Earlier this month, a four-room HDB flat at 79 Dawson Road was sold for $1.125 million ($1,187 psf). The 947-sq ft flat is on the 37th to 39th storey and has a long remaining lease of approximately 94 years. We used our analytics tool, Is it a Good Deal?, to determine whether the buyer of this flat secured a bargain.

Convenient and central location

The flat at 79 Dawson Road, located in Queenstown and District 3, is part of Dawson Vista. It is within walking distance of Queenstown MRT Station and Dawson Place (see Map 1). Additionally, Queenstown Primary School, Queenstown Secondary School, and Crescent Girls’ School are all located within a 1km radius.

A drawback is the lack of a major mall within a 500m radius, as only Dawson Place is located within this distance. However, residents should be able to meet their daily needs at Dawson Place, which houses a supermarket and a food court. If the radius is expanded to 1km, more amenities become accessible, including Anchorpoint Shopping Centre, Alexandra Central Mall, Margaret Drive Marketplace and Hawker Centre, Mei Ling Market and Food Centre, and ABC Brickworks Market and Food Centre.

Read also: ANALYSIS: HDB towns with the highest price growth

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The limited number of amenities within walking distance could be mitigated by the flat’s long remaining lease of approximately 94 years (see Screenshot 1). In comparison, the average remaining lease of HDB flats within a 1km radius is approximately 81 years.

Our tool also highlighted that the transacted price for the four-room flat at 79 Dawson Road is significantly lower than the average price for Dawson Vista but higher than the average price for flats in District 3 (see Screenshot 2).

Two four-room flats in Queenstown have transacted for at least $1 million this month

The year has barely begun, but five four-room HDB flats in Singapore have already been sold for at least $1 million. Of these five flats, two are located in Queenstown. Last year, 384 four-room flats were sold for at least $1 million, with 65 of them located in Queenstown (see Chart 1).

The two million-dollar four-room flats in Queenstown are located at 79 Dawson Road and 48 Strathmore Avenue. Both flats are located across the road from each other (see Map 2). The flat along Strathmore Avenue fetched a lower price of $1.01 million ($1,043 psf) despite being larger at 968 sq ft. This could be due to its proximity to a stretch of above-ground MRT tracks, which may cause noise pollution. Additionally, the flat along Strathmore Avenue is located on the 28th to 30th storey, which is on a lower storey compared to the flat along Dawson Road.

Among the five million-dollar four-room flats, the flat at 79 Dawson Road fetched the highest price of $1.125 million, followed closely by a 1,001-sq ft flat at 113B Mcnair Road, which sold for $1.122 million ($1,120 psf) (see Table 1). The flat along Mcnair Road is conveniently located near Boon Keng MRT Station, Bendemeer Market and Food Centre, and Hong Wen School. Meanwhile, the flat at 440B Clementi Avenue 3, which fetched $1.1 million ($1,088 psf), is located next to Clementi MRT Station, Clementi Bus Interchange, The Clementi Mall, and Grantral Mall @ Clementi. The flats along Mcnair Road and Clementi Avenue 3 have long remaining leases of approximately 92 years.

Despite having a longer remaining lease of approximately 94 years, the flat at 82B Circuit Road fetched the lowest price among the five million-dollar four-room flats, at $1 million ($999 psf). The Circuit Road flat is a short walk from the dual-line MacPherson MRT Station (see Map 3). However, the price for the flat could have been affected by potential traffic noise from the nearby Pan Island Expressway and the lack of schools within walking distance.

Read also: Resale flat prices rise 2.5% in 19th straight quarter: HDB 4Q2024 flash

Average price for four-room flats in Queenstown higher than central region

This year, only one three-room flat and six four-room flats in Queenstown have been sold at average resale prices of $557 psf and $994 psf, respectively (see Chart 2). Notably, the four-room flat at 97 Dawson Road fetched $1,187 psf, which is $193 psf higher than the average resale price for similar flats in the same town.

