August 2020 HDB BTO Sales Launch - Tampines Analysis
- Propanalytics
- Jul 20, 2020
- 5 min read
Updated: Oct 13, 2020
Summary
The plots in the August 2020 BTO launch exercise are on the fringes of Tampines.
In 2020, excluding DBSS units, the median resale price of a 4RM unit in Tampines is $420,500. Median prices for 4RM units have fallen, albeit incrementally, from $430,000 in 2017 to $420,000 in 2020.
Several newer units will be coming into the market because of the flurry of developments (about a dozen projects) over the last 5 years.
The data shows that the median resale price of 4RM units from some of the new developments like GreenLeaf, GreenTerrace and GreenWood, that have transacted in the resale market over the last few years, is about $547,888.
The Tampines North plot is undergoing major development.
Tampines BTO August 2020 Snapshot
Source: HDB
Tampines will offer 1760 3/4/5 RM units in the August 2020 launch. This will be released in 3 plots, 2 in Tampines North, as part of the larger plan for continual residential development of the area, while 1 will be tucked further south at the border with Bedok. Both these developments will be quite a distance from Tampines Central where there are 3 malls, Our Tampines Hub, a bus interchange and Tampines MRT.
For more information, please click here.
Source: HDB
General Price Trends in Tampines
Generally, prices for 3/4/5 RM units in Tampines have been stable, discounting incremental changes, since 2015. As of July 2020, the median prices of a 3RM, 4RM and 5RM units in Tampines are $320,000, $420,500, $530,000 respectively.
Based on resale transaction data, many flats in Tampines are >30 years in age. Majority of all resale transactions in the last 3 years have involved units with a remaining lease of 60-69 years. However, with the completion of MOP for a few developments, more units with fresher leases started coming into the resale market over the last 2 years.
Resale Price Trends of New Developments in Tampines
There are no resale units in the vicinity of all plots in the August 2020 BTO launch, so let us look at the price trends of newer developments in Tampines regardless of location. There are 6 developments with >90 years remaining lease, namely Tampines Lodge, Tampines Ria, Tampines Alcoves, Tampines GreenLeaf, Tampines GreenTerrace and Tampines Greenwood. Since Lodge, Ria and Alcoves do not have any 4/5 RM units and there are more data points for the Greenwood, GreenLeaf and GreenTerrace, I will focus on the latter 3. Units from these 3 developments have been transacted in the resale market in 2019 and 2020.
Based on transactions over the last 2 years, Tampines GreenLeaf, possibly due to its location near Tampines Central, commands a higher median price. The data suggests an almost 10% premium to Tampines Greenwood. Even when we select a specific storey range, to make the comparison more equitable, the premium remains. GreenTerrace also seems to command a premium over GreenWood, possibly due to its proximity to Tampines West MRT, Street 81 Market and a view overlooking Tampines Polyclinic to Bedok Reservoir.
Tampines GreenLeaf/GreenWood were released together at a starting price of $288,000 for a 4RM unit. I do not have any data, but it may be safe to infer that the launch price of units at GreenLeaf would be higher than that of GreenWood due to its location. 4RM units at GreenTerrace were launched at a starting price of $292,000 and based on resale transaction data from 2019/2020, the lower quartile (25 percentile) resale price of 4RM units is $522,500.
If you wish to view the historical resale transaction dashboard for Tampines, please click here.
Last Few Tampines BTO Launches & Indicative Price Range
Tampines has seen substantial BTO launches over the years, particularly in the outskirts. Several of these developments are at the big plot of land at Tampines North and along Tampines Ave 8. In the map below, in purple are new developments that have come out in the resale market, while those in green are developments that have yet to. Let’s look at the launch prices of Tampines GreenGlen and Tampines GreenGem, since they are relatively close to the August 2020 launch.
GreenGem, near Plot 3 of the August 2020 BTO, was launched in 2018 at a higher price than GreenGlen so I wouldn’t be surprised if Plot 3 launches at a higher price than Plots 1 and 2. This could be because Tampines North in general is new, and under development. In comparison, GreenSpring, the BTO right beside Tampines Hub, was launched at, justifiably, an even higher price, with 4RM units starting from $394,000. For those that can weather the inconveniences near-term, units at Plot 1 and 2 may be an interesting proposition for its price, given its proximity to the upcoming Tampines North MRT, IKEA, Courts and Giant.
Development Plans
Tampines North is going through major development with several residential projects in the works, accompanied with community facilities, parks and other precinct amenities.
Tampines cycling network, targeted to be expanded to 21km by 2022.
Cross Island Tampines North MRT Station scheduled to be completed by the end of the decade. This line will connect Tampines to Ang Mo Kio, Hougang, Pasir Ris, Aviation Park and will even be extended to Punggol.
For more details about development plans, please click here.
Pros/Cons
+
Future Cross Island Tampines North MRT station will be within walking distance for Plots 1 and 2.
Giant Hypermarket, Ikea & Courts will be within walking distance for Plots 1 and 2.
The area opposite Ikea has a wide range of furniture companies/outlets for Plots 1 and 2.
Easy access to expressway for drivers for all plots.
Bedok Reservoir/Park Connector, Tampines SAFRA and Tampines West/Bedok Reservoir MRT seems less than 1km away for Plot 3.
Several schools near Plot 3 (Yu Neng Pri, Red Swastika, St Anthony’s Canossian).
If previous launch prices are an indicator, we could see low 300k 4RM units available at Plots 1 and 2. Given that the area will only continue developing further in future, it may be a decent price to get a unit in a mature estate like Tampines.
-
Some people may not prefer these units because they are far away from the Tampines Central/Hub area.
While there are schools around Plots 1 and 2, they do not seem to be necessarily close.
Some may dislike that the development is in a rather underdeveloped part of Tampines.
Some stacks at Plot 3 may have to deal with the noise from PIE.
Join us in our telegram channel to get our weekly article updates - https://t.me/propanalytics
HDB data was downloaded from HDB resale price portal and data.gov.sg
Data is as at 18/07/2020, i.e whatever was made available on the 2 sources as at the stated date.
There was 1 transaction in the data set from Tampines GreenLace which I have removed due to inconsistencies. I found more transactions from GreenLace in other sources, but I could not find any through official sources. Hence, the omission.
DBSS units have been omitted from price trends.
Flat age data is calculated from resale transaction data, and is unique to postal code. If a particular postal code 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. This may be due to inherent mapping inaccuracies in Tableau's mapping feature.
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.
The material and information contained on this post is for general information purposes only. You should not rely upon the material or information on the post as a basis for making any business, legal, financial or any other decisions. Whilst we endeavor to keep the information accurate, we make no representations or guarantees of any kind, express or implied about the completeness, accuracy, reliability, suitability or availability with respect to the post, or the information, including graphics contained, for any purpose. Any reliance you place on the material is therefore strictly at your own risk.
All content and images used on this site are owned by Propanalytics and for use on sgpropanalytics.com only. Unauthorized use is prohibited.
Comments