HDB flats with waterfront views will cost more, say experts

HDB flats in the new Punggol Point District with waterfront views could fetch 5 to 10 per cent more than units that do not overlook the sea, said property analysts yesterday.

But they added that buyers will still be mainly focused on factors such as the apartment’s proximity to transport nodes and amenities.

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

The 1,172-unit Punggol Point Cove and 940-unit Punggol Point Woods are expected to be completed by 2023, when the nearby Punggol Coast MRT station is also slated to open.

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

Ms Sun added that take-up for the new Punggol projects will likely be healthy given the area’s potential and the fact that three- to five-room flats in non-mature estates were about two to five times over-subscribed in May.

There has been a steady demand for flats in Punggol this year, said senior director of research at real estate services company Cushman & Wakefield, Ms Christine Li. Punggol registered 919 transactions from January to July, second only to Sengkang’s 924 sales, according to HDB resale data.

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

Having a waterfront view is a bonus. Such views can fetch a premium of 6 per cent to 10 per cent for resale condominiums and about 3 per cent to 5 per cent for resale HDB flats, said Dr Lee Nai Jia, senior director and head of research at real estate consultancy Knight Frank.

Punggol flats with water views include Waterway Terraces I and II in Punggol Walk.

Ms Li does not think the new waterfront flats in Punggol will have a big impact on the HDB resale market.

“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.”

She added: “Demand from the resale market comes mainly from those looking for immediate occupation, or those who do not qualify for BTO flats.”

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