08 Dec Top dollar HDB flats
HDB flats that fetch record prices
The Edge Property Singapore published an article on 27 November 2015 titled, “Are top-dollar HDB flats worth it?“. In the article, it was stated that 72 HDB flats were resold for more than $900,000 between January and October 2015. The highest price fetched was $1.06m for a five-room flat at Pinnacle @ Duxton. This was followed by a five-room flat at Strathmore Avenue that went for $958,000. The third highest was for a five-room flat at Toa Payoh that sold for $955,000 – a record high in Toa Payoh estate. I do not handle the sales of HDB flats often but I happen to be the exclusive marketing agent for that Toa Payoh flat.
The slew of cooling measures have had an effect on Singapore’s property market. Transaction volume has dwindled and prices in general, have been on a gentle decline. However, this does not necessarily mean prices for all kinds of properties will come down. This is because there are so many different factors that go into determining the fair value of a property.
What was attractive about the Toa Payoh HDB flat?
Top tier flats in Toa Payoh estate are rarely on sale. By top tier, I am referring to the location. Location is the number one factor that plays the biggest role in determining a property’s value.
If you know Toa Payoh estate well, you will know that Block 154 Lorong 2 Toa Payoh is in one of the best locations in Toa Payoh. The block is situated just beside a bus stop and the entrance to Toa Payoh’s MRT station. It probably takes less than 30 seconds for a healthy adult to walk from the lift lobby of the block to the entrance of the MRT station which then links you to a host of shops, amenities and transportation options.
Located on a very high floor, the flat offers unblocked views of the neighbourhood. The condition of the flat is very good and it has a generous floor area of 124sqm (HDB no longer builds flats with this kind of size).
All the factors above were well appreciated by the buyer who knows Toa Payoh well and had done his homework. The sale left many buyers disappointed because they did not even get to see the place.
Will another Toa Payoh HDB flat fetch higher than this price in the next 6 to 12 months? It may well be possible if another flat with similar attributes plus beautiful renovation comes to the market and is priced right and marketed well. But such deals are the exception and not the norm in the current property market. If a HDB flat seller has unrealistic price expectation, then the flat will just continue to stay on the market (have you seen properties that stay listed on the market for years?). Likewise for buyers. If they continue to have unrealistically low appraisal for the flats that they like, they will continue to miss out on deals.