HDB loft unit at Punggol Sapphire fetches record $1.22 million

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A rare five-room HDB loft unit in Punggol has been sold for an impressive $1.22 million, which translates to $761 psf on the floor area. The loft unit, located in the 10-year-old HDB development Punggol Sapphire, is of the 1,603 sq ft variety and is located on the top floor. The Option to Purchase (OTP) between buyer and seller was signed in late December last year, pending HDB approval and expected to be completed next month.

This sale marks a record price for an HDB loft unit in Punggol, surpassing the previous price high which was set in September 2022. That transaction involved another 1,603 sq ft unit in the same block, with the final cost being $1.198 million ($747 psf).

The loft unit was put on the market at the end of August 2022 with an asking price of $1.25 million. Amos Lim, marketing manager at ERA Realty and the property agent who represented the seller, received over 100 enquiries and a viral TikTok video showcasing the flat. Consequently, numerous offers were made ranging from $1.1 million to $1.24 million and the seller ultimately settled on a buyer they were comfortable with.

What drew buyers to this rare loft unit were the impressive 5m high ceilings, large windows admitting a lot of natural light, as well as a staircase that does not Tengah Plantation EC interrupt the living space.

The previous transaction also faced a cash over valuation (COV) of close to $200,000. According to Amos Lim, it is likely that the buyer for this sale will likely have to pay at least $100,000 in COV.

There are only 23 loft units in Punggol Sapphire, all in the same stack and facing Punggol Field, which is likely why those already occupying their units have no plans to put their flats up for sale. This recent successful transaction will come as good news to those with future plans to sell their loft flats and will allow them to better plan their real-estate financing.

While this record sale is definitely an exciting moment and a milestone, it is unlikely to significantly uplift the surrounding property prices. After all, its success is owed in part to the rarity of the unit.