304 Bt Batok Street 31 HDB Investment Analysis: Understanding Growth Potential in Bukit Batok
Block 304 Bukit Batok Street 31 represents a compelling investment opportunity for property buyers and investors seeking exposure to Singapore's mature HDB market. Completed in 1985 and located in the Hong Kah Green development (District 23), this 12-storey block with 132 units offers a combination of affordability, strategic location, and steady appreciation potential that makes it worth serious consideration for your property portfolio.
At Homejourney, we prioritize transparency and data-driven analysis to help you make confident investment decisions. This guide examines the investment fundamentals of 304 Bt Batok Street 31, analyzing pricing trends, rental yields, location advantages, and growth catalysts that could drive future appreciation.
Current Market Positioning and Pricing
Block 304 is a 99-year leasehold property that commenced in 1985, meaning units currently have approximately 59 years remaining on their leases. The block houses primarily 3-room and 4-room New Generation (NG) units, with sizes ranging from 68 sqm (3-room) to 93 sqm (4-room).
Recent transaction data shows strong market activity at this block. As of February 2025, a 4-room unit sold for S$525,000, while 3-room units have transacted in the S$410,000 to S$435,000 range in recent months. The price per square foot (PSF) ranges from approximately S$560 to S$594 PSF, positioning Block 304 competitively within the Bukit Batok HDB market.
For context, comparable blocks in the immediate vicinity (305, 306, 307 Bukit Batok Street 31) show similar pricing patterns, with 3-room units trading between S$427,000 and S$435,000. This consistency suggests Block 304's pricing is well-aligned with neighbourhood benchmarks, reducing speculation risk for investors.
Price Appreciation Trends and Historical Performance
Analyzing transaction history provides crucial insights into Block 304's investment trajectory. Looking at 3-room New Generation units over the past two years, we observe steady appreciation:
- May 2023: S$378,000 (S$516 PSF)
- August 2024: S$410,000 (S$560 PSF)
- October 2024: S$435,000 (S$594 PSF)
This represents approximately 15% appreciation over 18 months, translating to roughly 10% annualized growth. While this may seem modest compared to private property, it reflects the stability and predictability that mature HDB blocks offer—qualities that appeal to conservative investors prioritizing capital preservation alongside gradual appreciation.
For 4-room units, the February 2025 transaction at S$525,000 demonstrates that larger units continue to command premium prices, offering investors flexibility in targeting different buyer demographics and rental market segments.
Rental Yield Analysis: Income Generation Potential
One of Block 304's strongest investment merits is its rental yield potential. Recent rental transactions reveal consistent demand for units at this location:
- November 2025: 3-room at S$2,900/month
- May 2025: 4-room at S$2,700/month
- April 2025: 3-room at S$2,800/month
- October 2024: 3-room at S$1,900/month
Based on a 3-room unit purchased at S$435,000 and rented at S$2,800/month, the gross rental yield calculates to approximately 7.7% annually. This significantly exceeds yields from private residential properties in Singapore and demonstrates Block 304's attractiveness to yield-focused investors.
The rental market at Block 304 shows resilience and upward pressure on rates. The increase from S$1,900 (October 2024) to S$2,800-S$2,900 (April-May 2025) indicates growing tenant demand, potentially driven by the block's strategic location and improved amenities in the Bukit Batok precinct.
Location Advantages and Accessibility
Block 304's investment appeal is substantially enhanced by its location within the Hong Kah Green development. The block sits approximately 5-minute walk from Bukit Gombak MRT Station (NS3 line), providing direct connectivity to the North-South Line and access to the CBD, Jurong East, and other major employment centres.
This proximity to MRT infrastructure is critical for investment returns. Properties within 500m of MRT stations command rental premiums and attract a broader tenant pool, supporting both capital appreciation and rental yield objectives. For commuting professionals, the Bukit Gombak station connection makes Block 304 units particularly attractive to renters.
Beyond MRT access, the block benefits from proximity to major expressways (PIE and BKE), making it convenient for investors and tenants with car-dependent lifestyles. This dual accessibility—excellent public transport plus expressway proximity—expands the potential tenant market.
Neighbourhood Amenities and Economic Drivers
Bukit Batok has undergone significant development in recent years, creating positive externalities for property investors. Key amenities near Block 304 include:
- West Mall shopping centre
- Bukit Batok Town Centre with diverse retail and F&B options
- Bukit Gombak Sports Hall and recreation facilities
- Little Guilin and Bukit Batok Nature Park (unique natural attractions)
- Multiple hawker centres and supermarkets within walking distance
- Primary schools (Dazhong, Lianhua) and secondary schools (Hillgrove) within 1km
These amenities support both owner-occupancy and rental demand. Families with school-age children represent a stable tenant segment, while young professionals value the lifestyle offerings and connectivity. This demographic diversity reduces vacancy risk for investor-owners.
Lease Decay Considerations and Long-Term Viability
A critical factor for HDB investment analysis is remaining lease length. Block 304 units currently have approximately 59 years remaining, which presents both opportunities and considerations:
Positive factors: 59 years is sufficient for most investors' holding periods and remains attractive to owner-occupiers and tenants. Properties with 50+ years remaining typically maintain reasonable resale liquidity and financing options.
Important consideration: As leases decline below 50 years, property values typically experience accelerated depreciation. Investors should model their exit timeline relative to lease decay. A property purchased today at S$435,000 with a 59-year lease will face lease decay pressure in approximately 10-15 years, when remaining lease drops below 50 years.
