Approximately 5,000 flats from nine towns will obtain MOP this year

Clementi Crest is expected to attract many buyers because of its close proximity to many amenities including Clementi MRT Station. (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Almost-new resale HDB flats are popular because such flats offer prospective buyers the best of both worlds. Prospective buyers have the opportunity to own a property with a long remaining lease while avoiding the lengthy waiting times associated with build-to-order (BTO) flats. Additionally, BTO flats located in central areas or near amenities, such as MRT stations or town centres, are typically launched as Prime or Plus flats, which come with stricter restrictions and a longer minimum occupation period (MOP). However, such tighter regulations do not apply to resale flats, regardless of location.

Last year, 1,071 HDB resale flats were sold for at least $1 million. Of these, 336 were flats that were 10 years old or younger, hence they have a long remaining lease of at least 89 years. These 336 transactions accounted for 31.4% of all million-dollar transactions last year, up from 21.5% in 2023 and 15.9% in 2022 (see Chart 1). At the time of writing, 63 million-dollar transactions have taken place, with 18 involving flats that are 10 years old or younger.

Source: EdgeProp Shortlist (as at 20 January 2025)

Fewer flats expected to MOP this year

Approximately 5,077 almost new HDB flats are expected to obtain their MOP this year, a decrease from the estimated 11,000 such flats last year (see Table 1). However, the flats are located across nine towns for both years.

Among the projects with flats reaching MOP this year, West Plains @ Bukit Batok and Alkaff CourtView are the only two projects with over 1,000 flats each. These two projects are in very different neighbourhoods, offering distinct attributes that might appeal to different groups of prospective buyers.

Alkaff CourtView is part of Bidadari, a new residential neighbourhood in the central region. In contrast, West Plains @ Bukit Batok is located in an older neighbourhood in the west region. Another project likely to attract attention from prospective buyers is Clementi Crest, as it is in a well-established town with numerous amenities.

Alkaff CourtView: Expected to attract high resale prices

Located along Bidadari Park Drive, Alkaff CourtView is part of the Toa Payoh HDB town in the central region. It is within walking distance of numerous amenities, including Woodleigh and Potong Pasir MRT Stations, The Woodleigh Mall, The Poiz Centre, Woodleigh Village Hawker Centre, Broadway Food Centre, and Alkaff Lake. Schools within a 1km radius include Cedar Primary School, St. Andrew’s Junior School, Cedar Girls’ Secondary School, St. Andrew’s Secondary School, and St. Andrew’s Junior College (see Map 1).

Source: EdgeProp LandLens (as at 17 January 2025)

Alkaff CourtView was launched as part of the BTO exercise in November 2015, alongside two other projects in Bidadari, namely Alkaff LakeView and Alkaff Vista. The flats in all three projects had the same launch prices (see Table 2).

Resale flats in Bidadari have proven to be highly popular with buyers who are also willing to pay premium prices. Last year, 24 resale flats in Bidadari were sold for at least $1 million.

The highest transacted price of $1.34 million ($1,092 psf) involved a five-room flat at 106A Bidadari Park Drive, which is part of Alkaff Vista. The 1,227-sq ft flat, located on the 10th to 12th storey, was sold last month. The five-room flats in Alkaff Vista were originally launched at prices ranging from $544,000 to $625,000. Assuming the seller paid $625,000 for the flat, they would have made an estimated profit of $715,000.

Alkaff Vista is located across the road from Alkaff CourtView (see Map 1 above). As Alkaff Vista and Alkaff CourtView share many attributes, flats in Alkaff CourtView can be expected to fetch similar resale prices.

However, Alkaff CourtView does not have five-room flats, meaning larger households may need to opt for Alkaff Vista, which offers 151 five-room and 199 four-room flats. In contrast, Alkaff CourtView offers 192 two-room flexi, 369 three-room, and 697 four-room flats.

Four-room flats in Bidadari are also in high demand, with 16 of them transacting for at least $1 million last year. The record-high price of $1.17 million ($1,157 psf) was for a flat at 106B Bidadari Park Drive, located on the 16th to 18th storey. This 1,011-sq ft flat was sold in September last year. Earlier this month, a four-room flat at 106A Bidadari Park Drive sold for $1.09 million ($1,078 psf). The 1,011-sq ft unit was located on the 10th to 12th storey.

