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Punggol Condos – Can buy or bye-bye?

Punggol condo. Can buy or bye-bye? Hello everyone. I am very excited today because I have finally landed at Punggol to do my buy or bye-bye series. A few of my subscribers have asked me to do a study to cover the condominium in this area. Before I embarked on my study. I am equally curious about which condo will outperform and which condo will underperform. Will it be those that are nearer to the MRT station that will make more money? Or will it be those far-flung ulu condos at the extreme end of Punggol that you will never ever consider?

Hi, my name is Alan from AlanWeeProperty. Welcome back to my YouTube channel. For today’s discussion, I will cover 13 condos in Punggol thru my 7km run on new year’s eve. I will cover both EC and condominiums as well as the only integrated development above Waterway Point. I will only compare transactions that measured 1,000 – 1,400sqf which cover mainly 3 and 4 bedrooms. I will only use data for the most recent 20 transactions and compare than from launch date till 2022. The purpose of this comparison is to find out which condo has outperformed and which condo has underperformed. Let us dive straight into it.

A summary of the 13 Punggol condominiums

Watertown

Firstly, I started off my run near Punggol MRT and next to it is Waterway Point. Waterway Point is an integrated development that comprises a popular mall and a condominium known as Watertown. Watertown is a 99 years development that comprises a mixture of 1 to 4 bedrooms and TOP in 2017. Anyway, all the condos in our discussion are on 99 years leasehold tenure.

Treasure Trove

The next condo opposite Punggol MRT is A Treasure Trove. Treasure Trove is a private condominium with 882 units and TOP in 2015. It also has a conservation clubhouse which is known as the Matilda house.

Twin Waterfall

As I run further downward to Punggol GRC. I am greeted by MP Sun Xueling. Here, Twin Waterfall is an EC with 728 units. It TOP in 2015 and comprises mainly 3 to 4 bedrooms units.

Ecopolitan

Ecopolitan is also an EC with 512 units and TOP in 2016. It comprises mainly 3 to 5 bedrooms units and is located at the end of Punggol Walk.

Prive

As I run along Punggol Field. Prive is one of the pioneer EC in Punggol. It was completed in 2013 and comprises 3 to 4 bedrooms units. It is within walking distance to Punggol MRT station.

Waterwood

I struggle to run under the afternoon sun and finally reach Edgedale plains. This part of Punggol is a little far for me. However, this is Waterwood EC which TOP in 2016. There are 383 units and mainly 3 to 5 bedrooms apartments.

Flo Residences

Next to Waterwood is Flo Residences which is also a private condominium. Flo has 530 units and TOP also in 2016. It is situated near the KPE exit along Punggol East.

RiverParc Residences

Finally, I arrive at RiverParc Residences. Riverparc is an EC with 504 units and TOP in 2014. It is also located at the extreme east side of Punggol.

The Terrace

Next, The Terrace is another EC with 747 unit. It TOP in 2017 and mainly have 3 to 5 bedrooms apartment.

Amore

As I run. I saw Amore. Seriously, I find this condo name a little out of place in Punggol. Nevertheless, this EC is completed in 2016 and have 2 to 5 bedrooms units. This is a small development with just 378 units.

River isles

As I run towards Punggol Central. I am greeted by River isles which is a private condominium build in 2015. There are 610 units with 1 to 4 bedrooms apartments.

Waterbay

Next condo is Waterbay EC which TOP in 2016. Waterbay is another small EC with 383 units of 2 to 5 bedrooms apartments.

Parc Centros

Lastly, I pass Parc Centros which is another private condominium with 618 units. Its TOP in 2013 and is within walking distance to Punggol MRT station.

Highest Capital Gain

Here, we go. A brief introduction of the 13 condominiums. As usual, I have done most of the heavy lifting for u. Let me rank the condos that have the highest capital gain of between 50% – 64% since launch. The condos that outperform are Prive, Twin Waterfall, Riverparc Residences, The Terrace, Waterbay and The Amore. Anyway, all of them are EC.

If we compare it against the annualized return. The Terrace and The Amore did extremely well. The higher the annualized return means the sellers profited the most in the shortest possible time.

The remaining condos that perform with a decent return of 35% to 43% are Waterwood, Treasure Trove, River Isles, Ecopolitan and Parc Centros. Interestingly Ecopolitan which is an EC fares almost the same level as its private condominium peers. How can that be? What really happens? Well, we will come back to this in part 2 of this video.

The worst performing condos are surprisingly Watertown and Flo Residences. Watertown was launched at $1,179 psf back in 2012 and the resale value is $1,457psf in 2022. This means that prices for the 3 and 4 bedrooms have increased by only 24%. Frankly, this looks decent, but if we compare it against the rest of the condominiums in Punggol. I think this mixed development should do better. Is developer profit margin theory at play here?

Next, Flo residences also did poorly at 22%. When it was first launched in 2012. It was selling for $839psf. Today, the price is hovering around $1,000psf. I have never been into flo residences so I cannot comment much. Maybe those that stay in the Flo share more light with me. But on another point. Flo seems to be undervalued as it is currently transacted at only $1,000psf. Don’t say I never share lobang in this video with you.

Punggol Condo Conclusion

So what can we conclude here?  

Firstly, most EC outperform and make more capital gains than private condominiums. As EC is considered a subsidy asset class for first-time buyers and HDB upgraders. It’s a no-brainer to buy EC I feel.

Secondly, if there are both EC and private condominiums in the same area. Most EC will outperform private condos in the long term. We can witness such trends such as Tampines Trillant versus The Glades in the East. 

Thirdly, appealing private condos such as Treasure Trove did well mainly because of its proximity to Punggol MRT plus the improvement in Punggol town over the years. On the other hand, private condos such as Parc Centros and River Isles did well in the face of competition from cheaper EC.

Fourthly, this is not true to say that condominiums in an integrated development will outperform a typical condominium. What kind of data are they comparing? The data has clearly shown that Watertown only achieves a 24% return in comparison to a 42% return for Treasure Trove which is also another private condo just across the street. Moreover, they are launched at about the same time.

Fifthly, there is no strong evidence that buying near Punggol MRT will outperform. In fact, most of the condos that outperform are located away from the MRT station. The Terrace and The Amore are located in ulu part of Punggol.

Lastly, it is almost impossible to tell which are EC and which are private condos from the outside. In fact, EC prices have risen to be in line with private condo prices in the resale market. This has further justified that buying an EC is like buying a BTO flat. You sure huat and ong here.

By the way, appreciate it if you can click the like and subscribe button if you feel you have benefited from this sharing.

That is all I have for this part 1 series of Punggol Condo. In part 2, I will discuss the developer profit margin theory and how it will affects the return of the 13 condominiums. In addition, I will discuss if it is worthwhile buying those TOP condos and flip them for a quick profit. Take tune and see you in part 2.

View this video in Youtube.

Condo
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