By now, most of us know that Tengah is one of the newest estates to sprout here in West Singapore. While we’ve previously thought of Tengah to be so ulu that no one had any idea where it is, there has been substantial hype over the past year or so, and now its’ shaping up to be the next big thing.
Out of the 9,500 units that will be released in the upcoming November 2022 BTO exercise, 2,070 units will come from Tengah. Here’s our analysis on why Tengah should be a top pick for you if you’re looking for a home in the West.
November’s BTO launch
For this upcoming November 2022 BTO launch, there will be a total of about 9,500 units up on offer. For Tengah, there will be 2,070 units offered, across the usual mix of 2-room Flexi, 3-room, 4-room and 5-room unit types.
Image adapted from: HDB
As for where the units will be located, the project will consist of 2 blocks located across 2 plots of land: Tengah Garden and Tengah Boulevard.
As you can see, there are also quite a number of amenities and features planned for the vicinity, such as a healthcare facility, community club, as well as a number of schools and parks nearby. Now all of these are under construction, so don’t be surprised if you head down there and can’t find them.
How much will the new BTOs cost?
Image credit: HDB
While we won’t know the launch prices until the applications actually open, we can look at data from the most recent launch, to get a rough idea of how much it might cost. For February 2022’s launch in Tengah, these were the indicative prices*:
ParcFlora@Tengah:
- 2-room Flexi: $132K-$182K
- 3-room: $231K-$273K
- 4-room: $322K-$403K
- 5-room: $428K-$525K
Plantation Creek:
- 4-room: $309K-$377K
- 5-room: $420K-$506K
*Prices exclude grants
One can probably expect the prices for the upcoming November launch to be slightly pricier than February’s launch. This is because the new blocks will be built right next to the new proposed Tengah pond, as well as right next to one of the new MRT stations that’ll be part of the new Jurong Region Line.
How popular will the units be?
Considering that Tengah will be competing with the likes of Kallang/Whampoa and Queenstown in the upcoming November 2022 launch, we’ll probably see a considerable amount of oversubscription for the latter two, as compared to Tengah. However, this doesn’t mean you can sleep on it. Based on past data, there is still quite a healthy demand for Tengah BTOs:
Application rate for 4-room BTOs in Tengah in the past.
Image adapted from: HDB
Application rate for 5-room BTOs in Tengah in the past.
Image adapted from: HDB
Based on this, there was about a 1-in-2 and 1-in-3 chance for 4-room units, and about a 1-in-3 and 1-in-4 chance for 5-room units. Just like our projected prices, we expect the subscription rate to be higher this time around; given its attractive location as well as how more people would be returning to the BTO market now that there are no expected construction delays.
Why you should consider a Tengah BTO over a Jurong resale
With all that in mind, here are some of our reasons why you should consider a BTO for this upcoming November 2022 exercise, assuming you are eligible to apply for them.
Location
For one the location is, in our opinion, much more favourable than the past launches. As we’ve seen, the upcoming projects will be located at the proposed Tengah Pond. Assuming this goes through, you will waterfront living vibes, just like how those living next to Bedok Reservoir or Punggol might feel.
While some might feel that living in such close proximity to the PIE might bring about concerns of dust and noise generated from the highway, the pond would be able to act as a buffer and ample separation, and so shouldn’t be too much of a concern.
Close to future MRT station
Proximity to public transport is one of the pluses as well. The blocks will be right next to the future Hong Kah MRT station, which will be part of the new Jurong Region Line that’s expected to be completed 2027, right about when the BTOs would also be completed.
Living right next to the MRT station means convenience getting around, and the new line will allow you to be connected with the rest of the rail network, such as the East-West Line.
More affordable compared to resale options
In terms of prices, naturally a BTO would be more affordable as compared to a resale, even for a larger-sized BTO compared to a smaller resale.
Image adapted from: HDB
Another thing to consider is the new cooling measures that was just announced a couple of days ago. The new measures largely do not affect BTO sales, but resale flat transactions are definitely affected, in the form of lower loan-to-value limits for HDB loans and a tighter loan criteria. This may or may not impact you if you are considering getting a resale unit in, say, Jurong.
Getting a resale unit right now might also mean entering the property market while prices are at an all-time high. Apart from the cost that you’ll have to fork out for your purchase, it might also mean a much smaller potential for profit if you choose to sell your home eventually, given that much of the appreciation would have more or less been priced in.
As for Tengah, seeing that it’s a new estate with hardly any existing features right now, you’re effectively buying into a brand new estate that would have a much larger room for appreciation in the long run. A lower entry price would mean larger profits.
Nov 2022 HDB BTO launch: Why you should choose Tengah
Image credit: HDB
While it is undoubtedly ulu now, Tengah is slated to be the next big bustling estate in the West. Think of it like the next Punggol – it was once a nondescript area with no more than grass, forest and a couple of roads, with the potential to blossom into a vibrant and bustling estate. Who knows, we might see a million-dollar Tengah HDB resale flat in the far future.
Read our other articles here:
- HDB resale prices set to drop in final quarter of 2022
- Gorgeous landed homes in Singapore
- What is a loft HDB?
Cover image adapted from: HDB
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