View of HDB blocks at Casa Clementi. (Source: Surbana.com)
Property experts have called for calm following instances of sky-high resale HDB prices seen at Casa Clementi, a mega public housing project along Clementi Avenue 1. Last month, a 5-room flat at Block 425 was sold for $960,000, while another 5-roomer at Block 416 recently hit the market for $968,000.
Clementi flat hits the market for $968,000
“There is no reason to be alarmed because it is uncommon for people to pay such high prices for a HDB resale flat. And with numerous measures such as the Mortgage Servicing Ratio (MSR) cap of 30 percent and Total Debt Servicing Ratio (TDSR), it is even rarer that a buyer can afford to pay such a high amount for a HDB flat,” said Mohamed Ismail, CEO of PropNex Realty.
In fact, sky-high flat prices which have even breached the $1 million mark in other estates such as Bishan and Queenstown are scarce, and do not fully represent the market, experts said.
Ismail explained that the high asking prices for flats at Casa Clementi can be attributed to its prime location and large liveable spaces of over 1,200 sq ft.
“A major pull factor in that location is the educational institutions,” said Eugene Lim, Key Executive Officer of ERA Realty Network.
In fact, NUS, NUS High School, Nan Hua High School and Singapore Polytechnic are relatively close to the project. As such, parents whose children go to these schools will be attracted to the location.
“Rentability is also a factor,” Lim said, highlighting that rental demand in the area is quite strong given the significant number of foreign students and staff from nearby schools and universities.
There are also plenty of other amenities within close proximity such as Clementi Mall, City Vibe, 321 Clementi, and Clementi Swimming Complex and Sports Hub, added Lim.
According to Ismail, some buyers are willing to fork out lots of money for public housing because there are extended families who require a bigger space for a “more comfortable living environment, and so they have no choice but to purchase a HDB unit with the right size, even if they can buy a similar priced condo with a smaller space”.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
