Future residents of The Botany at Dairy Farm are expected to benefit from the transformative changes in the neighbourhood. (Picture: Samuel Isaac Chua/EdgeProp Singapore)
Overview of Dairy Farm
The Dairy Farm Subzone is situated in the Bukit Panjang Planning Area, bordered by the Central Water Catchment Planning Area to the east, and the Bukit Batok and Choa Chu Kang Planning Areas to the west. To the north of the Bukit Panjang Planning Area lies the Sungei Kadut Planning Area, while to the Bukit Timah Planning Area lies to the south.
A distinctive characteristic of the Bukit Panjang Planning Area is its substantial green space, encompassing parks such as Rifle Range Nature Park, Bukit Timah Nature Park, and Dairy Farm Nature Park. Additionally, its proximity to the central water catchment area makes Bukit Panjang an ideal neighbourhood for nature lovers to reside.
Bukit Panjang is well-connected to the rest of Singapore via three MRT stations on the Downtown Line (DTL), namely Bukit Panjang, Cashew, and Hillview. The Bukit Panjang MRT Station is also an interchange station for the Bukit Panjang LRT Line. Furthermore, the Bukit Timah Expressway runs along one side of the entire planning area.
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With its numerous positive attributes, it is not surprising that Bukit Panjang is a popular residential area, particularly among the well-heeled. According to the latest population census, 12.3% of the households in the Bukit Panjang Planning Area reported a monthly household income of at least $20,000, while 22.6% of the households have a monthly household income of at least $15,000. Additionally, 93% of the residents are owner-occupiers.
Residents in Bukit Panjang are likely to comprise families with young children or teenagers, as well as older couples with grown-up children. The number of elderly residents over the age of 65 is relatively low.
Transformative plans
URA has outlined plans for the West Region and the Bukit Panjang Planning Area that will contribute to the transformation of the Dairy Farm Subzone.
The West Region will remain as Singapore’s manufacturing hub, driven by Tuas Port and the Jurong Innovation District. The Jurong Lake District is destined to evolve into Singapore’s largest mixed-use business district beyond the city centre, featuring offices, housing, and other amenities. Nature and parks, including the nearby Jurong Lake, will be seamlessly integrated into future developments.
For Bukit Panjang Planning Area, additional housing is in the pipeline for the Senja and Dairy Farm Subzones. Existing green areas will not only be conserved but also made more accessible. Furthermore, a variety of amenities will be introduced to cater to the needs of the residents.
Improved access to the West Region will be facilitated by the upcoming Jurong Region Line (JRL). The existing Choa Chu Kang, Boon Lay, and Jurong East MRT Stations will function as interchange stations. The anticipated completion date for the 24 stations of the JRL is 2029.
Subsequently, connectivity will be further enhanced with the completion of Phase 2 of the Cross Island Line (CRL) in 2032. King Albert Park MRT Station, an existing station on the DTL, will serve as an interchange station for the CRL. Notably, the King Albert Park MRT Station is merely two stops away from the Hillview MRT Station within the Bukit Panjang Planning Area.
New developments increase the vibrancy of Bukit Panjang
Hillion Residences is part of an integrated development that includes Hillion Mall, Bukit Panjang MRT Station, and Bukit Panjang Bus Interchange. This integrated development obtained Temporary Occupation Permit (TOP) in 2017. Since its launch in 2013, the average price of the 546-unit Hillion Residences has appreciated by 25%, reaching the current average price of $1,714 psf. The condominium also commands an average monthly rent of $6.13 psf.
Dairy Farm Residences and Dairy Farm Mall are expected to be completed before the end of this year. The completion of Dairy Farm Mall will not only enhance convenience for future residents of Dairy Farm Residences but also provide much-needed amenities to the area, as it is the sole mall within the Dairy Farm Subzone. FairPrice Finest, MindChamps and BFT are expected to be tenants of the upcoming mall.
The Myst is another upcoming condo within the Bukit Panjang Planning Area. During its launch last month, the 99-year leasehold development achieved a take-up rate of 27% at an average price of $2,057 psf.
Moreover, there is potential for a new executive condominium to be developed in this planning area. The Government Land Sales reserve list for 2H2023 features a site at Senja Close earmarked for executive condos, with an estimated yield of approximately 295 units.
The introduction of these two new malls would expand the range of amenities in the area, and provide convenience not only for the current residents but also for those residing in upcoming developments. These new projects are set to infuse the region with increased vibrancy, thereby attracting more businesses and residents to the neighbourhood.
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The Botany at Dairy Farm
The Botany at Dairy Farm is a 99-year leasehold condo in District 23 within the Bukit Panjang Planning Area. This uncompleted development comprises 386 units and is also in the Dairy Farm Subzone.
The upcoming condo is located opposite the German European School and Dairy Farm Nature Park. It is also within a walking distance of Hillview MRT Station and a short drive to the Bukit Timah Expressway. Additionally, Dairy Farm Mall, projected to attain TOP later this year, is just a short stroll away.
