Recently MOP-ed 3-room flat in Bukit Merah sold for record-breaking S$860,000

SINGAPORE: In a record-breaking sale for the Bukit Merah area, a 3-room HDB flat in Tiong Bahru View has been sold for S$860,000, making it the most expensive 3-room flat in the area, excluding HDB terraces.

The flat is located in Block 10A on Boon Tiong Road, part of the Tiong Bahru View project, and is situated on a high floor, between the 34th and 36th levels.

The flat, with a size of 667 square feet, achieved a price of S$1,289 per square foot (psf).

Given that the lease began in 2016, the unit has around 90 years and six months remaining, making it relatively young at approximately nine years old.

Source: HDB resale price check

This sale surpasses the previous record within the same project, which was set in 2022, according to Singapore’s real estate online portal 99.co.

The earlier unit, also in Block 10A, was located on a lower floor, between the 19th and 21st levels.

That unit sold for S$800,000, translating to S$1,199 psf for the same 667 square feet. The latest sale’s price per square foot represents a notable 7.51 per cent increase over the 2022 record.

99.co noted that the average price of 3-room units in Tiong Bahru View in 2023 was S$682,500, based on four transactions.

In 2024, the broader Tiong Bahru area saw an average price of S$679,804 for 3-room flats, while the average for Bukit Merah as a whole was S$496,080, indicating that Tiong Bahru View commands a significant premium.

Tiong Bahru View has previously been in the spotlight for its high-value transactions.

In May 2024, a 5-room DBSS unit in Block 9B, also on a high floor, was sold for S$1.588 million, achieving S$1,317.93 psf for its 1,206 square feet.

The estate’s proximity to the city, coupled with its elevated position, breathtaking views, and convenient access to amenities like the nearby MRT station, have made it a highly sought-after location.

Last month, a five-room unit in Margaret Drive, Queenstown, sold for approximately S$1.73 million, setting a new record for the most expensive HDB resale flat in Singapore.

MND Minister: Million-Dollar Flats Make Up Just 2% of HDB Resale Transactions Over Past 1.5 Years

Recent months have seen a significant increase in the number of million-dollar HDB resale flats, raising concerns about housing affordability, especially for Singaporeans facing a high cost of living.

According to data from the government website data.gov.sg, July saw a record-setting 120 million-dollar HDB flats sold.

In the first seven months of this year, 539 HDB flats sold for at least S$1 million, compared to 470 such sales in 2023 and 369 in 2022.

Last week, The Housing & Development Board (HDB) and Ministry of National Development (MND) announced a fourth round of property cooling measures since December 2021, reducing the HDB loan-to-value (LTV) limit to 75%.

The move aimed at cooling the HDB resale market and providing increased support for lower-to-middle income first-time home buyers.

National Development Minister Desmond Lee attributed the rise in HDB resale prices to strong demand driven by income growth and the shift of second-time buyers from the private property market due to rising prices.

He also highlighted the impact of fewer flats reaching their Minimum Occupation Period (MOP) and market psychology influenced by record resale prices.

Minister Lee defended the HDB resale market by noting that over the past 18 months, flats selling for over a million dollars have made up only about 2% of all transactions.

He also emphasized that the most expensive smaller flats, like three- and four-room units, are usually found in central HDB estates with strong transport links and comprehensive amenities.