The previous record for an HDB resale unit was set in June, when a 49-year old terraced house in Whampoa was sold for $1.268 million. Photo: ERA
A 5-room HDB flat in Bishan has set a new record as it changed hands for $1.295 million, reported The Straits Times (ST).
The 120 sq m flat is located at Block 273A Bishan Street 24 in Natura Loft – a 40-storey project under the Design, Build and Sell Scheme (DBSS). The unit has about 89 years left on its lease and sits above level 35.
The previous record for an HDB resale unit was set in June, when a 49-year old terraced house in Whampoa was sold for $1.268 million.
ERA Realty property agent Elson Wang, who brokered the deal, told ST that the sale was made just three weeks after the unit was put up for sale.
Wang revealed that the sellers had set a $1.27 million bottom line for the flat and would not consider lower offers.
“They didn’t share the reason for picking that figure but I guess different people have different expectations. I had advised them that the transaction might take time as we need to wait for the right buyer,” he said as quoted by ST.
He shared that they hosted five groups of potential buyers before the sellers received an offer.
Although the sellers considered the $1.25 million offer as “too low”, the offered price gradually increased to $1.28 million before reaching the final price of $1.295 million.
Wang cited the central location, unblocked city view and well-maintained interior of the unit as its main draws. He added that the sellers spent almost $100,000 on renovation works, which was done via frequent touch-ups over the years.
ST noted that 124 HDB resale flats were sold for at least $1 million as of 30 July 2021 – the highest number of million-dollar flats shifted within a year. Of these, 18 were sold in July.
Million-dollar HDB flat transactions are expected to end on a record high note this year. In fact, one analyst believes it may exceed 180 units, considering the quarterly average of 25 units over the last three years.
DBSS flats are built by private developers, with each project characterised by unique external features. However, unit owners are also subject to similar regulations as HDB owners.
DBSS units are very sought-after because of their rarity as well as the bigger living spaces.
A total of 13 DBSS projects were built in Singapore between 2005 and 2012.
OrangeTee & Tie’s Senior Vice-President of Research and Analytics Christine Sun said the latest transaction could set the precedence for over $1.2 million to $1.3 million HDB resale deals.
“Mass-market condo prices have been increasing so perhaps some are willing to turn to such million-dollar HDB flats that have equally attractive attributes,” she said as quoted by ST.
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“There are also more Build-To-Order (BTO) HDB flats in mature estates with higher price tags around the $600,000 to $700,000 range so in comparison, paying $1 million for a premium resale flat may be okay for some,” she added.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: email@example.com