It Good Deal 860000 Three Room Hdb Flat
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Singapore, a highly urbanized city-state in Southeast Asia, has seen a record-breaking transaction last month when a three-room HDB flat at 10A Boon Tiong Road was sold for $860,000 ($1,289 psf). This has made it the most expensive three-room HDB flat ever transacted. The 667 sq ft flat, located on the 34th floor and completed in 2016, is situated within the Bukit Merah Planning Area, a popular residential district known for its central location and abundance of amenities.
Our team used our advanced analytics tool, ‘Is it a Good Deal?’, to delve deeper into this record-breaking transaction and determine whether the buyer secured a bargain.
Conveniently located near amenities, the three-room flat along Boon Tiong Road is a highly sought-after property. It is within walking distance of Tiong Bahru and Havelock MRT Stations, Tiong Bahru Plaza, Tiong Bahru Market and Food Centre, Beo Crescent Market, and Havelock Road Cooked Food Centre. Additionally, primary schools such as Alexandra Primary School and Zhangde Primary School are within a 1km radius (see Map 1).
Analysing the affluent neighbourhood through our tool, it is evident that the transacted price for the HDB flat is significantly higher than the average price for the district. However, the flat boasts a long remaining lease and a variety of nearby amenities, as shown in Screenshot 1.
Our team also noticed a spike in the number of three-room flats fetching at least $800,000 this year. As of today, 29 three-room flats have been sold for at least $800,000 in Singapore. Out of these 29 transactions, six were for flats in Bukit Merah. In comparison, only four three-room flats were transacted for at least $800,000 last year, and just one in Bukit Merah (see Chart 1).
It is noteworthy that prior to 2021, three-room flats islandwide were transacted at prices below $800,000. Last month, two other three-room flats in Bukit Merah were sold for at least $800,000 – one of them being the aforementioned flat along Boon Tiong Road. The second flat, located at 57 Havelock Road, sold for $800,000 ($1,078 psf). It is a 742 sq ft unit on the 20th floor, completed in 2013. In May, another three-room flat at 58 Havelock Road transacted for $818,000 ($1,102 psf). This unit is also on the 34th floor and measures 742 sq ft (see Screenshot 2).
Through our tool, we realised that the lower transacted prices for the flats along Havelock Road could be attributed to their farther distance from MRT stations. As observed on Map 2, the flats along Havelock Road are over 500m away from Tiong Bahru and Havelock MRT Stations. In contrast, the flat along Boon Tiong Road is only about 300m from Tiong Bahru MRT Station and approximately 450m from Havelock MRT Station.
Apart from that, amenities such as Valley Point Shopping Centre, Beo Crescent Market, Havelock Road Cooked Food Centre, and Tiong Bahru Plaza are located near these flats. Primary schools such as Alexandra Primary School, River Valley Primary School, and Zhangde Primary School are also within a 1km radius.
Interestingly, the average resale price for three-room HDB flats ($683 psf) in Bukit Merah has consistently trended below that of four-room ($852 psf) and five-room ($782 psf) flats, as shown in Chart 2. Furthermore, the average price for three-room flats has grown at a slower pace (27.2%) since 2020 compared to four-room (27.4%) and five-room (30.8%) flats.
However, the average resale price for three-room flats in Bukit Merah ($683 psf) has consistently trended above that of three-room flats in the Central Region ($638 psf) and islandwide ($591 psf) (see Chart 3). From 2020, the average price for flats in Bukit Merah has endured a slower growth rate (27.2%) in comparison to their counterparts in the Central Region (39.3%) and islandwide (39.4%).
Furthermore, the transacted price of $860,000 ($1,289 psf) for the three-room flat along Boon Tiong Road is significantly higher than the average resale price for similarly-sized HDB units in Bukit Merah ($683 psf), the Central Region ($638 psf), and islandwide ($591 psf).
Despite the high price, our tool reveals that this transaction is significantly cheaper than three-room units located in the same area. For instance, the transacted price for this flat is $606 psf lower than the average resale price for similarly-sized leasehold condo units in the vicinity ($2,131 psf). The gap between HDB units and leasehold condo units has been expanding over the years. This year, the price difference is $1,448 psf, an increase from $1,437 psf last year and $1,372 psf in 2020.
Besides the price difference, it is also noteworthy that three-room flats in Bukit Merah (27.2%) have recorded a more significant price growth since 2020, in comparison to small leasehold condo units (11.6%) in the same neighbourhood. On average, smaller condos measure 750 sq ft or less.
In conclusion, while the transaction last month of a three-room HDB flat at 10A Boon Tiong Road for $860,000 may seem steep, it is a record high for three-room flats in the Bukit Merah Planning Area. Nevertheless, the number of three-room units selling for at least $800,000 has risen sharply over the years. Within the first eight months of 2021, 29 such transactions were recorded for flats islandwide. Of this number, six were for flats in Bukit Merah.
The price of $860,000 ($1,289 psf) for the HDB flat at 10A Boon Tiong Road significantly exceeds the average resale price for three-room flats in Bukit Merah ($683 psf), the Central Region ($638 psf), and islandwide ($591 psf).
Bukit Merah is a highly sought-after residential district due to its central location and abundance of amenities. Yet, many potential buyers may find themselves priced out of the market. For buyers who are determined to live in Bukit Merah, purchasing a three-room HDB flat is a more sound financial choice than a leasehold condo unit of a similar size. The transacted price for the HDB flat at 10A Boon Tiong Road ($1,289 psf) is $842 psf lower than the average resale price for similarly-sized leasehold condo units in the same area ($2,131 psf). Additionally, three-room HDB flats (27.2%) in Bukit Merah have achieved stronger price growth compared to their condo counterparts (11.6%) since 2020.
