Sengkang has been on the cusp of recording its first million-dollar resale flat. (Picture: Samuel Isaac Chua / EdgeProp Singapore)
A 1,539 sq ft, executive flat at 205B Compassvale Place is the first resale flat in Sengkang to fetch $1 million ($650 psf). According to a press release from SRI, the flat was sold by one of its agents last month.
“This transaction marks a significant milestone for the estate, which has been steadily approaching the million-dollar mark in its flat sales over recent months,” says Mohan Sandrasegeran, head of research and data analytics.
The million-dollar maisonette flat is in an estate named Compassvale Place is comprised of seven residential blocks – 205A, 205B, 205C, 206A, 206B, 206C and 206D. Block 205B is 25 years into its 99-years lease, which commenced in 1999.
The last 10 resale transactions at Compassvale Place. (Source: HDB, EdgeProp Singapore)
Sandrasegeran says that the million-dollar flat shares several attributes of other million-dollar flats, namely, its spacious layout, proximity to essential transport links such as Buangkok MRT station, and access to Sengkang Grand Mall.
“Additionally, the flat is favourably located near several educational institutions, which adds to its attractiveness,” says Sandrasegeran, adding: “This combination of desirable features underlines why this flat commanded a high price in the resale market.”
He says that Sengkang has been on the cusp of recording its first million-dollar resale flat, as there has been a growing number of resale flats in this town that have been selling for more than $900,000.
“By 1Q2024, the highest resale price (in Sengkang) was nearing $968,000, setting the stage for the area to finally breach the million-dollar threshold in April. This progression reflects Sengkang’s increasing desirability among homebuyers,” says Sandrasegeran.
The highest HDB resale price in Sengkang has been steadily increasing. (Source: SRI Research, Data.gov.sg)
However, he also cautions that despite the recent prominence of million-dollar resale flat transactions, these deals only accounted for 2.7% of the 7,068 flats that changed hands in 1Q2024.
“This indicates that while million-dollar deals capture significant attention, they represent a relatively small fraction of the overall resale market activity, underscoring the diversity in the HDB resale market with the bulk of transactions occurring at more moderate price levels,” says Sandrasegeran.
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Based on research from SRI, the average unit prices of million-dollar deals in the resale HDB market have adjusted downwards from $1,409 psf in 4Q2023 to $1,320 psf in 1Q2024, marking a 6.3% (q-o-q) moderation.
“This suggests that although the number of million-dollar sales increased, the average price per square foot moderated,” says Sandrasegeran, adding: “A higher volume of (million-dollar HDB resale ) transactions did not necessarily lead to increased prices per unit.