Assuming the sellers of both four-room flats purchased them for $550,000, the seller who sold their flat for $1.17 million in September last year would have made an estimated profit of $620,000. Meanwhile, the seller who sold their flat for $1.09 million this month would have earned a smaller profit of approximately $540,000.

Resale prices for HDB flats that are 10 years old or younger have been trending upwards, driven by strong price growth. The average resale price for such flats in Toa Payoh has surged by 42.7% since 2020, exceeding the 13.4% growth for similar flats in the central region but falling short of the 46.6% increase for flats islandwide. However, the average resale price for these flats in Toa Payoh ($969 psf) is slightly higher than that for similar flats in the central region ($964 psf) and significantly above the islandwide average ($705 psf) (see Chart 2).

Source: EdgeProp Market Trends (as at 20 January 2025)

West Plains @ Bukit Batok: Ideal for the budget conscious?

While the flats at Alkaff CourtView are expected to command high resale prices, those at West Plains @ Bukit Batok are anticipated to fetch lower price points due to the limited amenities within walking distance of the Bukit Batok project. The more affordable prices may appeal to buyers with more modest budgets.

Many amenities near West Plains @ Bukit Batok are still under construction, including the upcoming Bukit Batok West Hawker Centre, which is adjacent to the project. The nearest MRT station is the upcoming Tengah Park MRT Station, expected to be completed in 2028 as part of Stage 2 of the Jurong Region Line (JRL). However, this MRT station is not within walking distance, as it is approximately 780m away. There are only two primary schools within a 1km radius, namely Princess Elizabeth Primary School and Dazhong Primary School (see Map 2).

Source: EdgeProp LandLens (as at 17 January 2025)

West Plains @ Bukit Batok was launched as part of the BTO exercise in February 2016. No other HDB projects in Bukit Batok were included in the same exercise. Notably, the launch prices for the various flat types in West Plains @ Bukit Batok were significantly lower than those in Alkaff CourtView (see Table 3), which could be attributed to their different locations and proximity to amenities.

Only three flats in Bukit Batok were sold for at least $1 million last year. Of these, two were executive flats, and one was a five-room flat. One of the executive flats fetched the highest price of $1.05 million ($677 psf) when it was sold in July last year. The flat, located at 288A Bukit Batok Street 25 on the seventh to ninth storey, is an older unit with a lease that started in 1997. The high transacted price is likely due to the spacious size of the flat (1,550 sq ft).

Flats at 288A Bukit Batok Street 25 are likely to appeal to nature lovers, as Bukit Batok Nature Park is within walking distance. Bukit View Primary School and Keming Primary School are also located within a 1km radius. However, there are no MRT stations within walking distance as the nearest station, Bukit Batok MRT Station, is approximately 1.2km away.

The lone million-dollar transaction for a five-room flat in Bukit Batok last year involved a unit at 194A Bukit Batok West Avenue 6. The 1,237-sq ft flat, located within a 2km radius of West Plains @ Bukit Batok, sold for $1 million ($808 psf) in July last year and is on the 34th to 36th storey. The flat’s lease started in 2017, meaning it has a remaining lease of approximately 91 years.

The five-room flat is adjacent to Bukit Batok Swimming Complex. Additionally, there are three primary schools within a 1km radius, namely Yuhua Primary School, Princess Elizabeth Primary School, and Bukit View Primary School (see Map 3). However, Bukit Batok MRT Station, the nearest MRT station, is not within a comfortable walking distance. The upcoming Toh Guan MRT Station, expected to be completed in 2028 as part of Stage 2 of the JRL, will be nearer. This lack of nearby MRT stations could be mitigated by the Pan Island Expressway, which is a short drive away.

Source: EdgeProp LandLens (as at 17 January 2025)

The average resale price for HDB flats that are 10 years old or younger in Bukit Batok ($660 psf) is below the islandwide average ($705 psf) but above the average for similar flats in the west region ($646 psf) (see Chart 3). This could be attributed to significantly weaker price growth for such flats in Bukit Batok (8.6%) since 2021 compared to those in the west region (29.2%) and islandwide (30.3%).

Source: EdgeProp Market Trends (as at 20 January 2025)

Clementi Crest: In the heart of Clementi

Clementi Crest is expected to attract the attention of prospective buyers due to its excellent location in the heart of Clementi. Amenities such as Clementi MRT Station, Clementi Bus Interchange, Clementi 448 Market and Food Centre, 321 Clementi, Grantral Mall @ Clementi, and Clementi Stadium, Sports Centre, and Swimming Complex are all a short walking away. Additionally, Clementi MRT Station will become an interchange station for the East-West and Cross Island Lines when the upcoming MRT line begins operating from the station in 2032. Clementi Crest is also conveniently located a short drive from the Ayer Rajah Expressway.

