The Bayshore area will see its first Housing Development Board (HDB) Built-To-Order (BTO) flats launched in October 2024, as announced on HDB’s website on 19 June. This upcoming launch marks a significant shift from the traditional categorisation of mature and non-mature estates, which has been in place since 1992.
In this new framework, flats will be classified as Standard, Plus, or Prime. Plus flats, a new category, will be situated in desirable locations near MRT stations or town centres. They will offer higher subsidies to maintain affordability, but with stricter conditions. These include a 10-year Minimum Occupation Period (MOP), subsidy clawback once the flat is sold after the MOP, a 30-month wait-out period for private property owners, and an income ceiling of $14,000 per month for resale buyers. Only Singaporeans can purchase Plus flats in the resale market, and owners cannot rent out the entire flat even after fulfilling the MOP.
Prime flats will be located in premium city centre locations under the Prime Location Public Housing Model (PLH). They will receive the highest subsidies but also come with the strictest restrictions, including full BTO eligibility conditions for resale buyers, and other restrictions similar to those discussed for Plus flats.
Standard flats will constitute the majority of the BTO supply, offering fewer subsidies and restrictions. They have a standard 5-year MOP, no income ceiling for resale buyers, and owners can rent out the entire unit after fulfilling the MOP.
Analysts anticipate that the upcoming Bayshore BTO projects will likely fall under the Plus category due to their sought-after location. However, the final classification depends on further assessments by authorities. In this article, we explore the features and location of these upcoming projects and discuss their potential impact on nearby home prices.
Features of Bayshore BTO Projects
The two Bayshore projects will be among a total of 14 BTO projects set to be launched in October’s launch exercise. Approximately 8,500 units of flats will be offered across these 14 BTO projects, while the two Bayshore projects we will be exploring today will have a total of 1,440 units – one with 710 units, and the other with 730 units.
The plot on Site A will house a total of 710 units, comprising 2-Room Flexi and 4-Room configurations. The one on Site B will house a total of 730 units, with 2-Room Flexi, 3-Room, and 4-Room configurations. The one closer to East Coast Park on Site B will feature an eating house, a pre-school, supermarkets, and a residents’ network centre.
The flats will feature full-height windows, offering residents panoramic views of either East Coast Park from some units or cityscapes from others facing Bedok town. The development spans two plots divided by Bayshore Drive which will include a 400-metre “transit priority corridor” with dedicated bus lanes, footpaths, cycling paths, and spacious sheltered pavements on both sides.
These projects are located approximately a 5-minute walk from Bayshore MRT station, which began operating on June 23. The upcoming Bedok South MRT station, scheduled to be fully operational in 2026, is also within a similar walking distance on the Thomson-East Coast line. Temasek Secondary and Primary Schools are within a 1km radius of both projects, making them ideal for families with school-age children. In addition, the East Coast Parkway is just a few minutes’ drive away, providing easy access to the rest of Singapore for residents with private vehicles. With a sought-after address, proximity to schools, potential sea views from some units, and various nearby amenities, these projects are well-suited for families seeking convenience and quality living.
Can Plus and Prime Flats Maintain Value Despite Restrictions?
While HDB flats are primarily intended to offer Singaporeans a home rather than being viewed as profit-oriented investments, the potential for capital appreciation in Plus and Prime flats remains a consideration for discerning homeowners. However, with stringent restrictions like the 10-year MOP and an income ceiling of $14,000 for resale buyers, there’s concern about whether these limitations will constrain the pool of potential resale buyers and, consequently, impact capital appreciation.
While it’s still early to predict the exact growth potential of Bayshore flats that will most likely come under the Plus category, it’s unlikely these units will reach exorbitant prices after completing the MOP. Restrictions on Plus and Prime flats are crucial in preventing speculative pricing, ensuring equitable access to homeownership for all Singaporeans. Without these measures, unchecked market forces could price out potential resale buyers, pushing them towards private housing with better amenities at prices that make more sense. This could inadvertently limit HDB resale options.
Despite concerns that stringent rules might dampen demand and slow capital growth, these regulations actually stabilise the market. They ensure that the desirable locations of Plus and Prime flats remain attractive to buyers over the long term, including the Bayshore BTO flats. This stability underscores the enduring appeal of well-located HDB properties and their ability to maintain value, providing reassurance to prospective homeowners.
Can Bayshore BTO Projects Influence Nearby Property Values?
At present, only private residences exist near the future Bayshore BTO project sites. It will not be accurate to compare how HDB flats will affect prices of private residences, as they are different categories with no direct correlations. However, homeowners of these BTO projects could potentially become part of the pool of HDB upgraders interested in nearby private residences in the future.
Just a short walk from the future Bayshore BTO HDB projects, there are several freehold boutique private developments offering luxurious and tranquil living. Options like Bleu @ East Coast, The Calypso, and Sea Pavilion Residences are within minutes of the BTO site. Slightly further but still easily accessible on foot, developments such as Uber 388, East Coast Residences, and Breeze By The East also provide freehold options nearby.
While these boutique developments may have fewer sales transactions, potentially affecting capital appreciation, the upcoming Bayshore BTO projects could attract HDB upgraders interested in these properties in the longer term, once the MOP is fulfilled.
Strengthening Market Appeal: Impact on MOAT Analysis’ Exit Audience Metric
Using Bleu @ East Coast, The Calypso, and Sea Pavillion Residences as examples in our MOAT Analysis—the closest developments to the upcoming Bayshore BTO projects—they are already achieving strong scores. Bleu @ East Coast and The Calypso scored 62%, while Sea Pavillion Residences scored 60%. Currently, these developments receive a solid 4 out of 5 for the Exit Audience metric, likely due to their proximity to landed enclaves appealing to empty nesters looking to downsize.
The upcoming BTO projects are expected to further enhance the Exit Audience metric for all nearby developments, potentially improving the overall MOAT scores. With these developments already demonstrating robust MOAT scores and the forthcoming BTO projects set to bolster these figures, it’s clear that Bayshore’s new BTOs are anticipated to uplift nearby property values.
In Summary
The upcoming Bayshore BTO projects are set to transform the housing landscape in the vicinity. Their strategic location near amenities, schools, and efficient transport links enhances their appeal to families and discerning homeowners alike. As these projects unfold, they not only promise to enrich community living but also have the potential to significantly elevate nearby property values. With Bayshore poised for growth, these developments are expected to attract HDB upgraders and investors alike, contributing positively to the local real estate market’s dynamism and appeal.
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