A 5-room HDB resale flat at Sembawang was sold for an all-time high of S$745,000 this month.
The flat is expected to complete its Minimum Occupation Period (MOP) this year, which means that its owners may sell the flat on the resale market, rent it out completely, or buy a private property.
The flat’s price per square foot turns out to be $612, given its size of 1,216 sq ft, says property website 99.co, which reported the sale on Monday (Nov 14).
Located between the 7th to 9th floor of Blk 108C Canberra Walk, the flat is part of the three blocks of EastLawn @ Canberra BTO and is conveniently located 11 minutes away (on foot) from Canberra Plaza and Canberra MRT.
99.co added that since there are still 94 years and seven months remaining on the flat’s lease, no wonder it fetched such a high price.
When it was first launched in November 2013, the five-room flats at EastLawn @ Canberra BTO were priced between $315,000 to $373,000.
“This meant that excluding other costs such as Buyer’s Stamp Duty and renovation costs, the owners made a gain of around S$373,000 to S$430,000 for selling the flat,” 99.co added.
Netizens commenting on the sale remarked on the high amount of money the owner made.
“400k profit,” one wrote on a r/singapore thread.
Others were shocked at the flat’s resale price. 
And if the owner had rented out a room in the past few years, they would have made even more money from the flat.
Another Reddit user called the situation “crazy,” writing, “It may even make financial sense for people just above income ceiling to ask for a pay cut to qualify for BTO.”
However, they also asked, “Again, what is the public interest served by allowing so much capital gains to BTO lottery winners? These gains are the expense of people who have to buy in the resale market.”
Another remarked that the location of the flat is not very desirable.
/TISG
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