Hougang abuzz with private property launches

HOT SPOT

Published on May 18, 201， ST

 

By Cheryl Ong

 

HOUGANG is predominantly a public housing estate but the mature town is undergoing a transformation with the sprouting of private developments there in recent years.

New projects under construction are expected to add 2,319 homes to the 12,457 private properties and 496 executive condominium (EC) units there, experts said. These include recently launched projects like Boathouse Residences, Riversails, Parc Vera and the EC Heron Bay.

"This has widened the choice for buyers interested in this part of Hougang," said Jones Lang LaSalle Singapore research director Ong Teck Hui. "Prices of new condominiums in this area... average around $840 to $920 per sq ft (psf), which is a manageable entry-level pricing for private homes."

The abundance of Housing Board flats in the area - 48,488 in total - means there is a ready pool of upgraders looking for private homes there, said R'ST Research director Ong Kah Seng.

Although nearby Punggol is newer and offers the concept of waterfront living, its location in the north-eastern tip of the island may not appeal to upgraders from Hougang, he noted.

"So private homes in Hougang at suitable prices will appeal to residents looking to upgrade in the same location."

Resale transactions of private homes in Hougang have been holding steady, with under 200 units sold a quarter since the third quarter of 2011.

Ms Chia Siew Chuin, Colliers International research and advisory head, attributed it to the facilities available in the vicinity, making home owners less willing to move out of the area.

She also noted resale transactions of non-landed private residential homes constituted about 54 per cent to 64 per cent of all resale transactions in the area in the same period. Resale prices have remained stable, between $835 psf and $1,000 psf.

The latest project in the estate is the mixed-development Midtown Residences, developed by an Oxley Holdings-led consortium. "Midtown Residences rides on the earlier success of projects like Bedok Residences, Watertown and The Hillier, where the residential-cum-commercial concept has attracted strong demand," said Jones Lang LaSalle's Mr Ong.

The 160-unit development's proximity to the Hougang MRT station and bus interchange also adds to its appeal to investors, who can command competitive rentals because of its location.

Though units at Midtown Residences were recently sold at a premium price of $1,220 psf to $1,660 psf, it is unlikely to have an impact on overall prices of private properties in Hougang, noted Ms Chia.