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|November 12,2026

Will the Tekong Tunnel Make East Homes Worth More?

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TL;DR

Could an undersea tunnel to Pulau Tekong make homes in Pasir Ris and Changi more valuable? Possibly, but the project is still being studied. With no confirmed route, opening date or public access arrangements, it is too early to assume the tunnel will boost property prices in the East.

  • What's being proposed: Singapore is studying undersea road tunnels connecting Pulau Tekong to the mainland. Around 500 hectares of land, roughly the size of Toa Payoh, could eventually be available for civilian uses.
  • Tekong's future is still undecided: There are no confirmed plans for a new residential town. Instead, the Government is exploring potential industrial and utility uses, including a 200-hectare energy infrastructure cluster.
  • Property gains are not guaranteed: Unlike a new MRT station, the proposed tunnel may not directly improve everyday commuting for residents. Its impact will depend on where it connects, who can use it and what developments eventually take shape.
  • Changi and Pasir Ris are worth watching: These eastern neighbourhoods already have confirmed improvements coming, including the Changi Northern Corridor and Cross Island Line stations at Loyang and Pasir Ris East. These provide a clearer basis for assessing future connectivity.
  • Don't pay a premium for speculation: The tunnel has not been approved for construction, and major developments could take decades. Buyers should prioritise current property prices, existing amenities, rental demand and confirmed infrastructure projects.

Bottom line: The Tekong Tunnel could eventually reshape parts of eastern Singapore, but its impact on residential property values remains uncertain. If you're buying in Pasir Ris or Changi, make sure the property makes sense based on what exists and what is already confirmed, rather than paying more for a tunnel that may or may not benefit the area.

You're considering buying a home in Pasir Ris or Changi. The location looks promising, especially with upcoming transport improvements. But now there's talk of an undersea tunnel connecting Pulau Tekong to the mainland.

Could that be another reason to buy in the East, or even pay a little more for a property there?

During the National Day Rally on 23 August 2026, Prime Minister Lawrence Wong announced that Singapore is studying the feasibility of building undersea tunnels connecting Pulau Tekong to the mainland.

With hundreds of hectares of land potentially available for new developments, the project could have much wider implications for Singapore's eastern regions.

What's actually happening at Pulau Tekong?

Most of us know Pulau Tekong as the place where National Service (NS) recruits undergo Basic Military Training. But now, it seems that the island could eventually serve a much bigger purpose.

According to PM Wong's National Day Rally 2026 speech, additional reclamation works are planned for southern Tekong. After accounting for the Singapore Armed Forces' training requirements, approximately 500 hectares of land could be available for future civilian uses. That's roughly the size of Toa Payoh.

And with Singapore constantly facing land constraints, having that much additional space could create significant opportunities for future development.

There is just one problem.

Right now, getting to Pulau Tekong requires a boat. The obvious solution would be to build a bridge. However, that would interfere with busy shipping channels. So, the government is now exploring the possibility of constructing undersea road tunnels instead.

Source: URA. Artist's impression for illustration purposes only. The tunnel design and alignment have not been confirmed.

Currently, the project remains at the feasibility-study stage. There is no confirmed tunnel alignment, mainland entrance, opening date or decision on public access. PM Wong also made it clear that projects of this scale could take decades to complete.

So, before anyone starts buying property because of a proposed tunnel, there are a few things worth understanding.

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What will Tekong actually be used for?

When people hear that Singapore has hundreds of hectares of land available for development, it's tempting to imagine another new town filled with HDB flats, condominiums, shopping malls and recreational facilities.

Alas, the government has not announced plans to develop Tekong into a residential town. Its primary role remains military training, and the future civilian uses of the additional land have yet to be decided.

In a parliamentary response on 10 September 2026, Minister Chee Hong Tat explained that utilities and other industrial uses were among the possibilities being studied.

However, the government has already started looking at one such possibility.

