The newly launched HDB flats in Punggol garnered more interest than those in Yishun despite higher prices. At HDB’s August 2018 Build-To-Order (BTO) & Re-Offer of Balance Flats (ROF) exercise, the flats in Punggol were oversubscribed at rates of 3.0 for three-room flats, 4.2 for four-room flats and 7.4 for five-room and three-generation flats.
Meanwhile, at Yishun, three-room flats were oversubscribed at only 1.5, half the overall application rate of the same flat type in Punggol. Four-room flats at Yishun was subscribed at a rate of 0.7, and five-room flats at a rate of 1.0.
This was despite the significant disparity in pricing between the two new BTO launches. Excluding grants, a 4-room flat in a Punggol BTO starts at $286,000, while a similar-sized unit in Yishun starts at $248,000. Meanwhile, a 5-room BTO flat in Punggol starts at $393,000, while a similar-sized unit in Yishun starts at $334,000.
August 2018 BTO Sizes & Prices
Source: HDB
In this article, we will explore why the newest batch of BTO flats in Punggol are so widely popular with Singaporeans.
1) Ease of connectivity
(Image source: HDB)
The two BTO developments in Punggol are Punggol Point Cove and Punggol Point Woods, which are both bounded by New Punggol Road and Punggol Way. The two sites are close to Punggol Point LRT station and the future Punggol Coast MRT station, which is slated for completion in 2023.
On the other hand, both Yishun sites are within a 2km radius to Yishun MRT station, possibly making them less appealing to homebuyers. The two BTO projects in Yishun are Melody Spring @ Yishun, and Yishun Glen. Melody Spring @ Yishun is bounded by Yishun Avenue 8 and Yishun Street 42, while Yishun Glen is bounded by Yishun Ring Road, Yishun Street 31 and Yishun Avenue 6.
2) Sea views and serenity
Punggol Point Cove (Image source: HDB)
Aside from their proximity to MRT and LRT lines, Nicholas Mak, ZACD Group’s executive director says the popularity of the Punggol flats is “expected” as some of the units may come with sea views.
This is particularly true for units at Punggol Point Cove. For a start, the name ‘Punggol Point Cove’ is inspired by its waterfront location. Nestled next to Punggol Promenade and close to Coney Island Park, residents will enjoy abundant recreational options.
Punggol Point Woods (Image source: HDB)
Meanwhile, the name 'Punggol Point Woods' is inspired by its surrounding greenery and the adjacent tree-lined Heritage Trail.
3) Size matters
Among flats offered in Punggol, five-room and three-generation flats were the most popular types for both first-time and second-time homebuyers. Their spacious floor areas might be the main attraction to couples staying with their children as well as their parents, notes ZACD Group’s Mak.
The application rates for the Punggol flats were 2 to 7 times higher than that of the Yishun flats.
According to Mak, this could be a signal that HDB flat applicants are very selective and would prefer flats that have a better chance for higher price appreciation in the near future, such as flats in a good location.
The next BTO launch will be in November, where HDB will offer 3,800 flats in Sembawang, Sengkang, Tampines, Tengah and Yishun. Of these, the HDB states that the flats in Sembawang, Sengkang and Yishun will have a shorter waiting time of 2.5 years, instead of the usual three to four years.