Is it a Good Deal?: $1.03 million for a four-room HDB flat in District 10

Four 4-room HDB flats at 32 Ghim Moh Link have been sold for at least $1 million this year. (Photo: Samuel Isaac Chua/EdgeProp Singapore)

SINGAPORE (EDGEPROP) – Earlier this month, a four-room HDB flat at 32 Ghim Moh Link was sold for $1.03 million ($1,029 psf). The 1,001-sq ft flat is located between the 10th and 12th storeys. We used our analytics tool, “Is it a Good Deal?”, to determine whether the buyer of this HDB flat at Ghim Moh Link managed to secure a bargain.

Prime location

The flat at 32 Ghim Moh Link is part of an HDB project named Ghim Moh Edge. It is located in District 10 and the Queenstown Planning Area. The flat is also a short walk from a Sheng Siong supermarket at 25 Ghim Moh Link, as well as a market and hawker centre at 20 Ghim Moh Road (see Map 1).

Source: EdgeProp LandLens (as at 12 November 2024)

Many amenities within 1km radius

There are two reputable primary schools within a 1km radius, namely Henry Park Primary School and Fairfield Methodist School (Primary) (see Screenshot 1). Other amenities within a 1km radius include Jelita Shopping Centre, The Star Vista, and The Rochester.

The main drawback is the lack of an MRT station within a 500m radius. Dover (670m) and Buona Vista (940m) MRT stations are the nearest, but they are not within comfortable walking distance. However, Buona Vista MRT Station is a dual-line station, giving residents easy access to both the East-West and Circle Lines.

Source: EdgeProp Is it a Good Deal (as at 12 November 2024)

Transacted price above that for district

Our tool also pointed out that the transacted price is above the average price for District 10 but is in line with the average price for Ghim Moh Edge (see Screenshot 2). The higher transacted price for the four-room flat at Ghim Moh Link could be attributed to its long remaining lease of 93 years. This is rare for HDB flats in the Queenstown Planning Area, where the remaining leases average approximately 59 years. The proximity to two reputable primary schools could also explain the higher-than-average transacted price for the flat.

Increasing numbers of million-dollar four-room flats

At the time of writing, 305 HDB flats have been sold for at least $1 million this year, with 53 of them in the Queenstown Planning Area. This is an increase from last year, when 128 four-room flats fetched at least $1 million for their sellers, with 24 of them located in Queenstown (see Chart 1).

The number of million-dollar four-room flats in Queenstown increased from 24 last year to 53 this year. However, the 53 flats sold from January to November this year represent only 17.4% of the total number of million-dollar four-room flats islandwide, a decline from 18.8% last year.

At the time of writing, the number of four-room flats at 32 Ghim Moh Link that have been sold this year totalled four, including the flat that was sold earlier this month. Notably, the other three flats fetched higher prices than the subject flat (see Table 1). This could be attributed to the subject flat being on the lowest storey among the four transacted flats. Additionally, the highest price was for a flat on the highest storey among the transacted flats. This flat, located on the 37th to 39th storey, was sold in July for $1.211 million ($1,210 psf).

Source: EdgeProp Buddy (as at 12 November 2024)

Higher price than central region and islandwide

The average resale price for four-room flats ($889 psf) in the Queenstown Planning Area has consistently trended above that of its three-room ($650 psf) and five-room ($827 psf) counterparts (see Chart 2). This could be because four-room flats have achieved stronger price growth (28.8%) since 2014, compared to three-room (17.1%) and five-room (23.8%) flats.

Source: EdgeProp Market Trends (as at 12 November 2024)

The average resale price for four-room flats in the Queenstown Planning Area ($889 psf) is higher than that for the central region ($819 psf) and islandwide ($614 psf) (see Chart 3). Despite having the highest price, four-room flats in Queenstown (28.8%) have experienced weaker price growth since 2014 compared to their counterparts in the central region (41.7%) and islandwide (41.1%).

Source: EdgeProp Market Trends (as at 12 November 2024)

Readers should note that the transacted price of $1,029 psf for the subject flat is $140 psf higher than the average resale price of $889 psf for four-room flats in the Queenstown Planning Area. It is also higher than that of four-room flats in the central region ($819 psf) and islandwide ($614 psf) by $210 psf and $415 psf, respectively.

However, the transacted price of $1,029 psf is below that of 99-year leasehold condo units of similar size in the Queenstown Planning Area ($1,881 psf) by $852 psf. The price difference between four-room HDB flats and condo units of similar size in Queenstown has been widening, from $375 psf in 2014 to $409 psf in 2020 and $992 psf this year (see Chart 4). This could be attributed to the stronger price growth achieved by condos in Queenstown, which surged by 60.5% since 2020, while the average price of their HDB counterparts grew by a significantly weaker 16.5% over the same timeframe.

Source: EdgeProp Market Trends (as at 12 November 2024)

Conclusion

Many would consider the $1.03 million price tag for a four-room flat at 32 Ghim Moh Link high, but it is only one of the four million-dollar transactions that have taken place this year for four-room flats in that block. Additionally, the number of million-dollar four-room flats in the Queenstown Planning Area and islandwide has increased significantly over the last few years. Hence, it is not surprising that our analytics tool indicates that the $1.03 million paid for the subject flat is in line with the average price for four-room flats in Ghim Moh Edge.

The high prices attracted by the flats in Ghim Moh Edge could be due to their location within District 10 and the central region. Ghim Moh Edge is also located in close proximity to a number of malls and two reputable primary schools. Additionally, the flats in the HDB project have a long remaining lease of 93 years, which is a rarity for HDB flats in the Queenstown Planning Area.

Although the transacted price of $1,029 psf is higher than the average resale price of four-room flats in the Queenstown Planning Area, the central region, and islandwide, it is still significantly lower than that of similar-sized leasehold condo units in the same planning area. Furthermore, the price difference has widened significantly in recent years. Those who are determined to live in Queenstown will find that HDB flats are a more affordable option, despite their million-dollar price tags.

To learn more about this transaction, and whether it is a good deal, click here.

Check out the latest listings for HDB properties