It Good Deal 108 Million Four Room Hdb Flat Ang Mo Kio
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Singapore’s Housing and Development Board (HDB) flats have long been a popular choice for local homebuyers due to their affordability and amenities. However, recent trends have shown a rising demand for these flats, with record-breaking transactions taking place. One such transaction was the sale of a four-room flat at 590B Ang Mo Kio Street 51 for a record-breaking $1.08 million ($1,079 psf) earlier this month. This is the highest transacted price for a four-room HDB flat in the Ang Mo Kio Planning Area. Completed in 2019, the 1,001-sq ft flat is located on the 28th to 30th storey.Using EdgeProp’s analytics tool, ‘Is it a Good Deal?’, we analyze whether the buyer of this HDB flat made a wise investment.
Convenient and Connected Location
Residents of 590B Ang Mo Kio Street 51 enjoy the convenience of living within walking distance to Ang Mo Kio MRT Station, as well as other amenities such as Jing Shan Primary School, Anderson Secondary School, AMK Hub, Cheng San Market and Cooked Food Centre, Chong Boon Market and Food Centre, and Ang Mo Kio Town Garden East. These amenities are located within a 500m radius, as shown on Map 1.
Source: EdgeProp LandLens (as at 17 September 2024)
Furthermore, the flat’s proximity to the MRT station is set to become even more advantageous with the completion of Phase 1 of Singapore’s Cross Island Line (CRL) in 2030, where Ang Mo Kio MRT Station will become a dual-line station.
However, the transacted price for this flat is almost 60% above the average price for the district, as seen in Screenshot 2.
Source: EdgeProp Is it a Good Deal (as at 17 September 2024)
Rising Demand for Million-Dollar Flats in Ang Mo Kio
The number of million-dollar transactions for four-room HDB flats in Singapore has been on the rise in recent years. As of now, 232 four-room flats have been transacted for at least $1 million this year, compared to 116 transactions last year and 33 transactions in 2022. In Ang Mo Kio, six four-room flats have been sold for at least $1 million this year, double the number of million-dollar flats in the area last year, as shown in Chart 1. Moreover, four-room flats in Ang Mo Kio did not fetch more than $1 million until last year.
The nine million-dollar transactions for four-room flats in Ang Mo Kio were from three blocks: 590A Ang Mo Kio Street 51, 590B Ang Mo Kio Street 51, and 591A Ang Mo Kio Street 51, as illustrated in Screenshot 3. These blocks are located within walking distance of each other, as shown on Map 1.
Source: EdgeProp Latest Transactions (as at 18 September 2024)
The second-highest price for a four-room flat in Ang Mo Kio was recorded in June this year when a 1,001-sq ft flat at 591A Ang Mo Kio Street 51 sold for almost $1.039 million ($1,038 psf). The flat, located on a high floor and completed in 2019, was followed by another four-room flat at 590B Ang Mo Kio Street 51, which was sold for almost $1.03 million ($1,029 psf) in May this year.
Strong Price Growth for Four-room Flats in Ang Mo Kio
Despite the average resale price for four-room HDB flats in Ang Mo Kio ($649 psf) being between that of three-room ($560 psf) and five-room ($680 psf) flats, it is worth noting that four-room flats have achieved the strongest price growth since 2014, at 35.5%, compared to three-room (23.1%) and five-room (32.1%) flats, as seen in Chart 2.
Moreover, since 2021, the average price for four-room flats in Ang Mo Kio has trended above that of four-room flats in the North-East Region ($614 psf) and islandwide ($609 psf), as shown in Chart 3. However, price growth in Ang Mo Kio has been weaker compared to the other two areas. Since 2014, the average price for four-room flats in Ang Mo Kio has grown by 35.5%, while those in the North-East Region and islandwide have grown by 37.4% and 40%, respectively.
Source: EdgeProp Market Trends (as at 17 September 2024)
The Record-breaking Transaction in Perspective
The record-breaking transaction of $1.08 million ($1,079 psf) for a four-room HDB flat at 590B Ang Mo Kio Street 51 may seem high, but it is not surprising given the overall surge in prices for four-room flats in Singapore. This has resulted in a rising number of million-dollar transactions, with 232 four-room flats having been sold for at least $1 million as of September this year. Out of these 232 transactions, six were in Ang Mo Kio.
The long remaining tenure of the flat and its prime location near multiple amenities could have contributed to the above-average transacted price. Furthermore, given its location near the MRT station, AMK Hub, two schools, and two markets and food centres, the buyer may have been willing to pay a premium for the convenience and connectivity.
Moreover, the average price for four-room flats in Ang Mo Kio ($649 psf) is substantially lower, by $430 psf, than the $1,079 psf paid for the aforementioned flat. It is also higher than the average prices for four-room flats in the North-East Region and islandwide by $465 psf and $470 psf, respectively.
However, the transacted price of $1,079 psf is below the average price of $1,588 psf for 99-year leasehold condominium units in Ang Mo Kio that measure between 900 sq ft and 1,100 sq ft, as depicted in Chart 4. The price gap between these two types of residential properties has been widening over the years, from $432 psf in 2014 to $657 psf in 2020 and $939 psf in 2024. However, we do not expect the gap to widen further, as the average prices for both these condos and HDB flats have grown at a similar pace of 42.7% and 42.3%, respectively, since 2020.
Source: EdgeProp Market Trends (as at 17 September 2024)
Conclusion
In conclusion, the recent transaction of $1.08 million ($1,079 psf) for a four-room HDB flat at 590B Ang Mo Kio Street 51 has set a new record for the planning area. While the transacted price is significantly higher than the average price of $649 psf for four-room flats in Ang Mo Kio, and $609 psf islandwide, it is not uncommon in a market where four-room flats have seen a significant surge in prices in recent years. The strong demand for HDB flats, coupled with their long remaining tenure and prime location near various amenities, has resulted in a rising number of million-dollar transactions. These factors have also contributed to the record-breaking transaction of $1.08 million for the aforementioned flat. To find out more about this transaction and whether it is a good deal, you can click here. For the latest listings for HDB properties, visit EdgeProp’s website.
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