SINGAPORE: Recently, a 1-room HDB flat at Telok Blangah Crescent has made headlines for its record-breaking resale price of S$300,000. But why does such a small flat have a hefty price tag?
Located at Block 7, Telok Blangah Crescent, this 1-room flat is 334 square feet and sits on a higher floor, between the 7th and 9th levels.
Despite having just under 50 years left on its lease, the flat was sold for S$898 per square foot. This is a significant jump from the average price for similar flats in 2024.
According to 99.co, prices for 1-room flats have been climbing steadily in recent years.
In 2024, the average price for a 1-room flat is around S$253,700, with transactions like the 1-room HDB flat at Telok Blangah Crescent reaching as high as S$300,000, which is S$46,300 or 18.25% above average.
From 2023 to 2024, prices rose by 4.4%, and over the last three years, they grew by 10.6%. Over five years, prices have risen by almost 39%.
Despite the increase, the top sales prices are still close to the current average, suggesting that while prices are rising, they remain within a reasonable range for most buyers.
According to 99.co, there are various factors making 1-room HDB prices skyrocket.
Location and accessibility
While the 1-room HDB flat at Telok Blangah Crescent is not directly next to an MRT station, it’s still in a convenient area. The nearest MRT station, Redhill MRT (EW18), is just a 4-minute drive away, and the area also has several bus stops, including:
- ID 14259 – Block 11 (0.099 km)
- ID 14269 – Block 10 (0.11 km)
- ID 14281 – SAFRA Mount Faber (0.213 km)
- ID 14249 – Block 1 (0.253 km)
- ID 14279 – Block 25 (0.273 km)
- ID 14241 – Opp Block 1 (0.292 km)
- ID 14271 – Al-Amin Mosque (0.299 km)
For daily needs, Telok Blangah Crescent Market & Food Centre is just a 2-minute walk away, with 56 stalls offering groceries and meals. Nearby schools, shopping and entertainment spots like Vivocity, Anchorpoint, and IKEA Alexandra are also just a 5 to 8-minute drive away.
For recreation, SAFRA@Mount Faber is just a 4-minute walk away, making the location relatively appealing for those who value convenience, even if the MRT isn’t as close.
Limited supply of 1-room flats and high demand
Another major factor behind the rise in prices is the limited supply of 1-room flats. Since 2022, most 1-room flats on the resale market have been in Telok Blangah Crescent.
Most new HDB projects focus on larger flats, such as 2-room or 3-room units, meaning there are fewer 1-room flats available for resale. The high demand for these smaller units is also driving prices upward, with the growing interest from singles to own a home.
2-room flexi flats for singles may ease pressure on the 1-room market
However, with the recent policy changes, such as the introduction of 2-room flexi flats for singles for the first time in the October 2024 BTO exercise, the pressure on the 1-room market could start to ease.
In the October 2024 BTO exercise, singles were allowed to apply for 2-room flexi flats, unlike before when they were limited to non-mature estates.
From mid-2025, singles will also get priority access to BTO flats through the Family Care Scheme (FCS), allowing unmarried children to apply for flats near or with their parents.
In the October 2024 BTO exercise, over 6,000 applications were made for 2-room flexi flats, showing strong demand. Analysts expect it may take at least five years for this demand to stabilise.
The limited supply of 1-room units, coupled with high demand, might continue to drive prices higher, particularly for older flats with shorter leases.
However, the increasing availability of 2-room flexi flats for singles may eventually ease pressure on the 1-room market and help stabilise prices in the future.
Though it will take time, these new policies could “offer hope for a more balanced market ahead,” 99.co said. /TISG
Read also: HDB: 90% Singapore seniors opt for short-lease two-room flexi flats below S$200K
Featured image by Depositphotos (for illustration purposes only)