On 6 October 2026, the Energy Market Authority (EMA) announced that it would commission a feasibility study for an energy infrastructure cluster covering an estimated 200 hectares on Pulau Tekong.

The facilities being considered include:

  • Hydrogen-ready natural gas-fired power plants
  • A liquefied natural gas terminal
  • Other low-carbon energy technologies

EMA expects to appoint a consultant by mid-2027, with the study taking approximately two years.

This is just one possible use being studied for part of Tekong. The broader plans for the island's future civilian land uses have not been decided.

If the energy cluster goes ahead, that could bring economic activity and employment opportunities, but it does not automatically translate into stronger residential demand.

For example, if a new industrial facility brings workers to Tekong, some might prefer to live in nearby mainland neighbourhoods.

But how many workers would actually need housing nearby? Would they be able to commute through the tunnel? Would the facilities generate substantial daily employment?

None of these questions has been answered yet.

The type of development matters just as much as the tunnel itself. A new residential district, an industrial estate and an energy infrastructure cluster would each have very different implications for surrounding properties.

Can new transport infrastructure really increase property prices?

Improved connectivity like what we've seen with MRT expansions can influence property values. But, the proposed Tekong Tunnel is not an MRT line. It is merely a road connection to an offshore island that is currently used primarily for military training.

Unless the tunnel meaningfully improves everyday accessibility, creates new employment catchments or brings other benefits to mainland residents, there is no reason to assume it would generate the same effects as a new MRT station.

Unlike confirmed MRT and road projects, we still don't know where the Tekong Tunnel would connect to the mainland, who would be allowed to use it, or how much economic activity it could bring.

Better connectivity can only do so much. It would be wise to pay attention to the infrastructure's surrounding impact as well.

Which neighbourhoods could be affected?

Geographically speaking, eastern areas like Changi and Pasir Ris would be worth monitoring, especially since they already have significant infrastructure improvements in the pipeline.

For example, the Changi Northern Corridor project is expected to be completed by 2030, according to the Land Transport Authority (LTA). It includes the new Loyang Viaduct, road improvements and cycling infrastructure.

Together with the upcoming Cross Island Line stations at Loyang and Pasir Ris East, the improvements are intended to strengthen connectivity to major employment areas such as Loyang Industrial Estate and the Changi aviation cluster.

Unlike the Tekong Tunnel, these are confirmed infrastructure projects with clearer plans and expected completion timelines.

If the proposed Tekong Tunnel eventually connects to a part of this eastern transport network, it could potentially make nearby areas more relevant to people travelling to and from Tekong.

Source: Screenshot of Google Maps showing Changi, Pasir Ris and Pulau Tekong. Coloured areas are for geographic reference only and do not represent the proposed tunnel route or mainland entrance.

That said, the Government has only discussed how the tunnel could improve access for military and civilian uses. It has not announced whether the road would be open to everyday commuters or who would be allowed to use it. Until those details are confirmed, there is no guarantee that mainland neighbourhoods will benefit from the tunnel.

So should you buy property now because of the Tekong Tunnel?

It's understandable to be interested. And many property buyers do often look for areas with upcoming infrastructure and development potential. But there's a difference between buying into a confirmed transformation and buying into an idea that's still being studied.

Right now, the Tekong Tunnel project hasn't been approved for construction. Its route is unknown, and the eventual civilian uses on Tekong are still being evaluated. Even if the tunnel proceeds, the government has indicated that these major island-development projects will unfold over decades.

The proposed Tekong Tunnel is an interesting project with plenty of potential. But in the end, whether that translates into higher residential property values in the East remains uncertain.

So, if you're considering a home in Pasir Ris or Changi, look at what you're actually paying for today. Compare recent transacted prices, confirmed transport improvements, existing amenities and rental demand before placing any value on the Tekong proposal.

Until the route, access arrangements and surrounding land uses become clearer, the tunnel is best treated as a future possibility, not a reason to pay more for a property today.


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