2024.

Residents of Toa Payoh will have access to two nearby MRT stations on the North South Line, Braddell and Toa Payoh. Toa Payoh MRT is also integrated with Toa Payoh hub, which features many dining options, shops and the bus interchange. With access to the North South Line, Toa Payoh is just 6 minutes from Orchard, and 13 minutes from Raffles Place MRT, two major interchanges in the City Centre.

Also providing accessibility options via the Circle Line and Thomson-East Coast Line is Caldecott MRT, located in Toa Payoh West. Caldecott is notably 10 minutes from the work nodes in Buona Vista and one-north.

Toa Payoh is also well connected via the PIE and CTE, for those who drive as their primary form of transportation.

In the coming years, a new interchange station will be opened at Ang Mo Kio, just 5 minutes away. This will comprise the new and upcoming Cross Island Line, further opening connectivity options to other regions of Singapore.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

For Singaporeans, the Executive Condominium (EC) presents an opportunity to enjoy all the benefits of a private property: owners get to enjoy all of the prestige, privacy, and facilities associated with a typical condo, but at a more accessible price point

The EC housing concept is unique to Singapore, and was introduced in 1995, to “satisfy the demands of those who aspire to own private property but cannot afford to do so”. This enables ‘sandwich-class’ Singaporeans to achieve their aspiration of owning a private home. To balance cost and affordability, many new EC projects are located in young housing estates.

That said, there are several catches. EC buyers are subject to a monthly household income cap of $16,000 and a mandatory Minimum Occupation Period (MOP) of 5 years. Even so, after fulfilling the MOP, owners can only sell their EC to Singaporeans and Singapore Permanent Residents.

ECs can eventually be sold to foreigners, but only after they become fully privatised after a 10-year period. This degree of resale flexibility is a significant reason why ECs are such a useful asset and a fantastic choice for a first home.

Given the higher price point compared to HDB flats, most EC purchasers fall within the monthly household income bracket of between $14,000 and $16,000. This group of buyers does not qualify for Build-to-Order (BTO) flats, and has to either explore resale HDB flats or private homes as alternatives.

Naturally, this makes ECs an attractive option, which may prove to be a wise move for both asset appreciation and overall liveability. For first-time HDB homebuyers, purchasing an EC also grants them greater ease of securing a unit due to priority allocation.

Given their more attractive price point compared to private homes, many EC projects witnessed a strong sales rate during their debut. Recent EC launches, such as Altura and Lumina Grand, achieved 61% and 53% sales respectively over their launch weekends.

Previous EC owners have benefited from the capital appreciation, but the landscape is changing

Over the years, EC owners have continued to reap handsome profits, benefiting from rising home prices. For EC projects completed in 2013, owners who sold after 5 years achieved a median profit of $142,000. In contrast, owners of EC projects completed in 2019 who sold at the 5-year mark saw a remarkable median profit exceeding half a million dollars. While past EC owners have clearly benefited from significant capital appreciation, the landscape is changing.

Table 1: Median EC Gross Profitability Comparison by Year of Completion and Holding Period

Source: URA, ERA Research and Market Intelligence *Grey cells indicate less than 30 transactions recorded.

Rising Land Cost and EC prices – Does buying an EC still make economic sense?

Amid rising land costs for ECs, driven by both their popularity and limited land sales where only two to three plots are released each year, developers are presented with a unique challenge.

And that is to price their offerings within an affordable range for EC’s buyers whose mortgage loan eligibility are capped by the 30% Mortgage Servicing Ratio (MSR) framework and income ceilings. When combined, both these frameworks will limit buyers’ affordability due to the caps placed on loan quantum, and subsequently, the maximum property value that buyers can finance.  

Chart 1: Land Cost vs Median Sale Prices of ECs (by launch year) since 2022

Source: URA REALIS as of 25 Oct 2024, HDB, ERA Research and Market Intelligence

EC Is Still More Attractive Amid Widening Price Gap with OCR New Homes

Even as EC prices continue to climb, the price gap between ECs and new non-landed private homes in the Outside Central Region (OCR) has been steadily widening over the last three years, as the latter record a faster rate of appreciation. In 4Q 2021, the price gap between a new EC and an OCR new home was $388 psf. As of 3Q 2024, this difference has soared to $710 psf.

Chart 2: Median EC and OCR new home prices

Source: URA, HDB, ERA Research and Market Intelligence

Keeping EC price quantum palatable for first timers

To keep the price quantum within an accessible range, developers have focused on offering more flexible and efficient layouts that allow homebuyers to enjoy the best use of their space. By doing so, this allows developers to keep the price quantum palatable for most buyers.

For instance, first-time buyers, who are typically young couples prefer compact unit layouts that make daily maintenance more manageable, particularly for two working adults. At the same time, they want the flexibility of space to accommodate gatherings at home. For these buyers, the trade-off of a lower price quantum for a smaller unit is often seen as worthwhile.

New ECs Make Upgrading Effortless for Second-Timers

Separately, for HDB upgraders, or second-timers, there are even more compelling reasons to consider a new EC. Firstly, upgraders are exempted from having to pay the Additional Buyer’s Stamp Duty (ABSD), since they will need to dispose of their HDB flat within six months of receiving the keys to their new EC.

Next, second-timers can also take advantage of the Deferred Payment Scheme (DPS), which, although costing 2-3% more, allows them to defer the balance of 65% until the EC achieves the Temporary Occupation Permit (TOP). The final 15% will then be payable upon the Certification of Statutory Completion. This scheme helps second-timers avoid maintaining two mortgages while waiting for the completion of the new EC.

With the ability to plough their sale proceeds from their HDB flats, second-timers are more likely to be going for the larger 4- or 5-bedroom units.

Developing Townships Provide Valuable Exit Strategies for EC Homeowners

As mentioned, ECs are usually built within developing townships, providing prospective homeowners with a viable exit strategy should they ever plan to relocate after fulfilling the MOP.

To put things into perspective, there have been five ECs launches in the Tengah and Bukit Batok planning areas, with the most recent being Novo Place. These EC projects are located in close proximity to the Jurong Lake District, which is set to transform to the largest business district outside the Central Business District over the next decade. Buyers will stand to gain a first-mover advantage benefit from growth, better connectivity and more amenities in the future.

Additionally, since these ECs are located near the new Tengah estates, there is a large captive pool of HDB upgraders once they complete their MOP.

New ECs offer affordability and deferred payment schemes, which are especially appealing for first-timers and upgraders looking to maximise space and value. However, many of these projects are locate in up and coming estates, which tend to be on the outskirts of Singapore.

So, for homebuyers who place a premium on prime locations and central convenience, resale HDB flats—despite their rising price tags—can often be the more attractive choice. This brings us to the key question: Should you opt for a million-dollar HDB flat instead of new ECs?

New EC or Million-Dollar Resale HDB: Which Is the Better Choice?

To put it simply, location is the answer. The largest advantage of resale HDB flats, and the reason that people are willing to spend upwards of a million dollars on them is due to the ability to purchase an HDB flat in centrally located areas.

