The concept of bringing nature closer to home for Singaporeans was announced back in 2016 by Minister Mr Lawrence Wong. It boasts of bold development designs with aims of creating a green town and bonding communities. It is a good time to review on the plan as property projects in the area move towards their temporary occupation permit (TOP) dates.
The town is located in the western part of Singapore with its parameters set by Kranji Expressway (KJE), Pan-Island Expressway (PIE), Brickland Road and Bukit Batok Road. It will then be subdivided into 5 housing districts – Plantation District, Garden District, Park District, Brickland District and Forest Hill District.
Facilities such as hiking trails, walking and cycling paths, and community farmways for urban farming are provided in support of creating the forest habitat that integrate the communities together. Tengah Town will have its own central park, spanning over an area of approximately 20 hectares (similar to Ang Mo Kio Town Garden West). Enriched with ponds and canals, residents are set to enjoy living amid lush greenery.
As announced by HDB, the first batch of housing in the Plantation District will be introduced in 2018. There will be a total of 42,000 housing units available in the Town, of which 30,000 units slated for public housing. With 12,000 units reserved for private housing, these units will be definitely being highly sought after. This sentiment is reflected in the recent launch of Le Quest, a mixed development project, with overwhelming response on the first day of launch.
The movement of property prices and rental yield in this part of the region is definitely on our watch list. In a general sense, rental yield of private apartments near the Tengah Town area is hovering around 2.5% to 3%. This is with plans for the transformation for the western region, still in the pipeline.
Statistics from Urban Redevelopment Authority (URA) revealed a positive outlook when comparing the numbers between the first and second quarter of 2017. The prices of private residential properties saw a slight drop of 0.1% as compared to 0.4% decrease in the first quarter. Developers sold 3077 units, compared with 2962 units in the previous quarter. The significant change came from the resale market, accounting for 53.6% of all transactions in the second quarter; an increase from 41.7% in the first.
Tengah Town is a part of a transformation that will enhance the living standards of residents and will have an immense impact on the existing properties in the neighboring areas. The developments of the property market in this part of Singapore is definitely on the watch list of many potential home owners and investors. We remain hopeful that the overall sense of the market remains positive as plans are rolled out.
Image by: The Straits Times