In Sembawang and Woodlands, over 14,000 additional residences are planned

In Sembawang and Woodlands, over 14,000 additional residences are planned

The first BTO project is scheduled to open in February 2025, and more than 80% will be reserved for public housing apartments.

October 22, 2024

CONDOsingapore.com

The first public housing project is scheduled to open in February 2025, and two additional housing estates totalling around 14,000 houses are being planned in Singapore's northern area.

Speaking at the HDB Awards event on Tuesday, October 22, Minister for National Development Desmond Lee said that more than 80% of the dwellings, or over 12,000 units, will be designated for public housing apartments. The awards honour the contributions of construction contractors, engineers, and architects working on public housing projects.

According to Lee, the action is a component of the government's efforts to maintain a steady supply of housing, continue to meet widespread demand, and assist Singaporeans in realising their dreams of becoming homeowners.

He went on to say, "Ample supply of new apartments is also crucial to ensure the property market remains stable."

The enormous 53-hectare (ha) estate is located in Sembawang North, next to the former British naval facility known as Sembawang Shipyard. The Singapore Land Authority now oversees a group of black-and-white bungalows that are located close by.

The dormitory management business Vobis Enterprise now operates two foreign worker dormitories on a section of the property lot along Admiralty Road West. We are aware that their leases are about to expire.

It is anticipated that the new Sembawang North housing complex would produce about 10,000 dwellings in total, of which 8,000 will be public apartments and 2,000 will be private houses.

It is anticipated that the region's first Build-To-Order (BTO) project will begin construction in 2025.

In addition, new commercial buildings, medical facilities, educational institutions, houses of worship, and green and recreational areas are being planned by the Housing and Development Board.

According to the agency, it would incorporate the colonial architecture and marine character of the region into the design of Sembawang North's housing projects and public areas, such as playgrounds and precinct pavillions.

For example, the black-and-white bungalows in the area will serve as inspiration for the courtyard designs, pitched roofs, and eye-catching geometric patterns seen in future BTO structures.

The Community Wharves Link, a system of pedestrian linkages connecting future BTO buildings, will be a crucial part of the new estate, according to a news release from HDB.

In the meanwhile, over 4,000 new public dwellings will be built as part of the 21-hectare Woodlands North Coast complex.

In the next years, HDB will gradually introduce the remaining BTO projects in the region, starting with the first one in February 2025.

According to HDB, the BTO projects in the new estate will make use of the mountainous terrain and natural nature of the region, with designs that optimise views of the neighbouring Woodlands Waterfront Park and Admiralty Park.

Future residents will have easier access to the Woodlands MRT station and other facilities because to a planned 1.9-kilometer walking and cycling trail created by HDB and the National Parks Board.

The path's first phase, called WoodsVista Gallery, will be built concurrently with a 1,785-unit BTO project in Woodlands that is anticipated to be finished in 2026.

Other projects in the region include the Johor Bahru-Singapore Rapid Transit System Link, which is anticipated to be finished by the end of 2026, and the industrial development of Woodlands Regional Centre, a significant commercial hub that is estimated to create 100,000 new jobs.

Increasing demand in the north

Given the growing demand for properties in Sembawang and Woodlands, analysts applauded the decision.

Approximately 10,166 apartments in Sembawang achieved their minimum occupancy period between 2020 and 2024, making it the fourth-largest location in terms of the supply of resale apartments among all the towns, according to Christine Sun, chief researcher and strategist for OrangeTee Group.

Since so few new projects were put up for sale, there may then be a shortage of new apartments, Sun added. In 2020, the region's final BTO project was initiated, and 2,193 units were issued. Only 310 apartments were produced by a 2018 BTO project before then.

The shortage of (new) home supply might thus cause future resale prices to rise more quickly than expected, she said. For example, in the first three quarters of this year, the median price of resale HDB apartments in Sembawang was S$570,000, which was 10.7% more than the S$515,000 price during the same time in 2022.

The forthcoming home supply in Sembawang North would so significantly increase the area's current housing stock of around 36,000 units by 27%, according to Eugene Lim, key executive officer of ERA Realty.

In the meanwhile, Sun saw a steadily strong demand for Woodlands real estate.

Since 2017, 1,419 new BTO apartments have been put up for sale there year on average. According to Sun, 3,028 units were released this year, the most ever.

This year's application rates for BTO developments in Woodlands have also been "quite healthy," she said, with first-time non-elderly families competing for four-room apartments between one and 1.6 times.

About 1,500 three-room and bigger apartments were sold there in the first nine months of 2024, Lim said, which is just slightly less than the 1,618 residences sold during the same time previous year. Despite this, he added, the median prices of all HDB apartments in Woodlands increased by 6–12% from the same time the year before in the third quarter of 2024.

According to Lim, at least one-third of the HDB apartments in the Woodlands neighbourhood are now 30 years of age or older, while another 53% are between the ages of 20 and 29. "The new project has the potential to revitalise this established town and expand its housing supply."

Four-room HDB apartments in the two new housing estates might start at S$350,000, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. In Q3 2024, the average price of a four-room HDB apartment for sale in Sembawang was S$590,000, while a comparable unit in Woodlands cost S$540,000.

"These new four-room units, which are likely to be classified as Standard BTO flats, will likely have an application rate of two to three times," he said.

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