We are thinking of applying for a BTO flat. Which estate is better – Punggol or Tengah?
Hi Yi Xiang,
Between Punggol and Tengah, Punggol will be a better choice as it is a more established estate while Tengah is a brand new estate which was largely forest and scrubland, previously used as a military training ground.
According to SRX’s BTO Launch forecast, prices of 3 room flats at Tengah range from $170,000 to $200,000, 4 room flats from $250,000 to $320,000 and 5 room flats from $320,000 to $390,000:
This compared to the recent BTO launch at Punggol:
As we can see from the above figures, prices of Punggol BTO flats are generally higher than that of Tengah flats.
Let us compare the resale prices of flats in the vicinity. As Tengah is a new estate, we will compare it to neighboring Chua Chu Kang:
Let us take a look at prices in Punggol:
As we can see from the above figures, comparing the prices of similar-sized flats, prices in Punggol are generally about $50,000 to $100,000 higher than those in Choa Chu Kang. In fact, prices of some 3 room flats in Punggol cost about the same as 4 room flats in Choa Chu Kang!
There are a few reasons for this discrepancy in prices. On the whole, prices in the northwestern and western-most parts of Singapore generally lag behind other parts of the island. Though both Punggol and Choa Chu Kang are far away from the Central Business District, there is a direct rail line, the northeast line (NEL) linking Punggol straight to the city while residents in the Choa Chu Kang have to change to the East-West line at Jurong East interchange.
Choa Chu Kang is also close to the Sungei Kadut heavy industrial zone and properties near such centers of industrial activities usually don’t fare as well compare to others.
The government has unveiled plans to develop Punggol into a “digital hub” in the future which will be a key economic driver in the estate. As for Tengah, though it is touted as near the upcoming Jurong Innovation District, you still need to take a bus or train to reach it.
In the long run, the prospects and potential for capital growth appears to be better for Punggol as compared to Tengah and if your budget affords it, you should consider bidding for a BTO flat in Punggol.
Singapore Property Update Team
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