Punggol HDB: BTO and resale prices you need to know from 2008
Punggol used to be one of the oldest settlements in Singapore, and was a sleepy rural town located close to the riverside. It was known as a waterfront locale with great seafood and visited mainly by watersports enthusiasts. Under the Punggol 21 Plus plan, a blueprint that was first unveiled in 1996, it has boosted the population from 52,700 in 2007 to more than 130,000 as of 2016. Today, with its scenic waterways and new shopping malls like Waterway Point, living in a Punggol HDB offers Singaporeans a much better standard of living than before. So if you have been looking at a Punggol HDB, read on to find out more on why Punggol is so attractive to young couples in Singapore!
Punggol HDB – A mini guide
With the Punggol 21 Plus plan, Punggol has now been transformed into seven districts namely Canal, Crescent, Punggol Point, Matilda, Northshore, Waterway East and Waterway West. From what used to be Sungei Punggol and Sungei Serangoon, it is now the famed Punggol Waterway. It is 4.2 km long and runs through the town, providing a waterfront landscape that is very rare in Singapore. Punggol Waterway Point is the newest mall and is probably one of the main highlights of Punggol. It is centrally located and is right where Punggol MRT station is as well as providing great views along the Waterway.
Punggol is also Singapore’s first eco-town, adopting green technologies for sustainable living. Punggol Waterway and Treelodge @ Punggol were the first two Punggol HDBs developed with these environmental initiatives.
One big draw to Punggol would probably be the child-friendliness of the place. Most of the Punggol HDBs have playgrounds and Waterway park has sand and play area for the kids. The stretch of Punggol Waterway is great for parents to bring young kids to walk or cycle, fostering a healthy lifestyle. In fact, most of Punggol is pretty scenic and certain blocks will afford you a great view of the town. If you want to find more picturesque sites, here are the top 10 sights in Punggol.
Future plans for Punggol
Transport
Living in a Punggol HDB is set to become even more accessible, with a new MRT station named Punggol Coast. This is scheduled to open by 2023. It was originally supposed to be ready by 2030, but now brought forward earlier to support developments in Punggol North. This new station will cut travelling time to City Hall from 45 minutes to 15 minutes.
Punggol was also the first estate to have Grab launch its shuttle service to make interconnectivity within Punggol even easier than before. In response to the traffic jams coming into Punggol, steps are being taken for a major road extension at Lor Halus to allow for better traffic flow.
Improvements in Childcare Facilities
Punggol HDBs are definitely a popular choice for many young couples and it shows, as 11.1% of its residents are aged 4 and below. To cater to the demand of young couples, there will be two mega childcare centres in Punggol that will open by mid-2018. Further refinements include the construction of two additional pedestrian crossings for easier accessibility for young families.
Punggol HDB BTO and resale prices
4-room BTO average prices
4-room average resale prices
| Year | BTO price low end | BTO price high end | Average BTO price | Average Resale price | Difference |
|---|---|---|---|---|---|
| 2008 | $223,000 | $327,000 | $275,000 | $321,500 | $46,500 |
| 2009 | $234,000 | $322,000 | $278,000 | $339,625 | $46,500 |
| 2010 | $243,000 | $376,000 | $309,500 | $389,125 | $79,625 |
| 2011 | $257,000 | $390,000 | $323,500 | $451,700 | $128,200 |
| 2012 | $260,000 | $379,000 | $319,500 | $486,625 | $167,125 |
| 2013 | $279,000 | $377,000 | $328,000 | $496,625 | $168,625 |
| 2014 | $278,000 | $341,000 | $309,500 | $447,750 | $138,250 |
| 2015 | $277,000 | $372,000 | $324,500 | $420,000 | $95,550 |
| 2016 | $257,000 | $365,000 | $311,000 | $443,750 | $132,750 |
From the data you can see that the prices for Punggol HDB have increased from 2008 till 2013. This was partly due to an insufficient supply of new flats. Also because the BTO supply took some time to be ramped up, couples who could not wait for a BTO flat were forced to turn to resale. This can somewhat be seen in the increasing price differences between a BTO and resale flat from 2008 to 2013.
HDB cooling measures
Since 2011, the Minimum Occupation Period (MOP) for resale flats was extended to 5 years. Coupled with the 3 year waiting period for PRs to buy their resale flat, these were a few contributing reasons as to why resale flat prices started dropping from their peak in 2013.
So should I buy a BTO or Resale?
BTO flats in Punggol may not have been the most popular when they first launched, but if you had bought a Punggol HDB in 2003 at the launch price of between $138,000 and $178,000 and sold it in 2012 at $486,625, you are looking at almost triple the value of your home.
That being said, the situation now is very different as Punggol becomes a more mature estate. A town hub is expected to be completed by 2021 along with a library and hawker centre. With the growing number of amenities, it is expected that BTO prices in the area will go up.
To show you an example, let us take a look at the latest BTO launch in Punggol, Northshore Edge.
Here is the pricing for the new Punggol launch.
So for the 4-room HDB flat we are looking at a median price of $317,000. Let us now compare it to if you were to buy a resale Punggol HDB.
Based on the HDB records, these were the cheapest transactions in Punggol for a 4-room HDB flat in the past 6 months. As you can see, the remaining lease left is still very substantial so if you are weighing between a BTO and resale flat in Punggol, the price difference might not be as much as you would think. Particularly if time is of a concern to you, a resale flat may be a viable choice here.
As always, feel free to comment below or if you have anything to ask you can reach us at hello@stackedhomes.com. If you want to read more about buying HDB resale flats, here is our Ultimate Guide for you!
