Basically, there are a few factors that can push up the property prices in a certain district, one salient factor is the government funding for development.
Government funding for development
It all started with development plans for some districts to improve infrastructure and amenities in the area with the interest of its residents, as part of the bigger master plan.
This will lead to more demand in properties as better infrastructure means better price, which will attract more real estate developers to build more properties. Eventually, new properties and amenities will reach a saturation point and this district will be considered as ‘developed’ or mature estate.
However, as it gets more crowded, some issues are now more intolerable such as traffic congestion, limited parking space, crowded public transport.
At this moment, the funds from the state will then be channelled to develop newer districts such as Punggol, Bukit Batok, Woodlands and Bidadari etc.
This is when early adopters receive comments from their friends saying that their new home is so out of the way. But soon enough, one can imagine, these districts will be the new hot topics in town as they get the new facilities such as roof gardens, sky terrace designs, waterway hub etc. Such branding will draw more crowd to invest and move in.
And the cycle repeats to the next district – Tengah, the Forest Town.