This timeline suggests Block 304 is best suited for investors with a 10-15 year holding horizon, allowing them to capture appreciation before lease decay significantly impacts valuations. For longer-term wealth building, consider this a medium-term investment rather than a generational hold.
Financing and Investment Structuring
Understanding financing options is essential for optimizing investment returns. HDB resale properties like Block 304 units can be financed through:
- HDB Housing Loans (up to 80% LTV for owner-occupiers, 70% for investors)
- Bank mortgages (typically 75-80% LTV)
- CPF (for owner-occupiers only)
For investor-owners, bank financing typically offers 70-75% LTV with interest rates currently ranging from 4.0% to 4.5% (as of early 2026). This means purchasing a S$435,000 unit requires approximately S$108,750 in cash equity, with monthly mortgage payments of approximately S$1,500-S$1,800 depending on loan tenor and rate.
Comparing mortgage costs (S$1,500-S$1,800) against rental income (S$2,800-S$2,900) reveals positive cash flow of approximately S$1,000-S$1,300 monthly. This cash flow cushion makes Block 304 attractive for investors seeking income-generating assets. For detailed mortgage calculations and current Bank Rates information, Homejourney's financing tools can help you model various scenarios.
Growth Catalysts and Future Appreciation Drivers
Several factors could drive future appreciation at Block 304 and the broader Bukit Batok precinct:
- Infrastructure development: Ongoing enhancements to Bukit Batok Town Centre and surrounding precincts increase area attractiveness
- Demographic trends: Bukit Batok's mature HDB stock attracts upgraders and investors seeking value
- Rental demand: Growing tenant demand from young professionals and families supports rental growth
- Neighbourhood rejuvenation: HDB upgrading programmes and precinct improvements enhance property values
- Market cycles: HDB resale market appreciation typically follows 5-7 year cycles; strategic timing can enhance returns
However, investors should note that HDB appreciation is generally more moderate than private property. Conservative projections suggest 3-5% annual appreciation in mature blocks like 304, compared to 5-8% in newer or more prime locations.
Risk Factors and Investment Considerations
Prudent investors should evaluate these risks before committing capital:
- Lease decay: As discussed, remaining lease of 59 years means accelerated depreciation begins in 10-15 years
- Market saturation: Bukit Batok has significant HDB supply; oversupply could limit appreciation
- Interest rate risk: Rising mortgage rates could compress rental yields and property valuations
- Tenant risk: HDB rental markets can experience cyclical softness; vacancy periods should be modelled
- Regulatory changes: HDB policies regarding resale, financing, or lease extensions could impact values
At Homejourney, we believe in transparent risk disclosure. These factors don't eliminate Block 304's investment case but should inform your decision-making and position sizing.
Investment Decision Framework
To determine if Block 304 aligns with your investment objectives, evaluate these key questions:
- Is your investment horizon 10-15 years? (Optimal for this block given lease decay timeline)
- Do you prioritize rental yield over capital appreciation? (Block 304 excels at yield generation)
- Can you sustain positive cash flow if rental rates soften temporarily?
- Are you comfortable with HDB market dynamics and regulations?
- Does your portfolio benefit from geographic diversification in the west region?
If you answered yes to most questions, Block 304 warrants serious consideration. If capital appreciation is your primary goal or you have a 20+ year horizon, you might explore newer HDB blocks or private properties with longer lease profiles.
Comparing Block 304 to Alternative Investments
Block 304 compares favourably to several alternatives within the HDB market segment:
versus newer HDB blocks: Newer blocks command higher prices and lower yields but offer longer lease periods. Block 304 offers better cash-on-cash returns but with lease decay concerns.
versus private condominiums: Private properties offer longer leases and potentially higher appreciation but require significantly larger capital investment and generate lower yields.
versus other Bukit Batok blocks: Block 304's pricing and yields are competitive with neighbouring blocks (305-310), suggesting fair valuation with no significant arbitrage opportunities.
Next Steps for Interested Investors
If Block 304 aligns with your investment strategy, here's your action plan:
- Verify current listings: Use Property Search to identify available units at Block 304 and compare asking prices against recent transactions
- Analyse financing options: Review Bank Rates to understand current mortgage terms and calculate your required equity
- Explore the neighbourhood: Visit Block 304, tour nearby amenities, and assess accessibility to your workplace or key locations
- Review related guides: Read 304 Bt Batok St 31 Amenities & Lifestyle Guide | Homejourney for detailed lifestyle information and 304 Bt Batok Street 31 HDB Price Trends & Resale Analysis | Homejourney for deeper price analysis
- Consult professionals: Engage a property agent and financial advisor to validate your investment thesis
- Conduct due diligence: Inspect units thoroughly, review HDB documents, and verify lease commencement dates
Frequently Asked Questions
Q: Is Block 304 a good investment for first-time property buyers?
A: Block 304 works well for first-time buyers prioritizing rental income alongside owner-occupancy. However, if you plan to live in the unit long-term, the lease decay concern is less relevant. The affordable entry price (S$410K-S$435K for 3-room units) makes it accessible for many first-time buyers.
Q: What's the realistic rental yield I can expect?
A: Based on recent transactions, gross rental yields of 7-8% are achievable. After accounting for property tax, maintenance, and potential vacancy periods, net yields typically range from 5-6%. This remains attractive compared to other Singapore property investments.
Q: How does the 59-year lease affect my investment?
A: For a 10-15 year holding period, the 59-year lease is adequate and shouldn't significantly impact your returns. However, if you hold beyond 15 years, lease decay will increasingly pressure valuations. Plan your exit accordingly.
Q: Can I use CPF to purchase Block 304?
