While Housing and Development Board (HDB) flats with waterfront views in the new Punggol Point District are expected to fetch higher prices than those with no such views, property analysts believe that buyers will still focus on factors such as proximity to transport nodes and amenities, reported The New Paper.
Their insight came after the HDB revealed that two build-to-order (BTO) housing projects within the new Punggol zone are set for launch this month.
Set to be completed by 2023, Punggol Point Cove will offer 1,172 units, while Punggol Point Woods will have 940 units.
Punggol Point is the fifth of the seven districts planned by the government for Punggol town.
OrangeTee & Tie head of research and consultancy Christine Sun noted that about 25,700 flats were launched by the HDB in 21 BTO projects within the area, including across Waterway West, Waterway East, Matilda and Northshore.
She expects the new Punggol projects to have a healthy take-up rate given the potential of the area and the fact that three- to five-room flats within non-mature estates were two to five times oversubscribed in May.
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Moreover, demand for Punggol flats have been steady this year, said Cushman & Wakefield senior director of research Christine Li. In fact, HDB resale data showed that Punggol posted the second highest transaction for the period January to July with 919 sales.
Li expects young families to be attracted to the new units, considering their proximity to the MRT station, the Singapore Institute of Technology’s new campus and the Punggol Digital District.
The units’ waterfront view is deemed a bonus. Resale condos with such views could fetch a six to 10 percent premium while resale HDB flats could fetch three to five percent more, revealed Dr Lee Nai Jia, Knight Frank’s senior director and research head.
Li, however, does not expect the HDB resale market to be significantly affected by the new waterfront flats.
“Waterfront living is not likely to be the determining factor for most buyers,” she said. “Location, price and amenities will likely remain their top considerations when choosing a home.”
Meanwhile, demand from the resale market mainly comes from those “looking for immediate occupation, or those who do not qualify for BTO flats”, she added.