RESALE prices in Punggol have risen faster than the national average this year, data shows.
And analysts say this trend will accelerate, spurred on by the HDB announcement on Tuesday of comprehensive plans for the area.
According to data-crunching firm Singapore Real Estate Exchange (SRX), which collates sales by major property agencies, median resale prices in Punggol this year have gone up 3.7 per cent, compared with the overall median figure of 2.3 per cent.
The bulk of the increase comes from larger flats as not many of the three-roomers have hit the resale market yet, said Dennis Wee Group spokesman Lee Sze Teck.
Based on his data, four- and five-roomers which sold for about $500,000 last year are worth about $530,000 now, representing a 6 per cent jump.
"One reason for this is that flats in the area are newer. Sellers have also been pricing the increased development of the area into the cash over valuation (COV)," he said, referring to the cash component that is paid above a flat's valuation to entice the seller.
The major boom has come in the form of recent developments such as the Punggol Waterway and the increase in the number of homes, said ERA Realty key executive officer Eugene Lim.
"Punggol today, compared to five years ago, is a totally different place," he said. "With more infrastructure and amenities to be built in the next 15 years, we can expect property prices to increase so long as economic and employment fundamentals are progressive."
Property agent Joseph Tan, who specialises in the area, said COVs, as well as enquiries for a Punggol property when it is put up for sale, have doubled in the past five years.
"The whole feel of the area is very different now," he said.
He recently closed a $650,000 deal with a $100,000 COV for a five-room unit. It was on a high floor, had designer decor and an unimpeded view of the surrounding area.