Moreover, they are able to purchase larger units in these areas (5-room or executive apartments) for a similar price quantum as the typical entry price for an EC. This is a core reason why we see so many million-dollar flat transactions in city fringe areas.

On the other hand, ECs are found in locations further from Central Singapore, typically in up-and-coming housing estates. Despite so, these ECs are often located within walking distance to MRT stations and will benefit as the neighbourhood infrastructure grows and mature.

Another important consideration will be that resale flats come with shorter lease tenures that could limit the loan-to-value limits and loan tenures, whereas new ECs come with a fresh 99-year lease. Buying older flats may also come with other hidden costs from hefty renovation cost to poorly maintain external facades which are difficult and near-impossible to rectify. 

So, Is Buying a New EC the Right Move?

To sum it up: ECs are a flexible private property that both the Singaporean first-time buyer and second-time upgrader should strongly consider if they meet the financial requirements.

They feature functional layouts for a variety of family sizes, are growing increasingly more convenient in location, and provide a family with privacy, exclusivity, and access to condominium facilities.

Furthermore, with many ECs situated in up-and-coming housing estates near areas poised for significant transformation, homeowners could benefit from a viable exit strategy should they need to shift in the future to match their families’ changing housing needs. Given their many positives, buying an EC is undoubtedly the right move for any savvy Singaporean property buyer.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Pine Grove is a private residential estate located in the Ulu Pandan neighbourhood, in the Rest of Central Region (RCR) district 21. The estate was initially populated by landed houses, before condominiums started being built there in the 1970’s.

In 1977, Ridgewood Condominium was built next to the site of the Singapore American School, with Pandan Valley following in 1981. To this day, these condos are still popular and enjoy price growth, with resale prices of condos showing a 39% median price growth across the past decade.

One of the key reasons why homebuyers are drawn towards the Pine Grove estate is its exclusivity. Pine Grove is a low-density private enclave, and is elevated overlooking the surrounding greenery of Clementi Forest, and the low rise Holland Road estate.

What’s There in the Private Housing Market?

Pine Grove has been an established private housing estate for almost 50 years. Many of the condos there are getting old – in fact only 4 out of the 15 condos in the Pine Grove area have been launched after 2000.

Table 1 and Image 1: Condos around Pine Grove

Source: ERA Research and Market Intelligence

With no new launches in the area past 2013, the private property market in Ulu Pandan has seen lukewarm activity. This can be attributed to a variety of reasons, such as a reluctance/lack of urgency on the part of homeowners to sell their home, as they might encounter difficulty in finding a replacement home in the same area. This applies to both condo owners, as well as landed homeowners that might be looking to right-size.

A Tale of Two New Launches

However, in recent years, we saw the sale of two land parcels at Pine Grove, which is set to rejuvenate the quiet private housing market there, riding on the back of the HDB developments in nearby Ulu Pandan.

In 2022, Pine Grove GLS Parcel A saw a competitive bidding process which saw five developers particpating. Ultimately, it was awarded to a joint venture between UOL and Singapore Land Group who edged out the others by a razor-thin margin of $800 – talk about an exciting narrative!

Fast forward to a 2023 where the eventual project was launched as Pinetree Hill, a 520-unit high-rise condominium. As of October 2024, Pinetree Hill has sold about 72% of its units slightly a year after its launch.

In November, we can expect to see the launch of a second condominium at Pine Grove, named Nava Grove. The development will be built upon the Pine Grove Parcel B GLS site, which was awarded in late 2023 to a joint venture between Sinarmas Land and MCL Land. The highest of three bids placed on the site amounted to about $1,223 psf ppr, about 7.2% lower than that of Pine Grove Parcel A.

So, what makes this pair of projects worth talking about?

Fantastic RCR Location

Both of them sit in D21 in the RCR, but if you take out your pencils and rulers, and start to draw out the planning region boundaries, you would find that they sit literally one road away from the prestigious Core Central Region (CCR).

The estate is also located near great amenities in the nearby areas of Ghim Moh, which has a market and food centre, as well as Holland Village, with shops, a mall, and food centres.

Image 2: Location of Pinetree Hill and Nava Grove

This means that the projects essentially benefit from a CCR location, at an RCR price tag. The Pan Island (PIE) and Ayer Rajah (AYE) Expressways are located 5 minutes away, which connects residents to various commercial and industrial hubs across the country.

The AYE provides a 15-minute drive to the Central Business District, while the Orchard Road district is also accessible via a direct route down Holland Road, reachable in 10-12 minutes.

One-north, another major business district is less than 10 minutes away – one of the most attractive qualities of the development’s location.

Proximity to Henry Park Primary School

Both developments will be situated in 2km of Henry Park Primary School, one of the most prestigious and well-known primary schools in Singapore. It is widely known that families will intentionally move to the Pine Grove, Ghim Moh, and Holland Road neighbourhoods to live near this school.

Being located within a short distance of these schools makes these two projects attractive, a characteristic that is likely to translate well in the resale market.

Attractive Entry Prices and Good Potential Price Growth

The pricing of these two projects is generally safe, compared to other recent RCR projects.

Chart 1: Price ($psf) comparison of new projects in various RCR regions

Source: URA as of 16 Oct 2024, ERA Research and Market Intelligence

The closest comparison on the market currently would be 8@BT, also within D21 in the RCR. Since its launch in late September, 8@BT has transacted at a median price of $2,737psf, compared to Pinetree Hill which has transacted at a median price of $2,453psf since its launch.

Nearby HDB Developments

In 2022, the HDB had announced a plan to develop three housing projects, totalling around 3,000 BTO flats to further develop and rejuvenate the areas surrounding Dover MRT.

These developments will take place directly south of the Pine Grove neighbourhood, and create additional amenities not too far away that residents can enjoy.

Image 3: HDB developments nearby at Dover

In addition to this, after these BTO flats complete their minimum occupation period, their homeowners could look to upgrade and live in the Pine Grove estate. With Pinetree Hill and Nava Grove being the newest projects on the market, and in the vicinity of Henry Park Primary School, these HDB upgraders could be a valuable exit strategy.

With these two projects standing side-by-side, what are the differences between the projects, and more importantly – which should you choose?

Completion Timeframe

With Pinetree Hill launching earlier than Nava Grove, it is highly likely that the project will meet TOP and be completed earlier, allowing you to move in to your new home faster.

Pinetree Hill has an expected TOP in 2027, while Nava Grove has an expected TOP in 2028 – although anticipated completion could fall earlier.

Harmonisation of Gross Floor Area (GFA)

Another key difference between the two projects would be how the harmonisation of GFA affects their pricing and unit layouts. Nava Grove, tendered after the GFA harmonisation would see higher prices per square foot, and will feature more efficient designs.

At the end of the day, whichever your choice might be, there isn’t really a wrong move buying into an established RCR estate like Pine Grove.

Whether your reason to buy your property is for own-stay or investment, the coveted RCR location combined with the development of the surrounding estate and make prospects look promising.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

With so many projects to choose from, which is the right one for you? Whatever your choice may be – may the odds be ever in your favour.

The Housing & Development Board (HDB) has officially launched 8,500 Build to Order (BTO) flats on 16 October 2024. This rounds up the 19,600 BTO flats promised in 2024.

