On the second last day of 2019, HDB announced the release of two Executive Condominium (EC) sites for tender–one at Fernvale Lane in Sengkang and the other at Tampines Street 62 at Tampines North. Looking at the location of the EC sites, we think the 480 units of the Fernvale Lane EC could prove to be a hit among buyers when it eventually launches in 2021. Here’s why:
Reason #1: The Fernvale Lane EC will be well-served by amenities despite its out-of-central location
Make no mistake, the location of most executive condos, which are in the Outside of Central Region (OCR) in Singapore, means that it’s always better to have a car than rely on public transport especially for commuting to work in the city.
However, it’s still ideal for ECs to have some amenities within walking distance, and this is where the Fernvale Lane EC stands out, even though it sits right at the edge of Sengkang town.
Directly opposite the condo is the compact shopping centre Greenwich V, which primarily serves residents of Seletar Hills Estate. The mall has a Cold Storage supermarket, a food court, a clinic, a good variety of dining options and a few enrichment and childcare centres. In the vicinity are condos The Greenwich (average $1,1XX psf) and Seletar Park Residences (average $1,2XX psf), which are well worth considering.
For more amenities such as a cinema, the Fernvale Lane EC resident will be roughly a 10-minute walk, or two bus stops, away from The Seletar Mall. The mall is part of a bustling hub that includes Fernvale LRT station and a integrated community club (to be completed in 2020). The renowned Jalan Kayu food belt, famous for its pratas, is also a similar distance away from the EC.
Residents who have lived in the area for years told PropertyGuru that while there’s no MRT station at the doorstep, getting to one is a straightforward affair. There’s a well-served bus stop right outside the condo along Yio Chu Kang Road, where Bus number 70 take residents to Serangoon MRT station (and NEX mall) in 20 minutes. Yio Chu Kang MRT station is 18 minutes away on the same bus.
Once residents get to Serangoon MRT station, it’s another half an hour to the CBD. Not too shabby a travel time at all. There are also two primary schools within a 1km radius, one of which (Fernvale Primary School) is a five-minute walk away.
Meanwhile, drivers are within three-minutes drive to the entrance of the Central Expressway (CTE), whose traffic conditions will be improved with the opening of the North South Corridor in 2026. Surprisingly, Changi Airport is just a 15-minute drive via the nearby Tampines Expressway (TPE).
Reason #2: The Fernvale Lane EC site is surrounded by low-density developments and greenery
One of the most seldom shared property buying tips is to find a home near a landed estate, better still if it’s a unit that overlooks one. Besides getting permanently unblocked views, living near to a landed estate typically means less crowds and greater tranquiity. The recently-launched The Florence Residences and The Garden Residences are condos near to the Fernvale Lane EC that boast such attributes.
Meanwhile, the Fernvale Lane EC will likely rise to a height of 15 storeys. Surrounding developements (or the lack thereof) gives the location an unhurried, laid-back vibe that is unlike condos elsewhere in the bustling town of Sengkang. To the south of the Fernvale Lane EC is the low-rise, predominantly landed Seletar Hills Estate. To the west of the plot sits mostly undeveloped land, which is now home to some fish farms and a seafood market.
Additionally, the Urban Redevelopment Authority (URA) has planned for a small park right next to Fernvale Lane EC. Residents will also be not far from Sungei Punggol, a lush natural river that’s home to a wetland and mangrove habitat leading to the popular Waterway @ Punggol.
On the other hand, if you’d prefer more hustle and bustle or can’t afford to wait until 2021 for an EC, there’s another project at Sengkang, Ola, that’s set to launch in Q2 2020. Besides an earlier launch date, Ola EC boasts a more central location than the Fernvale Lane EC, which puts residents within walking distance to Sengkang Town Centre.
Reason #3: The Fernvale Lane EC is part of an ongoing growth story
Located in District 28 and near to Seletar Aerospace Park, the Fernvale Lane EC will be a part of a larger growth story that has already seen the district develop from a sparsely populated region to a family-friendly residential district.
The 320-hectare Seletar Aerospace Park is located less than 2km north of the Fernvale Lane EC. According to government-linked planned and developer JTC Corporation, the Park "supports Singapore’s vision to become a global aviation hub". Half of the land in the Park will be dedicated to the aerospace industry, while the remaining half will be occupied by Seletar Airport.
Already, over 60 multi-national companies have set up shop there, including Rolls-Royce and GE Aviation. The continued growth of the aviation hub could mean increased demand for housing, both from tenants and buyers with jobs in the area. Over time, this could contribute to an increase in property value.
The numbers speak for themselves. PropertyGuru data has shown that median per square foot (psf) asking prices for private homes in District 28, where the upcoming Fernvale Lane EC is located, has risen by 26% over the past three years. (The overall SIngapore median psf increase is 12% during the same period.)
The Topiary, a yet-to-be-fully-privatised EC situated near to the Fernvale Lane EC site, has seen average psf selling prices increase from a launch price of $735 psf in 2013 to $867 psf (the median psf price of the last five units sold)–a growth of 18%.
All in all, the data shows that location where the upcoming Fernvale Lane EC is located belongs to a high-growth area, which could be further boosted by the recent announcement of an MRT line possibly running through the neighbourhood and leading towards the city.
So, by the time Fernvale Lane EC buyers reach their 10-year Minimum Occupation Period (MOP) in the 2030s, they will likely have seen healthy appreciation of their properties.
How much will the Fernvale Lane EC cost?
Colliers International expects 7-9 bids for Fernvale Lane EC site and the top bid price to come in at $260 million or $500 psf ppr, with a projected end-selling price of $950-1000 psf. Given that the launch date of the project will likely be released at least one and a half years after the winning bid (which is to be announced shortly after tender closes on 3 March 2020), we estimate that the psf price could be at least $1,050 when the project is finally launched in the second half of 2021.
For reference, here are the prices for nearby condos:
- The Topiary EC ($8XX psf range; resale for Singaporeans and PRs only)
- The Greenwich ($1,1XX psf range; resale)
- H2O Residences ($1,1XX psf range; resale)
- Seletar Park Residences ($1,2XX psf range; resale)
- Rivertrees Residences ($1,2XX psf range; new sale and resale)
- High Park Residences ($1,2XX psf range; new sale; TOP: 2019)
- Parc Botannia ($1,4XX psf range; new sale; TOP: 2021)
Want to live in the area? Check out the condominiums available in District 28 for various budgets.
Alternatively, browse the many affordable HDB resale flats in Sengkang town!