How Pinnacle@Duxton propelled Central home prices to new heights
By EdgeProp Singapore
/ EdgeProp |
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The impact of Pinnacle@Duxton (Pinnacle) on Singapore’s public housing landscape has been far-reaching, to say the least.
Prior to the end of its Minimum Occupation Period (MOP) in December 2014, average psf prices for HDB resale transactions in the Central Area have hovered at about 50% higher than regions in the East and the West.
2014 HDB resale market trends
A screenshot from EdgeProp’s revamped Market Trends tool.
This equation quickly changed following the end of Pinnacle’s MOP. In 2015, HDB resale prices in the Central Area shot up by 24% to an average of $747 psf from an average of $603 psf in 2014. In the same year, a total of 124 four- and-five room units at the 1,848-unit Pinnacle changed hands at an average of $853 psf, defying the sluggish property market at the time.
2015 HDB resale market trends
A screenshot from EdgeProp’s revamped Market Trends tool.
In a nutshell, Pinnacle set a new benchmark for HDB resale prices in the Central Area and has been spearheading price trends in the town since. Today, HDB resale prices in the area can be as much as 2x higher than the rest of the country.
How did it single-handedly alter the landscape of local public housing? What sets Pinnacle apart from other HDB projects and what does this mean for local homeowners and buyers moving forward? Let’s have a look.
What makes Pinnacle@Duxton special?
If Pinnacle was a car, it’ll be the Rolls Royce of HDB developments. Completed in 2009, it is today, the tallest public housing project in Singapore and has been synonymous with million-dollar HDB transactions.
Unique amongst other public housing projects, the premium BTO project comprises seven 50-storey towers that are linked at the 26th and 50th levels by the world’s two longest sky bridges, each spanning 500 metres or 1,600 ft.
The other part of its appeal lies in its proximity to the Central Business District (CBD). Attractively located in Tanjong Pagar, the project on Cantonment Road sits just 382m away from Outram MRT station and is a stone’s throw away from Tanjong Pagar plaza.
An architectural standout in the CBD, Pinnacle@Duxton is now synonymous to million-dollar HDB transactions.
In 2017, at least 10 units were sold for above $1 million at the development. The transactions, ranging from $1 million and $1.138 million took place between January and November 2017.
Most recently, a five-room unit at Pinnacle changed hands for $1.08 million ($929 psf) in May 2018, as shown in our Market Trends tool.
A screenshot from EdgeProp’s revamped Market Trends tool.
What does this mean for the HDB resale market?
Resale prices at Pinnacle have been on an uptrend since its MOP in 2014. So far in 2018, a total of 32 four-and-five room units have changed hands at an average of $896 psf. Meanwhile, 64 of such units fetched an average of $870 psf in 2017.
Source: URA, EdgeProp.sg
Pinnacle continues to spearhead resale HDB prices in the area, with units at the project transacting at about 23% higher (at an average of $896 psf) higher than other public housing projects (at an average of $728 psf) in Central Area.
Overall, resale HDB homes in the Central Area saw the highest $psf growth from 2014 to 2018, rising by a startling 21%, followed by homes in Bishan at 8%, and in Toa Payoh at 4%.
Source: URA, EdgeProp.sg
The pricing trends, coupled with the increasingly common million-dollar resale HDB homes point to clear indications that Singaporeans are willing to pay top dollar for quality homes located in the Central, particularly those located in mature estates close to the city centre and the CBD. Resale homes in close proximity to MRT stations, and amenities like schools and shopping malls tend to be highly favoured.
Another contributing factor to the surge in HDB resale prices - most saliently in those of premium and the now defunct DBSS projects - is also that condo and EC sizes have been shrinking in recent years. Some extended families who require larger spaces for a more comfortable living environment would opt to purchase older but larger HDB units.
With these factors in mind, future home buyers can look into these indications as guidelines when making their next home purchase, as well as to leverage on current housing trends.
Want to make better-informed property decisions? You can now compare, analyse, and spot the latest property market trends at the snap of your fingers with our newly revamped Market Trends tool. Try it for FREE today!
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