This exercise features a total of 15 projects—a record number—comprising 7 Standard projects, 7 Plus projects, and 1 Prime project.

A diverse range of flats, including 2-room Flexi, 3Gen flats, and Community Care Apartments, are available under the new flat classification system of Standard, Plus, and Prime categories.

The reclassification of flats might sway some first timers away from the Plus and Prime flats, balance demand across the board.

Plus Flats Make Their Debut

Plus flats are the one of the three new classifications for BTO flats. This is the first time that they are being launched for sale.

Plus flats launched this round can be found in Ang Mo Kio, Bedok, and Kallang/Whampoa.

These flats are characterised by their ‘choicer’ locations, which are near MRT stations, as well as existing and/or future town centres and amenities.

Plus flats in Bedok (both Bayshore and Kembangan) are expected to be popular as they will be in walking distance of an MRT station. Bayshore will be a new precinct near East Coast Park, which is a popular area; the development also features units with full-height windows that open to a sea-view. Meanwhile, Kembangan, which is a developed estate, will see its first flats launched since the late 1980s.

 

We expect the Plus project at Ang Mo Kio to see strong demand, since it’s located within a short walk to Ang Mo Kio’s town centre and AMK Hub. The last BTO in Ang Mo Kio in 2022 saw an application rate of 13.5. However, the new project is likely to fall within 1-2km of CHIJ St. Nicholas, which is slightly out of priority enrolment distance, and could balance out demand.

So – how do they differ from the already existing Prime flats?

In the last two years, new flats in Kallang/Whampoa have fallen under the Prime category, due to their strong locational attributes. However, with the introduction of the Plus category, we are seeing two Kallang/Whampoa projects being classified as Plus for the very first time. These Plus flats also cost up to $60K less than the Prime flats at Crawford Heights.

Let’s take a case study of the trio of Kallang/Whampoa project offerings, comparing their prices with what is available on the resale market.

As we can see, the BTO prices for these flats are very attractive as they are sold at significant discount off the market price in the resale market.  This is because BTO prices are delinked from resale market prices and HDB prices BTO based on what household incomes up to $14,000 a month can afford to pay based on a Mortgage Servicing Ratio that is below 30%.

The price difference is very marginal; the starting prices (excluding grants) are just $46,000 more for Prime flats in Kallang Whampoa. As resale restrictions of Plus and Prime are largely similar, we can foresee most buyers gunning first for the Prime flats at Crawford Heights as they are nearer to the city, facing a waterway and have a more attractive façade and architectural design.

Stricter restrictions for Plus/Prime Flats

Resale subsidy clawback

Both Plus and Prime flats will feature tighter resale restrictions such as a 10-year MOP, a resale income ceiling of $14,000 and 6-9% subsidy clawback.

These subsidy clawbacks will be based on the eventual resale price; which may not be too high as there will be an income ceiling cap on the eventual resale purchaser.  Assuming an eventual resale price of $1.3 million, a 8% clawback is $104,000.

But with the current BTO price of these plus and prime flats at 300-400K cheaper than resale flats in the vicinity, the BTO purchaser is enjoying significant market price discount for a new brand flat in the same location. So, the clawback amount should not be a deal breaker.

The reclassification of flats might sway some first-timers away from Plus and Prime flats, balancing demand across the board. Despite the subsidy clawback, we did see robust demand for Prime flats under the previous BTO sales launches.

Minimum Occupation Period (MOP)

In addition to this, Plus and Prime flats will feature a 10-year MOP period, double that of standard flats.

This could be a cause of concern for potential homebuyers. For example, job changes, expansion of family, or caregiving duties for elderly parents might trigger the need to shift homes. So buyers are concern about how their housing needs may evolve over time, and may choose not to be locked in over a prolong MOP.

As a result, some buyers might be drawn toward conveniently located Standard flats. We anticipate that Pasir Ris and Sengkang flats will be popular, given their shorter construction time, proximity to MRT or LRT stations and the availability of amenities in the area.

Other Resale Restrictions

These Plus and Prime flats can only be resold to Singaporean citizens with an income ceiling of $14,000.

It is also worth noting that the 15-month waitout period for eligible private property downgraders will be doubled to 30 months for Plus and Prime resale flats.

Consequently, private property downgraders may consider alternatives to Plus and Prime resale flats. Such downgraders typically have more generous housing budgets and are willing to pay a premium for their ideal HDB home.

Prime flats to pilot the ‘White Flat’ program

Crawford Heights in Kallang/Whampoa represents the first time that HDB will be piloting the option to purchase a ‘white flat’.

Coincidentally, this will be the only project in the Prime category, wrapping up the year which saw Prime projects launched in areas such as Tanjong Rhu, Tanglin, and Holland Village.

‘White flats’ are an opt-in where applicants can choose for their flat to come in a beamless, open-concept layout, where living and bedroom spaces are not separated by walls. The ‘white flat’ concept will be popular among young couples who are looking to extensively renovate their units. However, these buyers should be mindful that excessive renovation works could make it less appealing to future buyers.

Standard Flats still make up the majority of flat supply, with some projects expected to see stronger demand

As defined by HDB, standard flats will be found across the greatest variety of locations, and make up the majority of new flat supply. Standard flats will also be the most affordable option with the fewest resale restrictions, essentially making them the most accessible form of housing for Singaporeans.

In June’s BTO exercise, only the Woodlands and Tampines projects had a shortened waiting time of under 3 years. The number of flats offered at these projects total up to about 1,352 units.

In contrast to this, 2,085 flats across three projects in Sengkang and Bukit Batok will be launched with expedited waiting times – about 1.5 times that of the previous launch.

The project in Bukit Batok (West Brickville @Bukit Batok) features a brief 2-year wait time, one of the shortest ever for HDB flats.

These launches with shorter wait times, combined with the 5-year MOP creates the some of the shortest runways available for asset progression today, and should be a popular choice.

In particular, the twin projects at Pasir Ris are located within walking distance of an MRT station, which could be a major selling point for many interested applicants – especially those with family living in the area. We expect the 4- and 5-room flat options to be among the most popular choices for first-timer applicants.

This is followed by Sengkang which is near LRT stations and amenities such as Seletar Mall, and are priced more attractively. The Bukit Batok project is located across from Tengah, and residents will be able to enjoy the fist-mover advantage by staying near a rapidly-developing estate, which will see a future MRT station along the Jurong Regional Line.

The Jurong West Project is located far away from the nearest MRT. However, with over 1,800 units available and 4-room prices starting from $290,000, this project looks to be the most affordable and accessible option for budget-conscious applicants.

2-room flat availability for Singles across all housing models

Application rates for 2-room flats among singles remains high, particularly in popular housing estates. In June’s sales launch, the 2-room application rates for Singles reached 7.0 for the Yishun project and 6.4 for the Jurong East project.

Giving singles the chance to buy 2-room flats in mature estates allows them to live closer to their parents and makes it easier to manage caregiving needs.

