Punggol flats more popular than Yishun flats despite higher prices

By
/ EdgeProp Singapore
|
September 4, 2018 4:28 PM SGT
The HDB’s Build-To-Order (BTO) & Re-Offer of Balance Flats (ROF) exercise for August 2018 closed on September 3. Despite the higher prices of flats in Punggol, they were more popular than the Yishun flats.
As at September 3, 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.
On the other hand, for Yishun, only 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.
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Under the latest BTO and ROF exercise, the HDB has launched 5,101 flats in total: 4,375 are BTO flats for sale across four projects in Punggol and Yishun, while 726 flats are for sale under ROF across various estates in Singapore.
According to Nicholas Mak, ZACD Group’s executive director, the popularity of the Punggol flats is “expected”, because they are located near the upcoming Punggol Coast MRT station and the existing Punggol Point LRT station. “Some of the flats in Punggol may come with sea views,” Mak adds.
On the other hand, the Yishun flats are located farther away from the MRT station in Yishun, making them less appealing to homebuyers.
Among flats offered in Punggol, five-room and three-generation flats were the most popular types for both first-time and second-time homebuyers due to their spacious floor areas, which might be attractive to couples staying with their children as well as their parents, notes Mak.
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The application rates for the Punggol flats were 2 to 7 times higher than that of the Yishun flats.
“This could be a signal to the HDB 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 those flats that are well-located,” says Mak.