SINGAPORE— Ever moving so closer to million-dollar HDB resale flats at Sengkang, a 1,206 sq ft HDB 5-room Built-To-Order (BTO) flat, which has recently completed its five-year Minimum Occupation Period (MOP) was sold for S$928,000, equivalent to around S$770 psf.
The flat is situated on the 10th to 12th floor of Blk 216C Compassvale Drive, just across the street from Sengkang MRT and Compass One:
Recently completed the MOP
The flat was completed in 2017, which means it has recently completed the MOP, with 93 years and 4 months lease left.
One of the most noteworthy features of this flat is its proximity to Nan Chiau Primary School, a popular primary school that relocated to Sengkang from River Valley in 2001 and is only about a 10-minute walk away.
Furthermore, it is worth noting that the transaction price equals the current all-time high price for a 5-room HDB resale flat in Sengkang.
In November last year, another 5-room HDB flat located on the 16th to 18th floor was also sold for S$928,000 in the neighbouring Block 216A.
Both units belong to part of the Compassvale Mast BTO project, which was launched for sale in the November 2012 HDB BTO exercise. Five-room flats in this development were initially sold for S$421,000 to S$499,000.
Singapore-based property technology company, 99.co, estimated that the owners of both flats made a capital gain of S$429,000 to S$507,000 over a holding period of around five years.
Another flat further from Sengkang MRT, sold at $760,000
A check on the HDB official website for the prices of 5-room resale flats in Sengkang over the past six months shows that a unit at 288A Compassvale Drive, which is slightly larger and has a longer lease, was sold at a “much cheaper” price of $760,000.
This unit is further from Sengkang MRT compared to the nearly-million dollar flat at 216C.
The $200,000 higher sale price strongly suggests that buyers are willing to pay higher for flats which are located nearer to the MRT.
Can Singaporeans afford million-dollar flats?
Two months ago, TOC reported that an HDB maisonette at Toh Yi Drive in Bukit Timah was sold at S$1.3 million transaction, surpassing the previous record holder to become the most expensive HDB executive resale flat in Singapore.
However, a 5-room flat at 42a Margaret Drive listed for $1.5 million on PropertyGuru again raised netizens’ eyebrows, wondering if another record-breaking sale is in the works for an HDB flat.
99.co even compiled a list of HDB resale flats that broker their township records as of February 2023. For example, a 4-room flat at 273A Bishan Street, was sold at S$1.075 million.
Another executive flat at 544 Jelapang road in Bukit Panjang was also sold for S$965,000.
As for the residents of 666 Yishun Avenue 4, they witnessed two million-dollar flats sold at their block.
It’s clear how expensive HDB resale flats are nowadays, with prices increasing for the 11th consecutive quarter (according to Q4 2022 HDB Public Housing Data statistics).
The Resale Price Index (RPI), which reflects the general price movements in the resale market, for the 4th Quarter of 2022 is 171.9, an increase of 2.3% over that in the 3rd Quarter of 2022.
Resale prices may rise even further with the additional grant of up to S$40,000 for first-time flat-buyers, as announced in the Budget 2023, for families buying resale flats of 5-rooms and above.
The average cost of an HDB property listing is S$532,768 or S$507 per square foot.
Smaller flats, such as two and 3-room flats, typically cost between S$300,000 and S$450,000.
Although opposition Members of Parliaments have voiced concerns over the surging price of HDB flats, which would price them out of reach for many ordinary Singaporeans, Minister for National Development Desmond Lee has rejected Progress Singapore Party (PSP)’s proposal to reset the current housing price, insisted that close to 70 per cent of Build-To-Order flats are affordable with S$8,400 median household income and that resale prices.
While acknowledging the high prices of resale flats, Mr Desmond has not said much about the Government’s solution to the issue other than saying that it would build more HDB flats in years to come and offer more grants to assist first-timer families in buying resale flats.
