Analysts said that significant subsidies are likely to be required given its prime location.
The median resale price for a four-room flat in the central area was around S$1.35 million (US$1 million), based on the latest HDB data for the third quarter of 2025.
In view of high resale prices at the nearby Pinnacle@Duxton, substantial subsidies would need to be factored into the sale prices to ensure affordability for eligible buyers, Mr Lim said.
These subsidies would be needed, particularly when considering the income ceiling of S$14,000 for families, as well as the typical savings and liquidity levels of BTO applicants, he added.
Comparing the Pearl’s Hill project to Berlayar Residence, which offers a similar unit mix, prices for homes there could start from around S$218,000 to S$369,000 for a two-room flexi flat, S$420,000 to S$562,000 for a three-room flat and S$578,000 to S$788,000 for a four-room flat, Mr Lim said.
“Therefore, it is likely that the project will feature a new and higher subsidy recovery rate. We estimate that this could fall within the range of 18 to 20 per cent,” he said.
Similarly, Huttons’ senior director of data analytics Lee Sze Teck estimated the figure could be as high as 20 per cent.
“Construction costs are likely to be much higher due to the need for deeper foundations. HDB will likely have to provide more subsidies to keep prices affordable,” he noted.
Using Berlayar Residence as a guide, he estimates that the prices of four-room flats may start from S$600,000.
“Compared to the average resale prices of more than S$1.4 million for a four-room in Pinnacle@Duxton, the BTOs in Pearl’s Hill are likely to be much more affordable, improving access for Singaporeans to live in the highly coveted city location,” he said.