Earlier this month, a three-room HDB flat at 50 Commonwealth Drive in District 3 was sold for $750,000 ($1,106 psf). The 679-sq ft flat is located on the 13th to 15th storeys and has a lease that commenced in 2015, leaving the 10-year-old flat with a remaining lease of around 89 years.

We used our analytics tool, Is it a Good Deal?, to assess the transaction and determine whether the buyer of this flat in Queenstown HDB town secured a bargain.

Adjacent to MRT station and wet market

The subject flat is part of Commonwealth 10, which is in a very convenient location. The HDB project is adjacent to Commonwealth MRT Station and Tanglin Halt Market (see Map 1). Additionally, Commonwealth MRT Station is only one stop from the dual-line Buona Vista MRT Station, which serves the East-West and Circle Lines, giving residents easy access to both MRT lines. Residents who drive will be pleased to know that the Ayer Rajah Expressway is a short drive away.

Read also: A three-room flat was just sold for $888,000, setting a record-high for such flats in Queenstown

Schools within a 2 km radius include Queenstown Primary School, New Town Primary School, Fairfield Methodist School (Primary and Secondary), Queensway Secondary School, Queenstown Secondary School, Anglo-Chinese School (Independent) (Secondary and Junior College) and Anglo-Chinese Junior College (see Screenshot 1).

Our tool also indicates that the price paid for the subject flat is marginally above the average for Commonwealth 10 but lower than that for a nearby project. The transacted price is also significantly above the average for District 3 (see Screenshot 2).

Lower than record-high

At the time of writing, data from HDB indicates that 257 three-room flats in Queenstown HDB town have been sold this year, at prices ranging from $300,000 to $888,000. Hence, the $750,000 price tag for the subject flat is nearer the upper end of the price spectrum for similar flats in the same town.

If we narrow our analysis to include only three-room flats along Commonwealth Drive, 17 flats have been sold so far this year for between $340,000 and $785,000. The subject flat is among this year’s most expensive three-room flats along Commonwealth Drive (see Table 1).

Interestingly, the flats along Commonwealth Drive that fetched the top prices are located in Blocks 50 and 53. A flat from each of these blocks was sold for $785,000 ($1,157 psf) this year, tying for first place among the most expensive three-room flats along Commonwealth Drive. The subject flat tied for third place with another flat from the same block.

The top prices fetched by these flats could be attributed to their convenient location near amenities and public transport. Additionally, the flats have a long remaining lease of approximately 89 years.

Read also: A three-room flat at 184 Bishan Street 13 was just sold for a record-high of $625,000

In contrast, a flat at 83 Commonwealth Close was sold for $300,000 in July, marking this year’s lowest transacted price for three-room flats in Queenstown. This flat is a short walk from Commonwealth MRT Station, Ridout Tea Garden and Commonwealth Crescent Market. It is also within a 1 km radius of the subject flat (see Map 2).

The low price fetched by the flat at Commonwealth Close could be attributed to its short remaining lease of approximately 41 years, as its lease commenced in 1967.

Near two upcoming HDB projects

Commonwealth 10 is a short walk from two upcoming HDB projects, namely Tanglin Halt Cascadia and Tanglin Halt Courtyard (see Map 3). Both were launched under the Prime Location Public Housing (PLH) model, which comes with a longer minimum occupation period (MOP) of 10 years instead of the usual five years.

Residents living in the neighbourhood will benefit from the amenities within the two projects upon their completion. Tanglin Halt Cascadia is expected to house a preschool, while Tanglin Halt Courtyard will feature a wet market and a hawker centre.

Notably, most of the flat types from both projects are oversubscribed, and there are no three-room flats in Tanglin Halt Courtyard (see Table 2).

Three-room flats in Queenstown command the strongest price growth

The average resale price for three-room flats ($750 psf) in Queenstown HDB town is significantly lower than that for its four-room ($995 psf) and five-room ($960 psf) peers (see Chart 1). The lower price for three-room flats could be due to an ample supply of such flats in Queenstown. According to HDB’s latest annual report, there are 13,561 three-room flats in Queenstown, compared to 10,428 four-room flats and 4,338 five-room flats.

Read also: A three-room flat at 530D Pasir Ris Drive 1 was just sold for a record-high of $650,000

However, three-room flats recorded the strongest price growth at 42% since 2020, compared with 29.1% for four-room flats and 36.6% for five-room flats.

Notably, three-room flats ($1,112 psf) in Queenstown that are 10 years old or newer command the highest average resale price, compared to similar flats in the Central Region ($1,034 psf) and islandwide ($794 psf) (see Chart 2). This highlights the robust demand for HDB flats in Queenstown that have a long remaining lease.

Only three completed 99-year leasehold condos within a 1 km radius

There are no condos within a 500 m radius of the subject flat. However, when the distance is expanded to 1 km, 10 condos, representing almost 2,000 units, fall within the radius. Of these, six are 99-year leasehold developments and four are freehold developments.

Among the six 99-year leasehold condos, One-North Eden, Margaret Ville and One-North Residences are completed, while Bloomsbury Residences, Blossoms by the Park and The Hill @ One-North are still under construction.

During its launch in April, Bloomsbury Residences reported a take-up rate of 25.1%. Based on caveats lodged at the time of writing, the take-up rate for the 358-unit condo has since improved to 66.2%. The Hill @ One-North was launched in April last year and achieved a take-up rate of 30%. All units in the 142-unit development have since been sold. Launched in April 2023, Blossoms by the Park was the first among the trio to be launched and also achieved the highest take-up rate of 73%. Caveats lodged at the time of writing indicate that the 275-unit development is almost sold out.

One-North Eden and One-North Residences are located adjacent to each other near one-north business park and One-North MRT Station. In contrast, Margaret Ville is located near Margaret Drive Marketplace and Hawker Centre, as well as Queensway Secondary School (see Map 4).

Of the three condos, only Margaret Ville is located in District 3, the same district as the subject flat. One-North Eden and One-North Residences are located in District 5.

Among the three, One-North Eden is the newest, having obtained its temporary occupation permit (TOP) last year, followed by Margaret Ville (TOP in 2021) and One-North Residences (TOP in 2009). However, One-North Eden is the smallest development with 165 units, while One-North Residences is the largest with 405 units. Margaret Ville has 309 units.

The average price of One-North Eden ($2,383 psf) is higher than that of Margaret Ville ($2,208 psf), which could be attributed to its close proximity to one-north business park and One-North MRT Station. One-North Residences ($1,675 psf) recorded the lowest average price, largely because it is significantly older (see Chart 3).

Conclusion

The $750,000 price tag for the subject flat at 50 Commonwealth Drive places it among this year’s highest transactions for three-room flats along Commonwealth Drive. The top transaction involved another three-room flat in the same block, which was sold for $785,000 in August. The high price achieved could be attributed to the subject flat’s close proximity to amenities and its long remaining lease.

However, the $750,000 paid for the subject flat is still significantly below the record-high of $888,000 for three-room flats in Queenstown HDB town. The high prices paid for flats in popular Queenstown reflect its enduring appeal as a residential estate, underpinned by its central location and abundance of amenities.

To learn more about this transaction, and whether it is a good deal, click here.

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