Most expensive four-room HDB in Singapore sold for $1.128M, a new high
A four-room HDB flat at 590B Ang Mo Kio Street 51 was recently sold for a record-breaking $1.08 million, making it the highest transacted price for a four-room flat in the Ang Mo Kio Planning Area. The 1,001-sq ft flat, located on the 28th to 30th storey and completed in 2019, was sold for $1,079 psf. Using our analytics tool, ‘Is it a Good Deal?’, we analyzed whether the buyer secured a good deal.
This HDB flat is located in a well-connected and convenient location, with amenities such as Ang Mo Kio MRT Station, Jing Shan Primary School, Anderson Secondary School, AMK Hub, Cheng San Market and Cooked Food Centre, Chong Boon Market and Food Centre, and Ang Mo Kio Town Garden East within a 500m radius (see Map 1). Our analytics tool highlighted that this flat has a long remaining lease of approximately 94 years (see Screenshot 1). Furthermore, with the completion of Phase 1 of the Cross Island Line (CRL) in 2030, Ang Mo Kio MRT Station is set to become a dual-line station.
However, the transacted price for this flat is almost 60% higher than the average price for the district (see Screenshot 2). The average price for four-room HDB flats in Ang Mo Kio ($649 psf) is also higher than those in the North-East Region ($614 psf) and islandwide ($609 psf). However, the price growth for four-room flats in Ang Mo Kio (35.5%) has been weaker than those in the North-East Region (37.4%) and islandwide (40%) since 2014 (see Chart 2 and 3).
Despite the above-average transacted price, the record-high transaction for this flat is unsurprising due to the rising number of million-dollar four-room flats in Singapore. In the first nine months of this year, 232 four-room flats have been transacted for at least $1 million, compared to 116 transactions last year and 33 transactions in 2022. Six four-room flats in Ang Mo Kio have been sold for at least $1 million this year, double the number of million-dollar flats in the area last year (see Chart 1).
The flat at 590B Ang Mo Kio Street 51 is not the only HDB flat in the area to fetch over $1 million. The nine million-dollar transactions for four-room flats in Ang Mo Kio were from three blocks, namely 590A Ang Mo Kio Street 51, 590B Ang Mo Kio Street 51, and 591A Ang Mo Kio Street 51 (see Screenshot 3). The third-highest price for a four-room HDB flat in Ang Mo Kio, transacted in May, was for another flat in the same block as the record-breaking one.
The transacted price of $1,079 psf for the four-room flat at 590B Ang Mo Kio Street 51 is also higher than the average prices for four-room flats in the North-East Region and islandwide by $465 psf and $470 psf, respectively. However, it is notable that the transacted price is still lower than the average price of $1,588 psf for 99-year leasehold condo units in Ang Mo Kio that measure between 900 sq ft and 1,100 sq ft (see Chart 4). The price gap between these two types of residential properties has been widening in recent years, but it is not expected to widen further as the prices for both have been growing at a similar pace since 2020.
In Singapore, investing in condos comes with the added consideration of the government’s property cooling measures. The Singaporean government has implemented several measures over the years to discourage speculative buying and maintain a stable real estate market. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which levies higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the immediate profitability of condo investments, they also play a crucial role in ensuring the long-term stability of the market and creating a secure investment environment. It is worth mentioning that Singapore Projects are a popular choice for condo investment in the country.
In conclusion, while the record-breaking transaction may seem like an above-average price for an HDB flat, it is not surprising given the rising number of million-dollar four-room flats in Singapore and the long remaining tenure and convenient location of the flat. The average price of $649 psf for four-room flats in Ang Mo Kio is also significantly lower than the transacted price, making it a good deal for the buyer. However, as always, it is important for buyers to carefully consider their financial situation and preferences before making a purchase.