SINGAPORE — The prospect of waterfront living and accessibility to East Coast Park, for example, will likely result in high demand for the Bayshore Build-to-Order (BTO) projects. The existing flats nearby will also likely see price appreciation due to the town’s revitalisation and “improved liveability”, property analysts said.
National Development Minister Desmond Lee announced the Bayshore Estate Master Plan on Monday (Oct 17), which will see 10,000 new homes being built there, with about 7,000 set aside for public housing. The BTO sales exercise will happen next year.
Analysts pointed to certain indicators such as the “considerable interest” shown in similar waterfront housing projects such as those in the Punggol Northshore district, as well as the high demand for the nearby BTO launch of Bedok South Blossoms in May this year — which saw a total of 2,852 applicants for a total of 766 four-room flats.
The Housing and Development Board (HDB) stated on Monday that the Bayshore BTO projects could potentially be launched under the new “Plus” housing model owing to their attractive location and close distance to amenities and transport nodes.
Plus flats are classified as those found near essential transport hubs and town centres, so property analysts who spoke to TODAY generally predict that housing projects in Bayshore will fall into that category due to its closeness to the future Bayshore and Bedok South MRT stations on the Thomson-East Coast Line.
The new Bayshore estate is an extension of the existing Bedok town, and will be built on a 60ha site located on reclaimed land bounded by Upper East Coast Road, Bayshore Road and the East Coast Parkway.
WHY HIGH DEMAND IS EXPECTED
Should the Bayshore BTO projects fall under the Plus model, there will be a 10-year minimum occupation period before the flats can be sold.
Ms Christine Sun, senior vice-president of research and analytics at property firm OrangeTee, said that this ruling would likely not deter Singaporeans from applying for the flats because they are close to MRT stations and schools.
The development will also be appealing to those who hope to find an affordable home near East Coast Park. Housing options in that area are limited, now comprising predominantly private homes or older HDB resale flats.
“With the excellent connectivity, many school options and sea view, many Singaporeans may be fine with living there for a longer period and can probably accept the 10-year occupation period if these are Plus flats,” Ms Sun said.
Several other elements of the Bayshore precinct may lend itself favourable to young homeowners as well.
Mr Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc, said: “The prospect of waterfront living and the unique advantage of being among the early residents in the Bayshore precinct is likely to garner significant interest, particularly for HDB BTO projects that are relatively rare in such sought-after locations.”
Mr Nicholas Mak, chief research officer at real estate website Mogul.sg, said that the precinct’s designation as a car-lite estate and easy access to nature parks may appeal to younger buyers, too.
“With the sky-high prices of Certificate of Entitlements (needed to buy a car), some buyers may not mind living in a car-lite estate.
“They can put their budget for a car to other uses, such as for the family, education, investments or a few vacations,” Mr Mak added.
Mr Lee Sze Teck, senior director of data analytics at Huttons real estate group, foresees that the application rate for the Bayshore projects “may exceed three applicants for each four-room flat”, based on how there was an equally strong demand for the 1,640-unit Bedok South Blossoms BTO launch in May.
The demand for new public housing units may also rise after Prime Minister Lee Hsien Loong’s announcement in August that eligible singles aged 35 and above who are first-time applicants would be able to get two-room flexi BTO flats in all locations from the second half of next year.
HOW MUCH WOULD BAYSHORE FLATS COST
Ms Sun of OrangeTee said that the price for a flat in Bayshore may be slightly lower than flats under the Prime Location Public Housing scheme that are located in areas such as Queenstown and Bukit Merah. However, the Bayshore flats would cost more than BTO flats in Bedok.
“This is because this area is further than prime locations but is better located than other sites for previously launched BTO flats,” she said, adding that the longer minimum occupation period and subsidy clawback should also be accounted for in such transactions.
The price range for a four-room flat in Bedok South Blossoms was S$448,000 to $587,000, and Mr Lee of Huttons Group estimated that a four-room BTO flat at Bayshore may similarly cost between S$450,000 and S$600,000.
Mr Mak of Mogul.sg estimated that the price of a two-room flat at Bayshore would range from S$150,000 to S$290,000 and for a three-room flat, S$320,000 to S$400,000.
WHAT’S THE IMPACT ON SURROUNDING PROPERTIES
HDB said in a press release on Monday that the “new public housing developments at Bayshore will benefit existing and future residents”, that they would be able to make use of the new amenities when the estate has been completed.
Mr Mohan from Singapore Realtors Inc believes that these amenities, which will include new recreational facilities, parks and green spaces, would lead to a rise in resale prices for the surrounding properties.
“Typically, the revitalisation of a town tends to result in positive effects on the properties in its vicinity,” he said, adding that the Bayshore area is “poised for a remarkable transformation”.
“With these enhancements in mind, it is reasonable to anticipate that the HDB resale property market may experience a concurrent upswing.
“The improved liveability and convenience offered by these amenities are likely to make properties in the Bayshore area increasingly appealing and, consequently, may contribute to a rise in resale prices in the long run.”
Agreeing, Mr Lee of Huttons Group said that there may be “spillover demand” to the resale HDB market, adding that the prices of these flats may also go up at a faster rate than the HDB Resale Price Index — a benchmark to gauge price movements in the resale market.
Existing HDB flats nearest to Bayshore are located about 1km to 2km away in Bedok South and were mostly completed in the late 1970s.
For Ms Sun, her view was that the added amenities that come with the development of the Bayshore precinct will help to slow down price depreciation for many older flats in the eastern district.
However, whether or not the price of the surrounding properties in Bedok will appreciate depends on the age of the flats and the supply of BTO flats.
“It may take many years for the amenities to be built and completed. More flats will be ageing by then and if the balance lease of the older flats is low, and there are many new flats in the area, the price appreciation of old flats could be limited,” she added.
“If the Government continues to launch many new BTO flats at choice locations and allow more second-time applicants to buy in future, then the price appreciation for existing flats could be slower.
“If the supply of Plus flats remains limited and application chances for second-timers stay the same, then resale flats near Plus flats may enjoy more price appreciation.”