Update as of 28 June 2023: This story has been updated with more information about the record-breaking sale.
A 4-room HDB resale flat at Tiong Bahru was recently sold this month for a record-breaking S$1.5 million, 99.co has learned. It is now the most expensive HDB resale flat ever sold.
The deal was brokered in May 2023 by Alvin Yeo, Associate Deputy Division Director at KF Property Network.
The previous record price was S$1.418 million, held by a 5-room HDB resale flat at SkyTerrace @ Dawson for almost a year, from July 2022 until recently. Coincidentally, KF Property Network was also involved in this sale, with its agency head Evan Chung brokering the deal in June 2022.
“The sold apartment at SkyTerrace @ Dawson was the first-of-its-kind HDB Premium Loft apartment with a double volume ceiling of more than 5 metres. It had featured a full designer renovation with marble floors and a custom-made art light installation in the loft space,” Chung shared in a press release.
This is also not the only record the S$1.5 million transaction has broken. The HDB resale flat is also now the most expensive 4-room HDB resale flat, eclipsing the previous record price of S$1.4 million set by a Pinnacle @ Duxton flat in April.
Exploring the unique appeal of Tiong Bahru’s HDB resale market
The record-breaking sale of the 4-room HDB flat in Tiong Bahru highlights a growing trend in Singapore’s property market, where buyers are increasingly valuing unique characteristics and historical significance over newer developments. Tiong Bahru, known for its blend of art deco architecture and modern amenities, offers a distinctive living experience that sets it apart from other residential areas in Singapore.
This trend is not just confined to Tiong Bahru but is reflective of a broader shift in buyer preferences, where the charm and character of a neighbourhood are becoming as important as the features of the property itself. This shift is particularly noticeable among younger homebuyers who are looking for more than just a place to live but a space that resonates with their personal style and values.
With its lease having started in 1973, the flat is 50 years old
The unit is located on the fourth floor of Blk 50 Moh Guan Terrace (the block only has four storeys) in Tiong Bahru. The area is mostly known for its low-rise, low-density HDB blocks (a rarity in Singapore) and an old-world charm.
Chung added that the jumbo flat is surrounded by lush greenery. “Its proximity to artisanal cafes, bakery and old local coffee shops had also increased its appeal to buyers.”
In fact, the famous horseshoe-shaped Blk 78 is just across the street.
What’s even more noteworthy about this HDB resale flat is its lease commence year. With its lease having started in 1973, it is now 50 years old.
(It also reminds us of this S$1.1 million transaction for a 43-year-old flat in a neighbouring block three years ago.)
According to HDB’s resale price portal, the unit has a remaining lease of 48 years and 8 months left.
On the other hand, demand and price tend to be lower for homes with a shorter remaining lease, which makes this transaction a head-scratcher for some people.
Unlike a newer flat (especially those which have recently MOP-ed, an older flat with a remaining lease of less than 50 years won’t have much runway for price appreciation).
On top of that, the home buyers may not be able to get full financing, whether it’s from HDB or the bank. For instance, if the home buyers take an HDB loan, the remaining lease of the flat will have to cover the youngest owner up to age 95 in order for the owner to get full financing.
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It also does not have a lift access
Blk 50 Moh Guan Terrace was intended to go through HDB’s upgrading programmes, namely the Home Improvement Programme (HIP) and the Neighbourhood Renewal Programme (NRP), with these plans announced in 2017. However, it seemed that these did not go through.
Moreover, the block doesn’t have a lift. A likely reason is that the design of the building doesn’t make it feasible for lifts to be installed.
This makes this transaction even more intriguing, especially since the unit is located on the top floor of the block.
But the size and rarity may just be why this flat has fetched such a high price. The home buyers may have prioritised these over lease decay, financing restrictions, lack of lift access and age of the flat.
The flat is an adjoined unit spanning 1,894 sqft, initially listed for S$1.55m
A main selling point of this HDB resale flat is that it’s not like the standard public housing unit. (For reference, a 4-room HDB BTO flat has a floor area of 93 sqm, or 1,001 sqft.)
Chung had confirmed with 99.co that the flat is a combination of two 3-room flats, adding that each of them measured 88 sqm (or 947 sqft).
The sellers had bought the first unit in February 2015 for S$670,000, before adjoining the flat in 2016.
HDB labels it as an adjoined flat, with a spacious floor area of 176 sqm (1,894 sqft).
According to Chung, the buyers are a Singaporean family of six that have been looking for an “appropriately-sized apartment” in the area for a long time.
“When the property was first listed in early April, the purchasers knew that it was the house that their family could comfortably grow in. Hence, they acted promptly to find a purchaser for their existing 4-room HDB flat in Redhill before putting in the offer for the 50 Moh Guan Terrace unit.”
As seen in an interactive map of the flat shared by Knight Frank, the flat features 2 living rooms, 3 bedrooms and 2 kitchens.
The agency head further shared that the sellers, who are in their early 40s, are looking to move closer to their children’s school. They had initially put up the unit for sale at S$1.55 million, and were open to negotiations.
Yeo, the agent who brokered the deal, shared that he experienced a strong demand from large families requiring homes of adequate space located in the central part of Singapore.
As he had brokered several 3-room HDB apartments in Tiong Bahru for over S$700,000, he advised the owners of this jumbo unit to price it approximately two times that of a regular 3-room apartment, since it was an amalgamation of two such units.
Before the deal was closed, the property had been on the market for less than a month, attracting more than 20 enquiries and around 13 viewings.
With a transacted price of S$1.5 million, this works out to a price psf of around S$792.
This is actually lower than the average price psf of S$839 (for this year, as of 23 June) for an HDB resale flat in Tiong Bahru.
Given the location and size of the flat, it was the perfect home for the buyers.
The future of Singapore’s HDB resale market
As we witness record-breaking sales like the S$1.5 million transaction in Tiong Bahru, it prompts a broader discussion about the future trajectory of Singapore’s HDB resale market. Analysts suggest that while unique properties in sought-after locations like Tiong Bahru will continue to command premium prices, the overall market trend will likely be influenced by factors such as government policies, economic conditions, and demographic shifts.
For instance, the ageing population and the increasing preference for smaller households could impact the demand for larger HDB units. Additionally, with the ongoing efforts to rejuvenate older estates and the introduction of new housing models, the landscape of Singapore’s public housing market is set to evolve, potentially creating new opportunities for both buyers and sellers.
Planning to sell your HDB flat soon? Let us help you get the right price by connecting you with a premier property agent.
If you found this article helpful, 99.co recommends Eh, is it dumb to buy a 40+ Year Old resale HDB? and Is it better to sell your HDB resale flat before, during or after a BTO month?
About Virginia Tanggono
Virginia covers the property news in Singapore, from record sales to profile stories on home ownership. In her free time, she occasionally searches for spoilers of movies and TV shows.
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