The proliferation of million-dollar flats in the past decade is nothing short of incredible. Keep in mind that the first million-dollar flat, at Mei Ling Street in Queenstown, was only in 2012; and it was an eye-opener at the time.
Today, there were around 259 such transactions in 2021 alone; and the latest Tiong Bahru View sold for $1.158 million ($158,000 Cash Over Valuation).
But what is probably the most shocking part of this particular transaction is that this is a 4-room HDB flat, not even a 5-room. And so just like what we saw with the 5-room HDB flats that were creeping towards the $1 million mark, it’s good to track these as there will be effects on the rest of the pricing in the neighbourhood.
So for the road ahead, here are the 4-room HDB developments that have already hit $900,000, and may soon join the million-dollar flat club:
4-room HDB developments with units close to the $1 million mark
Estate
HDB Name
Min Price
Max Price
Min Size (Sqm)
Max Size (Sqm)
Volume
Ang Mo Kio
Kebun Bahru Court
$918,000
$918,000
92
92
1
Ang Mo Kio
Teck Ghee Parkview
$900,000
$915,000
93
93
2
Bishan
Natura Loft
$920,000
$1,050,000
95
95
5
Bukit Merah
75B Redhill Road
$905,000
$905,000
100
100
1
Bukit Merah
Boon Tiong Arcadia
$950,000
$950,000
100
100
1
Bukit Merah
City Vue @Henderson
$900,000
$1,030,000
93
93
10
Bukit Merah
Havelock View
$900,000
$950,000
89
94
6
Bukit Merah
Kim Tian Green
$908,888
$910,000
93
93
3
Bukit Merah
Telok Blangah Ridgeview
$900,000
$910,000
93
93
2
Bukit Merah
Telok Blangah Towers
$975,000
$975,000
95
95
1
Bukit Merah
Tiong Bahru View
$908,000
$1,158,000
87
93
22
Central Area
Pinnacle@Duxton
$910,000
$1,228,000
93
97
57
Clementi
Clementi Cascadia
$900,000
$955,000
94
94
4
Clementi
Clementi Ridges
$900,000
$900,888
93
93
4
Clementi
Clementi Towers
$900,000
$951,300
87
93
4
Kallang/Whampoa
Bendemeer Light
$900,000
$1,000,000
93
93
19
Kallang/Whampoa
City View @ Boon Keng
$918,000
$955,000
94
94
2
Kallang/Whampoa
Kallang Trivista
$900,000
$960,000
95
98
6
Kallang/Whampoa
McNair Towers
$900,000
$998,000
93
93
26
Queenstown
42 Stirling Rd
$930,000
$930,000
120
120
1
Queenstown
50 Commonwealth Drive
$900,000
$900,000
96
96
1
Queenstown
Buona Vista Court
$930,000
$980,000
92
92
3
Queenstown
Ghim Moh Edge
$955,000
$1,018,000
93
93
2
Queenstown
Ghim Moh Valley
$922,000
$922,000
93
93
1
Queenstown
SkyTerrace@Dawson
$900,000
$1,160,000
83
109
24
Queenstown
SkyVille@Dawson
$905,000
$950,000
83
87
7
Toa Payoh
The Peak @ Toa Payoh
$906,000
$948,000
91
91
5
Toa Payoh
Toa Payoh Crest
$905,000
$995,000
93
93
5
Above data based on transactions from July 2021 to June 2022.
Notable details on $900,000+ flats
These flats are still outliers
Most of the flats are on the larger end for 4-room units
Clementi has clearly joined the list of hot spots
PLH projects may be pushing up some of these resale prices
These areas are still the traditional ones you’d expect
1. These flats are still outliers
There’s no denying that the number of $900,000+ flats has grown, along with million-dollar flats (last year saw a record number of such transactions).
However, note that all of the transactions above constitute only a tiny portion (1.86 per cent) of total 4-room flat transactions, from July 2021 to June 2022. They’re also localised in just a few neighbourhoods, so these remain outliers.
