Tampines Analysis/ Review in 6 Visuals - November 2020 HDB BTO Sales Launch
- Propanalytics
- Oct 19, 2020
- 8 min read
Updated: Oct 24, 2020
Article Content
1. November 2020 Sales Launch Overview
2. Flat Location in Town by Lease
3. Overall Town Price Trends by Location & Lease
4. Price Comparison with Units in Close Proximity to November BTO
5. Potential Profit vs Similar BTO Projects in Town
6. BTO Launch History by Location & Median Launch Prices
7. Development Plans for Town
8. Pros & Cons
(Please subscribe if you wish to receive email updates when new articles are posted)
Summary
In 2020 thus far, the median resale price of 4RM units in Tampines is $422,800/ $389 psf while the median resale price of 5RM units is $525,000/ $394 psf.
Flats near the November 2020 BTO have a remaining lease of 60 - 69 years and in 2020 thus far, the median resale prices of transacted 4RM/ 5RM units from these flats are $417,500/ $381 psf and $542,500/ $396 psf respectively.
4RM/ 5RM units in town that have completed their MOPs recently have seen profit margins of between 50 - 75%.
The November 2020 BTO is located in a more developed part of town, unlike many other launches in Tampines over the years (bar a few like GreenGem, GreenOpal, GreenSpring etc.), which may appeal to residents that do not fancy the perceived current (relative) inaccessibility of BTOs up north. Given the subscription rates in the last BTO sales exercise in August 2020, a first timer stands a seemingly good chance to land a unit.
November 2020 Sales Launch Overview
Source: HDB
750 2RM Flexi, 4RM and 5RM units will be offered in the Tampines plot in the November 2020 BTO sales exercise. This BTO would interest residents that wish to be located in a more developed part of Tampines, given the fact that many of the past BTOs were launched in the Tampines North region. The last BTO launch in Tampines - GreenOpal, GreenCrest and GreenGlade in August 2020 - was only oversubscribed 1.7 and 1.3 times for 4RM and 5RM units respectively for first timers. As most first timers from the August 2020 application would likely get a chance to pick their flats (while several others are probably still in queue), the chances of getting this BTO for other first timers seems relatively solid. Click here to find out more.
For more information, please click here (TBC).
Source: HDB
Flat Location in Town by Lease
Majority of flats in Tampines commenced their lease in the 1980s. As of 2020, many of these older flats, with remaining leases of 60 - 69 years are located in the central region, while those with remaining leases of 70 - 79 are located in large clusters along the edges of town. The flats with remaining lease of 90 - 94 years are largely in the western part of town (C2, C*).
Naturally so, majority of the resale transactions over the last few years involve units with remaining lease of 60 - 69 years. In 2020 thus far, out of 912 transactions, 562 have been for units a remaining lease of 60 - 69 years, while 141 have been for units with remaining lease of 90 - 94 years (C3).
Overall Town Price Trends by Location & Lease
In 2020 thus far, the median resale price of 4RM units in Tampines is $422,800/ $389 psf. Prices peaked in 2013 where the median resale price of 4RM units was $477,888/ $437 psf and subsequently dropped to $420,000/ $389 psf in 2015. Prices have been generally stable ever since (C5a).
The most expensive 4RM units in town are those with remaining lease of 90 - 94 years. In 2020 thus far, they are trending at a median resale price of $547,944/ $547 psf, while those with remaining lease of 60 - 69 years (biggest category in terms of transactions) are fetching a median price of $415,000/ $384 psf in 2020 (C6a). Some of the cheapest units are located in the eastern edges of town, along TPE and PIE. Some may also be found in small pockets in the west.
In 2020 thus far, the median resale price of 5RM units in Tampines is $525,000/ $394 psf. Prices peaked in 2013 where the median resale price of 5RM units was $555,000/ $413 psf and subsequently dropped to a low of $517,000/ $387 psf in 2015. Median prices have been generally stable ever since (C5b).
Some of the more expensive 5RM transactions are for units with remaining lease of 90 - 94 years. As of 2020, the only development that offers 5RM units in this lease category is Tampines GreenLeaf, north-west of Tampines MRT station. In 2020, units in this development have fetched a median price of $700,000/ $576 psf. Some of the cheapest 5RM units can be found at the eastern edges of town with a remaining lease of 70 - 79 years (C4b).
The disparity in prices of 5RM units between different lease categories is more pronounced. This is partly due to the central location of these 5RM units at GreenLeaf. When comparing transaction data for units from different lease categories, one notices the significant premium units in the 90 - 94 years lease remaining category are fetching, even when compared against the priciest transactions in the other lease categories (C6b).
