5-Room HDB for Room Rent: 191 Punggol Central

The valuation of the HDB 5 Room property located in Punggol, with a remaining lease of 76 years, is estimated at $87,909, translating to a price per square foot (PSF) of $586. This valuation reflects a market signal indicating a 0% difference from the baseline, suggesting that the current estimate aligns closely with the prevailing market conditions. Such stability in pricing is indicative of a balanced market where demand meets supply, particularly in a locality such as Punggol, which has been earmarked for continued development and infrastructure enhancements.

However, it is essential to note that the model confidence for this valuation is classified as low, primarily due to the reliance on a limited pool of data, with only one recent HDB resale transaction in the vicinity serving as a reference point. This scarcity of transactional data can significantly affect the reliability of the valuation model, underscoring the need for potential investors to approach this opportunity with caution. As the lease period remains substantial at 76 years, this factor may offer some reassurance regarding long-term sustainability; however, the market dynamics must be closely monitored to ascertain future value trajectories.