When searching for a soulmate, one of the key considerations is always maturity. Would you really want to settle down for someone immature? I highly doubt so.
But when you’re searching for your dream home, does the question of maturity come to mind – whether you should choose a place in a mature or non-mature estate? Well if you haven’t been doing so, perhaps it’s time to consider, as this can play a significant role in your house hunting journey and also down the road should you decide to sell your place.
So, before we get started, what is the difference between a mature and non-mature estate? Well there’s no hard rule or specific definition from HDB but the difference is essentially down to the age of an estate. Mature estates are those considered more than 20 years old, such as Bedok, Bishan, Clementi, Pasir Ris, Serangoon, Tampines and Toa Payoh. Non-mature estates include areas like Hougang, Jurong East and West, Punggol and Yishun. In non-mature estates, you’ll typically see more BTOs such as the recent sales launches where there were BTOs in the estates of Sembawang and Tengah.
The main difference between the two types of estates beyond the age factor really boils down to the development of the area, which then affects the price. Of course, when an estate has been around for more than 20 years, you’d expect the area to have more offerings, from transportation, shopping malls and even sports facilities. The best example to look at will be Tampines, which is Singapore’s third most populous area with over 257,000 residents. There are currently three MRT stations that service the area that cover two MRT lines (East-West and Downtown lines), three shopping malls (Tampines Mall, Tampines 1 and Century Square), and Our Tampines Hub – which is Singapore’s first ever integrated community and lifestyle hub that features sports facilities, a regional library and more!
There’s a huge contrast if we look at Tengah, which is Singapore’s first new town in over 20 years. The first BTO flats were launched in late 2018 with another sales launch late last year. While there are major plans for the area to be developed, it is estimated it will take around 20 years for the place to be fully developed according to HDB. Furthermore, the Jurong Region Line – Singapore’s seventh MRT line – will only be ready to serve Tengah from 2026.
However, with a lack of amenities, you can expect prices of developments in non-mature estates to be significantly cheaper. Based on the BTO prices for the November 2019 sales launch, a 3-room flat in Tengah cost $208,000 while flats in Tampines and Ang Mo Kio cost $281,000 and $332,000 respectively. That’s a 35% price difference between Tengah and Tampines flats, and astounding 59% price difference between Tengah and Ang Mo Kio flats!!!
With such a substantial price difference, there’s a higher chance that the value of your property in a non-mature estate will go up once you choose to sell. For the case of Tengah, where the first batch of BTO flats are expected to be completed by 2022, you can expect the prices to go up after your Minimum Occupancy Period (MOP), especially once the area is serviced by an MRT in 2026. Wait a while longer once the estate is more developed and you can expect the reap the huge financial benefits.
Now that you’ve seen the pros and cons of each type of estate, jump on over to SRX’s resale listing page, to find your future home in your ideal location.
If you’re not looking at a resale option, you may want to consider the upcoming BTOs. The next BTO launch will take place in May where two will be in the mature estates of Tampines and Pasir Ris, while the other two will be in the non-mature estates of Tengah and Choa Chu Kang. Easily check out SRX’s HDB BTO Launches page that will provide you with all the relevant BTO information you’ll need at a glance.
Source: SRX (11 mar 2020)
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