Alkaff Lakeview HDB flat sets record as most expensive 4-room resale in Toa Payoh

A four-room HDB flat at Alkaff Lakeview has been sold for S$1,258,888, setting a new record as the most expensive four-room resale unit in Toa Payoh, according to a report by 99.co.

The unit, located at Block 118A Alkaff Crescent Road, has a size of 1,044 sq ft and is situated between the 10th and 12th floors of a 17-storey block.

It recently met its Minimum Occupation Period (MOP) in 2024 and has approximately 94 years and ten months left on its lease, based on information from the HDB website.

Significant price appreciation from launch to resale

The Alkaff Lakeview Build-to-Order (BTO) flats were launched in November 2015, with four-room units priced between S$433,000 and S$550,000, according to estimates by 99.co.

The resale unit in question was sold mid-project and could have been purchased for around S$491,500.

Based on this estimate, the resale price of S$1,258,888 suggests a profit of approximately S$767,388 for the seller.

However, this calculation does not factor in potential grants for first-time buyers, such as the Proximity Housing Grant, which may have lowered the initial purchase price.

Additionally, the final price may have included a significant Cash Over Valuation (COV), a premium paid above the HDB-assessed value.

If the buyer paid a high COV, it could have reduced the net profit earned by the seller.

In October last year, reports indicated that four units in Bidadari’s Alkaff Vista estate had surpassed the S$1 million mark after reaching their MOP.

HDB resale prices jump 9.7% in 2024, 1,035 million-dollar flat transactions set new record

The record-breaking transaction aligns with broader trends in the HDB resale market, which saw a 9.7% increase in prices in 2024, according to data released by HDB on 24 January.

This rise is significantly higher than the 4.9% increase recorded in 2023 but slightly lower than the 10.4% surge in 2022.

Despite the rise in resale prices, transaction volumes fell by 21.1% in the fourth quarter of 2024, dropping to 6,424 units from 8,142 in the previous quarter.

On a year-on-year basis, total resale transactions decreased by 1.9%, with 28,986 flats sold in 2024, marking an 8.4% increase from the 26,735 transactions in 2023.

A record 1,035 HDB flats were sold for at least S$1 million in 2024, reflecting growing demand for prime units in mature estates.

Property consultancy OrangeTee Group predicted that HDB resale prices would continue rising for 23 consecutive quarters, with price increases expected to persist until the end of 2025.

Desmond Lee: Million-dollar HDB flats remain a small fraction of total resale transactions

Speaking in Parliament on 5 March during the Ministry of National Development’s budget debate, National Development Minister Desmond Lee addressed concerns over rising HDB resale prices.

He attributed the surge to a supply-demand imbalance caused by construction delays during the Covid-19 pandemic, which led to increased demand for resale flats.

Lee assured that the market is expected to stabilise as more flats enter the resale market and cooling measures take effect.

The number of HDB flats reaching their MOP is projected to increase significantly, from 8,000 units in 2025 to 13,500 in 2026, and further to 19,500 in 2028.

This growing supply is expected to ease price pressures in the coming years.

Lee also reiterated that government measures, including tighter financing restrictions and additional buyer stamp duties, will continue to influence market trends and moderate price growth.

While high-value HDB transactions attract public attention, Lee emphasised that million-dollar flats make up a small percentage of overall resale transactions.

In August 2024, he stated that such flats accounted for about 2% of all resale transactions over the past 1.5 years.