Most Singaporeans shouldn’t count on their 4-room flats providing million or near million-dollar retirement funds, anytime soon.
2. Most of the flats are on the larger end for 4-room units
Besides having a more central or convenient location, note that many of the flats above are on the larger end of the scale.
4-room flats built in the past two decades are usually between 85 to 95 sqm. Flats built before this (i.e., most of the transacted flats above) are on the larger end of the scale. 42 Stirling Road, in particular, stands out at a sizeable 120 sqm. SkyTerrace @ Dawson also has rather large 4-room units, at 109 sqm.
With the recent predilection toward larger homes, size certainly helps in loosening buyers’ purse strings.
3. Clementi has clearly joined the list of hotspots
With Jurong East often hailed as the most transformed/upgraded neighbourhood, Clementi may have slipped under the radar.
Clementi started to sneak onto the million-dollar flat scene with Clementi Towers; at the time, these flats were among the furthest from the CBD to break the million-dollar mark.
This once subdued area has benefitted from numerous nearby developments. Key among these is the development of the One-North / Buona Vista area, as a hub for media and tech start-ups.
In a more immediate sense, the opening of Clementi Mall, as well as its surrounding upgrades, has made Clementi Towers, Clementi Cascadia, and Clementi Ridges incredibly convenient (the MRT is across from the mall).
We do think that, with the Cross-Island Line (CRL) in development, Clementi has room for further gains; the planned rail lines will improve Clementi’s connectivity and role as an interchange.
4. PLH projects may be pushing up some of these resale prices
Consider Ghim Moh Ascent, a Prime Location Housing (PLH) project, and the existing Ghim Moh Edge. These two HDB projects are around 800 metres apart, or about nine minutes on foot.
The difference? Ghim Moh Ascent comes with a 10-year MOP, and Subsidy Recovery upon resale. Oh, and remember that after you factor in five years of construction, it’s 15 years before you can sell.
Conversely, you can get a resale unit at Ghim Moh Edge, with none of these restrictions. And with the two being so close, the amenities are comparable anyway.
The same deal applies to Bukit Merah Ridge (a PLH project across from Tiong Bahru Park), and City Vue @ Henderson.
As such, we expect that PLH projects will raise demand for developments that are close by – these provide similar benefits with fewer restrictions. It won’t be long before sellers catch on and raise their prices if they haven’t already.
5. These areas are still the traditional ones you’d expect
Queenstown, Bukit Merah, Kallang, Clementi, Toa Payoh, and Ang Mo Kio. These are the areas where most people would expect there to be million-dollar 4-room HDB flats, and there already are.
The usual suspects like SkyTerrace @ Dawson, and City Vue @ Henderson already recording transactions of more than a million. The big bulk of these 4-room million-dollar transactions still goes to the ever-popular Pinnacle @ Duxton, with the priciest being a $1.228 million transaction in May.
So as of yet, unlike the 5-room flats, there are still no real surprises at the locations of some of these nearly breaching $1 million 4-room flats.
Increased supply is unlikely to affect prices in these specific areas
HDB has ramped up the supply of new flats, and this may or may not sap demand for the wider resale market. Regardless, increased supply is unlikely to deter the flat prices above.
In hot spots like Bukit Merah, Queenstown, Toa Payoh, etc., increased supply doesn’t mean much. No number of flats built in Yishun, for example, will replicate the convenience of a flat next to Toa Payoh Central; at least not for many years to come.
If we’re buyers, we wouldn’t hold our breath for price dips in these areas. HDB flats in these locations are currently in a world of their own and don’t seem to follow the wider resale market as of yet. Prices could continue their climb to the million-dollar mark, even with more BTO flats flooding the country.
If there’s anything that can put a stop to it, it’s probably another wave of anxiety over lease decay and wider fears of the recession.
This article was first published in Stackedhomes.
Property market / sectorHDBResale prices
