August 2020 HDB BTO Sales Launch - Choa Chu Kang Analysis
- Propanalytics
- Jul 27, 2020
- 6 min read
Updated: Sep 21, 2020
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Ang Mo Kio 2020 BTO Analysis coming up soon
Summary
570 2RM Flexi, 3RM and 4RM units will be offered in the August 2020 Choa Chu Kang BTO sales exercise near the southern edge of the town.
As of 2020, the median resale prices of 3RM, 4RM and 5RM units in Choa Chu Kang are $305,000, $345,000 and $421,944 respectively. Majority of the 3RM resale transactions in 2020 are for units with remaining lease of >90 years, which explains the elevated overall median price of 3RM units in the town.
The last BTO launch (Teck Whye View) in 2018 was heavily oversubscribed. 4RM units went for north of $250,000. That launch was near Junction 10 Mall and Bukit Panjang MRT.
The data shows that the median resale prices of 4RM units from some of the newer developments like Limbang Green, Sunshine Court and Sunshine Gardens, that have transacted in the resale market over the last few years, are $415,888, $383,888 and $415,000 respectively.
Some of the development plans for the town include the development of the town's first hawker centers, SAFRA clubhouse and MRT stations for the Jurong Regional Line.
Choa Chu Kang BTO August 2020 Snapshot
Source: HDB
Located along Keat Hong Link, the August 2020 Choa Chu Kang BTO launch will offer 570 2R Flexi, 3R and 4R units. The last BTO, Teck Whye View, in Choa Chu Kang, north-east of the August 2020 offering, was launched in 2018 and was over-subscribed by 7 times. Besides affordability (since BTO units in the town are relatively cheaper - 4RM units at Teck Whye View started at $250,000), a possible demand-supply squeeze may have contributed to the over-subscription. We may expect a similar response for this BTO.
For more information, please click here.
Source: HDB
General Price Trends in Choa Chu Kang
Majority of the blocks in Choa Chua Kang are between 20 - 30 years in age. The older blocks are generally clustered around the eastern part of the town, towards Bukit Panjang. There are several blocks with fresher leases (excluding ones that have yet to transact in the resale market), in small pockets over the town - the largest of which is at Sunshine Gardens in the southern part of the town, along Choa Chu Kang Avenue 5. Increasingly, majority of the transactions in Choa Chu Kang have been for units with 70 - 79 years of remaining lease, but more units with fresher leases are making their way into the resale market over the last few years.
At the higher level, the data shows that prices in Choa Chu Kang have been picking up for 3/4/5RM units over the last few years. However, prices of 2RM (all 2RM units have >90 lease remaining as of 2020) and EA units have been on a decline since 2015 and 2013 respectively. As of the latest available data in 2020, median resale prices of 3RM units and 4RM units are $305,000 and $345,000 respectively.
If we probe a bit further, and look at the median resale prices of 4RM units for different remaining lease groups, we can see a considerable premium for units with fresher leases. Over the least 3 years, median resale price of 4RM units with 90-94 year remaining lease was almost 20+% higher than the median prices of units with 70-89 year remaining lease.
Price Trends of Comparable Units
As of 2020,there are 6 developments in the >90 remaining lease category in Choa Chu Kang. These developments are spread across town, with the largest being Sunshine Gardens, which possibly commenced its lease in 2015 (although the data shows 2016). 3RM, 4RM and 5RM units from Sunshine Gardens have fetched a median price of $324,000, $415,000 and $500,000 since its been transacted in the resale market. Median prices at its neighboring development, Sunshine Court, is only marginally lower.
The inter-quartile range refers to the range where the middle 50% of transactions sit. In 2019, the inter-quartile range for 4RM transactions from Limbang Green was $410,750 - $430,000. In 2018, it was $370,000 - $390,000 for 4RM units from Sunshine Court. Thus far in 2020, it is $392,500 - $425,000 for 4RM units from Sunshine Gardens. The number of transactions for 4RM units in Limbang Green and Sunshine Court in 2020 are too small for such analysis.
