August 2022 HDB BTO in-depth review: Choa Chu Kang

BTO season is upon us again, and in this August 2022 HDB BTO review, we’ll be covering the quiet town of Choa Chu Kang. 

A population of 169,000 residents call the sleepy, serene estate home. Located at the north-westernmost point of Singapore’s west region, it used to be home to a kampung village and rubber plantations until HDB started developing it in 1985.

Fun fact: Back in the early days, tigers used to roam in the area before disappearing in the 1930s.

Choa Chu Kang’s BTO flats make up 19.7 per cent of the total units offered – There are a total of 980 units spanning four room types: two-room, three-room, four-room and five-room flats. 

August 2022 Choa Chu Kang HDB BTO: At a glance

[embed]https://www.youtube.com/watch?v=DDoPi75sGOo&feature=emb_imp_woyt[/embed]

We’ve covered the Choa Chu Kang project in this video, so if you are the sort who prefers accompanying visuals, do give this one a watch.

August 2022 Choa Chu Kang 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.

Flat type	Price range
three-room	$200,000 – $260,000
four-room	$300,000 – $380,000
five-room	$420,000 – $520,000

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 Ang Mo Kio 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 of the price range without accounting for CPF grants or savings. A mortgage calculator will also be 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). By taking this into account, we can find the estimated household monthly income needed for the flat.

 

Flat type	Median price	Loan amount (85 per cent)	Min. downpayment (15 per cent)	Estimated monthly instalment	Estimated monthly household income
three-room	$230,000	$195,500	$34,500	$886.92	$2.956.40
four-room	$340,000	$289,000	$51,000	$1,311.10	$4,370.33
five-room	$470,000	$399,500	$70,500	$1,812.41	$6,041.36

August 2022 Choa Chu Kang HDB BTO: The Pros

Cheaper, larger flats

Run, don’t walk – five-room flats are available in the Choa Chu Kang launch. The only other launch in the August 2022 BTO exercise with five-room flats is the Ang Mo Kio project. 

Due to Ang Mo Kio being a mature estate, the prices are higher than that of Choa Chu Kang. 

The estimated price for a 5-room flat in Ang Mo Kio is between $680,000 to $830,000, while Choa Chu Kang is considerably more affordable at $420,000 to $520,000. 

That’s a price difference of $26,000 to $31,000 that you can put towards a decent renovation. 

Families looking for more living space should keep an eye on this project. Or if you’re a couple who likes to stretch out and have more dedicated rooms for hobbies, this Choa Chu Kang project will be right up your alley. 

Food and retail amenities

Keat Hong Shopping Centre is a six-minute stroll away, where you can pick up fresh produce from the wet market or skip the cooking and head straight to the KFC, Pizza Hut or Dominos. There are also a few food courts for those who prefer local fare.

Home renovation DIY enthusiasts will be thrilled to know that there’s a huge HardwareCity store for all their needs.  

Keat Hong Mirage is just an eight-minute walk away. The development was part of the November 2021 BTO exercise and stands out from the rest of the launches due to its wide range of shops. 

You can find a supermarket, laundromat, barber and clinic. For F&B options, there’s a bakery, ice cream shop, a newly renovated food court and last but definitely the most important – McDonald’s. 

Malls

If you’re a mall rat, the nearest ones would be Lot One at Choa Chu Kang Interchange and Bukit Panjang Plaza or The Hillion at Bukit Panjang Interchange. 

They’re pretty small malls, so you might want to take the train to Jurong East, where you can explore more entertainment and shopping options at mega-malls like Westgate, JEM and JCube. 

Schools

Parents with school-going children will be spoilt for choice when it comes to education. There are many schools in the area for all ages*:

• Little Footprint Preschool (750m)
• My First Skool (650m)
• PCF Sparkletots Preschool (1.4km)
• Chua Chu Kang Primary School (1.3km)
• South View Primary School (1.3km)
• Teck Whye Primary School (1.9km)
• ASPN Delta Senior School (Special Education) (450m)
• Chua Chu Kang Secondary School (1.4km)
• Teck Whye Secondary School (1.8km)
• ITE College West (350m)
• Jurong Pioneer Junior College (2.1km)

*The distance of schools are an approximation.

August 2022 Choa Chu Kang HDB BTO: The Cons

Accessibility

The BTO project isn’t within walking distance to any nearby MRTs – Choa Chu Kang MRT station is a 16-minute bus ride away. Keat Hong LRT station is a five to 10-minute walk away, which connects in two stops to Choa Chu Kang MRT and three stops to Bukit Panjang LRT. 

We’re patiently waiting for the opening of the Jurong Region Line (JRL), which is projected to open in three phases between 2027 to 2029. 

With the opening of the JRL, the nearest MRT stations within walking distance to serve the residents of the new Choa Chu Kang BTO would most likely be the Choa Chu Kang West MRT and Tengah MRT stations*. Travelling from either station will take them to Jurong East MRT in five to six stops.  

*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. 

Lack of green spaces

There’s a scattering of neighbourhood parks around the area, but nothing to write home about. Nature lovers can get their fresh air fix at either Keat Hong Garden (a three-minute walk) or Tembusu Park (a nine-minute walk).

Alternatively, the next decently-sized park would be Choa Chu Kang Park, a five-minute drive or 20-minute walk away.

August 2022 Choa Chu Kang HDB BTO: Price appreciation

Over the last decade, Choa Chu Kang has seen a price appreciation of 17.15 per cent, with five-room flats seeing a slight advantage (16.87 per cent) in appreciation over four-room flats (16.17 per cent).  

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

Flat type	Average price psf	Average price
three-room	$511	$381,812
four-room	$456	$477,803
five-room	$450	$569,886

Recently MOP projects in Choa Chu Kang

We look at past BTO projects with freshly completed MOP in 2020 and 2021. In these examples, we’ll focus on four-room flats as they’re the most commonly sought-after flat type. 

For reference, the Q1 2022 median HDB resale flat prices for four-room units in Choa Chu Kang is $470,000.

Keat Hong Quad (Sept 2012 BTO), MOP 2020/2021

• Median price: four-room $268,000
• Current price: four-room $548,857
• Appreciation: 104.7 per cent

Keat Hong Colors (Jan 2013 BTO), MOP 2021

• Median price: four-room $260,000
• Current price: four-room $529,741
• Appreciation: 103.7 per cent

Keat Hong Pride (May 2012 BTO), MOP 2020/2021

• Median price: four-room $254,000
• Current price: four-room $514,288
• Appreciation: 102.4 per cent

Keat Hong Mirage (Nov 2012 BTO), MOP 2021

• Median price: four-room $276,000
• Current price: four-room $530,000
• Appreciation: 92 per cent

Why the high price appreciation? For one, flats in relatively ulu areas like Choa Chu Kang tend to be cheaper, attracting more buyers looking for more bang for their buck. 

It might also surprise some people to find out that Choa Chu Kang made the list of top five HDB towns with the highest average price psf appreciation. 

August 2022 Choa Chu Kang HDB BTO: Conclusion

Having been a resident of Choa Chu Kang for my entire life, here’s my take on buying a unit here. 

If you love the hustle and bustle of city life and being a few stations away from town, Choa Chu Kang may not be suited for you. 

However, if you love large apartments at a friendly price point and living in a peaceful environment, you should definitely keep this project at the top of your list. 

ALSO READ: May 2022 HDB BTO overview: Bukit Merah, Queenstown, Toa Payoh, Yishun and Jurong West

This article was first published in 99.co.