Tuesday, April 04, 2006
Prices of older HDB flats hold up thanks to location, upgrading
SINGAPORE : Some 11 percent of all HDB flats in Singapore are at least 40 years old, but despite their age, their prices appear to be holding up well against newly-built flats.
Location is one key factor, but analysts say renewal and upgrading works are also helping.
The age of the property is often an important factor to consider when buying a home.
But when it comes to older HDB flats, the location could well offset that consideration.
And consultants say it is one key factor that is helping older HDB flats stave off price erosion.
Said Nicholas Mak, director of research, Knight Frank, "We have to look at variety of factors; not just simply the age of the flat, but also the location, the amenities, proximity to school and also proximity to employment."
So mature flats aged 40 or above can fetch more than new flats in outlying areas.
For example, a 31-year-old flat in Marine Parade can cost about the same as a six-year-old, five-room flat in Sengkang which has double the floor area.
Said Mohamed Ismail, CEO, PropNex Corporation, "So far, in the mature estates, the price appreciation has been stronger. Today a property, at Central area -- let's say Queenstown, or Bishan, or Redhill, or Marine Parade -- commands a higher price compared to a newer estate, even though it is much older when compared to newer estates like Sembawang, Sengkang, and other outer areas like Pasir Ris."
Older estates like Kallang, Old Airport Road, Toa Payoh, Rumah Tinggi, Bukit Ho Swee are about 40 years old.
Next come the outer areas, like Tampines and Bedok, which are more than 20 years old.
Another factor is the estate renewal programme.
Said Mr Mohamed, "Because of our island being land-scarce, even though the estate becomes older, our government initiative of continued upgrading programmes, and the amenities that come with it, always favours matured estates, because people want to stay closer, to their parents, in-laws. They are always in demand."
ERA says that residents at Clementi, where the town centre is to be re-developed, could see prices lifted by between 10 and 20 percent.
Said Eugene Lim, assistant vice president, ERA Realty, "Clementi is a HDB town that was built many, many years ago, and the existing facilities at the town centre are very dated. With the redevelopment in the town centre, generally all the residents in Clementi will benefit."
Location and amenities aside, industry players also note that there is that "old-estate" charm in older estates which newer ones cannot replicate overnight. - CNA /ct
Location is one key factor, but analysts say renewal and upgrading works are also helping.
The age of the property is often an important factor to consider when buying a home.
But when it comes to older HDB flats, the location could well offset that consideration.
And consultants say it is one key factor that is helping older HDB flats stave off price erosion.
Said Nicholas Mak, director of research, Knight Frank, "We have to look at variety of factors; not just simply the age of the flat, but also the location, the amenities, proximity to school and also proximity to employment."
So mature flats aged 40 or above can fetch more than new flats in outlying areas.
For example, a 31-year-old flat in Marine Parade can cost about the same as a six-year-old, five-room flat in Sengkang which has double the floor area.
Said Mohamed Ismail, CEO, PropNex Corporation, "So far, in the mature estates, the price appreciation has been stronger. Today a property, at Central area -- let's say Queenstown, or Bishan, or Redhill, or Marine Parade -- commands a higher price compared to a newer estate, even though it is much older when compared to newer estates like Sembawang, Sengkang, and other outer areas like Pasir Ris."
Older estates like Kallang, Old Airport Road, Toa Payoh, Rumah Tinggi, Bukit Ho Swee are about 40 years old.
Next come the outer areas, like Tampines and Bedok, which are more than 20 years old.
Another factor is the estate renewal programme.
Said Mr Mohamed, "Because of our island being land-scarce, even though the estate becomes older, our government initiative of continued upgrading programmes, and the amenities that come with it, always favours matured estates, because people want to stay closer, to their parents, in-laws. They are always in demand."
ERA says that residents at Clementi, where the town centre is to be re-developed, could see prices lifted by between 10 and 20 percent.
Said Eugene Lim, assistant vice president, ERA Realty, "Clementi is a HDB town that was built many, many years ago, and the existing facilities at the town centre are very dated. With the redevelopment in the town centre, generally all the residents in Clementi will benefit."
Location and amenities aside, industry players also note that there is that "old-estate" charm in older estates which newer ones cannot replicate overnight. - CNA /ct
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// posted by Shajahan @ 10:36 AM 