5-Room HDB for Room Rent: 106A Punggol Field

The valuation of the HDB 5 Room unit in Punggol, with a remaining lease of 74 years, stands at an estimated value of $172,925, equating to a price per square foot (PSF) of $576. This valuation reflects a market price that is consistent with the baseline, indicating a stable demand within the area. However, the low model confidence derived from only one recent resale transaction in the vicinity raises concerns about the robustness of this valuation. Such limited transactional data suggests that the current market dynamics may not fully represent the potential value of the property.

In the context of Punggol's ongoing development and urban revitalization efforts, the longevity of the lease remains a critical factor influencing buyer interest and investment potential. With a remaining lease of 74 years, this property offers a reasonable window for future appreciation, albeit tempered by the current market conditions. Investors should consider the implications of lease decay as the property approaches the end of its lease term, along with the overall economic climate affecting the HDB resale market. As Punggol continues to evolve, monitoring future transactions will be essential to assess potential shifts in value and market confidence.