SINGAPORE: Singaporeans can expect a few more million dollar Housing Development Board flats in the resale market soon.
This is according to one property agent that Channel NewsAsia spoke to, who said the high asking price of some flats can be attributed to their prime location and large liveable space.
The deal for a million dollar resale flat in Queenstown has been confirmed on Wednesday.
It is a record amount for a public housing flat.
The transaction for the executive apartment at Block 149 Mei Ling Street has turned a few heads, with a Cash-Over-Valuation (COV) of S$195,000.
The flat is a five minute walk from the Queenstown MRT station and is also located close to public amenities like the Queenstown Sports Complex.
Channel NewsAsia understands that the property is reported to have three bedrooms and a study, and was built in 1995. The seller has been living in this place for about six to seven years and has bought the place at under S$800,000 at the time.
The sellers are the second owner of the flat and are said to be a Singaporean couple in their 30s and 40s. They will be moving into a landed property after selling the flat.
Taking into account renovation costs of about S$50,000, this means the seller will make a profit of about S$150,000.
The 1614 square-foot flat is sold at about S$620 per square foot.
That is half the average price paid per square foot for the condominium next door last month.
About 10 parties viewed the flat before the property was sold in about three months. An offer of S$950,000 was also rejected.
The buyers are a Singaporean couple who have just sold their private property.
Dennis Wee Realty's associate director Irene Ho said: "The things that attract them to the flat are the size, floor and the decor of the house. I would say the seller and the buyer's tastes are very similar. The renovation actually suits the buyer so he doesn't have to do a major renovation on it. It is just some minor touch ups."
Property firm Propnex's chief executive officer, Mohamed Ismail said he even expects some resale flats to go above a million dollars.
This includes the Pinnacle@Duxton whose owners will complete their minimum occupation period in the next few years.
But Mr Ismail said there is no reason for Singaporeans to be alarmed.
Mr Ismail said: "The median COV islandwide is only S$30,000 so people are relatively cautious in their approach and you're not paying such high COVs islandwide.
"I think Singaporeans by and large are prudent and know what they are buying into and even those who pay hundred over thousands. They do understand these are selected properties that have a good demand, and on that basis, they feel it is justified paying such price."
The transaction for the Queenstown flat is expected to be completed in the third week of October.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
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