Earlier this month, a five-room flat at 138B Lorong 1A Toa Payoh was sold for $1.3 million ($1,069 psf). The flat, located on the 16th to 18th storey, has achieved a record-high price for HDB flats in Toa Payoh this month. The lease for the 1,216-sq ft flat started in 2012, leaving a remaining lease of 86 years.

We used our analytics tool, Is it a Good Deal?, to examine the transaction and determine whether the buyer of this well-located flat secured a bargain.

Convenient and connected

Residents of the flat enjoy the convenience of being within walking distance of Toa Payoh and Braddell MRT Stations (see Map 1). Other amenities within a 500m radius include Toa Payoh West Market and Food Centre, HDB Hub, and Toa Payoh Bus Interchange.

Read also: February 2025 BTO: Fewer available flats compared to October BTO

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Parents are spoilt for choice, as primary schools within a 1km radius include CHIJ Primary (Toa Payoh), Kheng Cheng School, and Marymount Convent School (see Screenshot 1). Other schools within the same distance include Beatty Secondary School, CHIJ Secondary (Toa Payoh), Raffles Girls’ School (Secondary), and Raffles Institution (Junior College).

Our tool also highlighted that the transacted price for the five-room flat is higher than the average price for both the project and the district (see Screenshot 2). The flat along Lorong 1A Toa Payoh is located within the Toa Payoh Planning Area and District 12. It is also part of an HDB project named The Peak @ Toa Payoh.

The $1.3-million price tag is not the lowest

The number of million-dollar deals for five-room HDB flats in Singapore has been on the rise, increasing from 207 transactions in 2023 to 406 transactions last year. So far, 42 such transactions have been recorded this year.

Likewise, the number of million-dollar deals for five-room flats in Toa Payoh, which includes Bidadari, has increased from 33 transactions in 2023 to 57 transactions last year. Thus far, nine five-room flats in Toa Payoh have fetched at least $1 million this year (see Chart 1).

Thus far this year, there has been 16 resale transactions for five-room flats in Toa Payoh. Of these transactions, nine were million-dollar deals. Five of the million-dollar deals were for flats located along Lorong 1A Toa Payoh.

The $1.3 million price tag for the subject flat is the second lowest among the million-dollar deals for five-room flats along Lorong 1A Toa Payoh this year (see Table 1). The lowest price of $1.18 million ($970 psf) was recorded for a five-room flat in the same block, albeit on a lower storey. It is also the only million-dollar transaction for Lorong 1A Toa Payoh this year that did not cross the $1,000 psf threshold.

Read also: HDB resale prices rises 2.6% in 4Q2024, up 9.7% across the year

Price for five-room flats in Toa Payoh on the rise

The average resale price for five-room flats ($842 psf) in Toa Payoh has trended slightly below that of their four-room ($862 psf) counterparts since 2022 (see Chart 2). This could be because five-room flats (25.1%) have experienced weaker price growth since 2022 compared to four-room flats (24.4%). Meanwhile, the average resale price for three-room flats ($655 psf) in Toa Payoh remains significantly below that of its larger counterparts, despite having the strongest price growth of 27.7%.

Since 2021, the average resale price for five-room flats in Toa Payoh ($1,107 psf) aged between 11 and 20 years has surpassed that of similar flats in the central region ($1,052 psf) and islandwide ($831 psf) (see Chart 3). This could be attributed to the strong price growth since 2021 for such flats in Toa Payoh (35.5%) compared to their counterparts in the central region (32.2%) and islandwide (27.1%).

Only two 99-year leasehold condos within walking distance

The price difference between five-room HDB flats aged 11 to 20 years in Toa Payoh ($1,107 psf) has widened considerably compared to 99-year leasehold condos in Toa Payoh ($1,923 psf) that are of a similar age and size. In 2020, the price difference between both property types was $657 psf, but it has increased to $816 psf this year (see Chart 4).

Within the Toa Payoh Planning Area, there are approximately 39 condos with 11,094 units. Of these 39 condos, only 16 of them have 99-year tenures.

Oleander Towers and Trevista are the only two 99-year leasehold condos within a 500m radius of 138B Lorong 1A Toa Payoh (see Map 2). Oleander Towers is a 318-unit development that obtained its temporary occupation permit (TOP) in 1997, while 590-unit Trevista is a younger development that obtained its TOP in 2011.

As Trevista ($1,814 psf) is 14 years younger than Oleander Towers ($1,446 psf), it is hardly surprising that Trevista has a higher average resale price. Both condos have average resale prices that have crossed the $1,000 psf threshold, unlike those for HDB flats in Toa Payoh ($764 psf) (see Chart 5).

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

Since 2020, the average resale prices for Oleander Towers (30.4%) and Trevista (30.7%) have grown at similar paces, but the average resale price for HDB flats in Toa Payoh has grown at a significantly stronger pace of 66.1%.

Conclusion

The $1.3 million recently paid for a five-room flat at 138B Lorong 1A Toa Payoh may seem high, but three other five-room flats along the same street have transacted at higher prices this year. Only one flat in the same block has transacted at a lower price. The subject flat is surrounded by amenities, including reputable schools and two MRT stations, which could have contributed to its upward price trend.

Furthermore, Toa Payoh is a popular residential estate among buyers. According to HDB, Bidadari is part of the Toa Payoh HDB town. Last year, almost 900 flats in Bidadari obtained their minimum occupation period (MOP). This year, the number of such flats increased to approximately 1,200, and it is expected to rise further to approximately 1,600 flats next year. The almost new HDB flats from Bidadari are in demand in the resale market, which could further boost prices for HDB flats in Toa Payoh over the next few years, potentially leading to more million-dollar HDB flats in the town.

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

Check out the latest listings for Oleander Towers, Trevista, HDB properties

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