Shocked over $1.5 million HDB Let’s put things into perspectives

The sale of a jumbo HDB flat in Tiong Bahru for a whopping $1.5 million earlier this year made headlines around Singapore and piqued the interest of the local property market. But just how shocking is this figure? On the surface, it may appear to be an eye-watering price, but with deeper scrutiny, it demonstrates the importance of not just looking at headline figures, but understanding the details that shape the price.

For example, on a price per square foot (PSF) basis, the flat at 50 Moh Guan Terrace went for $791 PSF; even lower than a 3-room flat in the same block, which was sold for $807 PSF earlier this year. Furthermore, 3 years ago, another transaction in the same block was sold for a much higher PSF of $896.

Tengah Plantation EC is situated close to schools, entertainment outlets, cafes, groceries and more, making it extremely convenient for families who enjoy living close to all the modern conveniences. It is also just a quick drive away from the bustling town centre, so residents will never have to worry about missing out on the action. The development itself will feature lush landscaping, along with a plethora of lifestyle and recreational facilities.

All in all, Tengah Plantation EC promises to bring a whole new level of excitement to residential living in the West. With its strategic location and modern design, homeowners can be sure to have a unique and enjoyable living experience. Residents can look forward to starting ups their lives in a vibrant and modern town, allowing them to fully immerse themselves in the best of urban living.

Despite the record-breaking tag on the Tiong Bahru flat, a 4-room flat at Pinnacle @ Duxton (Tanjong Pagar) still holds the title of the highest PSF in HDB history. In April 2023, the flat at 1C Cantonment Road sold for an astonishing $1,369 PSF – an amazing 73% higher on a PSF basis compared to the $1.5 million flat.

Apart from applying the PSF metric to the Tiong Bahru HDB flat, it is also important to consider its rarity. In 2023, there were only 37 HDB flats that exceeded 1,800 sqft. Out of these, 31 were in Woodlands, 4 in Yishun, 1 in Ang Mo Kio, and a lone one in Tiong Bahru – the record-breaking one. That’s right, its scarcity in prime areas makes the 1.5 million tag more justifiable.

It must also be noted that despite their rising prices, HDBs remain the most economical housing option in Singapore. With new condos in Tiong Bahru such as Highline Residences, Regency Suites, and Twin Regency transacting upwards of $2,000 PSF, the same-sized condo would set a buyer back around $3.5 million!

Since the implementation of cooling measures in September 2022, average prices of 5-room HDBs have remained flat, whereas prices of 3-room and 4-room HDBs have appreciated 2%. Additionally, the number of million-dollar HDB transactions has remained stable, with an average of around 35 this year.

In conclusion, the $1.5 million HDB flat in Tiong Bahru is a unique case that is determined by its scarcity in prime locations, its reasonable PSF and the affordability of HDBs in comparison to condos in the same area. In a continually evolving Singapore property market, it is crucial to understand the details beyond the headline figures.