Bukit Panjang Primary School, CHIJ Our Lady Queen of Peace, Assumption English School, and Assumption Pathway School fall within a 1km radius of The Botany at Dairy Farm.
There are four other condos within a 500m radius of The Botany at Dairy Farm, namely Chestnut Ville (45 units), The Dairy Farm (477 units), The Skywoods (420 units), and the upcoming Dairy Farm Residences (460 units).
Furthermore, there are 10 condominiums located between 500m and 1km away. Among the larger developments in this proximity range are Cashew Heights Condominium (596 units), Eco Sanctuary (483 units), Foresque Residences (496 units), Glendale Park (448 units), Kingsford Hillview Peak (512 units), and Tree House (429 units).
During its launch in March, The Botany at Dairy Farm achieved a take-up rate of 48% at an average price of $2,070 psf. The take-up rate subsequently increased to 53.9% by June, underscoring its popularity among homebuyers.
Strong capital appreciation for leasehold condos in Bukit Panjang Planning Area
The average price of 99-year leasehold condos in the Bukit Panjang Planning Area ($1,439 psf) has exhibited the most robust growth, increasing by 55% since 2013. This growth outpaces the price growth for their counterparts in District 23 ($1,268 psf) and islandwide ($1,509 psf), which saw growth rates of 44% and 36%, respectively.
The average price of leasehold condos in Bukit Panjang consistently remains lower than the average prices for similar condominiums across Singapore. This situation could potentially offer an opportunity for buyers to acquire a property with significant potential for capital appreciation, and at an affordable price.
Based on sales transactions over the past 12 months, the average price for The Botany at Dairy Farm surpasses that of its leasehold counterparts located within a 1km radius. Among its neighbouring completed developments, Eco Sanctuary ($1,485 psf) has the highest average price. Nevertheless, the average price for The Botany at Dairy Farm ($2,076 psf) is 28.5% higher, which is expected because launch prices for new condos are typically higher than resale prices for older units in the same area.
Furthermore, the price differential between new units at The Botany at Dairy Farm and resale units among its neighbouring developments aligns closely with the price disparity observed between the present average prices for newly launched units and resold units of 99-year leasehold condos within the same planning area. Specifically, the current average price for new units in Bukit Panjang is $2,061 psf, which is 30.2% higher than the current average price of $1,439 psf for resale units in the same area.
There are five 99-year leasehold condos within a 1km radius of The Botany at Dairy Farm, and all of them have profitable transactions in the past 12 months. Kingsford Hillview Peak led the group with 36 profitable transactions, although it is also the only development with unprofitable transactions.
Kingsford Hillview Peak had two unprofitable transactions in the past 12 months. One of them was for a 560-sq ft one-bedder on the second floor, whose owner incurred a loss of $26,000 when it was sold in January. The other transaction was for an 850-sq ft two-bedder on the third floor, which resulted in a larger loss of $74,000 when it was sold in August 2022.
Strong rental growth for Bukit Panjang
Stronger rental growth has been observed for condos in the Bukit Panjang Planning Area, with a growth rate of 53% since 2013. In comparison, their counterparts in District 23 and islandwide experienced price growths of 46% and 27%, respectively. This is despite the average monthly rent for condo units in both Bukit Panjang and District 23 ($3.94 psf) trending lower than the average rents for condos across Singapore ($4.87 psf).
Based on rental transactions in the past 12 months, condos located near The Botany at Dairy Farm are commanding average monthly rents ranging from $2.7 to $4.9 psf, with Cashew Heights Condominium fetching the lowest rent and Kingsford Hillview Peak fetching the highest rent. The rental disparity likely stems from the differing ages of these condominiums. Cashew Heights Condominium obtained TOP in 1990, whereas Kingsford Hillview Peak obtained TOP more recently in 2017.
The Skywood and Eco Sanctuary both obtained TOP in 2016, a year prior to Kingsford Hillview Peak. Consequently, it is not surprising that they command the second-highest average rent of $4.8 psf per month.
Based on past rental trends for condos in its immediate vicinity, investors are not expected to encounter difficulties in securing a tenant for their unit at The Botany at Dairy Farm.
In summary
Exciting new developments are in the pipeline for the Bukit Panjang Planning Area and the Dairy Farm Subzone.
Particularly noteworthy is the completion of Hillion Mall, which has introduced additional amenities and vibrancy to the neighbourhood, and the upcoming Dairy Farm Mall is anticipated to have a similar impact. Future residents of Dairy Farm Residences and The Botany at Dairy Farm are poised to benefit the most, as they will be situated just a short walk away from the Dairy Farm Mall. Furthermore, two future MRT lines are set to enhance connectivity for residents in the area.
These transformative changes will not only shift the spotlight onto the area but also provide a boost to residential prices and rents. Astute homebuyers might consider seizing the opportunity to secure a home in the vicinity, thereby reaping the advantages of being first movers.
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