Conclusion

Here are a few key takeaways that we have learned from the launch of this BTO exercise:

• Standard flats provide the most flexibility. They are the most affordable flats with the fewest resale restrictions, and would appeal especially to those looking to upgrade to a private property after the 5-year MOP.
• Plus flats create good and convenient homes for people that are not looking to upgrade their property in the medium term. They feature homes in established estates like Ang Mo Kio and Bedok, allowing people to stay near their parents. They could also be a popular option for singles as previously their BTO options were oversubscribed.
• Prime flats are still the go-to option for owner-occupiers. They feature the best locations close to the city centre, and close to amenities and transport notes.

Looking forward to 2025

In February 2025, HDB will offer about 5,000 flats in Kallang/Whampoa, Queenstown, Woodlands, and Yishun. The launch would focus on creating more housing in up and coming areas such as Chencharu, Woodlands North, and Tanjong Rhu.

However, in terms of diversity for the projects offered, the current October launch has a wider variety across more popular and attractive locations. Therefore, we do not forsee the upcoming launch affecting the current demand.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

A new MRT line always brings about hype and conversation. Truer words cannot be spoken for the colourful District 15, which has been patiently waiting for MRT access for decades.

District 15, consisting of the East-Coast and Marine Parade residential estates, has a rich and prolific history. From the mid-19^th century, the Katong precinct was occupied by the wealthy Peranakan community, a historical fact preserved in the colourful heritage shophouses that line the streets of Joo Chiat, Tanjong Katong and East Coast Road today.

Following land reclamation efforts in Singapore’s developing years, the 1970’s saw HDB projects sprouting in the area known as Marine Parade. Over the years, the district and its estates have seen continued development, with condominium projects being built, rounding off housing options and establishing the Marine Parade area and District 15 as a mature estate.

“Nice Area, Poor Connectivity”

Historically, if you asked most people who stayed in the East what they thought of their neighbourhood, you would hear responses like “Nice area, but no MRT” or “Close to town lah… by bus”.

Since the inception of its first housing projects in the 1970’s, Marine Parade and much of District 15 has been served solely by bus services. Due to the time needed for the reclaimed land to settle, tunnelling works for MRT construction could not be attempted until the land was deemed ready.

As a result, residents of District 15 waited patiently and watched in envy as the rest of Singapore, mature and non-mature estates alike received infrastructure upgrades through the development of the different MRT lines across the years.

Demand for Homes in the East

However, despite the lack of MRT access, which is a major concern and criteria for most homebuyers, District 15 has seen considerable growth and demand across the years.

According to ERA’s ‘My Dream Home’ survey conducted in 2024 that received over 1700 responses, 30% of condo buyers stated their preference of living in the city fringe, while a further 20% stated their preference for living in the East region of Singapore.

D15 is uniquely positioned, with sections within the Rest of Central Region that allow it to serve as a gateway in the East to Singapore’s central core. Its city fringe location means that those commuting to the downtown core of Singapore can do so within just 10-15 minutes.

Additionally, District 15 has a characteristic charm stemming from the amalgamation of low-rise shophouses full of watering holes and eateries with high-rise developments overlooking the East Coast.

The Thomson East-Coast Line Has (Finally) Arrives in the East Coast

Announced in 2014, the Thomson-East Coast Line (TEL) is a merger of the previously planned and distinct Thomson (TSL) and Eastern Region (ERL) lines.

Source: LTA

This garnered much attention as long-time residents of D15 have always expressed the district’s need for MRT access. This MRT access would make it easier for residents to get to the various schools and amenities across the district. It would also make property in the area more attractive if these future MRT stations were built within walking distance of housing.

After a decade of construction and waiting, and one global pandemic later, the TEL’s East-Coast stations finally opened their doors to the public in June 2024, breathing new life into D15.

Increased Connectivity for Students and Teachers

The introduction of the TEL creates much-needed connectivity for the schools in the area. District 15 is home to several reputable schools across the various educational levels in Singapore.

However, some of these schools, especially those along Marine Parade Road and their surrounding neighbourhoods have traditionally only been accessible by bus – either from the various neighbourhoods across the district, or from the nearest (if you can call it that) MRT stations such as Dakota or Mountbatten.

If you have ever taken one of the bus services that service the area in the morning, you would have a clear idea of the number of students that rely on them for their commute.

Source: OneMap.gov.sg, ERA Research and Market Intelligence

With the opening of the East-Coast segment of the TEL, the reliance on buses will be heavily reduced, with most of the schools being within a short walking distance of one of the stations.

Access to Amenities

The opening of the TEL also makes it easy for those staying in D15 to access all the amenities the district has to offer. This allows people staying in the various private residential enclaves (i.e. Siglap, Meyer Road and Amber Road) to access the various hubs and town centres in D15.

These hubs include the town centres located in the HDB estates of Marine Parade, which is home to Parkway Parade and Marine Parade Central, which includes a market, food centre and a multitude of HDB shophouses packed with various stores catered to the residents of the neighbourhood.

Other areas that have been made more accessible through the opening of the TEL are Joo Chiat and Katong, which are home to rows and blocks of heritage shophouses offering retail, dining, and various services. Along this stretch also lies various shopping malls, such as Roxy Square, Katong V, and i12 Katong to name a few, which were previously only accessible by bus.

With easy access via MRT, those living in D15 can now have their travel times cut short should they need to run any errands or participate in any activities in these hub areas. Examples would include buying groceries, or students travelling to tuition centres.

If they so wish, residents living in D15 can also find entertainment or recreational options at destinations, such as Singapore Sports Hub at Kallang and even Marina Bay Sands, which is accessible by Marina Bay MRT on the TEL.

Expedited Downtown Travel Times

The opening of the TEL opens up faster travel times and a much more straightforward route to the central region for the daily commuter. Traditionally to reach the city centre by MRT, you would have to take a bus service to Dakota, Paya Lebar, or Bedok MRT station – largely negating the benefit of distance D15 has to central Singapore.

With the opening of TEL stations, travel to the city is largely expedited. New stations, such as Marine Parade, Tanjong Katong, and Katong Park are 3 to 5 stops (or 12 minutes and under) away from Marina Bay MRT at the heart of the CBD. This is a definite plus for daily commuters to the city centre as they stand to benefit most from the shortened and more predictable travel times.

Will We See Greater Demand for Homes in D15 in the Future?

In essence: yes.

Many homebuyers have already expressed their clear interest in city fringe homes – particularly the East – which makes D15 the perfect candidate for them.

D15 is rich in heritage, with many aspects of straits and colonial era Singapore imbued deep within its DNA. There are also HDB towns that have over time blossomed into mature estates, being packed full of amenities and conveniences that most Singaporeans desire.

With many good schools in the area across various education levels, D15 is seen as one of the best places to own a familial home.

In the past few years, there have also been many new launches in D15, ranging from boutique projects to mega-developments. The wide range of new homes available on the market ensures that every homebuyer has options available to them, depending on their needs.

