Continuing our exploration of areas with HDB upgraders, our focus now shifts to the Punggol area.

This region features three Build-to-Order (BTO) projects set to reach their Minimum Occupation Period (MOP) in 2027, making it a key area for potential investment and upgrades.

Source: Google Maps, HDB

In proximity to these HDB estates are two notable private developments: A Treasure Trove, a conventional private development, and Watertown, an integrated private development.

In this article, we aim to assess the investment potential and considerations between an integrated development and a non-integrated development.

Watertown

Watertown, completed in 2017, is situated above the Punggol MRT station and adjacent to Waterway Point.

This development encompasses 992 units, offering residents convenient access to public transportation and a comprehensive array of amenities within the vicinity.

Source: NParks

Adding to its appeal, Watertown is seamlessly linked to the Punggol Waterway, featuring a picturesque park connector. The upcoming Cross Island Line will also contribute to the development's convenience, with a new station planned in close proximity, further enhancing accessibility for residents.

Source: Watertown

Within Watertown, residents have access to a range of exclusive facilities, including multiple swimming pools, a tennis court, and notably, a hot spa for added relaxation.

Additionally, the development features 71 Small Office, Home Office (SOHO) units, designed as loft spaces that seamlessly blend working and living areas. These SOHO units are particularly appealing to young singles, newlyweds, and budding professionals seeking versatile living spaces.

Along with its advantages, there are a few drawbacks. Firstly, as with other integrated developments, the management fee is higher than non-integrated developments.

Furthermore, navigating Watertown's expansive layout can be challenging, potentially leading to difficulty finding the entrance to the mall or exiting the development.

The integration with a mall and MRT station also means there is a trade-off in terms of privacy, as residents may experience a reduced sense of seclusion due to the bustling surroundings.

The tight corridor space within towers 5, 6, and 7 of Watertown may be a drawback for residents, as there is minimal room for movement or even basic furnishings like a shoe rack. Despite the units not directly facing each other, the close proximity of entrances further diminishes privacy.

Shifting our focus from the integrated development, let us now delve into the non-integrated development, A Treasure Trove.

A Treasure Trove

Completed in 2015, A Treasure Trove is a substantial development comprising 882 units. While not an integrated development like Watertown, it still enjoys close proximity to Punggol MRT and Waterway Point.

Source: A Treasure Trove

The development also offers an array of facilities, including an impressive 8 swimming pools, a tennis court, and a clubhouse.

Notably, the clubhouse is a standout feature as it incorporates a Conserved Matilda House. This historical bungalow, built in 1902 by Irish lawyer Joseph William Cashin for his wife, holds cultural significance and was gazetted for conservation on 21 February 2000

A Treasure Trove is less accessible as it lacks a sheltered walkway to the MRT or Waterway Point mall. However, this characteristic contributes to a quieter environment, making it potentially more appealing to buyers who prioritize tranquility and privacy.

Additionally, the management fees are lower compared to Watertown as it is a non-integrated development.

Comparative Price Analysis

We will now compare the average quantum price for 3-bedroom units between the two developments for the past 5 years.

Source: Squarefoot

As anticipated, the quantum price of 3-bedroom units in Watertown is higher than that of A Treasure Trove.

Examining the price gap, it has expanded from 20.6% to 28.2%. This suggests that investing in the non-integrated development is more cost-effective, providing the opportunity to acquire a similar-sized unit at a significantly lower price.

Furthermore, A Treasure Trove maintains its advantageous proximity to Punggol MRT and Waterway Point mall, ensuring residents can still enjoy nearby amenities, even though the development is not directly situated on top of the mall.

Source: Squarefoot

Looking at the rental yield, both have a similar rental yield for a 3-Bedroom unit. Thus, opting for A Treasure Trove becomes more financially viable for investors seeking a lower entry price, particularly in the current high-interest rate environment.

Consequently, A Treasure Trove emerges as an attractive investment opportunity for those exploring options in the Punggol area.

We will delve into the next area in the upcoming part of this three-part series—Tampines. Click here to read the next installment.

If you haven't had the chance to explore the first article, which discusses the significance of having a substantial pool of HDB upgraders as a crucial criterion when selecting investment properties, click here.

So, do you think integrated developments are worth the hype and what do you think about these two projects? Let me know your thoughts!