Draft Master Plan 2025: Bishan is the newest sub-regional centre

Last month, URA unveiled the Draft Master Plan 2025, which will guide the development of Singapore’s built environment over the next 10 to 15 years. Key objectives of the plan include ensuring sufficient space to meet diverse housing and lifestyle needs, as well as providing vibrant workspaces to support a competitive economy. At the same time, the master plan aims to preserve parts of Singapore’s built heritage so that residents feel a stronger sense of belonging. Finally, plans are in place to ensure that Singapore is well-equipped to weather the effects of impending climate change.

One of the main highlights of the Draft Master Plan 2025 is the announcement of new neighbourhoods in central locations; catering to the strong demand from homebuyers who wish to live in such areas. These upcoming neighbourhoods will be located at Newton, Paterson, the former Bukit Timah Turf City, Pearl’s Hill, Mount Pleasant, Marina South, and the former Keppel Golf Course. New neighbourhoods outside of the central area include one-north, the former Singapore Racecourse at Kranji, and Sembawang Shipyard after it ceases operations in 2028.

New sub-regional centre in Bishan. To bring workplaces closer to homes and ease peak-hour traffic in the CBD, Singapore embarked on a decentralisation plan years ago. Today, Singapore has three regional centres—Woodlands, Tampines, and Jurong East—as well as two sub-regional centres in Paya Lebar and Serangoon.

Under the Draft Master Plan 2025, Bishan Town Centre has been designated as Singapore’s newest sub-regional centre. Upcoming developments in Bishan are expected to include a polyclinic, more office and retail spaces, as well as additional F&B options. Residents can also look forward to enhancements to key transport nodes and more pedestrian-friendly streets. More public spaces and skyrise greenery will also be incorporated into these future developments. It was also announced that Bishan Place—the road behind Junction 8—will be transformed into a landscaped pedestrian mall. Studies will also be conducted on the possibility of building a new hawker centre that will be integrated with the revamped bus interchange.

To kickstart the development of the new sub-regional centre, several government agencies are expected to relocate their offices to Bishan Town Centre. However, the specific agencies and timeline for the relocation have yet to be announced. It was also revealed that approximately 2.153 million sq ft of office space will be built in Bishan, comparable in scale to Paya Lebar Central. The transformation of Bishan is expected to begin during the current term of government and will likely take several years to complete.

Which condos will benefit?

Bishan Town Centre is anchored by the dual-line Bishan MRT Station, which serves both the Circle and North-South Lines. Nearby developments include Bishan Bus Interchange, Bishan Stadium, Swimming Complex and Sports Centre, Bishan Public Library, CPF Bishan Building, Bishan Community Centre, and Junction 8. Using Bishan MRT Station as the reference point, there are only three condos within a 500m radius, namely Bishan 8, Sky Habitat and Sky Vue (see Map 1).

There are two other condos and an executive condo (EC) if the distance is increased to 1 km. The two condos are Boonview and Rafflesia Condominium, while the EC is Bishan Loft. With the exception of Boonview, all private residential developments near Bishan MRT Station have 99-year tenures (see Table 1).

There are also many amenities within a 1km radius of the MRT station, including Kuo Chuan Presbyterian Primary School, Kuo Chuan Presbyterian Secondary School, Catholic High School (Primary and Secondary), Whitley Secondary School, Guangyang Secondary School, and Raffles Institution (Secondary and Junior College).

Condos in closer proximity expected to gain more. Among the three condos within walking distance of Bishan MRT Station, Sky Vue stands out as the only one with an average resale price above $2,000 psf. Furthermore, the average resale price for Sky Vue ($2,180 psf) is closely aligned with that of 99-year leasehold condos in District 20 that are 10 years old or younger ($2,196 psf), and significantly higher than the average for similar condos islandwide ($2,029 psf) (see Chart 1).

Sky Vue also recorded more profitable transactions and fewer unprofitable ones compared to Sky Habitat and Bishan 8 (see Table 1). So far this year, 11 units at Sky Vue have changed hands, all yielding profits ranging from approximately $195,000 to $1.205 million. Of the 11 transactions, two have generated profits of at least $1 million for their sellers (see Table 2). The record-high profit of $1.205 million was achieved in February from the sale of a unit for $2.778 million ($2,435 psf). The seller had purchased the unit on the 14th storey in October 2013 for $1.573 million ($1,378 psf).

The unit involved is a three-bedroom unit measuring 1,141 sq ft. It comprises an en-suite master bedroom with a walk-in wardrobe and a private balcony, as well as two additional bedrooms and a common bathroom. The unit also features another balcony adjacent to the living and dining area (see Floor Plan 1).

In comparison, Sky Habitat recorded nine profitable transactions this year, but only one yielded a profit above $1 million. The million-dollar profitable transaction involved a four-bedroom unit on the 19th storey. The seller bought the 1,798-sq ft unit in April 2015 for $2.496 million ($1,389 psf) and sold it in March for $3.58 million ($1,992 psf), resulting in a profit of approximately $1.084 million. Despite sharing similar locational attributes and ages, Sky Vue outperforms Sky Habitat in terms of resale price and profitability. Contributing factors could include differences in unit mix and floor layouts for the two condos. The average resale price for Bishan 8 was the lowest among the three condos (see Table 1). This could be because Bishan 8 is more than 15 years older than Sky Vue and Sky Habitat.