Table 1: New Projects Available in D15

Project Name	Address	Tenure	Total no of units	Available units	Remarks
Meyer Blue	Meyer Blue	FH	226	226	Launching 4Q 2024
Emerald of Katong	Jalan Tembusu	99y LH	846	846	Launching 4Q 2024
Straits at Joo Chiat	Joo Chiat Place	FH	16	9
Ardor Residence	Haig Road	FH	35	3
Grand Dunman	Dunman Road	99y LH	1008	301
The Continuum	Thiam Siew Avenue	FH	816	424
Tembusu Grand	Jalan Tembusu	99y LH	638	157
Claydence	Still Road	FH	28	2
K Suites	Lor K Telok Kurau	FH	19	10
Atlassia	Joo Chiat Place	FH	39	4

Source: ERAPro as of 16 Sep 2024

With the TEL opening up new conveniences and opportunities, both new and resale homes are expected to grow competitively in prices.

If you are interested in purchasing a home in D15 – new or resale, feel free to get in touch with an ERA Trusted Advisor today!

 

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Have you ever dreamed of staying in a place not dominated by towering high-rises but filled with greenery and low-rise houses instead? A place with its own unique flair and personality, where heritage and modern lifestyle blend seamlessly? Areas like Katong or Tiong Bahru might come to mind, but they can be a bit too upscale for some. What if we told you there’s a hidden gem in District 19 that offers the same charming living experience?

Welcome to the quaint estate of Serangoon Garden, one of Singapore’s most distinct housing areas.

A Brief History

Serangoon Garden is a residential estate and a subzone in the Serangoon planning area, located in District 19.

In the 1950’s the estate now known as Serangoon Gardens was built to provide housing for workers and their families in the area, such as teachers, labourers and airmen. These townhouses and bungalows, with their distinctive red roof tiling became synonymous with the area – a distinctive trait that a good number of houses retain, even today.

As the area became populated, amenities and conveniences were built into the area, such as shops, eateries started showing up, and a recreational clubhouse, Serangoon Gardens Sports Club.

Serangoon Garden Today: Amenities and Landscape

Serangoon Garden has kept most of its landscape and architecture from the olden days, retaining its iconic look and feel, while offering modern conveniences to its residents.

Serangoon Garden Circus, where most of the shops were situated still stands, with their tenants hosting a wide range of food and services catered to the modern tastes of residents.

The recreational clubhouse, now known as Serangoon Gardens Country Club, still stands, with members from the estate frequenting it for sports and recreational activities, as well as classes and enrichment activities for their children.

The street food vendors that used to run their businesses out of carts along Serangoon Garden Way were also given a hawker centre to set up stalls and operate out of in 1972.

The hawker centre, now known as Chomp Chomp Food Centre, is famous today for its selection of local food (famous dishes there include BBQ stingray and Hokkien Mee) and is one of the more well-known and frequented hawker centres in Singapore.

Why Is Serangoon Gardens Such a Popular Estate?

Serangoon Gardens is one of the most popular and recognisable estates in Singapore, and for good reasons.

Kampong Spirit

It is not uncommon to find people that have stayed there their whole lives, with their homes being passed down generations over the last 70 or so years of its existence. This gives the estate a warm, kampong feel with the community fostered between the residents of the estate that residents have fondly dubbed “the feel of an old English village”.

A cosmopolitan village

In addition to this expatriates, particularly those from Australia or France, tend to rent homes in Serangoon Gardens, due to its proximity to the Australian and French international schools.

With an established community of foreigners and expatriates, there has been an increase in the number of businesses catered to the needs of these communities. You can find cafes and eateries at Serangoon Garden Circus serving western fare, as well as grocery stores such as Little Farms and a French grocer.

The presence of these establishments within the landed enclave gives the neighbourhood a distinct, cosmopolitan vibe that can be likened to that of Holland Village.

A Wealth of Amenities

In comparison to other landed estates or enclaves in Singapore, Serangoon Garden offers more amenities to its residents. The mini hub at Serangoon Garden Circus offers everything for its residents, from food, to enrichment and tuition centres, as well as healthcare, and pet care shops.

There is even a shopping mall, MyVillage with a FairPrice Finest for residents to do their shopping, along with dining options, and beauty parlours and hair salons.

Scarcity of Housing in Serangoon Gardens

Given the popularity of the estate, housing availability is scarce in Serangoon Gardens. This is especially so when we consider that most of the houses in the estate are landed homes.

 

Currently, landed homes are high in demand, with a low supply. As a result, landed homeowners possess strong holding power, with the median price for a house in Serangoon Gardens in 2024 costing $4.62m, making it inaccessible for most homebuyers.

With landed houses being scarce, costly, and mostly out of reach for most of us, we automatically look for non-landed private property options in the area. However, a search in the Serangoon Gardens estate would show that there are few condominium or private apartments.

Table 1: Non-landed private projects in Serangoon Garden Estate (<500m of Serangoon Garden Circus)

Source: PropertyGuru, ERA Research and Market Intelligence

For those looking for a private property close to Serangoon Gardens, a fantastic place to look would be its sister neighbourhood of Lorong Chuan.

Lorong Chuan – An Alternative

Lorong Chuan is a subzone and precinct that neighbours the Serangoon Gardens estate. The precinct is named after a road bearing the same name, which connects the Central Expressway (CTE) to Serangoon Gardens.

It is considered a desirable location to live in by Singaporeans and foreigners alike, for three notable reasons. Firstly, it is close to Serangoon Gardens and Serangoon Central, as well as Bishan and Toa Payoh towns, offering residents of the precinct a wealth of amenities and conveniences.

Secondly, the precinct is also serviced by Lorong Chuan MRT, one stop away from Serangoon and Bishan MRT stations – major interchanges on the North-South and North-East lines respectively.

Finally, there are a variety of condominium projects here that are allow living near the landed estates of Serangoon Gardens and Braddell Heights at a more affordable price point.

Price Growth

Table 2: Non-landed private projects in Lorong Chuan

Source: PropertyGuru, ERA Research and Market Intelligence

Demand drivers for homes in the area directly stem from the convenience that the area provides. In addition to this, the neighbourhood falls within the 1km radius for notable schools such as St. Gabriel’s Primary School and CHIJ Our Lady of Good Counsel.

While there is a thriving and attractive private condominium estate in Lorong Chuan, there hasn’t been a new launch in the area in over a decade – that is until the announcement of the upcoming Chuan Park, which has caught the attention of the market as one of the biggest launches of 2024.

Chuan Park – A New Development with New Opportunities

Chuan Park is an upcoming 916-unit mega development with a 99-year leasehold tenure. It is being built as a redevelopment following the collective sale exercise of the former Chuan Park condominium.

Adding a stock of 916 units to the existing inventory of 2,148 units in Lorong Chuan will increase the number of condominium units in the area by 43%, which is sure to rejuvenate and encourage price growth.

Mega-Development, Mega Benefits!

Being a mega-development, Chuan Park will have clear strengths in the market for investors, such as a fresh 99-year lease, along with a wide variety of amenities that will attract buyers and tenants from diverse groups.

In addition to this, families will be drawn to the development, due to its wide array of facilities, distance to nearby amenities and a 1km priority enrolment distance to St. Gabriel’s Primary and CHIJ Our Lady of Good Counsel.

Great Accessibility

The most attractive attribute about the location is that Lorong Chuan MRT is situated right at its doorstep. Aside from integrated developments, not many condos in Singapore can boast this level of convenience.

