August 2022 HDB BTO in-depth review: Jurong East

After covering both the Choa Chu Kang and Ang Mo Kio BTO projects for the upcoming August 2022 HDB BTO review, we'll be looking at the highly anticipated Jurong East launch.

If you're a die-hard Jurong fanatic looking to snag an affordable unit in your favourite neighbourhood, this would be the project you would gravitate to. 

Situated in the West of Singapore, Jurong East has a population of 78,000 residents across around 24,000 flats.  

For this launch, Jurong East's BTO flats make up around 11.3 per cent of the total units offered – there are 560 units spanning three room types: Two-room, three-room and four-room. 

August 2022 Jurong East HDB BTO: At a glance

August 2022 Jurong East HDB BTO: Indicative price range

While we wait for HDB to release the price range, you can refer to SRX's estimations based on nearby resale transactions and launch prices from recent BTO launches.

Source: SRX. These estimations have been adjusted for differences in property age and location. If a launch is nearer to an MRT or commercial development, it's likely to be more expensive.

Estimated downpayment, monthly instalment and income 

Based on these pricing forecasts, we can estimate the downpayment, monthly instalments and household income needed to pay for the August 2022 Jurong East BTO flat.

These estimates are based on the following assumptions:

• An HDB loan is taken, maximising the 85 per cent loan-to-value (LTV)
• The loan tenure is 25 years, with the current interest rate of 2.6 per cent
• There is no other housing loan to service

Let's put this into better focus by taking the median price of this launch without accounting for CPF grants or savings. A mortgage calculator was also used to work out the math.

Do note that for public housing, only up to 30 per cent of your monthly household income can be used to service your home loan. 

This is called the Mortgage Servicing Ratio (MSR). We took this into account to find the estimated household monthly income needed for the flat.

READ ALSO: 40% of applicants invited to book BTO flat do not do so: HDB

August 2022 Jurong East HDB BTO: The pros

Good investment potential

While HDB flats are not meant as an investment vehicle or a get-rich-quick property piece, we're sure everyone appreciates holding on to an asset that can only appreciate with time. 

With the development of the Jurong Lake District (JLD) and plans in place for it to be Singapore's second Central Business District (CBD), the August 2022 Jurong East BTO flats have great potential to be solid investment units. 

It's also ideal to generate rental yield as the JLD development is bound to attract workers looking for a shorter daily commute to their workplace.

The upcoming Jurong Region Line (JRL) will also boost property prices in the area.

Schools

Parents have many options for their children when it comes to schools.

Tertiary education choices are pretty much non-existent, though. 

• PCF Sparkletots Preschool (350m)
• Little Footprints Preschool (750m)
• Golden-Kids Child Care & Development Centre (750m)
• My First Skool (1.1km)
• Ace @ Work Childcare (1km)
• Yuhua Primary School (370m)
• Princess Elizabeth Primary School (710m)
• Bukit View Primary School (1.07km)
• Crest Secondary School (190m)
• Shuqun Secondary School (630m)
• Bukit Batok Secondary School (650m)

*The distance of schools is an approximation.

Healthcare

Ng Teng Fong Hospital and Jurong Community Hospital are two compounds that serve the residents of Jurong East.

They're just a quick five-minute drive away, along Boon Lay Way.

August 2022 Jurong East HDB BTO: The cons

No five-room flats available

Unlike the Choa Chu Kang BTO project, there are no five-room flats available for this launch. 

Those who prefer a larger living space, such as parents with children or couples living with parents, may want to choose projects that offer five-room units. 

Lack of amenities 

Combining the fact that the project is in a non-mature estate and situated nearer to the Toh Guan industrial area, there aren't many amenities in the immediate vicinity. 

For groceries, the nearest place to get them is the Fairprice is at Block 249, which is an eight-minute walk away. 

To get to the nearest malls, you can either head to West Mall at Bukit Batok Central (a five-minute drive or an 18-minute bus ride) or to the cluster of malls at Jurong East MRT (an eight-minute drive or a 20-minute bus ride). 

West Mall is a relatively small mall, but it has a decent range of food options and everything you need for everyday amenities – a Cold Storage, hair salons, clinics, bakeries, a library and even a cinema (Cathay Cineplex, if you're wondering). 

If you're in the mood for something more substantial - you can hit up the three major malls around Jurong East MRT - Westgate, JCube and JEM.

There are over 590 anchor tenants altogether, so you can shop to your heart's content, especially at Don Don Donki and Ikea. 

Accessibility

Interestingly, the nearest MRT to the Jurong East BTO project isn't actually Jurong East MRT - it's Bukit Batok MRT. 

However, that will change with the Jurong Region Line, which is projected to open in three phases between 2027 to 2029. 

Once the JRL opens, the nearest MRT station within walking distance to the Jurong East BTO units will be Toh Guan MRT station*. From there, you can get to Jurong East MRT within one stop.

*The names of the MRT stations are working names.

Those who drive can access the Kranji Expressway (KJE) in six minutes via Brickland Road, which connects to both the Pan Island Expressway (PIE) and Bukit Timah Expressway (BKE) in 10-minutes flat. 

August 2022 Jurong East HDB BTO: Price appreciation

Jurong East's price appreciation hasn't been amazing, with a price appreciation of just 7.24 per cent across all flat types over the past decade. 

Five-room flats have a 10.68 per cent appreciation, while four-room flats have an appreciation of 9.49 per cent.

As of June 2022, here are the average price psf and the average price for three-room and four-room flats.

August 2022 Jurong East HDB BTO: Conclusion

New BTO flats in the Jurong East area hold excellent investment potential, thanks to the upcoming JRL MRT stations. 

If you don't mind waiting a year or two for the new stations to be up and running, you should consider the August 2022 Jurong East project. 

However, if you're looking for an estate that offers large flats with well-established amenities, you should look at the Ang Mo Kio project instead. 

This article was first published in 99.co.