In May 2022, 2 of the 30 million-dollar HDB resale flats sold were 4-roomers. One was a 1,012-sqft flat in Pinnacle@Duxton while the other was a 1,023-sqft flat in Bishan’s Natura Loft. Few realise that the Pinnacle@Duxton flat, which sold for S$1.228m, is a record in the history of 4-room HDB flats.
While it’s de rigueur for executive and 5-room flats to fill the million-dollar list (and hit records), a worthwhile barometer is to monitor the number of 4-room flats gradually breaching this price ceiling (and breaking their own records).
First 4-room HDB flat that breached the S$1m mark, total sold (so far) and current record holders
Since 2018 – the first year a 4-room HDB flat hit the S$1m mark – there have been 87 4-room HDB flats sold above S$1m.
Across this period (1 Jan 2018 till 15 June 2022), that’s 14.19% of million-dollar flats sold compared to 5-rooms (405, or 66.07%) and executive (121, or 19.74%).
Note that we’ve excluded million-dollar transactions of 3-room HDB terrace houses at Jalan Bahagia and Jalan Ma’Mor since we’re looking at resale flats.
Notably, the first 4-room HDB flat that breached the S$1m mark was a 1,033-sqft Type S1 flat at Pinnacle@Duxton, which sold for S$1.028m, or S$995.16 psf in June 2018.
As of today, the current record-holders are two 4-roomers (Type S1) at Pinnacle@Duxton, which sold for S$1.228m in April and May 2022. The one in April was 1,001 sqft (S$1,226 psf) while the one in May was 1,012 sq ft (S$1,213 psf).
More importantly, while transaction volumes for million-dollar 4-room flats are lower than 5-rooms, their average psf price has grown by 12.96% in less than 5 years – faster than 5-room (5.33%) and executive (1.79%).
What’s even more interesting is that there are buyers willing to pay a higher average psf price (S$1,130) for a 1,000-plus-sqft 4-room flat compared to a 1,200/1,300-sqft 5-room (S$922) or 1,800/2000-sqft executive (S$652).
This is considering the million-dollar range among these three room types is currently between S$1m and S$1.4m.
Where are these million-dollar 4-room HDB resale flats located?
| Locations of >million-dollar 4-room HDB resale flats | ||||||||
| Tiong Bahru View (SERS replacement site for Bukit Merah View) |
Pinnacle @ Duxton | Moh Guan Terrace | City Vue @ Henderson (SERS replacement site for Redhill Close) |
SkyTerrace @ Dawson | Natura Loft | |||
| TOP: 2016 | TOP: 2011 | TOP: 1976 | TOP: 2018 | TOP: 2016 | TOP: 2011 | Total by year | Percentage sold by year | |
| 2018 | 2 | 5 | 7 | 8% | ||||
| 2019 | 1 | 9 | 10 | 11% | ||||
| 2020 | 4 | 8 | 1 | 1 | 14 | 16% | ||
| 2021 | 4 | 38 | 1 | 1 | 44 | 51% | ||
| 1 Jan – 15 June 2022 | 10 | 1 | 1 | 12 | 14% | |||
| Total by project | 11 | 70 | 1 | 2 | 2 | 1 | 87 | |
| Percentage sold by project | 13% | 81% | 1% | 2% | 2% | 1% | ||
Not surprisingly, 81% of all 4-room flats resold above S$1m so far are from the 50-storey Pinnacle@Duxton. Most of them are mid- to higher-floor apartments (levels between 28 and 45).
There are exceptions, like in October and December 2021, when units between levels 19-21 were sold for S$1m. More recently, in June 2022, a unit between levels 13-15 was sold for a million, marking another record for million-dollar 4-room flats in terms of floor level at the project.
Similarly, the Tiong Bahru View flats – which are SERS replacements for Bukit Merah View at 9A-10B Boon Tiong Road – were on mid- to higher floors – between 16-40. The ones at SkyTerrace@Dawson were between levels 31 and 42.
Another notable trend to monitor is the gradual increase in the number of 4-room flats sold on a year-to-year basis, with more than half of them sold last year.
The age of these flats and how fast were they sold after TOP?
While Moh Guan Terrace seems to be the oldest 4-room HDB flat sold for above S$1m (with 51 years of lease remaining at the time of sale), it is also possibly the record-holder for being on the lowest floor (the block is a walk-up with only four floors). It should also be noted that the 4-room flat is an amalgamation of two 2-room units (giving a total floor space of 1,410 sqft).
The newest 4-room resale flats were from SERS replacement projects, Tiong Bahru View and City Vue @ Henderson, which sold when their leases were at roughly 97 years.
The reason the owners were able to sell before they complete their 5-year Minimum Occupation Periods (MOP) after TOP is because owners impacted by SERS can choose to sell 7 years after they select their new flats. These 7 years would have included the construction period.
So technically, for these sellers, they only stayed in their new flats for 2 years at most.
However, on a sidenote, HDB has changed the MOP criteria for SERS recently.
Effective from 7 April 2022, homeowners impacted by SERS can sell their flats only 5 years after they’ve collected their keys (like any BTOs). Coincidentally (and possibly unfortunate for these residents), the recent Ang Mo Kio SERS was announced on that same day.
This means for the affected 600 Ang Mo Kio households, if they opt to move into their replacement flats, they can only sell their flats 5 years after living in them – no matter how long the wait is for those new replacement flats to complete.
