SINGAPORE: In Tiong Bahru, a remarkable transaction recently took place where a 2-room HDB flat fetched an astonishing price of S$585,000, shattering the existing resale apartment record for a unit of similar size.
The specific 2-room apartment, situated between the first and third floors of 43 Moh Guan Terrace, boasts a generous area of 67 square meters, equivalent to about 721 square feet, according to information from HDB’s resale flat price portal.
While listed as a 2-room flat, the apartment is apparently closer in size to a 3-room flat today.
Property website 99.co reveals that it falls short by merely 20 square feet when compared to the dimensions of a contemporary 3-room flat, which typically spans around 69 square meters or 743 square feet.
During the transaction period, the flat had a remaining lease of 48.5 years, adding an intriguing element to the deal.
A 4-room flat in the vicinity sold for a staggering S$1.5 million in June
Interestingly, this locality has previously witnessed other record-breaking property transactions.
In a neighboring vicinity just a short distance away, a 4-room flat at Block 50 Moh Guan Terrace was sold for a staggering S$1.5 million in June.
The sale price surpassed the previous record of S$1.418 million held by a 5-room HDB resale flat at SkyTerrace @ Dawson since July 2022.
The HDB flat is on the fourth floor of a four-storey block. The sale also marks a new record for a 4-room HDB resale flat, overshadowing the previous record of S$1.4 million set by a Pinnacle @ Duxton flat in April.
Additional HDB records highlight yet another resale apartment transaction within the Bukit Merah vicinity.
An apartment at 127A Kim Tian Road exchanged ownership for S$510,000 in September 2022, underscoring the notable dynamics of this property market.
Looking back over the past three years, a significant occurrence took place with the sale of a four-room unit at Blk 43 Moh Guan Terrace, reaching a substantial S$1.088 million.
Notably, 99.co highlighted that purchasers of homes with shorter remaining leases face more stringent financing requirements. For instance, to secure full financing from HDB, the remaining lease of the flat must extend to cover the youngest owner until the age of 95.
This also elucidates why an older flat possessing a shorter remaining lease has limited potential for price appreciation and might instead begin to experience depreciation.