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Just yesterday, news broke of a record-breaking transaction in the heart of Singapore’s bustling property market.
A rare HDB terrace located in Jalan Ma’Mor, Kallang has set not one, not two, but three records in the real estate scene. Selling for a staggering S$1,280,000, this property has claimed the title of the most expensive 3-room HDB unit, the priciest HDB terrace sold to date, and the oldest million-dollar home at the time of the transaction, with a lease with only 47 years remaining.
Most expensive HDB terrace in Singapore
The property at Block 58, Jalan Ma’Mor, boasts a generous size of 2,239 square feet spread across two storeys. With a selling price of S$1.28M, the price per square foot (psf) comes to S$572, setting a new benchmark in the HDB terrace market.
It’s worth noting that the previous record holder was a unit in Jalan Bahagia, which sold for S$1.268 million (S$571). Despite being just S$12,000 more expensive than its predecessor, the Jalan Ma’Mor unit offers significantly more space at only a slightly higher price per square foot.
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Was investing in a house with only 47 years left on the lease a wise decision?
This HDB terrace’s lease began in 1972, making the property 52 years old with only 47 years remaining on its 99-year lease. While some might question the wisdom of investing in a property with a relatively short lease, let’s take a look at the broader state of things:
HDB terrace trends
HDB terrace houses in Singapore, particularly those in the Kallang area, were originally built in the 1950s by the Singapore Improvement Trust (SIT). These properties underwent lease renewal in 1972 when HDB took over, resulting in the current 99-year lease with 47 years remaining.
So, while the lease duration may seem limited, it’s a common feature among HDB terraces in Singapore.
Read more: HDB terrace flats: What they are and where to find them
SERS potential
Despite their age, HDB terrace houses in well-built-up areas like Kallang hold significant potential for Selective En bloc Redevelopment Scheme (SERS) projects. The sizable land area occupied by these terrace houses makes them viable candidates for redevelopment, potentially resulting in a windfall for property owners.
However, it’s essential to note that SERS eligibility is not guaranteed and should not be the sole factor driving property investment decisions.
Value for price
With average private terrace prices in Singapore reaching upwards of S$3,417,500 in recent years, the S$1.28 million price tag for the Jalan Ma’Mor unit presents a compelling opportunity for homeownership. Even compared to transactions from six years ago, the current record-setting price remains significantly lower, making it an attractive option for those aspiring to live in a landed property without breaking the bank.
Read more: Serangoon and Queenstown properties share a 1.2 million ATH title
Buying trends
The Kallang area, where Block 58 is situated, enjoys strong demand from homebuyers due to its strategic location and proximity to amenities. And if the recent million-dollar transactions have taught us anything, it’s that buyers are willing to pay a premium for convenience and location.
This combined with the appeal of HDB terrace houses, which offers a unique blend of convenience and landed living for the best of both worlds, might explain the price tag.
Read more: 74 HDB units sold in January 2024 for over a million dollars, breaking records
Prime location
Block 58’s location offers residents a heavily built-up environment with nearby grocers, shops, and eateries, setting it apart from most landed private homes that are often situated in isolated enclaves. The property is also conveniently located within 1km of Hong Wen and St. Andrew’s Primary Schools and just 2.7km (or a 5 minute drive away) from Novena Square.
But what makes this terrace a little more special compared to the rest is that it’s a corner lot. This generally means a higher floor area as well.
The appeal of HDB terraces
HDB terrace flats in Singapore command higher prices due to their rarity and distinctive features. These properties, with their two-storey layout and private garden, appeal to individuals seeking a landed property within the public housing segment.
Despite their limited supply, HDB terrace flats remain highly sought after for their unique charm and lifestyle offerings.
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Where else can I find HDB terraces in Singapore?
HDB terraces are rare gems in Singapore’s property landscape, with only a handful of locations offering these distinctive homes.
Aside from Jalan Ma’Mor, other areas where HDB terraces can be found include Jalan Bahagia, Stirling Road, and Jalan Tenteram. These properties, with leases ranging from 1968 to 1972, represent a bygone era of public housing design and remain highly coveted by discerning homeowners.
Interested in living in a HDB terrace house? As of writing, there are nine listings in Kallang with a lower starting price of S$780,000 to S$890,000.
Would you pay S$1.28 million for a terrace house with 47 years of lease left? Share your thoughts in the comments section below or on our Facebook page.
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