Sunshine Court was launched in 2008 with starting prices of $121,000 and $202,000 for 3RM and 4RM units respectively. (est. 73-84% gain for 4RM, if compared against the lowest ($350,000) and the 25th percentile ($372,500) of 4RM resale transaction from the development in recent years)
Limbang Green was launched in 2010 with starting prices of $140,000 and $226,000 for 3RM and 4RM units respectively. (est. 66-81% gain for 4RM, if compared against the lowest ($375,000) and the 25th percentile ($408,000) of 4RM resale transaction from the development in recent years)
Sunshine Gardens was launched in 2012 at starting prices of $146,000, $229,000 and $295,000 for 3RM, 4RM and 5RM units respectively. (est. 55-70% gain for 4RM, if compared against the lowest ($355,000) and the 25th percentile ($390,000) of 4RM resale transaction from the development in recent years)
Past Choa Chu Kang BTO Launches & Indicative Price Range
There have been 2 BTO developments in Choa Chu Kang in the last 5 years, one in 2015 called Teck Whye Vista and another in 2018 called Teck Whye View, and only the latter offered 3RM (starting from $182,000) and 4RM (starting from $250,000) units.
Development Plans
A new SAFRA Clubhouse is slated to open by 2022. Located within a 5-minute walk from Choa Chu Kang MRT station, the new five-storey club will feature a sheltered swimming pool, aqua-gym, sky running track and futsal court. It is said to be one of the largest SAFRA developments in the west.
With no hawker centers presently in the town, NEA has announced 2 new hawker centers for development that are targeted to be ready by 2026. One of them will be located at Choa Chu Kang Town Center and the other will be within the planned Yew Tee Integrated Development, at Yew Tee MRT. The Yew Tee Integrated Development will replicate Kampung Admiralty with "a community club (CC) facility, a polyclinic, a kidney dialysis centre, as well as a hawker centre".
Choa Chu Kang will get 2 more MRT stations, as part of the Jurong Regional Line - Choa Chu Kang & Choa Chu Kang West
Choa Chu Kang Central area to be transformed into major transport hub.
Re-development of Choa Chu Kang Sports Center, Limbang Shopping Centre and viaducts under MRT tracks.
For more details about development plans from URA, please click here.
Pros/Cons
+
Walking distance to 2 LRTs that connect to the NSL (at Choa Chu Kang MRT) and DTL (at Bukit Panjang MRT).
Added connectivity from Choa Chu Kang to Jurong East via the Jurong Regional Line when its completed by end of the decade. This may ease traffic to/from Jurong East.
Teck Whye Shopping Centre (with the Community Club), Keat Hong Shopping Center are 15 mins walk away. Junction 10 is slightly further.
Several schools (South View Primary, Teck Whye Primary/Secondary, Choa Chu Kang Primary/Secondary, ITE West, Jurong Pioneer Junior College, Delta Senior School - Special Needs) a short walk/ ride away.
There is a site, down the road from the development, that is ear-marked for health/medical facilities.
Given that this is a rather small development, it is possible that it may be launched at an earlier date.
May be competitively priced.
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Not necessarily very near many amenities (compared to Teck Whye View launched in 2018). (We would guess a slightly lower launch price for the August 2020 BTO.
No 5RM units for bigger families.
Possible construction (noise) on the empty plot around the development.
May be over-subscribed given demand in the last BTO in 2018.
HDB data was downloaded from HDB resale price portal and data.gov.sg
Data is as at 25/07/2020, i.e whatever was made available at the 2 sources as at the stated date.
Flat age data is calculated from resale transaction data, and is unique to block + address. If a particular block + address did not have any transactions, it will not show on the map.
The mapping of postal codes may not necessarily be at pin-point accuracy. The 'dots' may be slightly off the actual block.
Please contact us if there are factual inaccuracies. We will make changes, where necessary.
Please note that are a multitude of factors that affect prices of flats (renovation, floor, location, sqf etc) and some of the analyses may not account for every factor.
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