Plans Unveiled for 14,000 New Homes in Sembawang and Woodlands

Plans Unveiled for 14,000 New Homes in Sembawang and Woodlands

October 22, 2024

CONDOsingapore.com

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Singapore’s northern region is set to welcome two new housing estates, offering approximately 14,000 homes, with the first public housing project slated for launch in February 2025.

During the HDB Awards ceremony on Tuesday (October 22), Minister for National Development Desmond Lee announced that over 80% of the homes—around 12,000 units—will be allocated to public housing. The awards recognize the contributions of architectural and engineering consultants, as well as building contractors, to public housing projects.

Lee emphasized that the initiative is part of the government’s efforts to maintain a stable supply of homes, meet broad-based demand, and help Singaporeans achieve their homeownership aspirations. “A sufficient supply of new flats is also crucial to ensure the property market remains stable,” he added.

Sembawang North Estate

The Sembawang North estate, spanning 53 hectares, is located near the historic Sembawang Shipyard, a former British naval base. The area also features a cluster of black-and-white bungalows managed by the Singapore Land Authority.

Currently, a portion of the land along Admiralty Road West is occupied by two foreign worker dormitories operated by Vobis Enterprise. Their leases are expected to expire soon, making way for the new development.

The Sembawang North estate is projected to yield nearly 10,000 homes, with about 8,000 designated as public housing and 2,000 as private residences. The first Build-To-Order (BTO) project in the area is expected to launch in 2025.

HDB plans to integrate commercial facilities, healthcare services, schools, places of worship, and recreational and green spaces into the estate. The designs of housing developments and public spaces, including playgrounds and precinct pavilions, will reflect the area’s maritime heritage and colonial architecture. For instance, BTO projects will feature courtyard layouts, pitched roofs, and geometric patterns inspired by the nearby black-and-white bungalows.

A key feature of the estate will be the Community Wharves Link, a network of pedestrian pathways connecting upcoming BTO projects.

Woodlands North Coast Estate

The Woodlands North Coast estate, covering 21 hectares, will provide around 4,000 new public homes. The first BTO project in this area will also launch in February 2025, with additional projects rolled out progressively in the coming years.

HDB plans to leverage the area’s natural landscape and hilly terrain, with designs that maximize views of Admiralty Park and Woodlands Waterfront Park. A 1.9-kilometer walking and cycling path, named WoodsVista Gallery, will enhance connectivity to Woodlands MRT station and other amenities. The first phase of the path will be developed alongside a 1,785-unit BTO project in Woodlands, expected to be completed by 2026.

The Woodlands North Coast estate will also benefit from the development of the Woodlands Regional Centre, a key commercial hub projected to create 100,000 new jobs, and the Johor Bahru-Singapore Rapid Transit System Link, set to be operational by late 2026.

Growing Demand in the North

Analysts have welcomed the new housing plans, citing strong demand in Sembawang and Woodlands.

Christine Sun, chief researcher and strategist at OrangeTee Group, noted that from 2020 to 2024, 10,166 flats in Sembawang reached their minimum occupation period, making it the fourth-largest area for resale flat supply. However, the lack of new projects in recent years—with the last BTO launch in 2020 offering 2,193 units—could lead to a shortfall in supply and rising resale prices.

The median price of resale HDB flats in Sembawang rose 10.7% year-on-year to S$570,000 in the first three quarters of 2024. Eugene Lim, key executive officer at ERA Realty, highlighted that the new Sembawang North estate will boost the area’s housing stock by 27%, addressing the supply gap.

In Woodlands, demand for homes has remained robust. Since 2017, an average of 1,419 new BTO flats have been launched annually, with 3,028 units offered in 2024—the highest number to date. Application rates for Woodlands BTO projects have been healthy, ranging between one and 1.6 times for first-time families applying for four-room flats.

Lim also pointed out that about one-third of HDB flats in Woodlands are over 30 years old, with another 53% aged between 20 and 29 years. “The new initiative is poised to rejuvenate this mature town while increasing its housing supply,” he said.

Pricing and Application Rates

Lee Sze Teck, senior director of data analytics at Huttons Asia, estimated that four-room flats in the new estates could start from S$350,000. This is significantly lower than the median resale prices of S$590,000 in Sembawang and S$540,000 in Woodlands in Q3 2024. He predicted application rates for these Standard BTO flats to range between two and three times.

The new housing estates aim to meet the growing demand in Singapore’s northern region, offering a mix of public and private homes while enhancing connectivity and preserving the unique character of each area.