The Draft Master Plan 2019 which was announced last week and is fast taking shape to take Singapore ahead into a vibrant yet liveable city.
By Khalil Adis
A decentralisation strategy to bring jobs closer to homes in the next 10 to 15 years, here are the five growth areas to watch out for:
Woodlands Regional Centre: Woodlands Central
Woodlands Regional Centre: Woodlands North Coast
Punggol Digital District
Scaled model of the Punggol Digital District. It will be a hub for innovation with industry clusters such as cyber security, artificial intelligence, data analytics and Internet of things. It will also be a transportation hub linking Punggol Coast MRT station to Jurong Lake District and Changi by around 2030 via the Cross Island Line (CRL). Photo: Khalil Adis Consultancy.
Paya Lebar Central
Jurong Lake District
Greater Southern Waterfront
Phase one of Cross Island Line (CRL) is finalised. Here are 5 quick facts on Singapore’s eighth MRT line
Spanning 29km with a target completion date by 2029, phase one of the CRL will run from Bright Hill to Changi with 12 stations in all
By Khalil Adis
Come 2029, you can hop onto the train via a fully underground line that will link you from Ang Mo Kio to the aviation hub of Changi.
Announced just last week by Singapore’s Transport Minister Khaw Boon Wan, phase one will comprise 12 stations.
When fully completed by 2030, the entire line will span some 50km and will serve existing and future developments in the eastern, western, and north-eastern corridors.
This will link it to major hubs such as Jurong Lake District, Punggol Digital District and the Changi region.
According to the Land Transport Authority (LTA), the CRL will be Singapore’s longest fully underground line.
Here are five quick facts on phase one of the CRL.
#1: 29km of fully underground line
The CRL will run parallel to the current East West Line (EWL).
When opened, it will serve the residential and industrial areas such as Loyang, Tampines, Pasir Ris, Defu, Hougang, Serangoon North and Ang Mo Kio.
This will definitely help ease congestions along the popular line which has been in operation since 12 December 1987.
When the full CRL line commences service, the LTA envisages time savings of up to 30 to 40 minutes from Changi to Jurong.
Construction for phase one of the CRL is expected to commence in 2020 and will be completed by 2029.
#2: 12 stations
Phase one of the CRL will comprise 12 stations namely, Aviation Park, Loyang, Pasir Ris East, Pasir Ris, Tampines North, Defu, Hougang, Serangoon North, Tavistock, Ang Mo Kio, Teck Ghee and Bright Hill.
Of these, four will be interchange stations.
Bright Hill, which is on the Thomson-East Coast Line, will become an interchange station with the CRL
Meanwhile, Ang Mo Kio, Hougang and Pasir Ris will be an interchange station with the North-South Line, North East Line and the East-West Line respectively.
#3: More than 100,000 households will benefit
According to the LTA, more than 100,000 households will benefit from phase one of the CRL.
Additionally, the LTA said envisages the projected daily ridership of the entire CRL to be more than 600,000 in the initial years before increasing to over 1 million in the longer term.
#4: Open up access to more areas
The LTA said previously inaccessible areas which currently have no MRT access such as Serangoon Gardens, Serangoon North and Aviation Park in Changi will enjoy greater connectivity.
This means common recreational spaces such as Changi Beach Park, Bishan-Ang Mo Kio Park, Hougang Mall and Ang Mo Kio Hub will also become more accessible by public transport.
This is definitely great news for outdoor lovers and mall enthusiasts as such spaces will enjoy greater connectivity.
There’s more good news.
The LTA said the line may be extended to link up with Changi Airport.
#5: CRL will support three new economic hubs
Singapore plans to bring jobs closer to homes with various plans in place to build economic hubs away from the central business district.
Minister Khaw said that the CRL will help to support these new economic hubs that are being planned such as the Punggol Digital District, Jurong Lake District and one at the Changi region.
The CRL will help to boost property values along the 50km stretch.
The districts that will benefit greatly are those described above where the government has laid across a masterplan especially for Punggol Digital District and Jurong Lake District.
According to the Urban Redevelopment Authority’s (URA) Punggol Digital District masterplan, the innovation district will house technology firms involved in key growth fields such as cyber-security as well as the new Singapore Institute of Technology Campus.
It will be opened progressively from 2023 and will create around 28,000 new jobs.
Meanwhile, Jurong Lake District is set to become the largest commercial and regional centre outside the city centre.
According to the URA, the district will create more than 100,000 new jobs with 20,000 homes to be built when it is set for completion after 2040.
As for Changi, the URA’s Draft Master Plan 2013 showed Changi Airport’s ambitious expansion plans with two new terminals that will be built - Terminal 4 was completed in 2017 while the new Terminal 5 will be completed by around 2025.
In addition, Project Jewel, an S$1.7 billion mixed-use development is set to open this year and will be seamlessly linked with the existing Terminal 1.
This iconic development will feature a vast indoor garden and more shopping options.
The URA envisages these three new developments to anchor Changi Airport’s air hub status for years to come and to generate thousands of new jobs for Singaporeans.
As such, homeowners residing in Jurong East, Toh Guan, Teban Gardens, Taman Jurong, Punggol and Changi areas will benefit the most from the opening of the CRL line.
The good, the bad, the ugly: Singapore property market roundups and predictions for 2019
Singapore's private property market experienced robust growth but was muted midway by property cooling measures. We list down the key highlights in our 2018 property market roundups and our outlook for 2019.
By Khalil Adis
Singapore's private property market saw a steep rebound from the fourth quarter of 2017 after many quarters of decline in its Property Price Index (PPI) since the fourth quarter of 2013.
