What to Expect from the East of the West? | District 5, District 15’s Twin Brothers?

 

Seafront views, family friendly beaches and coastal living – these images often bring East Coast (D15) to mind. Property prices in East Coast have performed well and the district has been one of the most attractive for its proximity to the city center and multiple amenities. However, what if there was another district that could rival these features but at a lower price?

 

West Coast – Best Coast?

D05 (West Coast) – consisting of Clementi, Dover, Buona Vista, and Pasir Panjang estates – is an up-and-coming rival to the more established East Coast, and appears to have an even more promising future than its counterpart. In this article, we explain the present and future allure of D05 and why we think it offers its own moat against other popular districts like D15 (East Coast)  and D19 (Serangoon Gardens).

 

 

Amenities of D05

Education and Professional Life

The West Coast is commonly known as a university town. It has a wide variety and a high concentration of educational institutions.

Locals and expats alike have plenty of schools to choose from for their children’s early education. Starting with Secondary Education, there are notable schools such as ACS(I) and Hwa Chong Institution. There are also international schools in the area such as Tanglin Trust School and Dover International Court School, both of which are highly regarded locally and overseas.

As for Tertiary Education, there is an even greater selection for students of all career aspirations. West Coast houses the National University of Singapore (NUS), Singapore Polytechnic (SP), Singapore Institute of Technology (SIT). This only covers the universities inside D05. A stone’s throw away from D05 is D10 (Bukit Timah) where Ngee Ann Polytechnic (NP),  Singapore Institute of Management (SIM) and Singapore University of Social Sciences (SUSS). Simply living in D05 puts one in the heart of these educational institutions.

West Coast as a ‘university town’ extends beyond the early 20s student crowd. International business schools INSEAD and ESSEC are also located in the heart of the West Coast. This is complemented by a host of professional activities located in the one-north business park. One-north is home to all kinds of companies – from technology startups and unicorns to global HQs of multinational brands. On the other hand, specialised research institutes also congregate around the same region due to the strong network of academics coming from the various educational institutions around the district.

All this makes the area highly attractive for high-income foreigners, foreign students, and even local families who are likely able to pay more for rentals close to school, work, and city center. This enhances the potential for owners of property in D05 to benefit from higher rental yields and appreciating resale prices.

Accessibility and Convenience

D05 also offers privilege to its residents in terms of transport and convenience. The district is being served by 2 MRT lines – Circle Line and East-West Line – with multiple stations for each line. With one line extending horizontally and one vertically across the map, residents have convenient access to the main parts of Singapore such as the city center, and the core regions including the nexuses of Serangoon and Paya Lebar. Bus and car transportation to the city is also fast and easy, with Orchard Station just a 20 minute bus ride away.

Lifestyle and Nature

The Singapore government and developers continue to see the West Coast as a highly attractive site for mixed-use developments given the synergies between professional and leisure amenities located nearby.

Options for food and entertainment are plenty with Holland Village nearby and various hawker centers with famous stalls such as the Ghim Moh Wet Market and Food Court known for Michelin Bib Gourmand-rated braised duck and char kway teow.

Where D05 stands out is in the abundance of nature in the district. West Coast Park and Labrador park are located in D05 and offer a view over the sea. The district is also well connected to major natural attractions such as Bukit Timah Nature Reserve and Southern Ridges through the many park connectors that stretch across the region. Families and couples can unwind and enjoy relaxing walks by the seaside or over the treeline.

Future developments

While the above mentioned points contribute to the appeal of West Coast as a great alternative to East Coast properties, the main attraction of D05 is its future-proof potential. The biggest change that will propel D05 into a hot district is the development of the Greater Southern Waterfront that has been planned for the Pasir Panjang area in the next 5 – 10 years.

As part of the project, the current Pasir Panjang port will be relocated to Tuas and the industrial area will be cleared out for redevelopment into a natural gateway for urban living along the coast.  West Coast Park and Labrador Park will be fully connected by a new linear park which opens up the area for recreational activities.

 

With this, D05 is shaping up to become even more attractive than the East Coast, since urban areas – residential and commercial – are now much closer to the coast than ever before.

 

Landed property traits of D05 vs. D15

D05 is not only a potential winner in many aspects of a good property, but one that is currently undervalued by the real estate market. Interestingly, the prices of properties in D05 are lower than comparable properties in D15 (East Coast) on a PSF basis. If we consider D05 to be the ‘mirror image’ of D15, in terms of location, amenities, and future development potential, this then prompts the question – why do the property prices differ between D05 and D15?

 

 

 

When the actual price quantums are compared, we see that the two districts are similar. The lower PSF for D05 is explained by the larger home sizes which offset the difference in PSF.

In D05, entry-level landed properties such as inter-terraces and corner terraces in Pasir Panjang tend to be bigger at 1800-2100 sqft. In D15, the same properties are smaller at only 1500 – 1700 sqft. Thus, for the same entry-level home, the price quantum is technically more expensive because of the larger sizes.

This leads us to our next observation – since PSF is a better comparison of price, D05 is undervalued compared to D15.

 

Price performance of D05 vs. D15

D05 has comparable PSF prices to other popular districts such as D19 (Serangoon Gardens). However, D19 is located far from the city center, and offers none of the lifestyle amenities or waterfront views that D05 easily provides. For the same price PSF, D05 provides more value than D19.

Coming back to the comparison with D15, we find that D15 is much higher in terms of PSF transacted. Again, if we believe that D05 is shaping up to be the ‘mirror image’ of D15, then this gap in price levels indicates that PSF prices in D05 are at a discount of 12% compared to D15, indicating potential for price appreciation.

For buyers with sufficient capital to finance property around the $3 million mark, D05 is an opportunity to own a large landed property in a district similar to D15, but without the paying premium on PSF. It is likely that D05 will catch up or even surpass D15 in prices as the development of waterfront progresses and more properties are launched in the area.

Buyers who can afford these large homes in D05 can capitalise on the lower PSF and benefit from the future development that will bring more excitement to an already attractive district.

 

Conclusion

The West Coast may not be the district that instantly comes to mind when one thinks of beachfront property. This will change in the next few years as the Greater Southern Waterfront region develops into a bustling urban center that is more modern than its counterpart in the East. The most attractive thing about D05 properties is not its amenities or its location, but the fact that its prices are still relatively low for all that it has to offer. Buyers can look forward to well-performing landed properties as more people realise the value of the West Coast district. If you are interested in buying a landed property, or need any other real estate advice, feel free to reach out to us here at PropertyLimBrothers, always happy to show you the place.