6 Major Transformations Property Investors Do Not Want To Miss Out On
Singapore has undergone transformations in stages since our independence in 1965. We have achieved so much as a small country, and we could not have done it without prudent planning. URA’s Master Plan acts as a guide for Singapore’s development in the medium term over the next 10–15 years. It is reviewed every five years and translates the broad long-term strategies of the Long-Term Plan into detailed plans to guide the development of land and property. Over the years, the Master Plan has served as a crucial source of information to determine where the next residential hotspot will be. While it takes some knowledge to comprehend the Master Plan, it remains an underrated source of information that every property investor should utilise. Hence, the purpose of this article is to break down some of the upcoming residential hotspots that investors can focus on.
1) Relocation of Paya Lebar Airbase
When the airbase moves in 2030, 150,000 public and private new homes will be built on the 800 hectare land that Paya Lebar Airbase currently sits on. It will make way to an entirely new estate the size of Sengkang and Punggol combined. The relocation is expected to take place in 2030. We can expect changes to land use zoning and/or plot ratio. Building height restrictions for developments in the vicinity may also be lifted. However, none of these is concrete at least until the next master plan review in 2024. What we do know, is that the rejuvenation of a land five-times the size of Toa Payoh Town, will certainly not go unnoticed.
2) Changi East Urban District
After a two-year hiatus due to the Covid-19 pandemic, works on Changi Airport’s firth and biggest terminal has resumed. T5 will be located within the 1,080ha Changi East development, which is Changi Airport’s largest expansion project to date. It also includes the Changi East Urban District, a business and lifestyle hub next to the terminal, which will house Grade A office spaces, hotels, and serviced apartments. The proximity to Singapore University of Technology and Design (SUTD), and Changi Business Park, will make it into both a business and research hub for logistics.
This could potentially improve rental prospects for nearby homes in the East as Changi hub grows. Developments in the Tanah Merah area and along Upper Changi Road East, all the way to Flora Drive, might see a bigger influx of tenants.
3) Tuas Mega Port
The ambitious new Tuas Mega Port is the next significant landmark in the Port of Singapore’s evolution. Upon completion of the fourth and final project phase, scheduled after 2040, Tuas Terminal will be the largest container terminal in the world. Consolidating the five terminals at Tanjong Pagar, Pasir Panjang, Keppel and Brani, into one mega-terminal at Tuas, a large part of the vacated space will go toward the Greater Southern Waterfront (GSW).
The former Keppel Club, which will house some of the first developments along the GSW, will be part of a new residential precinct. Two of the former power stations in Pasir Panjang will be redeveloped into mixed-use projects. Finally, a new Downtown South resort in Pulau Brani will add more lifestyle appeal to areas in District 04.
4) Punggol Digital District (PDD)
The North-East has experienced major transformations since its early days in 1994. 5 years ago, it was still considered an inconvenient part of Singapore with cheap housing. Today, much has been transformed and projects like High Park Residences has enjoyed 40% capital appreciation over the last 7 years.
The PDD will be a waterfront digital hub, which puts Singapore Institute of Technology (SIT) close to tech companies of all sizes. This coincides with the new Tech@SG program , aimed at accelerating the entry of tech experts and entrepreneurs into Singapore.
The convergence of students and offices raises rental prospects, and has the potential to turn parts of Punggol into rental hotspots.
5) Woodlands Regional Centre
Similar to Punggol in the North-East, Woodlands has long been termed as an area with cheap housing. The Woodlands Regional Centre will include new mixed-use developments, waterfront residential and office projects. It is strategically located in the centre of the Northern Agri-tech and Food Corridor, which runs from Lim Chu Kang to Senoko.
The Woodlands North Coast which will provide significant room for waterfront properties will become a lifestyle hub for the neighbourhood. Properties located near Woodlands Regional Centre will enjoy gradual capital appreciation as the transformation takes place in phases.
6) Orto Leisure Park
Opened in 2014, the 24-hour park has been providing a myriad of recreational activities such as prawning and fishing. There is also a trampoline park and live turtle museum. At night, it turns into a supper hotspot (famous for a place to get $1 thai boat noodles). Such open spaces facilitating recreational activities are few and far between in Singapore and unfortunately, it’s lease will be ending in 30 August 2023.
Sitting on a 5.14 hectares plot of land zoned residential, the Government has already made plans to introduce new residential developments to the area. While it is not exactly the nearest to Khatib MRT station (roughly 10-minute walk), some of the blocks will benefit from the scenic view of Lower Seletar Reservoir.
For now, most of the amenities i.e. (Supermarkets and Sports Hall) are located around Khatib MRT station which is within 1km radius of Orto Leisure Park. The Government is expected to introduce some lifestyle or retail element in the form of a mixed-development to provide alternative dining and retail options to the new residents.
The most highly anticipated transformation (for me, at least) has got to be the relocation of Paya Lebar Airbase. Currently, the area surrounding the airbase is nothing short of dull, with mostly industrial buildings. This will put most investors in mind of Jurong and its transformation from factories and warehouses to today’s retail powerhouse with JEM and J-Cube. The sheer size of the land that will make way to a new town will incorporate green technology and become a car-lite precinct. The lifting of height restrictions for developments in the vicinity will increase the probability of enbloc activity in the area.
I hope this article serves purposeful in helping you make a more well-informed decision, regardless of whether you’re purchasing a property for own-stay or investment. As always, feel free to share your opinion in the comment section and I will take time to address them when I can. Till next time!