SINGAPORE: An advertisement for a S$2 million “jumbo flat” in Sengkang is under investigation by the Council for Estate Agencies (CEA), having been flagged as misleading.
The eye-watering price of the HDB unit had made the news earlier this week, after it was listed on real estate marketplace PropertyGuru. By Tuesday (May 7), however, the listing had been taken down.
On May 8, the Ministry of National Development (MND), Housing Development Board (HDB) and the CEA issued a joint statement regarding the Sengkang flat in response to questions from the media. An earlier listing of a S$2 million five-room HDB flat in Toa Payoh was addressed in the statement from the agencies as well.
The “jumbo flat” in Sengkang is located at Blk 314C Anchorvale Link and is described as a 2,400sqft unit with 6 bedrooms and 4 bathrooms.
“This is misleading because there are no jumbo flats at Block 314C Anchorvale Link,” the joint statement read. It further clarified that the unit is, in actuality, two adjacent five-room flats. However, these are not eligible to be converted into and sold together as a single unit.
In addition, the listed “jumbo flat” is priced well above the going rate for flats in the area.
“Over the last six months, five-room flats in the precinct transacted for around S$580,000. The S$2 million listing price is therefore more than S$800,000 above the combined value of the two 5-room flats,” the agencies said.
“CEA is investigating the matter and will take firm action if any breaches are established,” the statement added.
ERA Realty Network’s Mr Andrew Nair, the agent responsible for the listing, told The Straits Times that he had taken it down after the legal team from ERA informed him to market the unit as two separate flats. He said HDB had approved the plan of the flats owners, who are relatives, to combine the units.
“The owners are looking to sell them together, but the requirement is that there has to be two buyers,” he added.
As for the S$2 million five-room Design, Build and Sell Scheme (DBSS) HDB flat at The Peak@Toa Payoh, MND, HDB and CEA pointed out that its listed price is nearly S$500,000 more than the most expensive transaction in the area, adding that many industry experts consider it an “unrealistic asking price”.
“While the HDB resale market transacts on a ‘willing buyer-willing seller’ basis, the Government will not condone behaviour, whether by agents or sellers, that seek to disrupt the market or fan consumer sentiment,” the agencies said, adding, “We should not expect housing prices to increase indefinitely amid global economic uncertainty and geopolitical instability.” /TISG
Read also: 68 HDB flats resold for over S$1M in April alone: Is this cause for concern?