If someone came up to you 10 years ago and said that resale flats in Punggol and Sengkang would be the most popular in the country, you’d find a reason to excuse yourself and possibly check the location of the nearest police station.
But you’re forgetting one thing: patterns from the past won’t always be repeated in the future.
Typically, those going for resale flats have been drawn to mature estates that are near primary schools and shopping malls.
But that’s no longer the case.
HDB Flats in Punggol & Sengkang Are the Most Popular Resale Flats in 2021 So Far
Punggol and Sengkang have become two of the most popular estates in the country, based on the number of resale HDB flats sold in the first two months of the year.
In January and February 2021, 447 flats were transacted in Sengkang while 446 changed hands in Punggol, according to EdgeProp.
After them comes Tampines with 343 flats and Bedok with 268 flats.
The largest increase in resale transactions in 2020 also occurred in Punggol and Sengkang, when compared to figures from 2011.
In at number one is Punggol, which experienced a 181.5% increase. Next is Sengkang (60.5%), followed by Bukit Panjang (34.5%) and Clementi (20.1%).
So, what accounts for this phenomenon?
More BTO Flats & Outdoor Recreational Options
The main reason why so many buyers are going for resale flats in these two estates is that they are new estates that have more BTO (Build-To-Order) projects in their towns.
To know more about BTO, watch this video to the end:
Since many of them have already achieved the five-year minimum occupancy period (MOP), the owners of these BTOs are free to sell them.
And the number of BTOs achieving minimum occupancy period MOP will continue to rise.
In 2020, 24,500 flats achieved MOP. That will rise to 25,530 flats this year.
According to Nicholas Mak, head of research at ERA Realty Network, this is because the government increased the supply of BTO flats from 2011 to 2014.
Plus, these young estates also offer many outdoor recreational options for exercise, as well as public transportation connectivity and shopping malls.
For those couples who aren’t able to wait a few years for their BTO flat, they may dip into the resale market, and will obviously be drawn to newer flats.
And the top five towns where flats between five and nine years were sold in 2020 proves this:
- Sengkang – 777 flats
- Yishun – 562 flats
- Punggol – 550 flats
- Bukit Panjang – 495 flats
- Tampines – 276 flats
Rise in Flat Prices
The increased demand alone doesn’t account for the rise in flat prices in Punggol and Sengkang, due to the sufficient supply which is still growing.
One of the reasons many young families are choosing to move to Punggol is the promise of future developments.
In Punggol, for example, there’ll be a new university campus, market village, heritage trail, office spaces, logistic hub, and amenities in the coming years.
Overall, prices for resale flats rose 5% in 2020, while the number of transactions increased 4.4%.
The same trend is expected this year.
And with more flats reaching MOP, the number of resale transactions could once again increase, and don’t be surprised if prospective buyers flock to Punggol and Sengkang to look for their new home.
Featured Image: happycreator / Shutterstock.com
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