Lorong Chuan MRT on the Circle Line provides a direct route to Marina Bay, as well as to Buona Vista and one-north business nodes. It is also within 3-5 stops to the Thomson East Coast Line, East West Line and Downtown Line, as well as 6 stops to Orchard, further connecting it to more business nodes in Singapore.

Working professionals could also find the location attractive if they work at New Tech Park. Alternatively, Lorong Chuan’s location adjacent to the CTE provides a speedy 15-minute drive to the central region of Singapore.

Expected to launch in the second half of this year, Chuan Park is bound to turn heads as one of the biggest launches of the year. If you are interested to find out more about this exciting new launch, kindly reach out to an ERA trusted advisor today.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any

Following the launch of the June 2024 Build-To-Order (BTO) exercise, the Housing Development Board (HDB) has concurrently announced details regarding the upcoming BTO exercise that is slated for October 2024.

In this October 2024 sales exercise, 8,500 flats will be offered as Standard, Plus, or Prime flats based on their specific locational attributes.

What’s New in the October 2024 BTO Launch?

While we might already be familiar with the specifications of Standard and Prime flats, this exercise will be the pilot for the ‘Plus’ flats – a new classification involving flats which are located in choicer locations near transport nodes or town centres.

With the exception of Bayshore, HDB has not disclosed which projects will be labelled as Plus. However, based off their locational attributes, we can make an informed guess on which projects will be classified under this category.

List of projects under the October 2024 BTO sales launch

Source: HDB, ERA Research and Market Intelligence

Based off ERA’s projection, Standard flats will comprise 45.9% of overall flat supply, with Plus and Prime flats representing 43.1% and 11% respectively.

Here are highlights from this launch:

• The first BTO flats to be launched in Bayshore, an up-and-coming residential district in Bedok with a waterfront living experience, overlooking East Coast Park. All these projects are expected to be Plus flats
• The project in Ang Mo Kio, which is expected to be categorised as Plus as it is located at the heart of Ang Mo Kio town centre
• The project in Geylang (Mattar) should see fierce competition with only 140 units available for the likely Plus flat close to the city centre

 

List of Projects Under the October 2024 BTO Launch

Ang Mo Kio – 430 units

This project will likely be categorised as Plus, since Ang Mo Kio is a mature estate with lots of amenities. It is located about 10 minutes from Ang Mo Kio MRT. There are malls nearby, such as AMK Hub, Djitsun Mall and AMK Broadway, alongside many other shops and eateries.

This project will be popular among young families due to its location near a selection of good schools. Additionally, being located next to AMK public library and across a park will provide families with activities to do.

Bukit Batok – 690 units

Bordering Tengah Plantation Crescent, the site will be located opposite a future (and currently unnamed) Jurong Regional Line station.

Residents can easily access future amenities in Tengah via Tengah Link, alongside offerings in Bukit Batok West, such as a shopping mall.

These will likely be standard flats and attract those working in the Jurong Lake District (JLD) or Jurong Innovation District (JID).

Bedok (Bayshore Walk) – 730 units

This Plus project will be within 2 minutes walking distance from Bayshore MRT, with south and east facing units on higher floors enjoying a sea view, overlooking East Coast Park

Being a new estate, we can expect to see essential amenities such as supermarkets and eating places to be built in the future. While there is only one school nearby (Temasek Secondary School), other good schools like Victoria School and Tao Nan School can be easily accessed by the Thomson East Coast Line.

This attractive location should draw considerable interest, especially among those that work in areas such as Changi Business Park or Changi Aviation Park.

Bedok (Bayshore Drive) – 710 units

Located slightly further in from the first Bayshore site, this project will share the same Plus classification, amenities and roughly the same walking convenience from the MRT.

While residents might not enjoy the same stunning sea view as the Bayshore Walk project, instead Northern facing units here will overlook the landed enclaves in Siglap and Upper East Coast Road and provide views of the city.

With more 4-room flat options available and a shorter distance to amenities currently in Bedok South, this Bayshore project might draw more interest from larger families.

Bedok (Jalan Kembangan) – 340 units

The last BTO in Bedok will be located directly across Kembangan MRT. It is also known that this project will be a mixed-used development with 5 floors of commercial space. Therefore, we strongly believe this to be a Plus flat.

As there have not been any new public housing projects within the vicinity of Kembangan MRT since the late 80s, we can expect this project to have a strong demand.

In addition to this, there are amenities such as eating places, a supermarket, preschools and parks for residents to enjoy.

Geylang – 420 units

Located a minute from Mattar MRT, this BTO project in Geylang has good convenience via MRT and the PIE. There are existing amenities in the nearby areas, such as market and hawker centres at circuit road, which should make this a Plus flat.

However, with only 160 4-room flats available (the rest are community care apartments), there will be competition for the small quantity of homes. It is also worth noting that there were a pair of 4-room flats nearby at Circuit Road which transacted for over $1m recently, which might drive demand.

Jurong West – 1,840 units

A large project with 1,840 units, this Standard project looks to create more housing supply to rejuvenate the estate and support the working population of the Jurong Lake District and Jurong Innovation District.

While the location is not directly accessible, we can expect there to be future bus services that directly connect residents to essential amenities in Jurong West and the JLD, as well as to a new MRT station on the Jurong Region Line.

Kallang/Whampoa (May Road) – 360 units

This project is located within the Boon Keng estate, about a 10 min walk away from Boon Keng MRT. Residents get to enjoy a quieter location, while still being within arm’s reach of the Boon Keng neighbourhood’s conveniences, which include a market and many eating places.

Given Boon Keng’s city fringe location, this is likely to be a Prime project. This project should still see good demand, albeit still dependent on the subsidy clawback rate.

Pasir Ris – 280 and 480 units

This Pasir Ris project is located directly across the MRT and bus interchange, and is made of two apartment complexes separated by a new small park.

Given its choice location in-between the MRT and Pasir Ris Park, ERA projects this to be a Plus project. This should garner considerable interest, especially among those that grew up in the area due to a wide flat mix and an abundance of amenities and conveniences.

Sengkang (Fernvale Close) – 550 units

As Sengkang is a relatively new town, this project is likely to be a standard flat. It will be located across the road from Layar LRT Station, and is surrounded by many amenties such as a hawker centre, wet market and childcare centre.

Located 3 LRT stops away is Sengkang, which is an integrated transport hub with more amenities and connectivity to Punggol and the city.

Sengkang (Fernvale Road) – 840 units

This project will be a 5-minute walk from Thanggam and Kupang LRT Stations, and offers an array of greenery, which may make it popular among those who enjoy going out into nature. There are some schools in the area which may appeal to young families with school going children.

Similar to the other Sengkang project, ERA expects this to be a Standard flat.

Kallang/Whampoa (Crawford Street) – 310 units

Given the proximity of this location to the city centre, this project is expected to yield strong demand especially from those working in the CBD. Therefore, it is highly likely that this would be a Prime flat.

The site is a short walk from Lavender MRT Station, which is one stop away from Bugis interchange, allowing commuters to take the Downtown line towards the CBD, Bukit Timah, and the eastern parts of Singapore. There are also several shopping centres located nearby.

