HDB flats overlooking the water cost more, experts say, Latest news in Singapore

HDB flats in the new district of Punggol Point with views to the water can yield 5 to 10 percent more than units that do not overlook the sea, said real estate analysts yesterday.

But they added that buyers are still mainly focused on factors such as the proximity of the apartment to junctions and facilities.

Their insights came a day after the Housing Board announced the details of the new Punggol zone, where two build-to-order (BTO) housing projects are being launched this month.

The Punggol Point Cove with 1,172 units and the Punggol Point Woods with 940 units are expected to be completed in 2023 when the nearby Punggol Coast MRT station is also open.

Punggol Point is the fifth of seven districts planned for the city of Punggol. HDB has already launched approximately 25,700 flats in 21 BTO projects in the area, including Waterway East, Waterway West, Northshore and Matilda, said Ms. Christine Sun, head of research and consulting at real estate agency OrangeTee & Tie.

Ms. Sun added that the admission for the new Punggol projects is likely to be healthy, given the potential of the area and the fact that three- to five-room apartments in non-mature estates are about two to five times over-subscribed in May.

This year there is a constant demand for flats in Punggol, said senior director research at real estate company Cushman & Wakefield, Ms. Christine Li. Punggol registered 919 transactions from January to July, the second only for the 924 Sengkang sales, according to HDB resale data.

Young families should be attracted by the proximity of the new units to the MRT station, the Punggol digital district and the new campus of the Singapore Institute of Technology, she added.

A view of the water is a bonus. Such views can reach a premium of 6 percent to 10 percent for resale condominiums and around 3 percent to 5 percent for HDB flats with resale, said Dr. Lee Nai Jia, senior director and research leader at real estate consultancy Knight Frank.

Punggol-flats overlooking the water are Waterway Terraces I and II in Punggol Walk.

Ms. Li does not think that the new waterfront apartments in Punggol will have a major impact on HDB's resale market.

"Waterfront living is probably not the determining factor for most buyers," she said. "Location, price and facilities will probably remain their most important considerations when choosing a home."

She added, "The demand from the resale market comes mainly from people seeking immediate occupation, or those who do not qualify for BTO flats."

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