Punggol vision takes shape

Watertown condo (above) along Punggol Waterway under construction. Launched early this year, the project is 97 per cent sold, with prices averaging $1,200 psf. It is set to be completed in 2017. -- ST PHOTO: LIM YAOHUI

WATER is helping to power the construction boom in Punggol, with developers touting the eco-allures of living close to Sungei Serangoon and Punggol Waterway.

The projects also hope to make waves with buyers by using names like Watertown and River Isles. Eight condominiums and six executive condos, with 8,864 units in total, have been launched since 2010.

An additional 11 Build-to-Order projects - with more than 9,000 units - were also rolled out in the last two years, according to the Housing Board. More flats are expected to be offered which will boost the number from the current 26,000 to 42,000 in 2015.

The projected number of private and HDB homes in Punggol is 96,000.

Coming: Waterwoods EC Punggol

Punggol Central EC coming 2014

Punggol Drive EC coming 2014

Anchorvale Crescent EC coming 2014

This construction boom is in line with the Punggol 21 Plus Masterplan, unveiled by Prime Minister Lee Hsien Loong during his National Day Rally speech in 2007, to transform the former fishing village into a model town for 21st century living.

Home buyers have caught the buzz and are snapping up homes.

New private homes, averaging $800 to $1,000 per sq ft, are more affordable than those in, say, Bedok and Pasir Ris.

A four-room HDB resale flat, which can fetch up to $500,000, is also cheaper than the bigger flats in the mature estates.

Watertown condo, launched early this year, is 97 per cent sold despite prices averaging $1,200 psf. Jointly developed by Frasers Centrepoint, Far East Organization and Sekisui House, it is estimated to be completed in 2017 while its retail component, Waterway Point mall, will open in 2015.

Another project, the Waterbay executive condo, drew more than 1,000 visitors to its showflat when it opened last weekend.

"We're not selling a masterplan or a dream," said senior marketing manager Donald Ng from Qingjian Realty, developer of Waterbay and three other projects in Punggol.

"We are selling a reality," he added, referring to the 4.2km Punggol Waterway - which connects Sungei Punggol and Sungei Serangoon - as well as the Waterway Point mall.

Mr Teo Ser Luck, an MP for Pasir Ris-Punggol GRC, told The Straits Times: "Usually, the amenities are built when there is a demand for it, but in Punggol, we are building the amenities first before the residents move in."

"This is a focused effort by the Ministry of National Development. We are building very quickly here to hold up the population increase," he added, referring to the total fertility rate of 1.4 that the Government is aiming for.

The birth rate stands at 1.2 now. Also, there has been talk that Singapore is aiming for a population of six million from the current 5.31 million.

Punggol, which attracts mainly first-time home buyers and HDB upgraders, will have a big role to play in this national objective.

"Barring the other small land parcels in Singapore, the only large land mass left is in Punggol," noted Mr Chris Koh, director of property consultancy Chris International. "It's a way to spread the population to the north-east, which has the stigma of being not matured, and has nothing special about it."

This perception can be traced back to the Punggol 21 vision which hit a bump when the 1997 Asian financial crisis hit. Building plans were pulled back and instead of the planned 80,000 private and HDB homes, only about 16,000 flats were built.

With the completion of the Punggol Waterway, Punggol 21 Plus is on track, creating excitement not only among developers and buyers, but also giving mature estates a run for their money.

"With the favourable market conditions, the Government is delivering its promise to Punggol residents," said Mr Lee Sze Teck, senior manager for training, research and consultancy at Dennis Wee Group.

Mr Koh said that when the projects are completed in 2014 and 2015, and people start to move into Punggol, there may be empty flats elsewhere. He estimates 80 to 90 per cent of private home buyers are HDB upgraders.

Among them is engineer Sukhwinder Singh Gill, 43, who has rented out his four-room HDB flat in Ang Mo Kio to live with his parents before moving into the A Treasure Trove condo when it is completed in 2015.

"Punggol was not on my radar at first. I was looking at the Bedok Reservoir and Jalan Kayu areas but my friends recommended Punggol for its value for money, size and location."

In 2010, he bought a four-room, 1,100 sq ft unit for $1 million. "Now, the condo next to mine is going for $1.3 million for the same size. Before I move in, I've already made $300,000 in paper value," he said.

Despite the construction frenzy, property analysts do not foresee a housing glut in Punggol as long as the economy stays in good shape and prices remain attractive relative to other areas.

Punggol's trump card of water and sea is also a formidable allure.

Said Mr Singh whose wife gave birth to their first child in July: "I'm moving there for the lifestyle. There are golf ranges, water sports venues, beautiful parks and a saddle club. It's a good place for a kid's development."

Source: Straits Times 12th October 2012

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