It Good Deal 860000 Three Room Hdb Flat
Singapore (EDGEPROP) – In May, a three-room HDB flat located at 10A Boon Tiong Road made headlines for being sold at a record-breaking price of $860,000 ($1,289 psf). The 667 sq ft flat is situated on the 34th floor and was completed in 2016, making it the highest transacted price ever for a three-room HDB unit. However, our analytics tool, “Is it a Good Deal?”, suggests that the buyer may not have secured a bargain for this property.
Situated in the popular residential area of Bukit Merah, the three-room flat enjoys a central location and has an abundance of amenities nearby. It is within walking distance of both Tiong Bahru and Havelock MRT Stations, Tiong Bahru Plaza, Tiong Bahru Market and Food Centre, Beo Crescent Market, and Havelock Road Cooked Food Centre. It is also close to primary schools such as Alexandra Primary School and Zhangde Primary School.
Rewritten:
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Using our “Is it a Good Deal?” tool, we can see that the transacted price for this three-room flat is significantly higher than the average price for the district. However, there are some positives to consider – the flat has a long remaining lease and is surrounded by numerous amenities.
This year alone, 29 three-room flats have been sold for at least $800,000 in Singapore, with six of them located in Bukit Merah. This is a significant increase compared to last year, where only four three-room flats were transacted at this price, with only one being in Bukit Merah. It is also worth noting that prior to 2021, three-room flats islandwide were sold at prices below $800,000.
In fact, just last month, two three-room flats in Bukit Merah were sold for at least $800,000. One of them being the aforementioned flat at Boon Tiong Road, while the other is located at 57 Havelock Road that sold for $800,000 ($1,078 psf). The latter is a 742 sq ft flat on the 20th floor that was completed in 2013, making it three years older than the former. In May, a three-room flat at 58 Havelock Road was also sold for $818,000 ($1,102 psf). This flat is also on the 34th floor and measures 742 sq ft.
The lower transacted prices for the flats along Havelock Road could be attributed to their greater distance from MRT stations, making it less convenient for residents who use the MRT for their daily commute. Whereas the flat at Boon Tiong Road is approximately 300m from Tiong Bahru MRT Station and at around 450m from Havelock MRT Station, the flats along Havelock Road are more than 500m away. Other amenities near the flats along Havelock Road include Valley Point Shopping Centre, Beo Crescent Market, Havelock Road Cooked Food Centre, and Tiong Bahru Plaza. Additionally, primary schools such as Alexandra Primary School, River Valley Primary School, and Zhangde Primary School are also within a 1km radius.
Despite the fact that the average resale price for three-room HDB flats in Bukit Merah has consistently trended below that of four-room and five-room flats, the demand for three-room units in this area is still high. In fact, the average price for three-room flats has grown at a faster pace (27.2%) since 2020 compared to four-room (27.4%) and five-room (30.8%) units.
However, the average resale price for three-room flats in Bukit Merah is also consistently higher than that of the Central Region and islandwide. Since 2020, the average price for flats in Bukit Merah has grown at a slower pace (27.2%) compared to those in the Central Region (39.3%) and islandwide (39.4%). This may explain the steep price difference between the three-room flat at Boon Tiong Road and that of the average price for three-room flats in the area ($1,289 psf vs. $683 psf).
Moreover, the transacted price of $1,289 psf is significantly below the average resale price for similarly-sized leasehold condo units in Bukit Merah ($2,131 psf). The price difference between these two types of properties has widened in recent years, with the gap widening from $1,372 psf in 2020 to $1,448 psf this year. Additionally, three-room flats in Bukit Merah (27.2%) have achieved stronger price growth since 2020 compared to leasehold condo units (11.6%).
In conclusion, while the record-breaking sale of the three-room HDB flat at 10A Boon Tiong Road may have caused a stir, it is clear that the demand for three-room flats in Bukit Merah remains strong. Despite the high price tag, it is still a more affordable option compared to the average resale price for small leasehold condo units in the same neighbourhood. Therefore, for buyers determined to purchase a property in Bukit Merah, a three-room HDB flat may be a better financial option.
To learn more about this transaction and whether it is a good deal, click here.