A new study shows that about 30% of HDB households in Punggol have a monthly income of $9,000 or more.
This is four percentage points higher than the national average compared with other HDB estates.
And property developers believe this shows Punggol has potential for private residential development.
Pasir Ris has the highest number with 35% of HDB households with monthly incomes above $9,000.
But as Punggol is a relatively new estate and the proportion of those with university education is the highest, property developers are setting their sights there.
They believe Punggol residents can afford private property with their stronger earning power.
In addition, 97% of HDB residents there live in four-room or bigger flats.
And analysts said those looking to upgrade to private property usually come from this group.
So even though the government is pushing out 5,400 private property units in Punggol, analysts believe there is demand.
SLP International research & consultancy executive director Nicholas Mak said: "Bearing in mind that private homebuyers of condominiums in Punggol are not just from Punggol but also from Sengkang and Hougang, and there is a finite number of such buyers in the area, I think the present pace of government land sale is just right. If the government were to accelerate the land sale in Punggol, this could actually increase or enhance a risk of oversupply in the area."
Source: Channel News Asia