If you are unable to get the BTO, and die-die want to stay in Tampines, the visuals above (2a/ 2b) will give you a better sense of prices/ leases to help you make a decision based on your preferences.
Price Comparison with Units in Close Proximity to November BTO
The current flats nearest to the November 2020 BTO are close to Tampines West MRT station. Most of these flats have a remaining lease of 60 - 69 years. (C7).
In 2020 thus far, the median resale prices of 4RM/ 5RM units from these flats are $417,500/ $381 psf and $542,500/ $396 psf respectively (C8, C9).
Interesting to note that 5RM prices of the units in green have been rather resilient and climbed back to new highs after falling in 2013 indicating the markets appetite for bigger flats in the vicinity (C9).
Potential Profit vs Similar BTO Projects in Town
Recent developments that have completed their MOPs are Tampines Greenleaf, GreenTerrace and GreenWood. Leases for these developments commenced in 2015 and they have recently completed their MOPs (C10). The average 4RM unit in these developments have seen profits of 74%, 66% and 54% respectively (C11).
As of 2020, Tampines GreenLeaf is the only development that has 5RM units in the 90 - 94 lease category. The median launch price of a 5RM unit at GreenLeaf was $407,000 and units have been fetching a median price of just under $700,000 in the resale market in 2019/2020. This means the average resident would have profited about 72% (C10a, 11a).
BTO Launch History by Location & Median Launch Prices
A slew of projects in Tampines North are in the works. Several projects are also being developed along Tampines Avenue 8, the western part of town (C13).
The November 2020 Tampines BTO is being launched beside Tampines Opal, which was launched in the August 2020 BTO exercise. Further down, beside Temasek Polytechnic, another BTO development, Tampines GreenGem, was launched in 2018. The November 2020 BTO sits between these 2 developments (C13).
GreenOpal was launched together with GreenGlade and GreenCrest, which are located in Tampines North, where prices of BTOs have been generally on the lower end of the scale. 4RM units at the 3 projects were launched at a price range of $311,000 - $390,000. Units at GreenOpal were likely priced at 5 - 10% higher than the other two developments within this price range. GreenGem was launched in 2018, with median prices of $389,000 and $511,000 for 4RM and 5RM flats respectively (C14).
GreenTerrace is the nearest BTO development to the November launch that has completed its MOP. It was launched in 2012 where 4RM units were going for a median price of $322,500. In 2019/2020, units from the development have been fetching a median price of $535,000 (C13, C14, C10).
Development Plans for Town
Tampines North is going through major development with several residential projects in the works.
More residential projects in Tampines South, nearer to the Tampines West MRT station (just north of the November 2020 BTO).
Tampines North Polyclinic to be developed by 2023.
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.
For more details on smaller scale completed/ pending projects, please click here.
Pros & Cons
The November 2020 development is in between 2 MRT stations, Tampines West (DTL) and Bedok Reservoir (DTL), and both a short walk/ bus ride away.
In 1/ 2 MRT stops or a few bus stops, one would reach Tampines Hub/ Tampines Central where there are several amenities like retail outlets in malls, a library, swimming pool etc. Tampines Round Market, Tampines West CC and its large market along Tampines Street 81 are also accessible for marketing.
A few stops on the other side (towards Bedok North) would get you to Sheng Shiong/ NTUC and several coffee shops/ retail outlets in Reservoir Village.
Bedok Reservoir Park is across the road for recreational/ fitness purposes.
Convenient for motorists as PIE is a short drive (<1km) away, entering via Bedok North Avenue 3.
Several schools are accessible (Red Swastika Pri Yu Neng Pri, Fengshan Pri, Anglican High, St Anthony's Canossian Sec, Bedok Green Sec, St Hilda's Pri, Temasek Polytechnic, Pathlight School).
For those that do not fancy BTOs in Tampines North because of its perceived inaccessibility/ constant construction works, this may be more appealing. Do note that more residential development is planned north to this BTO launch albeit not at the scale of developments at Tampines North. This location is also arguably, relatively less industrial.
Arguably, in the middle, but not necessarily very close to many amenities. Residents will still need to take a bus/ short walk in many instances
In URA's masterplan, there will be more residential development north of this BTO launch, which may be more favorable in terms of location, given its relative proximity to Tampines West MRT, a bus stop along Tampines Ave 1 that has a litany of buses going many places, and many other amenities vis-a-vis the November 2020 launch. However, taking reference from GreenGem, given its location, we expect upcoming BTOs up north to carry a greater premium.
コメント