Kovan Melody is a leasehold property completed in 2004 located in Hougang
A 4-bedroom, 1,518 sq ft unit at Kovan Melody has been sold for $2.8 million ($1,845 psf), with the transaction generating a record profit of $1.85 million for the seller. This is also the highest profit recorded at the development to date.
The unit, located at Block 35 on 16th floor, was originally purchased in 2005 for about $946,300 ($623 psf) before being sold in March this year, which translates to a gross annualised capital gain of 5.4% for the seller.
We used our tool 'Is it a good deal?' to assess whether the transaction made sense for the buyer and seller.
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Based on EdgeProp’s estimated fair value of $2.76 million, the unit was transacted at 1.4% above valuation, suggesting the price remains broadly in line with recent comparable sales.
A larger 1,690 sq ft unit was sold in March for $2.738 million ($1,620 psf), while another 1,292 sq ft unit fetched $2.33 million ($1,804 psf) late last year. The valuation for this transaction appears consistent with pricing for larger, higher-floor units within the development.
Valuation of the said unit is only slightly above our indicative Edge Fair Value
At $1,845 psf, the transaction is about 5.5% above the project’s average of $1,748 psf, and about 20.4% higher than the District 19 average of $1,532 psf for comparable leasehold condominiums.
This suggests that while the price is supported within the development, it stands out when benchmarked against the broader market.
With estimated rents of about $6,700 per month, the unit yields around 2.9%, in line with the project’s average rental yield.
Pricing at Kovan Melody relative to other nearby developments
Spanning 1,518 sq ft, the four-bedroom unit features a dual kitchen configuration (dry and wet kitchen), a utility/helper’s room, and a dedicated family area, a format that is increasingly uncommon in newer developments.
Read also: An executive HDB flat was just sold for $1.45 mil, setting a record-high for such flats in Hougang
The layout provides a clear separation between living, private and service zones, with a generously sized living and dining area opening out to a balcony, while the bedrooms are tucked away for privacy. All four bedrooms are well-proportioned.
In comparison, four-bedroom units in newer projects today typically range between 1,100 sq ft and 1,300 sq ft, with more compact room sizes, open kitchens and limited utility space. The inclusion of a separate family area and full wet kitchen at Kovan Melody reflects an earlier design approach that prioritised liveability over maximising efficiency.
Floorplan of the unit at Block 35, #16-43
Kovan Melody is a leasehold property completed in 2006. The project comprises of 148 2-bedders, 518 3-bedders and 112 4-bedders. The 778-unit development sits directly along Upper Serangoon Road, just a short walk from Kovan MRT Station on the North-East Line. This provides direct connectivity to Serangoon MRT Station, Dhoby Ghaut MRT Station and Outram Park MRT Station.
Beyond connectivity, the project benefits from its location within an established residential enclave. A range of amenities is located within walking distance, including Heartland Mall Kovan, Upper Serangoon Shopping Centre and the lifestyle cluster at The Promenade @ Pelikat, offering supermarkets, dining options and everyday conveniences.
The surrounding neighbourhood is also known for its strong food scene, with Kovan and Upper Serangoon areas offering a wide variety of eateries and late-night options.
For families, the development is located within 1km of several primary schools, including Xinghua Primary School and Paya Lebar Methodist Girls' School (Primary), which may support demand from owner-occupiers with school-going children.
Read also: Record-high $1.28 million achieved for executive flat in Hougang
The pros and cons of this transaction
While the transaction highlights the exceptional capital gains achieved by early buyers at Kovan Melody, the premium paid, both within the project and relative to the wider district, suggests this is not a bargain purchase.
Instead, the deal reflects a buyer's willingness to pay for location and convenience. For owner-occupiers, the purchase remains defensible, but for investors, the numbers point to a more measured outlook.
To learn more about this transaction and whether it is a good deal, click here.
Alternatively, contact our Preferred Good Deal Realtor, Low Kian Hoo, for a non-obligatory and complimentary review on your property.
Is it a good deal?
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