Will ACS (Primary) move turn Tengah into the new Bishan?
Feb 09, 2023
THE move of a top primary school from Bukit Timah to Tengah in 2030 is set to boost interest and property values in the brand new town being built up in the west, said analysts on Thursday (Feb 9).
The relocation of Anglo-Chinese School (Primary) from its current Barker Road campus could also dampen nearby residential rents in the longer term, though the immediate impact would be minimal.
Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, noted that properties near “top schools” can draw a price premium of up to 15 per cent.
This is particularly so for homes within 1 to 2 kilometres (km) of the school, which might see prices that are 10 to 15 per cent higher than the district median price, as proximity gives parents priority in application for school places. For instance, the median condo resale prices within 1 km of ACS Primary was S$2,116 per square feet (psf) in 2022 – 18.1 per cent higher than the median resale price in its district at S$1,791 psf.
Since unveiling its masterplan for Tengah in 2016, the government has made available 17,000 Build-To-Order (BTO) flats in Tengah, launched in several batches since 2018. In the latest November 2022 exercise, 4-room flats were priced from S$307,000 and 5-room flats from S$428,000. A fresh batch of 1,640 BTO units in the estate is set to be launched this month.
A new executive condominium (EC) project coming up in Tengah – Copen Grand – sold 465 units, or 73 per cent of the project, at an average of S$1,300 psf on launch day in October 2022. The project, being built by City Developments Ltd and MCL Land, is now fully sold.
Two other EC projects in Bukit Batok West, which fall within 1 km of the new ACS site, are likely to see strong interest too when they hit the market in 2023 or 2024.
The Tengah estate, about the size of Bishan town, is the first new HDB town to be developed since Punggol was built over two decades ago.
“In Singapore, many parents go to great lengths to secure a place in good schools by renting or paying top dollar for a nearby property. Many believe that their chances of getting their children in the school of choice will be significantly enhanced if they can move closer to these schools,” Sun said.
A National University of Singapore study discovered that the loss of a Top 50 ranked school resulted in a price drop of 8.5 per cent for homes within 1 km of the school, and 12.2 per cent for homes within 1-2 km, according to Huttons senior research director Lee Sze Teck.
The reverse may be observed for an area that gained a Top 50 ranked school, said Lee.
Earlier on Thursday, the Ministry of Education announced the relocation and opening of six schools in the newer HDB estates of Punggol and Tengah to meet the needs of households there. ACS(P) at Tengah will be located together with a new special education school, for students with autism spectrum disorder who can access the national curriculum.
“The government will relocate good schools to a new HDB town,” said Lee. “For example, Nan Chiau Primary School was relocated to Sengkang in 2000, Mee Toh School to Punggol in 2004.”
Such moves are lauded in a country where “brand-name” schools tend to be clustered in prime residential areas, and moves away from those areas go a long way towards improving access and reducing inequity, say observers. But in the process, market values in the new locations also rise.
Raffles Institution and both the primary and secondary schools of Catholic High were relocated to Bishan in the 1990s, when the HDB town was still being built up. Since then, prices of HDB homes in the area have skyrocketed.
Based on HDB’s latest dataset, the median price of a four-room resale flat was S$669,400 in Q4 2022, and S$877,500 for a five-room resale flat. Outside of the central area, Bishan also holds the record for the highest number of million-dollar HDB flat transactions across all HDB estates.
Median rent in Bishan, meanwhile, ranged from S$2,600 to S$3,550 in Q4, depending on flat type.
Tengah’s appeal is also underpinned by the “forest town” master planning theme, with rich greenery and sustainable features, and the upcoming Jurong Region line, said Knight Frank Singapore head of consultancy Alice Tan.
“The relocation of ACS(P) to Tengah will undoubtedly add buzz about the prospect of living (in the area) for young families.”
Asked if the latest school move could be the start of a housing boom in Tengah, Lee said: “It is possible that the same trend may be observed.”
Still, Sun emphasised that these effects are more likely to be felt in the longer term. The properties sited close to ACS(P)‘s current campus at Barker Road are still in Orchard Road’s vicinity, which will help “prop up” their home values, she said.
The impact on home prices or rental demand in Bukit Timah or Newton is likely to be muted, said CBRE head of research for South-east Asia Tricia Song. This is because there are still “many other popular schools in the vicinity”, such as Singapore Chinese Girls School, Nanyang Primary, Anglo-Chinese (Junior) and Hwa Chong International School.
Knight Frank’s Tan said interest in Tengah will also hinge on accessibility to upcoming train stations and amenities such as neighbourhood centres with food and beverage, retail shops and recreational facilities.
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