SINGAPORE — A 5-room resale flat on the 41st floor of [email protected] was sold at S$1.4 million, breaking the previous record of S$1,388,888.88 set in March last year.
According to 99.co, the flat located at Blk 1G Cantonment Road, spans 106 sqm (1,141 sq ft) and was sold at S$1,227 psf, which is higher than the previous 5-room record holder at [email protected] (S$1,205 psf).
The corner unit at [email protected] is described as more than just its prime location in the city, as it is situated on the 41st floor, offering breathtaking views. The flat also features an open-concept kitchen and a full-height window in the living room, adding to its appeal.
Penny Lim from ERA Realty, the agent responsible for the transaction, shared that the initial asking price was S$1,488,888.
“There’s good response to the listing as there’s limited supply of 5-room flats. So more than 10 enquiries and a few offers were received. But they were all below expectation.”
The sellers, who were the first owners of the unit, are moving closer to their children’s primary school.
Penny Lim told 99.co that the buyers of the flat are Permanent Residents (PRs) looking for city-living and a bigger space as their children’s schools are nearby.
Lim noted that the price psf of this unit is comparable to that of executive condos and resale condos in the OCR (outside central region) and higher than other high-end HDB resale transactions.
Four 5-room flats at [email protected] have been sold for over a million dollars this year
As of writing, four 5-room flats have been sold at [email protected] this year, with transaction prices ranging from S$1.26 million to S$1.38 million.
Two similarly sized flats at [email protected], located lower than the flat sold at S$1.4 million, were sold at a lower price of S$1.38 million and S$1.26 million in the same month.
Eight 4-room flats have also changed hands, with seven being sold for at least a million dollars, ranging from S$1.032 million to S$1.29 million.
The most expensive HDB resale flat record is currently held by a 5-room flat at SkyTerrance @ Dawson sold last July for S$1.418 million.
High transaction price shocks netizens
The recent high transaction price for the HDB resale flat has shocked netizens, with some expressing concerns about the affordability of such properties, especially for young Singaporeans in future.
One netizen wondered how someone with minimum wage could possibly afford such a flat, even if they worked multiple jobs and saved as much as possible.
While some commenters questioned why minimum wage was being compared to the most expensive HDB flat, some argued that HDB flats should not be priced at the same level as private condominiums, as they are government flats that belong to the government after the 99-year lease is up.
Netizens expressed concerns if young Singaporeans could afford HDB in future
The netizen ‘Superluckyclover Ong’ expressed concerns that if the trend of high HDB resale prices continues, many local youngsters may no longer be able to afford to buy HDB flats in the future.
One netizen justified the high price of the unit, stating that eventually, the Pinnacle will reach $2 million, causing 5-room BTOs to reach $1 million.
“So if you get Pinnacle n do up nicely like this unit, you can still have alot of spare cash to buy a Porsche Carerra and alot of pocket monies for holidays and a good lifestyle.”
On the other hand, netizen Ong expressed concern that monthly mortgage payments for such a unit would be at least S$3,500 unless someone could afford to pay the full $1.4 million upfront.
“Very soon all other flats will compete to see which can get higher 1.5M,1.6M, etc.”
Buyer paying for ‘million dollar view’
Netizen Ken Foo argued that the unit ‘still consider cheap’, s nearby condos are selling for at least 2500 per square foot and have a 99-year lease.
On the other hand, another netizen pointed out that buyers are paying millions of dollars for a public housing flat that can only be used for sleeping and admiring the view for the next 80 years.
In reply, Ken insisted that the view from the unit is worth the million-dollar price tag, “this is what we call a million dollar view!”
Opposition parties called for reviewing HDB affordability while PAP Minister defends current housing policy
Over the last five years, the prices of larger resale flats, specifically five-room and executive flats, have risen even faster than 4-room resale flats. It seems million-dollar HDB no longer make the news.
Last December, TOC reported that an HDB maisonette at Toh Yi Drive in Bukit Timah was sold at S$1.3 million transaction; just after three months, another 5-room flat at 42a Margaret Drive listed for $1.5 million on PropertyGuru again raised Singaporeans’ eyebrows.
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).
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 the 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.