Resale prices for flats in Queenstown have been on an upward trajectory. From 2014 to last year, four-room flats recorded the strongest price growth at 30%, followed by five-room flats at 23.5% and three-room flats at 17.3%. Last year, three-room and four-room resale flats in Queenstown fetched average resale prices of $651 psf and $897 psf, respectively, while five-room flats transacted at an average price of $825 psf.

The strong price growth for four-room flats in Queenstown could explain why the average resale price for such flats has consistently trended above that of their three-room and five-room counterparts since 2015.

The current average resale price for four-room flats in Queenstown ($994 psf) is higher than that of the central region ($826 psf) and islandwide ($636 psf) (see Chart 3). Since 2014, the average resale prices for four-room flats in these three areas have increased at similar rates. The average resale price for four-room flats in Queenstown grew by 44.1%, which is stronger than the 42.9% increase for flats in the central region but weaker than the 46.2% increase for such flats islandwide.

The price difference between four-room flats in Queenstown and 99-year leasehold condo units measuring 900 sq ft to 1,100 sq ft in the same neighbourhood has widened considerably since 2020. Last year, the price gap was $971 psf, compared to the smaller difference of $411 psf in 2020 (see Chart 4).

The stronger price growth for the condo units may have contributed to the wider price difference between the two housing types. From 2020 to last year, the average resale price for the condo units ($1,868 psf) surged by 59.4%, while the average price for HDB flats ($897 psf) grew by 17.9%.

Read also: Record-breaking 1,000 HDB resale flats hit $1 mil in 2024

There are three completed 99-year leasehold condos located within a 500m radius of 79 Dawson Road, namely Commonwealth Towers (845 units), Queens (722 units), and Queens Peak (736 units) (see Map 4). Among the three condos, Queens Peak, which obtained its temporary occupation permit (TOP) in 2020, is the closest in age to 79 Dawson Road. Queens, which obtained TOP in 2002, is the oldest among the trio. Commonwealth Towers obtained its TOP in 2017.

Among the three condos, Queens had the lowest average resale price last year at $1,702 psf, followed by Queens Peak ($2,196 psf) and Commonwealth Towers ($2,202 psf) (see Chart 5). The significantly lower average resale price for Queens could be attributed to its age compared to the other two condos.

Despite its lower average price, Queens is the most profitable condo in District 3, with 665 profitable transactions at the time of writing. Commonwealth Towers had 254 profitable transactions, while Queens Peak chalked up 170 profitable transactions.

Conclusion

The number of four-room flats fetching at least $1 million has been on a steady rise. In 2022, only 37 four-room flats sold for at least $1 million, but the number surged to 128 transactions in 2023 and 384 transactions last year. This year has already seen five four-room flats transacting for such eye-watering prices.

Among the five million-dollar four-room flats sold this year, two are located in Queenstown. Notably, all five flats share a few similarities including a long remaining lease of over 90 years and close proximity to amenities, such as an MRT station.

The transacted price of $1.125 million ($1,187 psf) for the flat at 79 Dawson Road is the highest ever paid for a four-room flat this year. More million-dollar deals for four-room flats in Queenstown can be expected this year. Most build-to-order (BTO) flats in Queenstown and other HDB towns in the central region are subject to a longer minimum occupation period (MOP) and tighter restrictions because they were usually launched under the Prime or Plus categories. Some prospective buyers seek out resale flats in the central region that have just obtained MOP so they will not be subjected to these tighter restrictions.

The transacted price of $1,187 psf for the flat at 79 Dawson Road is significantly higher than the average resale price of $994 psf for four-room flats in Queenstown. However, it is still significantly lower than the average resale prices of the three neighbouring leasehold condos. Furthermore, the price difference between four-room flats in Queenstown and leasehold condo units of similar size has widened significantly since 2020.

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

Check out the latest listings for Queens, Queens Peak, Commonwealth Towers, HDB properties

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