http://www.straitstimes.com/archive/...perts-20130202

POPULATION AND LAND USE

Chance to invest? Don't be in a hurry: Experts

Published on Feb 02, 2013

By Esther Teo Property Reporter


THE Land Use Plan unveiled earlier this week has got property investors salivating over big new growth areas but analysts warn that payday is a long way off.

One thing is clear though - there will be huge investments coming up and some areas are firmly in the box seat.

The winners include existing estates like Woodlands, Bedok, Sembawang and Yishun, which the Government has earmarked for further rejuvenation and expansion.

Other areas set to enjoy significant infrastructure spending, including the waterfront city extending from Marina Bay through Telok Blangah and on to Pasir Panjang Terminal, are also likely to see home prices increase.

Some might see these announcements as a green light to start looking for a residential investment, but experts emphasised that these plans would take time to achieve given that they range to 2030.

For instance, when the Government first announced plans for Jurong Lake District in 2008, there was much buzz in the market.

Yet it took some years to introduce detailed land use plans, sell sites and build infrastructure.

It was only then that the demand for residential and commercial spaces picked up. Property prices then followed, said Ms Alice Tan, senior manager of research at Knight Frank Singapore.

Experts said that the prices for some of these "hotter" areas might rise 20 per cent faster than the islandwide average although the increases are expected only when detailed development plans are announced.

This means that if islandwide prices increase by 10 per cent, these areas could see a 12 per cent gain.

Mr Nicholas Mak, head of research at SLP International, said an area like Sembawang, which is seen as a backwater, could enjoy this growth as it plugs into the newly announced north coast innovation corridor.

This corridor, stretching from Woodlands to Punggol, has been earmarked for new commercial clusters under the land use plan.

But Singapore could experience two more property cycles before 2030, he cautioned.

R'ST Research director Ong Kah Seng picks Woodlands, Serangoon and Bedok as the three estates that stand to benefit the most.

Coupled with the Thomson MRT Line announced last year, the Woodlands regional centre will be expanded to be a major commercial node as part of the north coast corridor, he noted.

"Land use for various vacant, new plots in Woodlands are expected to be both exciting and intensified," he said.

"The Woodlands area will shed its image as a far-flung, border- centric area in the longer term. New infrastructure, housing and amenities might raise its positioning to a work-live-play offering if all plans are successfully implemented."

Savills Singapore research head Alan Cheong highlighted Yishun and Bukit Panjang as possible beneficiaries.

Under the Remaking Our Heartland programme - where selected towns enjoy enhancement works - these estates that rank low in terms of HDB resale values may get to benefit most, he said.

Yishun, for instance, which had the lowest median resale price for a four-bedroom HDB flat in the fourth quarter of last year, could have the greatest upside potential given that it lags in price performance due to its comparative lack of attractions, Mr Cheong said.

Bukit Panjang is also among the bottom three for median prices of four-room resale flats.

"This estate might get a fillip with the new integrated transport hub at the Bukit Panjang MRT and LRT stations.

"Already, prices of middle-age condominiums like Maysprings are witnessing increasing values," he noted.

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