3 key takeaways from Singapore Draft Master Plan 2013 – where could the next hot spots be?

Mr Getty Goh has a Masters in Real Estate and a Bachelors in Building from the National University of Singapore. He is a director at Ascendant Assets and the Co-founder of CoAssets.com, South East Asia’s first crowd funding and purchase website. The views expressed are his own. For those who wish to know more, please email him at Admin@CoAssets.com.

After a long wait, the Singapore draft Master Plan 2013 has finally been released. The master plan is reviewed every 5 years and it is a guide of how the Singapore build environment will be like from now till 2018.

Through the change of zoning or land use intensity, a region that used to be undeveloped could be the next boomtown. Naturally, many property stakeholders (developers and property punters alike) are very eager to study the latest master plan, as it will give an indication of the upcoming plans that the government has.

To help investors make sense of this document, these are 3 key takeaways of how the latest master plan would impact the Singapore property market and even speculate where we think the next property hot spot may be. I must qualify that while there are many other things to look out for, the 3 takeaways highlighted are what my team and I think will interest most readers.

Takeaway 1: Punggol could be the next property hotspot

Punggol has been touted as the place-to-be for some time. One of the attractions that drew many homebuyers there was the Punggol waterway. However in terms of property resale prices as well as rental market, it is generally not as vibrant as compared to places nearer the “traditional” prime areas.

Figure A: Masterplan 2008 – Punggol

Source: URA

However, we reckon that will change with the introduction of the latest Masterplan. What we found particularly interesting is the educational cluster and the business park. Business parks are land specifically set aside for non-pollutive industries and businesses that engage in high-technology, research and development (R&D), high value-added and knowledge-intensive activities. Businesses that operate there would potentially attract highly skilled workers from abroad and that in turn will translate to a rental market in that vicinity. In other words, with a business park in Punggol, it is foreseeable that rental in that location will increase and that could also translate to an increase in property prices. To get a better sense of the potential, one could look at how developments around Changi Business Park have performed in the past few years.

Figure B: Masterplan 2013 – Punggol

Source: URA

Takeaway 2: Woodleigh could be the next Bishan

Looking at how prime HDB flats in Bishan were able to command high prices, it is a very good example of how people these days are less concerned with an area’s history and more focused on the property’s location and potential resale value.

Figure C: Masterplan 2008 – Bidadari

Source: URA

Looking at the latest Masterplan and the future developments in store for the Woodleigh locality, it is foreseeable that the ex-Bidadari cemetery could become the next Bishan. Similar to Bishan, Woodleigh is close to Singapore’s Central Business District. And just as there are good schools like Catholic High School and Raffles Institution/Raffles Junior College near Bishan, there are prominent schools like Cedar Girls School, Maris Stella High (Primary and Secondary) as well as St Andrews (Junior, Secondary and Junior College) around Woodleigh. Hence, it will not be surprising if properties in Woodleigh will eventually be as highly sought after as those of Bishan in the not so distant future.

Figure D: Masterplan 2013 – Bidadari

Source: URA

Takeaway 3: Keppel Club members will have to find another golf club soon

It is official that golfing enthusiasts will have at least one less golf club to go to. There has been much market talk that the government will not renew the lease for Keppel Club and the latest Masterplan shows that the plot of land that Keppel Club used to sit on has been earmarked for more residential developments.

While this means more waterfront residential projects in the Keppel location, it also means that Keppel Club members will have to look for new golf clubs to play at.

Figure E: Masterplan 2008 – Keppel Club

Source: URA

Figure F: Masterplan 2013 – Keppel Club

Source: URA

Conclusion

Once again, I wish to highlight that these 3 takeaways are by no means exhaustive. There are other observations that have been left out of this article and some of them impact the commercial and industrial property sector – which are niche markets.

Nonetheless, it is my hope that through this article, I have helped some readers’ better understand what the latest Masterplan is all about. Who knows, the contents of this article could help you make a more informed decision and ultimately put you on track to reaping a property windfall in a few years’ time.