This year, two units at Bishan 8 were sold, and both yielded profits above $1 million (see Table 3). Coincidentally, both are three-bedroom units on the seventh storey and each unit measures 1,163 sq ft. The unit that generated the higher profit of $1.458 million was sold in March for $2.13 million ($1,832 psf). The seller had bought the unit in December 1998 for $672,214 ($578 psf). The seller of the unit that generated the lower profit of $1.02 million held the unit for a shorter period. They bought it in June 2010 for $1.06 million ($912 psf) and sold it in April for $2.08 million ($1,789 psf).

Since 2020, all three condos have achieved price growth. Bishan 8 led the pack with a growth of 52.6%, followed by Sky Vue (30.5%) and Sky Habitat (25%). This is despite Bishan 8 having the lowest average resale price of $1,811 psf, compared to Sky Vue ($2,180 psf) and Sky Habitat ($1,885 psf) (see Chart 2).

The lower price of Bishan 8 could have supported its stronger price growth compared to the other two condos. Bishan 8’s lower price point allowed more room for prices to grow before buyers’ resistance set in. With Bishan’s new designation as a sub-regional centre, condos near the town centre can expect increased demand, resulting in an uplift in their prices and profitability. Condos nearer to the town centre are likely to attract more demand compared to those further away.

The HDB flats in Bishan are also expected to attract more attention from homebuyers. The number of million-dollar HDB flats in Bishan has been steadily increasing and peaked at 82 flats last year. So far this year, 48 flats in Bishan have changed hands for at least $1 million (see Chart 3).

Resale prices for four-room, five-room, and executive flats in Bishan have also increased steadily. The average resale price for five-room flats ($793 psf) is the highest, followed by executive flats ($771 psf) and four-room flats ($735 psf) (see Chart 4).

All three flat types have chalked up strong price growth since 2020. Four-room flats took the pole position with a price growth of 41.3%, while five-room and executive flats recorded growths of 39.9% and 38.4%, respectively. With Bishan’s new designation as a sub-regional centre, increased demand for HDB flats in Bishan can be expected, potentially resulting in higher resale prices and more million-dollar transactions.

Paya Lebar: A peek into Bishan’s future?

After Paya Lebar’s designation as a sub-regional centre, the town underwent a massive transformation. The completion of Paya Lebar Quarter in 2019 added three office towers, Paya Lebar Mall, and the 429-unit Park Place Residences at PLQ to the neighbourhood. This mixed-use development is a short walk from Paya Lebar MRT Station. Park Place Residences at PLQ is located along Paya Lebar Road within District 14. The 99-year leasehold condo obtained its TOP in 2019. Since its launch in 2017, its average price has risen by 26.9% to $2,291 psf (see Chart 5).

There are 24 condos located within walking distance of Paya Lebar MRT Station, but only three are 99-year leasehold developments that obtained their Temporary Occupation Permit (TOP) before the completion of Park Place Residences at PLQ in 2019. The three condos are Simsville, Aston Mansion, and Sims Residences. Within that distance, Sixteen35 Residences is the only 99-year leasehold condo that obtained its TOP after Park Place Residences at PLQ. The remaining nearby condos are freehold developments. Among the three leasehold condos, Sims Residences (112 units) has the fewest units and is also the newest development, having obtained its TOP in 2002. Both Simsville and Aston Mansion obtained their TOP in 1998, but Simsville (522 units) is significantly larger than Aston Mansion (159 units) (see Table 4).

Simsville, Aston Mansion, and Sims Residences are a short walk from the dual-line Paya Lebar MRT Station, with Simsville being the nearest and Aston Mansion the furthest away. Meanwhile, Sims Residences is the nearest to Park Place Residences at PLQ (see Map 2).

Simsville’s close proximity to the MRT station ($1,402 psf) could explain why its average resale price is trending above that of Aston Mansion ($1,198 psf) and Sims Residences ($1,161 psf) (see Chart 6).

Additionally, Simsville chalked up the highest price growth of 57.9% since 2017, when Park Place Residences at PLQ was launched for sale. In comparison, Aston Mansion and Sims Residences recorded price growths of 52.4% and 45.5%, respectively (see Table 4). Notably, the price growths observed for the trio are significantly higher than that of Park Place Residences at PLQ (26.9%) over the same period. Likewise for the price growths for the three condos are stronger than that for Park Place Residences at PLQ obtained its TOP in 2019 (see Table 4).This could indicate that being designated as a sub-regional centre has boosted the prices of nearby condos, allowing them to experience above-average price growth. Taking our cue from the price performance of condos near the new developments in Paya Lebar, condos near Bishan Town Centre could experience a similar uplift upon completion of the upcoming developments in the town centre.

As part of the Draft Master Plan 2025, Bishan Town Centre was designated as a new sub-regional centre. New developments, including housing, office, and retail spaces, can be expected in the neighbourhood over the coming years. Paya Lebar has undergone a massive transformation since becoming a sub-regional centre. The completion of Paya Lebar Quarter has given a boost to the prices of nearby condos. It would not be far-fetched to expect existing condos in Bishan to experience similar price growth. Therefore, owner-occupiers should consider Bishan, as the new developments are expected to bring more amenities and convenience to the neighbourhood. Savvy investors might also want to start their search for investment properties in Bishan before prices begin their inevitable rise.