Two-bedroom HDB flat costs more than a four-bedroom flat

A two-room flat in Chinatown was sold recently for $245,000, creating a new record for the re-sale price of HDB flats with two bedrooms.

The 40-year-old flat, which is situated at Jalan Kukoh, sits on a high floor in Block 10.

Home owner Mr. Tan, 43, an advertising executive, purchased the unit with his wife in 2008 at around $145,000. They later decided to sell the unit, as they wanted to move to a larger flat.

“We bought this unit because we wanted to live in Tiong Bahru, but could not afford a four-room flat in this area. Now, we want to upgrade to a larger flat. We also find it too noisy as it is near the highway,” he said.

According to Mr. Adrian Wee, a 28-year-old property agent from OrangeTee, the new flat owners are a young couple with one child. Besides the flat’s central location, they are also near their parents' home. As they also like the flat’s simple and open layout, they are not concerned with the noise from the nearby traffic.

The 53-sq-m floor area of each flat is comprised of one bedroom and a living room. An additional storeroom was added by the former home owners. The $245,000 price tag is around $45,000 above the valuation price.

Although he earned a tidy profit from the sale, the price over valuation of his new four-room flat is also quite substantial, just enough to cover the expenses he made for purchasing a new home, revealed Mr. Tan.

Based on HDB figures, the average price of a two-room flat in Tiong Bahru ranges from around $190,000 to $220,000.

Mr. Eric Cheng, CEO of ECG Property, said that although the price is high, it is still reasonable due to its prime location.