Your Property Agent Says: Why do people spend $1 mil on resale HDB flats?

By EdgeProp Singapore / EdgeProp | July 3, 2018 5:00 PM SGT
Many people might balk at the idea of spending a million dollars for a resale HDB flat. One reason for this is because resale flats, especially those in mature estates, tend to come with shorter leases, and not to mention potentially higher renovation costs.
Flats in older estates such as Toa Payoh or Ang Mo Kio for instance, could easily have leases with less than 70 years remaining.
Findings from our recent poll results on our Instagram account suggested the same thing, with 95% of respondents saying that they would not pay $1 million for a 5-room resale flat.
We asked and you answered: 95% of our Instagram respondents said “no” to buying a million-dollar resale flat
And yet, million-dollar HDB transactions continue to crop up and catch us by surprise. Most recently, a 5-room HDB flat in Queenstown was sold for $1.1 million in June, setting a new record for the area.
The million-dollar resale unit at Block 18C of Holland Drive is located between the 37th and 39th floors with a floor area of 1,259 sq ft. This works out to about S$874 psf on the built-up area.
A 5-room HDB flat in Queenstown was sold for $1.1 million in June
So, what’s driving these transactions? For answers, we spoke to ERA’s senior marketing director, Joyyce Goh - the seller’s agent who helped close the million-dollar deal.
1) Location
According to ERA’s Goh, location is the number one factor that is driving these million-dollar transactions. HDB units that have commanded $1 million and above are all located in the central region, she notes.
Their appeal is elevated by the fact that fewer new flats are being launched in these mature estates. Which is why, buyers are willing to pay a premium for homes in these locations, Goh says.
The Queenstown flat that fetched $1.1 million is located on Holland Drive and is less than 400m from Buona Vista MRT station. Several...