Kallang/Whampoa (Upper Boon Keng Road) – 270 units

This project is located deeper into Kallang, a 9-minute walk away from Geylang Bahru MRT, which offers this quieter neighbourhood convenience to the city. As it is located close to the city centre, this should be a Prime flat.

The site is near other towns such as Potong Pasir and Boon Keng, where residents can visit for amenities such as food. Children can also access schools in these areas, such as St. Andrews School. As with all the other prime projects, the demand for these flats will vary greatly depending on the subsidy clawback rates.

Woodlands – 290 units

This Woodlands site is a 10-minute walk away from Marsiling MRT and comprises of 4 and 5 room units. The project is nearby Marsiling Primary and Secondary Schools as well as amenities, making these flats an option to consider for families with children.

Furthermore, it is located one MRT stop away from Woodlands integrated transport hub and the future Woodlands Regional Centre. This plus project should gather good interest from those who want to stay in the north.

For more information on the October 2024 BTO Launch, visit HDB’s official site here.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Heard of developments like Ardor Residence, The Hillshore, or Straits at Joo Chiat? Then you might already be familiar with some of the newest boutique condominiums, or boutique condos on the market now.

Consisting of 100 units or less, boutique condominiums (or condos) are small, yet sophisticated. And though they possess smaller site areas and fewer amenities than their larger counterparts, boutique condos deserve to be on your radar – even if you are home-hunting in a bigger development.

Due to their unique selling points, boutique condos represent a distinct, but nonetheless, compelling value proposition for buyers.

In this article, we breakdown the benefits, and also, potential drawbacks of boutique condos so you can easily determine whether these small, but mighty developments are the right choice!

Boutique condos are private and exclusive

Unlike larger developments, boutique condos typically appeal to an entirely different crowd from families. Buyers who value exclusivity and serenity are likely to be drawn to boutique condos; this includes couples with no children or empty nesters – parents whose children have grown up and moved out.

Empty nesters will likely find boutique developments more appealing as they may no longer have a need for the wider range of facilities that large condos have. Instead, boutique condos – with their smaller, but curated selection of amenities – can provide them with a more personalised living experience.

Coupled with a smaller resident community, boutique condos are a more intimate choice of residence for the aforementioned buyer groups. One striking example of this can be found in District 15, where both Grand Dunman (a 1,008-unit mega-development) and Straits of Joo Chiat (a 16-unit boutique development) are located.

Boutique condos offer greater flexibility in their layouts

Exclusivity aside, another benefit of choosing boutique condos is the added flexibility they offer in their layouts.

As boutique condos are often built on land acquired through collective (or en-bloc) sales of older condos, they are not subject to the requirement imposed residential developments built on Government Land Sales (GLS) sites to be constructed with a 65% Prefabricated Prefinished Volumetric Construction (PPVC) method.

This method of construction entails creating free-standing 3D modules with internal finishes, fixtures and fittings on an off-site fabrication facility before being delivered and installed on-site.

This requirement, mandated by the Building and Construction Authority is to ensure that condos built on GLS sites have faster construction times and better quality control. The downside of the PPVC method, however, is that there is less flexibility in being able to knock down or merge rooms, unless there are flexi rooms included in the unit configuration and layout.

Developers of boutique condos might not opt to utilise the PPVC method in building construction – as they are not mandated to do so. With their smaller size, it might be faster or more affordable to construct boutique developments the traditional way.

Boutique condos being constructed traditionally offer homebuyers the flexibility to knock down or merge rooms much more freely than in a condo constructed with the PPVC method, which are more restrictive with their renovation guidelines. This enhanced layer of flexibility appeals to homebuyers that are looking for a condo for their own stay.

New Launch Freehold boutique condos are value for money

Ever since the government has stopped putting freehold land for sale as part of the GLS program, new freehold projects have become a rare commodity.

Of 132 freehold condos launched in the last decade, 101 (or 77%) of them were boutique condos.

The reason why there is such a large number of freehold boutique condo is that they are often built on en-bloc sites. These smaller plots of land are easier and cheaper for smaller developers to buy and develop, presenting less of a risk compared to developing a larger project.

Freehold property offers perpetual ownership, which is a rare commodity in land-scarce Singapore. It offers a secure way to hold and pass down wealth to future generations.

As they are not subject to lease decay, freehold properties perpetually hold their value. It is unlikely that they net a loss when they eventually get transacted many years, or even decades down the road.

Given a quiet en-bloc market and a scarcity of new freehold condos, boutique condos offer buyers in the market for a new freehold condo with invaluable options.

The culmination of the aforementioned factors makes boutique freehold condos a treasured legacy asset to be passed on to future generations. They make great homes for older parents to invest in – as their children leave the nest to start their own families. For them, owning a boutique freehold condo is a great way to preserve their wealth and ensure a more secure future for their loved ones

Some boutique condos might have a lower entry price

Boutique condos are built on smaller plots of land, which are often purchased as part of an en-bloc sale by developers. Due to their small size, developers are able to purchase and redevelop the land more affordably. This results in lower launch prices, compared to larger projects built on GLS sites.

Table 1: Comparison between boutique (green) and large-sized (red) condos in District 15

Source: URA as of 19^th June 2024, ERAPro

By comparing two new boutique condos with two larger projects within District 15, we can see that boutique condos generally have a lower entry price.

Additionally, boutique condos are often located in private and exclusive locations, such as within landed enclaves. These locations are less convenient compared to the locations of larger condos, which are more prominent and located closer to transport nodes, amenities and schools.

While these factors all contribute to a lower entry price for boutique condos, that doesn’t necessarily equate to a low exit price.

Comparing the price growth of boutique with medium-large sized condos island-wide, we can see that larger condos see an overall more robust price growth.

Chart 1: Average transacted price $psf of leasehold (LH) and freehold (FH) boutique and mid-sized condos

Source: URA as of 12^th June 2024, ERA Research and Market Intelligence

Boutique leasehold condo prices grew by 24.1% since 2010, compared to mid-sized leasehold condos which saw 93.6% growth.

Less of a disparity was seen in the freehold market, with boutique condo prices growing by 41.5% compared to mid-sized condos, which saw 74.6% growth.

It is expected for the larger developments to experience a faster price growth. Larger projects, especially mega-developments possess the “sales” volume required to drive transaction prices. As a result, they generally see a faster price growth due to frequent transaction activity.

However, this does not mean that boutique condos are poor investment choices. Owners of boutique condos are still able to make a profit when they do decide to sell, albeit at a lower rate.

Final Considerations

To sum it all up, yes – boutique condos might not be for everyone.

Owners of boutique condos often tell stories of how long it takes for them to sell their unit, further exaggerated the smaller the development is.

If you are looking for an investment property with high liquidity and a faster rate of capital appreciation, a larger condo with features that appeal to mass market buyers would be preferred.

Similarly, families with young children will lean towards larger condos due to their accessibility, wide variety of facilities, and livelier atmosphere for their children to grow up in.

However, if these concerns are not of priority, you might find the prospect of living in a boutique condo alluring. They offer a level of privacy and exclusivity that is only bested by landed property, which lies within an entirely different price bracket.

