SINGAPORE (EDGEPROP) – Earlier this month, a five-room HDB flat at 105A Bidadari Park Drive was sold for $1.3 million ($1,069 psf). The flat is located on the 13th to 15th floors and measures 1,216 sq ft. It has just reached the minimum occupation period (MOP) of five years, and hence has a long remaining tenure of 95 years.

We used our analytics tool, 'Is it a Good Deal?', to assess whether the buyer of the aforementioned HDB flat at Bidadari Park Drive secured a good deal.

Within walking distance of many amenities

There are numerous amenities within a 500m radius of 105A Bidadari Park Drive, including Potong Pasir MRT Station, The Woodleigh Mall, The Poiz Centre, and Broadway Food Centre. Additionally, several schools are within a 1km radius, namely St. Andrew’s Junior School, Cedar Primary School, St. Andrew’s Secondary School, Cedar Girls’ Secondary School, and St. Andrew’s Junior College (see Map 1).

Read also: October 2024 BTO sales exercise will comprise 1 Prime project, 7 Plus projects, and 7 Standard projects; first BTO launch under location-based classification

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The flat is part of Alkaff Vista, which was launched as a Build-to-Order (BTO) project in November 2015. The project comprises 199 four-room and 151 five-room flats, totalling 350 flats. Nearby, Alkaff CourtView and Alkaff LakeView were launched in the same BTO exercise. Among the three projects, Alkaff CourtView is the largest, with 1,258 flats, while Alkaff LakeView features 530 flats.

Of the three projects, Alkaff Vista is the nearest to Potong Pasir MRT Station, while the other two are nearer to Woodleigh MRT Station (see Map 2). Alkaff CourtView and Alkaff LakeView are also nearer to Alkaff Lake and The Woodleigh Mall. Additionally, they are within a 1km radius of Maris Stella High School (Primary Section), Cedar Primary School, and St. Andrew’s Junior School.

Among the three projects, Alkaff Vista is the only project with five-room flats. During the BTO exercise, the five-room flats at Alkaff Vista were launched for application at $544,000 to $625,000 (excluding grants) (see Table 1).

Assuming the seller paid $625,000 for the five-room flat, they would have pocketed a profit of approximately $675,000 after selling it for $1.3 million.

Many plus points

Our 'Is it a Good Deal?' analytics tool highlighted several positive aspects of the flat, including its proximity to Potong Pasir MRT Station, three malls, and two primary schools. Another key advantage is the long remaining tenure of 95 years (see Screenshot 1).

Despite the high transaction price for the flat, it is in line with the average price for Alkaff Vista (see Screenshot 2).

Read also: ANALYSIS: The impact of lease decay on HDB flats

This year, four five-room flats at Alkaff Vista have been sold for between $1.2 million and $1.3 million (see Table 2). The aforementioned flat on the 13th to 15th floors fetched the highest price of $1.3 million, likely because it is on a higher floor compared to the other three flats. Two of the other flats are located on the 7th to 9th floors. They sold for $1.2 million ($986 psf) and $1.22 million ($994 psf). The remaining flat, on the 4th to 6th floors, fetched $1.21 million ($995 psf).

It is hardly surprising that the five-room flats in Alkaff Vista are fetching such high prices for their sellers. In an earlier article, we highlighted that Alkaff Vista is expected to be one of the more popular projects among those reaching MOP this year. This is because Bidadari is near the city centre and it is within the popular Toa Payoh town. Furthermore, new BTO flats in the Toa Payoh Planning Area are expected to be launched under the Prime or Plus categories, which comes with a longer MOP of 10 years. The shorter MOP of five years still applies to Alkaff Vista.

More five-room flats are fetching at least $1 million

At the time of writing, 314 five-room flats in Singapore have been transacted for at least $1 million this year (see Chart 1). Of the 314 flats,  31 were from Toa Payoh and four were from Bidadari. Last year, 207 five-room flats in Singapore were sold for at least $1 million, with 33 located in Toa Payoh Planning Area. Since the flats in Bidadari only reached MOP this year, there were no resale transactions for them prior to this year.

Of the 31 million-dollar transactions that took place this year for five-room flats in Toa Payoh, 10 were sold in the second half of the year. The most recent transaction was for a 1,442 sq ft flat at 50 Lorong 5 Toa Payoh, which sold for $1.05 million ($728 psf) (see Table 3).

Strongest price growth for three-room flats

The average resale price was highest for four-room flats ($792 psf) in Toa Payoh, followed by their five-room ($753 psf) and three-room ($589 psf) counterparts (see Chart 2). Despite having the lowest average resale price, three-room flats in Toa Payoh achieved the strongest price growth of 56.6% since 2020, compared to four-room (40.2%) and five-room (36.4%) flats.

The average resale price for five-room flats in Toa Payoh ($752 psf) has been below that of the Central region ($772 psf) since 2019, while the average resale price for five-room flats islandwide ($574 psf) has consistently trended below the other two areas (see Chart 3). However, price growth since 2020 for five-room flats in Toa Payoh (36.4%) has been stronger than that in the Central region (30.2%) and islandwide (33.8%).

Read also: Singles eligible for two-room flexi flats in all estates from October BTO exercise

It is notable that the $1,069 psf paid for the aforementioned five-room flat at 105A Bidadari Park Drive is $316 psf higher than the average resale price of $753 psf for five-room flats in Toa Payoh. The transacted price is also higher than the average resale prices for five-room flats in the Central region and islandwide by $297 psf and $495 psf, respectively.

However, the transacted price of $1,069 psf is significantly below the average resale price of $1,826 psf for 99-year leasehold condo units of 1,200 sq ft to 1,300 sq ft and located in Toa Payoh (see Chart 4). The price has widened in recent years, from $756 psf in 2020 to $917 psf last year and $1,073 psf at the time of writing.

Conclusion

The recent transaction of $1.3 million ($1,069 psf) for a five-room HDB flat at 105A Bidadari Park Drive is hardly surprising. The new town generated much interest when it was first launched because of its central location and proximity to amenities. Furthermore, it was the newest HDB town at the time of its launch.

Based on the four transactions for five-room flats along Bidadari Park Drive, it appears that such flats can be expected to fetch over $1 million for their sellers. Furthermore, 31 five-room flats in Toa Payoh were sold for at least $1 million this year, representing 9.9% of the 314 million-dollar transactions for five-room flats across the island.

The new classification for BTO flats is expected to generate even more demand for the flats in Bidadari, as BTO flats in Toa Payoh are anticipated to be launched under the Prime or Plus categories. Applicants for Prime and Plus flats are subject to stricter restrictions and a longer MOP. However, the Bidadari flats do not fall under the Prime or Plus categories, so they still have the usual MOP of five years. Buyers who want to live in an HDB flat with a long remaining tenure and in a central location would find the flats in Bidadari attractive.

Despite their million-dollar price tag, HDB flats seem to be a comparatively more affordable option for buyers wanting to live in Toa Payoh. Leasehold condos, which are the closest alternative, are significantly more expensive, and the price gap between the two types of residential properties has widened in recent years.

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

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