New BTO in Punggol priced higher

The Housing and Development Board (HDB) has launched Punggol Arcadia, a 750-unit project under its Build-To-Order (BTO) system, at the junction of Punggol Place and Punggol Field.

Prices for the 120 three-room units range from $181,000 to $211,000 each.

The 465 four-room units will cost anywhere from $268,000 to $327,000 each; while the 165 five-room units come with a $356,000 to $416,000 price tag.

By comparison, a four-room flat at the Punggol Breeze BTO project launched in June could be bought for $223,000.

The HDB said Punggol Arcadia, located next to the planned town centre, offers a better location. Some of its four-room units are also slightly bigger.

But could the higher prices at Arcadia deter buyers?

PropNex chief executive Mohamed Ismail pointed out that the median price of the five-room flats were just a few thousand dollars below that of Punggol resale flats.

BTO flats, he argued, “should be priced about 20 per cent cheaper than resale flats in the same area.

Otherwise, buyers may as well go for a resale flat where they do not have to wait to move in and can enjoy grants of up to $70,000.”

Nonetheless, he thought the prices could be indicative of higher construction costs. He also said the three-room flats at Arcadia could see demand as there are no resale flats in that size available.

Applications for Punggol Arcadia should be submitted by Nov 26.

Source : Today – 14 Nov 2008

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