Clementi Crest is expected to appeal to prospective buyers with school-going children, due to the numerous schools within a 1km radius. Nearby schools include Nan Hua Primary School, Pei Tong Primary School, Qifa Primary School, Clementi Town Secondary School, Nan Hua High School, and NUS High School (Secondary and Junior College) (see Map 4).

Source: EdgeProp LandLens (as at 17 January 2025)

Clementi Crest was launched during the BTO exercise in May 2015. It was the only HDB project in Clementi launched during that exercise. Despite being launched only six months before Alkaff CourtView, the launch prices for the flats in Clementi Crest are higher (see Table 4) due to the project’s proximity to numerous and varied amenities, and its location within a mature town.

Last year, 58 flats in Clementi were sold for at least $1 million. A five-room flat set a record-high price of $1.3 million ($1,078 psf) in June last year. The flat is located at 440C Clementi Avenue 3, and across the road from Clementi Crest (see Map 5). The lease for the 1,205-sq ft flat, on the fourth to sixth storey,started in 2018.

Source: EdgeProp LandLens (as at 17 January 2025)

This year, four million-dollar transactions have been recorded for Clementi, with a five-room flat at 425 Clementi Avenue 1 achieving this year’s highest price of $1.14 million ($937 psf). The 1,216-sq ft flat, located on the 13th to 15th storey, has a lease that started in 2013. The flat is also just a short walk from Clementi Crest (see Map 6).

Source: EdgeProp LandLens (as at 20 January 2025)

The average resale price for HDB flats in Clementi ($1,088 psf) that are 10 years old or younger has consistently been above that of its counterparts in the west region ($646 psf) and islandwide ($705 psf) (see Chart 4).

This is despite weaker price growth since 2020 for Clementi (35.2%) compared to the west region (47.8%) and islandwide (46.6%). This could be attributed to the limited number of flats in Clementi. According to HDB’s latest annual report, there are 28,750 HDB flats in Clementi, representing only 2.7% of the total number of HDB flats in Singapore. In contrast, there are 45,261 HDB flats in Bukit Batok, representing 4.2% of all HDB flats on the island.

Source: EdgeProp Market Trends (as at 20 January 2025)

Conclusion

While fewer almost-new flats will obtain MOP this year compared to last year, several projects are still expected to appeal to prospective buyers due to their desirable locations or affordability.

Alkaff CourtView is expected to attract prospective buyers who desire to live in a flat with a long remaining lease and in a central location but want to avoid the restrictions and longer MOP that apply to Prime and Plus BTO flats. Furthermore, residents of Alkaff CourtView benefit from being within walking distance of many amenities, including two MRT stations and two malls. Based on past transactions of flats in nearby Alkaff Vista, prospective buyers would have to pay a premium.

On the other hand, West Plains @ Bukit Batok might appeal to prospective buyers with a more modest budget. Flats in the Bukit Batok project are expected to transact at lower prices compared to Alkaff CourtView because it is not in a central location and there are fewer nearby amenities.

Additionally, prospective buyers have plenty of flats to choose from, as more than 1,000 flats in both Alkaff CourtView and West Plains @ Bukit Batok will obtain MOP this year.

Despite not being in a central location, Clementi Crest is expected to appeal to prospective buyers, especially parents of school-going children, because it is surrounded by reputable schools. The Clementi project is also located a short walk from Clementi MRT Station.

Approximately 9,400 HDB flats are expected to obtain their MOP next year, almost double the number for this year (see Table 5). Furthermore, the flats will be spread across 13 towns instead of the nine towns this year. Hence, buyers will have more choices in terms of location.

Among the projects with flats that will obtain MOP next year, Alkaff Oasis, Pine Vista, and Kallang Residences are expected to attract buyers because of their central locations. Furthermore, Alkaff Oasis is within walking distance of Potong Pasir MRT Station and The Poiz Centre. Alkaff Oasis also features over 1,500 flats, ranging from two-room to five-room, that will obtain MOP next year. Pine Vista is a short walk to Dakota MRT Station and Old Airport Road Food Centre, while Kallang Residences is located across the road from Kallang MRT Station.

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