Figures from the Urban Redevelopment Authority (URA) showed that the Lion City's PPI surged by 11.0 points from 138.7 in the fourth quarter of 2017 to 149.7 points in the third quarter of 2018.
However, the market softened from July onwards post the new property cooling measures.
Here are the top five property market roundups for 2018 and our top five outlooks for 2019.
#1: En-bloc fever
Singapore's property market was off to a fiery start with several collective sales deal that was concluded during the first half of the year.
They included the iconic Pearl Bank Apartments which was sold for S$728 million sales to CapitaLand and Park West which was sold for S$840.89 million to SingHaiyi Gold Pte Ltd.
Data from Cushman & Wakefield Inc showed that the collective sales market recorded S$3.8 billion of en-bloc transactions in the second quarter.
#2: New property cooling measures introduced
To douse the red-hot residential property market, the government announced a slew of property cooling measures in July.
This included increasing the Additional Buyer's Stamp Duty (ABSD) rates and tightening loan-to-value (LTV) limits on residential property purchases.
The new ABSD rates and LTV limits are as above.
As a result, the collective sales market declined with S$353 million worth of transactions recorded in the third quarter, data from Cushman & Wakefield Inc showed.
#3: Industrial property market picks up steam
While Singapore's residential property sector has taken quite a hit, its industrial and commercial property sectors are seeing an uptrend in investment sales.
According to data from Cushman & Wakefield Inc, industrial property deals soared 73 per cent to S$1.2 billion in the third quarter while office sales increased by 54 per cent to S$2.1 billion.
Meanwhile, Jones Lang Lasalle Singapore, citing data from JTC statistics said islandwide all-industrial rental correction stayed modest at 0.1 per cent quarter-on-quarter for three consecutive quarters since the fourth quarter of 2017, while the second quarter of 2018 all-industrial price index flat-lined for the first time since trending down in the third quarter of 2014.
#4: HDB resale values are declining
HDB is a hot bread and butter issue among Singaporeans as 80 per cent of the population lives in public housing flat.
Public interest in HDB dominated the headlines in 2018 as government officials warned that their values could decline, especially those that are more than 40 years with around 50 years left on their 99-year lease.
This marked a stark contrast during Lee Kuan Yew's era when he assured Singaporeans that HDB flats are an asset.
Property agents who specialise in HDB flats in mature estates such as Toa Payoh say they are already seeing prices of older resale flats declining as many buyers are staying clear from such properties following the ongoing debate.
For example, according to the third quarter data from the HDB in 2018, a 3-bedroom flat in the estate was transacted for S$279, 000.
In contrast, the median price during the same period in 2016 was transacted for S$300,000.
Having said that, other factors do come into play such as the supply of new Built-to-Order (BTO) flats which has influenced the resale price.
However, until the government addresses the uncertainty surrounding older estates, we are likely to see the values declining as it is very much influenced by market sentiment.
#5: Widening price gap between a private property and an HDB flat
While the private property market has seen the price index picking up by some 11.0 points, the HDB Resale Price Index (RPI) has been on a decline.
According to data from the HDB, the RPI has been on a decline since the second quarter of 2013 as it continues to launch BTO flats in the market.
This is the biggest price gap in over 10 years and will likely be a contentious issue when the general election is expected to be called in 2019.
#1: HDB to become a hot-button issue
2019 is expected to be an election year.
As such, HDB will be a hot-button issue as 80 per cent of the population lives in HDB flats.
As we have discussed above, HDB resale prices are already on the decline while the price gap between a private property and an HDB flat has widened considerably.
The government will need to address the ongoing debate on the value of older HDB flats moving forward.
#2: Fewer BTO flats to be launched
In November, the HDB said it launched 7,214 flats for sale under the Build-To-Order (BTO) and Sale of Balance Flats (SBF) exercise.
This comprises 3,802 BTO units and 3,412 SBF units across various towns estates such as Sembawang, Sengkang, Tengah, Yishun and Tampines.
However, there will be fewer units being offered in the next BTO launch exercise in February 2019.
The HDB said it will offer about 3,100 flats in Jurong West, Kallang Whampoa and Sengkang.
#3: A sellers' market
With fewer BTO flats on the offering, this could possibly divert some of the buyers to the resale market and prop up the resale prices which have been falling since the second quarter of 2013.
As such 2019 could likely be a sellers' market.
Sellers should watch the market closely while buyers should opt for a BTO quickly.
#4: Five growth areas
As outlined in the URA Master Plan 2014, the five growth areas are located at Woodlands Regional Centre, Jurong Lake District, City Centre, Paya Lebar Central and Punggol Digital District.
Woodlands Regional Centre will be a transportation hub which will connect the Thomson-East Coast Line (TEL) to the Johor-Singapore Rapid Transit System (RTS) via Woodlands North MRT station.
Meanwhile, Jurong Lake District will house the High Speed Rail station linking Singapore to Kuala Lumpur in 90 minutes flat.
The development of the project has been postponed to two years and will now commence construction in 2020 instead of 2018.
Meanwhile, the express service will only commence by 1 January 2031 instead of 31 December 2026, as originally planned.
You can read more about URA Master Plan 2014 here.
#5: Opening of TEL will provide a price booster for properties along the line
The TEL is a 43km MRT Line that will add 31 new stations to the existing rail network, with 7 interchange stations.
It will link to the East-West Line, North-South Line, North-East Line, Circle Line and the Downtown Line.
Spanning from Woodlands North to Sungei Bedok, the line will be opened in stages next year.
Stage one will comprise stations from Woodlands North to Woodlands South.
As such, properties in the Woodland Regional Centre as highlighted above will be among the first to enjoy the price booster when the stations commence service next year.
This will definitely be much to cheer about in the north amid the muted HDB resale market.
An independent analysis from yours truly