Record-breaking 4-room HDB resale flats after 5-year MOP
Anyway, SERS-aside, the current record holder for a 4-room HDB flat sold above S$1m immediately after its first owner had presumably stayed the full 5-year MOP would be SkyTerrace@Dawson – which was a 1,173 sqft premium loft apartment sold for S$1.033m (S$880 psf) in June 2021.
In December 2021, a similar 5-room loft apartment (1,313 sqft) there was sold for S$1.328m (S$1,011 psf) – a record for the Queenstown neighbourhood.
Right now, speculators wonder when we’ll see the first Model A (1,001 sqft) 4-room HDB flat hit the S$1m mark immediately after serving its 5-year MOP.
If we look at HDB flats which TOPed in 2017 and 2018 and already selling around the >S$900k range in the open market, we can probably place our predictions:
| List of 4-room BTO flats which have recently MOPed selling above S$900k in the open market | ||||||||
| Project | Location | TOP | Current highest price sold for a 4-room resale flat | Size (sqft) | Price (PSF) | Floor range | Date | Notes |
| Kebun Baru Court | 260B Ang Mo Kio Street 21 | 2018 | S$918,000 | 990 | S$927 | 19-21 | May 2022 | Model A 4 Room |
| Toa Payoh Crest | 130A Lorong 1 Toa Payoh | 2018 | S$975,000 | 1001 | S$974 | 37-39 | May 2022 | Model A 4 Room |
| Toa Payoh Crest | 130B Lorong 1 Toa Payoh | 2018 | S$975,000 | 1001 | S$974 | 31-33 | May 2022 | Model A 4 Room |
| Clementi Cascadia (SERS replacement) |
440C Clementi Avenue 3 | 2017 | S$955,000 | 1012 | S$943.68 | N/A | Nov 2021 | 3 bedrooms |
| Teck Ghee Parkview | 455B Ang Mo Kio St 44 | 2018 | S$900,000 | 1001 | S$899 | 28-30 | June 2022 | Model A 4 Room |
| McNair Towers | 113B McNair Road | 2017 | S$998,000 | 1001 | S$997 | 34-36 | Jan 2022 | 4-room (Premium Apartment) |
| Bendemeer Light | 10A Bendemeer Road | 2017 | S$950,000 | 1001 | S$949.05 | N/A | Apr 2022 | Model A 4 Room |
| Telok Blangah Ridgeview | 70C Telok Blangah Heights | 2017 | S$900,000 | 1001 | S$899 | 22-24 | Dec 2021 | Model A 4 Room |
| Kallang Trivista (SERS replacement) |
8B Upper Boon Keng Road | 2017 | S$960,000 | 1023 | S$938 | 28-30 | July 2021 | 4-room (Premium Apartment) |
| City Vue @ Henderson (SERS replacement) |
96B Henderson Road | 2018 | S$1.03m | 1001 | S$1028.97 | N/A | Dec 2021 | Model A 4 Room |
* 4-room (premium apartments) are usually renovated flats that include doors, tiles, wall paint and cabinets. This is as opposed to standard 4-rooms which are flats with raw concrete and optional doors. Clementi Cascadia is a SERS replacement development for blocks 436-438 Clementi Avenue 3 to make way for a temporary bus interchange, Kallang Trivista is a SERS replacement development for some Rochor residents affected by the North-South Expressway construction, while City Vue @ Henderson is a SERS replacement development for some Redhill Close residents. (Table data sources from URA, Realis and 99.co)
Based on the table above, we can see McNair Towers (premium apartment) inching closer towards its first S$1m 4-room flat after MOP. If you recall, the project had contractor difficulties in 2015 but managed to turn things around.
Separately, Toa Payoh Crest has had two units sold at S$975k so far, while Bendemeer Light sold a 4-room for S$950k in April.
Even the three SERS replacement projects on the list – City Vue@Henderson, Clementi Cascadia and Kallang Trivista – which have either completed or nearing their 5-year MOP, may likely see some records broken as well. Already, City Vue has sold two 1,001-sqft 4-room flats at or above S$1m under its SERS MOP in October 2020 and December 2021.
So the likelihood of the first 1,001-sqft 4-roomer selling for a million soon after its first 5-year MOP could come from any of them really.
Also, while the list above shows recently MOPed BTO projects which have recorded near-S$1m sales for 4-roomers, there are more BTO projects with 4-room flats MOPing soon that we’ve yet to track. So it remains critical that we continue to monitor these trends.
Why?
As more 4-room flats near or breach the S$1m price ceiling (and their psf prices continue with double-digit growths), there may be a spillover effect (and price demand) on other mid- to lower-tier price ranges among 4-room resale flats (within the same block, or around the same estate or neighbourhood).
If this trend continues, it may only be a matter of time when more 1,000-sqft 4-room HDB resale flats breach the S$1m mark – first, within urban districts, and later, in suburban neighbourhoods like Clementi and Jurong (Singapore’s designated 2nd CBD).
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Are you planning to buy any 4-room HDB flats in these estates or neighbourhoods? Let us know in the comments section below or on our Facebook post.
If you found this article helpful, check out August 2022 HDB BTO overview: Ang Mo Kio, Bukit Merah, Choa Chu Kang, Jurong East, Tampines and Woodlands and Million-dollar HDB resale flat transactions: Will they be affected by the new cooling measures?
The post Million-dollar 4-room HDB resale flats: What, Where, Why and When? appeared first on 99.co.
