Picture : New Development in Queenstown such as market will retain character of old estate
Queenstown’s Dawson area looks set to be the first public housing estate to hit the $500-per-square-foot mark, according to property analysts.
The assessment comes as analysts comment on various public housing upgrading projects announced by the Prime Minister during the National Day Rally.
Analysts say the new upgrading programmes will benefit other HDB housing estates, although the capital upside will be limited.
Brand new HDB flats in popular central areas like Toa Payoh and Redhill sold for just under $400 per square foot in recent balloting sessions.
But analysts believe Dawson Estate will achieve an unprecedented $500 per square foot after its revamp.
PropNex CEO, Mohamed Ismail, said: “In terms of location, Dawson beats Holland, even if you talk about Tiong Bahru or for that matter Redhill, because it’s really at the doorstep of the hinterland that is all surrounded by good-class bungalows. We’re talking about less than two kilometres to Orchard Road.
“Talking about resale prices for five-roomers, for some good units, (they can fetch) $600 per square foot. So far, for a brand new HDB flat, I don’t think we’ve crossed the $500 mark. Dawson will be the first to reach, and even with such prices, there will definitely be great demand.”
This is considering the fact that a few choice resale units in nearby Tiong Bahru recently changed hands at about $600 per square foot.
In his National Day Rally speech, Prime Minister Lee Hsien Loong also announced that the Main Upgrading Programme (MUP) will be replaced by a new scheme, called the Home Improvement Programme (HIP) which will cover many estates.
Property analysts say the HIP will also help to raise the values of homes further away from the city centre.
However, since the new programme is aimed at casting a wider net, the gains will not be as substantial, say analysts.
PropNex’s Mr Mohamed Ismail said: “MUP does not just include a room, it also includes the entire landscape, the lift upgrading and there’re so many other tangible and intangible benefits, because the entire estate looks brand new. That’s why the MUP estates tend to get anything in the range of close to about 20% more than its previous value. HIP will help, in terms of price, but it will be marginal because there isn’t an added space to start with.”
Analysts say the HIP is targeted at basic upgrades catering to convenience, comfort and safety — which is why it is expected to cover more homes. - CNA/ir
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