The Urban Redevelopment Authority (URA) Master Plan is a key factor in property planning. However, beyond specific streets or avenues, it is also necessary to understand the master plan for a neighborhood. Jurong East is a great example, where a once-stagnant industrial area has transformed into the retail and lifestyle giant it is today. Those who invested in Jurong East early on undoubtedly seized a prime opportunity for asset appreciation. As 2021 draws to a close, it’s time to review the major upcoming changes with us. So, which areas are worth focusing on in the 2021 URA Master Plan?
- Greater Southern Waterfront
- Punggol Digital District
- Changi Region
- Woodlands Regional Centre
- Jurong West, due to the construction of Tuas Port
- Developments at Paya Lebar Air Base
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Table of Contents
1. Greater Southern Waterfront
The Greater Southern Waterfront project was officially announced in 2013, and as the project unfolds, we expect the area’s popularity to rise. This is one of the largest development projects in Singapore’s entire history.
The project covers an area of over 2,000 hectares, including the Keppel district, parts of Pasir Panjang, Marina South, and Gardens by the Bay.
The area formerly occupied by Keppel Club will host the first development projects of the Greater Southern Waterfront and will become part of a new residential district. In fact, the club’s lease expires on December 31, 2021, so it’s safe to say the project will officially kick off this year.
Pulau Brani, located near Sentosa, will be developed into a new downtown southern resort (this will add more lifestyle appeal to District 4, like Keppel). Unlike hubs such as Downtown East, Sentosa has long been considered a more expensive leisure destination, and the government now hopes to make the area more accessible to the public through this new plan.
In Pasir Panjang, two former power stations will be redeveloped into mixed-use projects. As one of the long-standing complaints about the Pasir Panjang area has been its limited public facilities, this could change perceptions of the area and drive up nearby property prices.
In the Greater Southern Waterfront, the most interesting trend might be the debate that arose in 2019 regarding the construction of prime HDB flats.
It is clear that whoever buys a prime HDB flat in this area will gain a significant windfall. Whether the government will set a longer Minimum Occupancy Period (MOP) or use other methods to balance this advantage will provide a model for managing future BTO projects in prime locations like Bishan, Queenstown, and Tanjong Pagar. This will surely become a hot topic of discussion in the future.
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2. Punggol Digital District
In recent years, Punggol’s property prices have surprised many buyers, likely because it was once considered one of the cheapest places to buy residential property. But that has changed in recent years:
As of the end of September 2021, the average price of HDB flats in Punggol was S$490 per square foot, while the average price for condominiums (excluding Executive Condominiums) was S$1,156 per square foot.
It was a surprise when developers launched Executive Condominiums like Piermont Grand at a median price of S$1,100 per square foot, with total prices ranging from S$855,000 to S$1.7 million. However, this condominium is located at Sumang Walk in Punggol, not in the most developed central area of Punggol.
Properties in Punggol are clearly not as cheap as they used to be. Besides the impact of developments like Waterway Point, the Punggol Digital District is one of the main drivers and changes in the URA Master Plan.
The Punggol Digital District will be developed into a technology hub, with the first projects expected to move in by 2024.
The Singapore Institute of Technology (SIT) and various technology companies will also be located in the Punggol Digital District in the future. At the same time, the development of the Punggol Digital District will serve as a “blueprint” for the future development of towns in Singapore.
The dual integration of education and offices brings a new development model to the Punggol Digital District, and this injection is likely to make parts of Punggol a popular choice for renters.
3. Changi Region
To some extent, the development of Changi Business Park and the ongoing construction of Changi Airport Terminal 5 have renewed interest in the Changi area.
In addition to Changi Airport Terminal 5, the Changi East area will also feature new Grade A office buildings, hotels, and serviced apartments. Combined with its proximity to the Singapore University of Technology and Design (SUTD) and Changi Business Park, the Changi area is set to become a business and research hub for logistics.
Meanwhile, as the URA Master Plan benefits the Changi area, it will also bring more advantages to many condominiums in the Tanah Merah area, such as providing a direct MRT line to Changi International Airport. Furthermore, condominiums along Upper Changi Road East extending to the Flora Drive area may also attract a greater influx of tenants.
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4. Woodlands Regional Centre
After the Woodlands Regional Centre becomes operational, property prices in this area are also likely to rise.
The Woodlands Regional Centre is situated within Singapore’s northern Agri-Food and Innovation Corridor, covering Lim Chu Kang and Senoko. The development direction for this area will include new mixed-use developments, waterfront residences, and office projects, and Republic Polytechnic will also be located here.
The core of this area will be the Woodlands North Coast, which offers significant space for waterfront properties and is highly likely to become the community’s lifestyle hub. Although the Woodlands Regional Centre will also have some new mixed-use projects, we believe the overall development focus of the area is more likely to shift to the more stylish and scenic North Coast.
The development of the Woodlands Regional Centre is expected to take 15 years, but properties here may see gains even before the project is completed.
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5. Jurong West, due to the construction of Tuas Port
Most Singaporeans are aware of the transformation of Jurong East, which is set to become Singapore’s second Central Business District (CBD). However, Jurong West is often considered a boring place and is frequently overlooked.
While there are no major lifestyle or entertainment hubs planned for the area, Jurong West is likely to benefit from the upcoming Tuas Port.
In the competition for maritime trade in the region, Tuas Port appears to play a decisive role. It is a 1,400-hectare port with a projected cargo handling capacity double that of 2016. As the port introduces more advanced facilities and an upgraded demand for manpower, the rental yields in Jurong West have high potential for growth.
6. Developments at Paya Lebar Air Base
Paya Lebar Air Base is set to relocate and merge with the existing and expanded Tengah Air Base, freeing up enough space for the construction of offices, shops, and residences in a new town.
The URA has stated that some existing buildings in the air base could be repurposed, preserving the “air base” theme as a way to retain memories and commemorate the base.
Regarding this development, some property owners have said they have been waiting for a long time. The relocation of the air base not only means they no longer have to endure the loud noise of planes flying overhead, but also that height restrictions on buildings around the air base may be relaxed. This could lead to higher density zoning for certain plots, which would be beneficial for en-bloc sale prospects.
However, it should be noted that the relocation of the air base will only take place in 2030, so changes in this area will not happen too quickly.
Next, we will look at which Singapore properties are most likely to benefit from the changes in the URA Master Plan.
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