Additionally, living in a boutique condo allows residents to foster a strong sense of community. With a fewer number of occupants, residents are able to build closer and more meaningful relationships with their neighbours.

Buyers who want to own a freehold project have limited choices in today’s market, and may opt to turn to boutique condos. On the whole, they hold their value well, and more importantly offer this same value for generations to come.

Table 3: New launch boutique condos available (as of 18^th June 2024).

Source: ERAPro as of 18 June 2024, ERA Research and Market Intelligence

If you are interested in, and would like to find out more about these exciting new boutique projects, do not hesitate to approach an ERA trusted adviser today.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Among the three types of residential properties available in Singapore, from HDBs, to condos, and lastly landed property, landed property is the most elusive. Making up only 17.9% of private housing in Singapore, there is much about the landed property segment that most don’t know about.

Not only are landed properties expensive, they come with other expenses. Depending on the age of the house itself, the cost to maintain the house varies, with brand new rebuilds having lower maintenance costs. Having additional features in a landed home, such as lifts or a swimming pool also incurs additional costs for homeowners.

Despite this, landed properties are often seen as ‘dream homes’ by Singaporeans. Surpassing other property types in terms of size, exclusivity and privacy, they are a symbol of affluence, and that one has ‘made it’ in life.

Here are three important things you need to know about landed property to get you started.

What are the different landed property build types?

There are four landed build types in Singapore: terrace houses, semi-detached houses, detached houses (or bungalows) and Good Class Bungalows (GCB). They differ from one another in categories such as minimum plot size, width, depth, site coverage, setback control, roof overhang clearance and location (in the case of GCBs)

1. Terrace Houses

Terrace houses are the most common landed house type in Singapore. They are characterised by shared side walls between each other. They are often built with at least three units in a row, consisting of at least one intermediate unit and two corner units

Intermediate terrace units share walls on both sides of the house, and are often cheaper than their corner terrace counterparts.

Corner units are usually more expensive as they have a larger land area, due to only sharing one common wall.

2. Semi-detached Houses

Semi-detached homes (also called semi-Ds) comprise a pair of conjoined houses, each with its own land title, separated by a common party wall or partition. Semi-detached houses have a minimum plot size of 200 sqm, or approximately 2,160 sqft.

3. Detached houses (Bungalows)

In contrast to the aforementioned house types, detached houses (often called bungalows) are completely independent of its neighbours.

They are regarded as a top tier landed property in Singapore due to their scarcity and land size. These properties must be no smaller than 400sq. m or approximately 4,360 sqft.

One of the main attractions of living in a detached house is exclusive privacy, as they do not share walls with their neighbours. The large land space also offers homeowners greater freedom with the construction of the house and other features.

4.       Good Class Bungalows (GCBs)

The golden goose of all residential property in Singapore, GCBs are the most prestigious and expensive housing type in Singapore. Not only does the land size have to exceed 1,400 sqm in size (or 15,070 sqft), they have to fulfil the select criteria:

–           be in one of the 39 gazetted areas zoned for GCBs

–          Be no more than two storeys high (excluding an attic and a basement)

–          Have a minimum plot width x depth of 18.5m x 30m

–          The site coverage (area covered by the building or building features) cannot exceed 35% of the plot

Landed vs Strata Landed: Key Differences

The type of land a landed house sits on, determines if the house is a Strata Landed or Landed house.

When you purchase a landed home, you own the land title of the property. While in a strata landed home, you own a strata title. This means you own an individual title to your unit, instead sharing the land and facilities built on it – like in a condo.

Landed houses

When you own landed houses, you own the title to the land itself (land title). This gives you the freedom to do whatever you want to the structure of the house, such as the ability to completely tear it down and rebuild it from the ground up (in accordance with URA and BCA restrictions of course).

With the exception of Sentosa Cove, or specific approval from the Singapore Land Authority, foreigners cannot purchase landed properties.

In Singapore, foreigners can only buy non-landed properties – except in Sentosa Cove for their own stay.

Strata landed houses

In the case of strata landed houses, you do not own the land. You own a strata title instead, or a share of the land with other owners. Similarly to a condo, these properties are clustered within a gated compound and contain facilities. As a result, they are also often referred to as ‘cluster houses’.

The very obvious drawback to owning a strata landed house is that you cannot do as you please with them. This involves any work done to the outside of the house, such as repainting the façade or changing the window panels. The management committee has to approve any changes you want to make to a property as these strata homes are part of a development and must maintain its identity.

In addition to this, cluster houses share a common vehicular access point. They tend to see congestion in parking spaces, often leaving owners with only one lane to drive through. This is due to these houses housing multi-generational families, who often have more than one car.

Foreigners looking for a landed home outside of Sentosa Cove can look towards strata landed houses within an approved condominium development (under the SLA planning act). However, they are not allowed to rent out their landed property, and can only buy one for their own stay.

Landed property lease types

Some people might have the misconception that all landed property is freehold. On the contrary, leasehold landed properties also exist. They have varying tenures, from 70, 90, 103 year leases. The length of these leases can go up to 999, 9,999 and 99,999 years, which makes them as good as freehold.

Table 1: Median Prices of Freehold and Leasehold landed property in 4m 2024

	Terrace	Semi-detached	Detached
Freehold	$3,900,000	$6,180,000	$11,690,000
Leasehold (under 103 years)	$2,639,000	$3,500,000	$5,250,000
% Difference	32.3%	43.4%	55.1%

Source: URA as of 29^th May 2024, ERA Research and Market Intelligence

Leasehold and freehold landed houses see a significant price disparity, with freehold landed houses costing about 41.5% more than leasehold ones.

Freehold landed properties are generally seen as the superior choice a for investment buyers, or those seeking capital gains.

Leasehold properties see their value deteriorate at a certain point due to lease decay. An example of this would be the houses at Jalan Chempaka Kuning and Puteh, which recently made the news. The land leases of these homes will expire in 10 years, where the units will have to be vacated, and land ownership returned to the state.

At the same time, they offer an opportunity for homebuyers to purchase and live in a landed home at a more accessible price point.

Conclusion

Landed houses come in various sizes and build types, and offer the most customisation available on the market. This makes them highly sought after by homebuyers with specific needs. For example, they make a fantastic choice for multi-generational families. These families often need large living spaces (upwards of 2,000-3,000 sqft), which are hard to find in an HDB flat or condo nowadays.

Many people dream of owning a landed property, particularly a freehold one. This is because of their stored value, making them fantastic instruments for capital gains or legacy planning.

There are also buyers that covet a landed home as they believe it is the most suitable form of housing for their desired lifestyle. They may be drawn towards leasehold landed properties despite shorter remaining leases. They value the privacy and space a landed home provides, especially at the lower price point.

While landed properties are the most expensive form of property in Singapore, they are not entirely out of reach for those looking to upgrade to their dream home. Being aware of the different options on the market opens up more accessible options if you are truly interested in owning a landed home.

With this knowledge, you are now ready to explore the intricate landscape that is the landed housing market in Singapore.

If you are interested in purchasing or finding out more about landed property in Singapore, do not hesitate to reach out to an ERA Trusted Advisor today!

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval.