Analysts in the Singapore Housing Board market states that instead of property age, land availability can serve as a solid measure for the classification of non-mature and mature estates.
It gives investors and buyers a clear sense of amenities and pricing expected in the HDB towns. If we talk about the recently concluded Built to Order sales exercise at Jurong East and Hougang, both these HDB flats received non-mature estate classification.
Nicholas Mak, ERA Reality Head, states that it is more suitable to use land availability as an essential metric from a land planning and policy perspective; however, the age of the flats can be considered as a moving target. He also added that we could not judge a town by its age when some parts are built years ago, and many others are built up recently. Therefore, instead of using the age factor for estimating the mature or non-mature status of towns, it is better to consider the availability of land that can be developed in the future for designing new housing units.
Classification is an important tool to derive information while making new policies about the housing board real estate market. It can direct more young investors towards towns while balancing the aging population in the area.
In the year 2017, the experts at the Ministry of National Development said that the land availability in every town could be used for deciding mature and non-mature classification.
The non-mature towns usually refer to the areas that have more free land available for the development of public housing. However, mature towns are the ones with limited land available for public housing development.
During the Sale of Balance Flats and BTO exercise, the housing area classifications for flats are stated in the brochures to provide a clear idea to the investors.
Note that prices of BTO, as well as resale flat exercises, are usually higher in the mature estates as compared to the non-mature estates. As per the recent BTO sales exercise, three-room flat prices start from $382,000, whereas four-room flats were listed at around $540,000 in Queenstown.
It is necessary for buyers to form a mental map about neighborhoods with pricing expectations and a sense of value in the particular towns.
When a town is classified as a non-mature structure, there are usually some expectations related to flat pricing as well as the type of amenities within the selected area.
The pricing up to a certain extent will also depend upon the location and the availability of MRT stations, schools, hospitals, shopping malls, and other amenities. These facilities ensure a top-line impression for HDB properties.
Singapore’s housing market relies heavily on conventions and classifications. The detailed information on existing land can help investors make informed decisions. The buyers can plan their investment on mature or non-mature lands as per their availability and pricing.
More details can be found on the webpage below,