A 4-room Housing and Development Board (HDB) resale flat located in Tiong Bahru has been sold for an astounding S$1.5 million, breaking the previous record for the highest-priced HDB resale flat.
According to property platform 99.co, this transaction has surpassed the previous record of S$1.418 million held by a 5-room HDB resale flat at SkyTerrace @ Dawson.
The recently sold flat, situated on the fourth floor of Blk 50 Moh Guan Terrace, has captured attention not only for its price but also for its age.
Built in 1973, the block the unit within has already completed 50 years out of its 99-year lease. The flat now has 48 years and 8 months left on its lease, as per HDB’s resale price portal.
The eye-watering price for a 50-year-old flat has raised eyebrows as properties with shorter remaining leases typically have lower demand and prices, especially given the limited financing options available for older flats.
Interestingly, the block does not even have an elevator.
Blk 50 Moh Guan Terrace was actually slated to undergo HDB’s Home Improvement Programme (HIP) and Neighbourhood Renewal Programme (NRP) after 2017 but it appears that these plans did not materialize. The absence of a lift in the block, likely due to architectural constraints, adds another layer of intrigue to the sale, considering that the unit has fetched top dollar is located on the highest floor.
99.co said that the size and rarity of the flat may justify its exorbitant price. Unlike a standard HDB public housing unit, this particular flat is categorized as an adjoined flat, boasting an expansive floor area of 176 sqm (1,894 sqft).
In comparison, a 4-room HDB Built-to-Order (BTO) flat typically spans 93 sqm (1,001 sqft). The price per square foot (psf) for this unique unit comes to approximately S$792, which interestingly falls below the average psf price of S$839 for HDB resale flats in Tiong Bahru this year.
The scarcity of such large units within Blk 50 Moh Guan Terrace, coupled with its prime location, might explain the buyers’ willingness to pay a record-breaking sum. Currently, there are only three 4-room units available in the block.
This unprecedented sale in Tiong Bahru suggests that factors such as size, rarity, and location can outweigh concerns about lease decay, financing restrictions, lack of lift access, and the age of the property.