SINGAPORE — A 4-room Housing Development Board (HDB) resale flat at Tiong Bahru has been sold for a record-breaking S$1.5 million, marking it the most expensive HDB resale flat ever sold, according to property portal 99.co.
The sale price surpassed the previous record of S$1.418 million held by a 5-room HDB resale flat at SkyTerrace @ Dawson since July 2022.
The record-breaking unit is located in Blk 50 Moh Guan Terrace in Tiong Bahru, an area known for its low-rise, low-density HDB blocks, and old-world charm.
The HDB flat is on the fourth floor of a four-storey block. The sale also marks a new record for a 4-room HDB resale flat, overshadowing the previous record of S$1.4 million set by a Pinnacle @ Duxton flat in April.
Despite being a 50-year-old property, with its lease commencing in 1973 and a remaining lease of 48 years and 8 months, the flat’s high price tag is unexpected considering that demand and prices are typically lower for homes with a shorter remaining lease.
It’s particularly interesting because an older flat with a remaining lease of less than 50 years may not have much room for price appreciation and may not qualify for full financing.
The flat was intended to undergo upgrading programmes under the Home Improvement Programme (HIP) and the Neighbourhood Renewal Programme (NRP) announced in 2017, but the plans did not materialize.
Additionally, the block does not have a lift, which could be due to the building design not supporting lift installations.
Nonetheless, the uniqueness of the flat could account for its record-breaking price. Termed an “adjoined flat” by HDB, it boasts a spacious floor area of 176 square meters (1,894 square feet), almost double the size of a typical 4-room flat.
The price per square foot stands at around S$792, which is lower than the average price per square foot of S$839 for an HDB resale flat in Tiong Bahru as of 23 June this year.
The flat’s prime location, rarity, and size likely played significant roles in driving the homebuyers to pay the record price, despite its peculiarities and challenges.
