ANALYSIS: New possibilities as TEL gradually opens

By Elizabeth Choong
/ EdgeProp Singapore |
Tanjong Rhu (Picture: Albert Chua/EdgeProp Singapore)
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Upcoming stages of TEL

Picking up from where we left off in our previous article, this article will highlight some interesting developments near Stages 3 to 5 of the Thomas-East Coast Line (TEL).

Stage 3: Connecting the central and north regions

Stage 3 of TEL will significantly cut down travel time between the north and central regions of Singapore when it opens later this year. Housing prices are known to be high in the central area, but there are a number of affordable developments near a TEL station just outside Orchard.

Outstanding Outram Park

Outram Park MRT Station is one to watch because it is one of the few interchanges that connect TEL to two other MRT lines. Residents living near Outram Park MRT Station can enjoy superior connectivity to all parts of Singapore.
One Pearl Bank is a landmark development near Outram Park MRT Station. The 774-unit development is slated for completion in 2023. In addition to having a MRT station at their doorstep, residents of the upcoming development are a short drive away from the CBD, Orchard Road and the bohemian Tiong Bahru neighbourhood. Based on caveats lodged with URA, One Pearl Bank is almost 80% sold at an average price of $2,507 psf.

New condos creating much buzz

The upcoming Great World and Havelock MRT Stations are only a few stops away from Outram Park MRT Station, giving commuters easy access to three MRT lines. Irwell Hill Residences near Great World MRT Station and Riviere near Havelock MRT Station created much buzz when they were launched.
Irwell Hill Residences saw 51.5% of its units snapped up during the launch weekend. Current take-up for the 540-unit project is almost 83%, based on caveats lodged with URA. Average price for the leasehold development is $2,816 psf, based on transactions for the last six months. The project is expected to receive temporary occupation permit (TOP) in 2025.
Model of Irwell Hill Residences - EDGEPROP SINGAPORE
Model of Irwell Hill Residences (Picture: Samuel Isaac Chua/EdgeProp Singapore)
Buyers with a more modest budget should check out Riviere which has a lower average price of $2,720 psf. Located near Havelock MRT Station and overlooking the Singapore River, the 455-unit development is expected to receive TOP in 1H2023.
Artist’s impression of the upcoming Riviere - EDGEPROP SINGAPORE
Artist’s impression of the upcoming Riviere (Picture: Frasers Property)
There are more affordable options near Havelock MRT Station but such developments are older. Average prices for freehold Mirage Tower and leasehold Harvest Mansions are $2,097 psf and $1,189 psf respectively. Both developments received TOP in 1996. Nearby leasehold Emerald Park, which received TOP in 1993, has an average price of $1,264 psf.

Stage 4: Onboarding the east

Condominiums along East Coast, with their panoramic sea view, are popular with buyers. The improved connectivity after the opening of Stage 4 TEL in 2024 will give a boost to demand for homes in the area, especially around Tanjong Rhu and Bayshore MRT Stations. En bloc interest may also be spurred for older developments. (See potential condos with en bloc calculator)

Connecting Tanjong Rhu

Residents in Tanjong Rhu enjoy beautiful views of the sea and proximity to the city, but suffer from the lack of accessibility to an MRT station. Pebble Bay, Tanjong Ria Condominium and Costa Rhu are the first condominiums to be developed in Tanjong Rhu. All three projects are leasehold developments that obtained TOP in 1997. Average prices for the three projects range from $1,241 psf to $1,517 psf.
The developments are an excellent choice for those who want to live near the CBD for under $1,600 psf and are willing to compromise on the age of the development. Investors should also consider the developments because of the expected boost in prices after the opening of TEL.
The developments are also popular with tenants, with at least 72 rental transactions in the last 12 month. Monthly rents for the condominiums range from $2.90 psf to $3.40 psf and rental yields are 2.7% to 2.8%.
The age of the three developments plus the upcoming Tanjong Rhu MRT Station make the developments candidates for potential en bloc sales. Tanjong Ria Condominium is the most likely candidate because it is the smallest with 168 units, which makes it easier to get consent from sufficient number of owners. Tanjong Ria Condominium will also be more appealing to developers because its smaller size means less capital outlay and risk exposure. Costa Rhu and Pebble Bay have 737 and 510 units respectively.

Massive developments near Bayshore MRT Station

A trio of massive condominium developments will benefit from the upcoming Bayshore MRT Station: Costa Del Sol (906 units), The Bayshore (1,038 units) and Bayshore Park (1,083 units).
The Bayshore, having received TOP in 1996, is younger than Bayshore Park by 10 years. However, The Bayshore is slightly cheaper with an average price of $1,097 psf compared to Bayshore Park ($1,122 psf). This could be because The Bayshore is further from the sea.
The Bayshore (Picture: Samuel Isaac Chua/EdgeProp Singapore)
Costa Del Sol is the youngest among the three developments, having received TOP in 2004. Its relative youth could explain why the development has the highest average price of $1,530 psf.
The Bayshore presents an excellent value proposition, because its average price is not only the lowest among the three developments but also lower than the overall average of $1,181 psf by $84 psf (7.7%). Bayshore Park should not be discounted because its average price is also lower than the overall average by $59 psf (5.3%).
The three developments are also popular with tenants. Each development has at least 232 rental transactions over the past 12 months, with rents ranging from $2.70 psf to $3.30 psf per month. Rental yields are 2.7% to 3.1%.

Stage 5: Potential for growth

The final two stations on TEL are expected to open in 2025. The areas around the stations are lightly populated, but more residents can be expected after the stations become operational. However, population growth in both areas will be restricted by the East Coast Park, Laguna National Golf and Country Club, as well as Tanah Merah Country Club (Tampines course).
There are 3,349 private residential units and 2,140 HDB flats near Bedok South MRT Station. As for Sungei Bedok MRT Station, there are only 832 private residential units and no HDB flats. Both MRT stations are in the Bedok planning area which has 97,551 residents, with 87% of them being owners.

Key observations

  • Stage 3 of TEL passes through central Singapore which is already well-served by MRT lines. However, TEL will allow commuters from all parts to the island to travel to central Singapore faster. Commuters will also have a wider choice of routes.
  • The East Coast area is currently underserved by the MRT network. TEL Stage 4 will connect residents in the east to the central and north regions of Singapore. The improved connectivity is expected to give a boost to property prices and en bloc potential.
  • The population near Stage 5 of TEL is expected to grow after the line is operational. However, population growth will be limited by East Coast Park and two golf courses.

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