A few hours ago, a Reddit user on the r/Singapore channel shared an old 1977 newspaper clipping with news of JTC’s 5-room flats being offered for sale in Jurong.
The sale was for 62 units in the Teban Gardens area, located near the junction of Jalan Ahmad Ibrahim and Jurong Town Hall Road. Then, each unit cost S$30,000 and the application was on a first-come-first-served basis.
With every apartment having a total floor area of 130 square metres (or 1399 sqft), they come with three bedrooms, an attached bathroom/toilet to the master bedroom, separate living and dining rooms and a common bathroom/toilet. On a per-square-foot basis, the price for these 5-room flats then was S$21.44 psf.
According to the news clipping, the flats command a view of Jurong Golf Course to the north and the Pandan Reservoir immediately to the south, which would place the development somewhere on the map below.
If you’ve ever been to Teban Gardens, or exited AYE via Penjuru Road and head along West Coast Road, you would have seen the Pandan Reservoir to your right and current HDB flats to your left. Those old flats mentioned from the 1977 article would have been torn down or rebuilt by now, with the oldest HDB flats in the area being the ones completed in 1986 instead.
What really made the thread interesting is when users shared how much the “average worker” was earning in 1976, which, according to this press release from the Publicity Division from the Ministry of Culture then, was around S$340 per month. In other words, users were projecting that since today’s median gross monthly salary is S$4,680 in 2021, the 13.76x should, in theory, comparatively reflect today’s 5-room flat price increases in the area.
A quick check revealed that a 5-room (standard) HDB resale flat in the adjacent Pandan Gardens area recently changed hands in November 2021 – at a price of S$450k, or S$323 psf.
Completed in 1986, it was a 1,389-sqft unit on the 10-12th floor. In terms of price, that’s a 15x increase from 1977’s prices. So based on median salary increases and the rise in HDB resale prices over the years, the increases are almost in tandem, at least if we isolate comparisons just within that neighbourhood.
If we look at the more recent BTO development (Teban View) in the area, which was launched in September 2011 and completed in 2016, indicative prices in 2011 were S$158k-S$219k for 3-room flats (67 sqm or 721 sqft) and S$271k-S$361k for 4-room flats (92 sqm or 990 sqft). This would place indicative prices anywhere between S$219 psf to S$365 psf.
Since the median gross monthly salary in 2011 was S$3,249 – which compared to 1976’s S$340 is a 9.56x increase – the psf price increase of the BTO flats for Teban View shouldn’t be far off as well then.
Compared to 1977’s S$21.77 psf, the resultant range of S$219-S$365 psf for Teban View would place it at roughly 10x to 16.8x.
It is important to note that neighbourhood changes, amenities and policies (like eligibility criteria, availability of grants, home loan interest rates, CPF contributions, inflation, consumer prices, etc.) would definitely be different over the years and play some part in these margins. Also, it is critical to note that the flats in 1977 were built by Jurong Town Corporation (JTC), which was a different entity compared to HDB today. The standard of living then and the growth of our economies are also definitely not similar.
Users on the Reddit thread did discuss the latest flat sizes of BTO flats, which they feel have become smaller and cost more on a psf basis (relative to the article).
When we look at how much residents of Teban View are selling their apartments after MOP (2021), the figures present a far more interesting story, especially when the flat is newer (longer remaining lease period). The average psf price for resale HDB flats (3- and 4-room) at Teban View is currently S$524 psf.
If we compare this with the launch psf prices in 2011, that’s roughly a 44% to 139% increase (depending on unit and floor) after 10 years. It’s interesting to note that 44% is also the increase in median gross monthly salary between 2011 and 2021.
Furthermore, compared to 1977’s psf price, the average psf resale price of S$524 is a 24x increase – way, way more than the 13.76x increase in median gross monthly salary over roughly the same period.
In other words, hypothetically, before factoring any grants, interest rates or duties, if you compare what your father or grandfather may have paid for a home in Teban Gardens back in 1977, with what you’re probably paying for today, especially when it comes to newer, larger-sized apartments within the same neighbourhood, you’re probably paying more, not just on a psf basis, but also in terms of how much you’re earning today, relative to what they had during their time.
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Are you a multi-generational family living in Teban Gardens? Let us know your thoughts in the comments section below or on our Facebook post.
If you found this article helpful, check out our Ultra-rare Queenstown HDB loft sold at record-breaking S$1.33m in the neighbourhood and HDB resale grants: How much can you get? [2021 Edition].
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