New record: Five-room HDB flat goes for $720,000

June 16, 2007

New record: Five-room HDB flat goes for $720,000

By Tham Yuen-C


THE record did not last very long.

Just a day after it was reported that a five-room Jalan Membina HDB flat was sold for an all-time high of $675,000, an apartment nearby has snatched the crown.

Also a five-roomer, the flat at Kim Tian Place went for $720,000.

Buyers of both units, flush with money from collective sales of their private homes, will pay in cash.

The seller of the new record setter, who wanted to be known only as Mr Lee, said he had been monitoring the market for the past five years and decided to sell now as 'the price offered was quite high'.

The flat's new owner will pay almost $150,000 above the market value of about $580,000 for the 115 sqm unit.

Located at the top of a 29-storey block, the six-year-old apartment offers an unblocked view of the city and of Sentosa.

The previous record-holder - the Jalan Membina unit - is five years old and on the 16th storey.

It is located off Tiong Bahru Road and is just minutes from Orchard Road.

Reacting to news of the two deals, property agents yesterday said the heat from the private property market is spilling into the HDB arena - and prices in areas such as Tiong Bahru, Toa Payoh and Queenstown are heading skywards.

Flats in these areas are popular with people who have sold their condominium units en bloc but who cannot afford to buy similar properties nearby.

The HDB flats which command the highest prices have the 'X-factor' said Mr Eric Cheng, senior division director at PropNex, Mr Lee's agent.

This means they are usually quite new and have a good view.

The property agents said, however, that the record prices - although indicative of a positive market - are likely to be one-off occurrences, rather than a sign of what is to come.

'Generally, the market is good, but not all units will get these prices,' said Mr Cheng.

Mr Donald Yeo, senior vice-president of real estate company HSR Group, also pointed out that there are a limited number of private property owners switching to public housing.

'Prices of the flats will re-adjust when the sellers realise most buyers cannot fork out such sums,' he said.

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Wow, this is more expensive that majority of private apartment in the outskirt areas, even the freehold ones in Hillview area.

Dont hear anymore of such sales...suggesting these were one off in nature.

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Originally Posted by Boon

Dont hear anymore of such sales...suggesting these were one off in nature.

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Don't think you can hear because the owners are asking even higher even their units could be lousier.