August 2020 HDB BTO Sales Launch - Tengah Analysis
- Propanalytics
- Aug 18, 2020
- 6 min read
Updated: Sep 21, 2020
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Summary
1,044 2RM Flexi, 3R, 4R and 5R units will be offered in the August 2020 Tengah BTO sales exercise. Parc Residence borders with Bukit Batok, and is the first development within the Park District of Tengah.
Launch prices of units at Tengah are not necessarily low when compared against the median resale prices of 4RM units in adjacent estates or with other BTO launches in the August 2020 sales exercise like Keat Hong Verge in Choa Chu Kang.
There are extensive plans to develop Tengah as Singapore's first estate with smart and green technologies right from the onset. If the estate meets its vision, early settlers that hold through its development, may benefit more than what seems fathomable today.
Tengah BTO August 2020 Snapshot
Source: HDB
This is the 4th BTO launch in the Tengah since 2018. Billed as Singapore's 1st smart and sustainable town, Tengah will add about 42,000 residential homes across 5 districts designed according to its peculiarities - Plantation District, Garden District, Park District, Brickland District and Forest Hill District. The August 2020 BTO, Parc Residences, will be first development in Park District where 1,044 2 RM Flexi, 3RM, 4RM and 5RM units will be offered.
Source: HDB
Source: HDB
For more information, please click here.
Price Trends of Comparable Units
Since Tengah is a new town, there is no historical resale transaction data. Nevertheless, thus far the launch prices for the BTOs in Tengah have not been as attractive as we had initially anticipated. The premium could be because of smart aspects of the homes and town facilities.
Just opposite Parc Residences - literally a street across - in the Bukit Batok estate, a BTO project was launched in 2015 called West Edge (together with West Rock), where 4RM units went from $259,000. A year later, and a street further down from West Edge, West Plains was launched where 4RM units went from $266,000.
The comparable August BTO launch in neighboring Choa Chua Kang also sheds light on the premium one seems to be paying for units in Tengah. 4RM units in Keat Hong Verge are going at a starting price of only $253,000.
Additionally, median prices of 4RM resale units in the adjacent towns of Jurong East, Bukit Batok and Choa Chu Kang are $368,000, $343,000 and $360,000 respectively in 2020 Q2.
Tengah BTOs seem to have priced in a premium for being the pilot for many technologies that could be adopted for all new estates in future. What remains to be seen is how the resale market will price these units once they finish their MOP.
Past Tengah BTO Launches
Tengah has had a flurry of launches in the last couple of years and the prices of the August 2020 (Parc Residence) launch is pretty much in line with prices of the other launches. Some of the previous launches like Plantation Grange and Plantation Village are literally next to the planned Tengah Plantation MRT station (JRL).
Development Plans
Tengah is billed as Singapore's first car-lite town which means an extensive network of cycling and walking paths will be developed throughout the town to help people get around. Tengah town centre will be Singapore's first "car-free" town centre where roads will run underground as they approach the town centre, making the making region a pedestrian-friendly environment. The separation of transport traffic in the central area is expected to ease congestion that we usually see in most town centers while improving safety.
Source: HDB
To infuse more greenery in the development of the town, Tengah will have a 100 m wide, 5 km long Forest Corridor that will run through the town. The corridor will be made up of existing secondary forest species and more native species will be planted to transform the area into a rich "forest habitat". The corridor will link Tengah to the surrounding green network between the central and western catchment areas.
Within Park District (August 2020 BTO), some 3,000 sqm of space will be set aside for community gardening and farming within farmways.
The Central Park, right next to Park District, is touted as the "Green Lung" of Tengah, and will feature a forest stream (naturalised and landscaped from an existing canal).
Park Corridor and Rain-forest Walk incorporates more greenery into cycling and pedestrian paths leading through various parts of the estate and the town centre.
Beyond the green elements, Tengah units will also have many smart features. In fact, much of the planning of the town was carried out with the help of computer simulation and data analytics - for example to optimize wind flow and minimize heat. Smart Lightning to manage lighting levels based on human traffic will be utilized. An Automated Waste Collection system is also touted, to improve estate hygiene and cleanliness. Smart-Enabled Homes will give residents a better picture of energy consumption in their homes, while there is also plans to do a pilot study on a Centralized Cooling System to regulate the air in homes, and this would potentially translate to more savings for homeowners who can do away with installing individual air-conditioning units.
The Jurong Region Line will run through the town of Tengah via Hong Kah, Tengah Plantation, Tengah Park and Tengah stations, improving connectivity in the western region.
Source: LTA
Tengah is just adjacent to the upcoming Jurong Innovation District (JID) which will house many multinationals and research institutes, hence bringing jobs closer to home for residents.
A new community club is planned south-west of the August 2020 BTO launch.
For more details about development plans from URA, please click here.
Pros/Cons
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New features trailed for the first time in HDB estates which could result in many positives for residents from energy savings, safety and cleanliness improvements. The extensive and unique consideration for the assimilation of natural elements will also be welcomed by many.
A big plus for this development is the 3 storey neighborhood centre within the estate that is slated to include a polyclinic, supermarket, food court, F&B outlets, enrichment centers, shops, restaurants, childcare centre, education centre, and a Residents' Committee Centre.
For drivers, PIE is a just few streets away.
Dramatic sky terraces bridging across some of the developments will offer panoramic views of the surrounding could offer a unique experience.
Lower-rise developments ranging from 7 - 14 storeys also means Tengah may be potentially less dense (less human traffic) than other estates which have blocks up to 25 - 40 storeys.
Right next to a inter-connected community farmways and cycling/pedestrian paths
Several amenities in the adjacent town of Bukit Batok
Upcoming JRL stations are a short walk away.
Short walk to Le Quest, which has supermarkets, retail shops and a hawker centre.
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Not necessarily very near town centre. There are plans for more developments towards the town centre. We suppose HDB wanted to develop the outskirts first, so residents could access amenities from adjacent towns. If you wish to wait for launches nearer to the planned town centre, do take note that you may be moving closer to the air base.
Prices in Tengah are not necessarily cheap especially for a new town that has a long way to go before it reaches, if ever, its potential. We would have expected a lower price, especially given how other BTOs in the same launch command a very competitive price (see Woodlands, Chua Chu Kang or even the mature Tampines launches). Anecdotally, we have heard of the prices paid by early settlers in Punggol which have now translated into windfalls for many that have seen through the development of Punggol. At almost a median price of $330,000 for a 4RM unit, there may potentially be lesser upside, and may not justify the immediate inconvenience/ lack of amenities.
Flippers who wish to sell after 5 years must take note of the competition they will face because of the substantial number of flats in Tengah that has been launched recently. This may put downward pressure on prices once MOP ends.
Any big potential in price appreciation (given the lofty vision for the estate) is a considerable number of years away. Residents may have to hold for a significantly longer time before they see desirable gains.
Several schools in adjacent towns, but they are not necessarily very near (a few stops away minimally).
Noise from planes at Tengah Air Base could pose a problem for residents, especially with its extension due to the relocation of Paya Lebar airbase, despite mitigation measures. One can only hope.
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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