SINGAPORE (EDGEPROP) – A record-breaking $838,000 ($1,162 psf) was paid for a three-room HDB flat at 18B Holland Drive. The transaction for the flat on the 31st floor took place earlier this month and is the highest price ever paid for a three-room flat in the neighbourhood. The 721-sq ft flat was completed in 2012 and has a remaining lease of 87 years.

We used our analytics tool, 'Is it a Good Deal?', to determine whether the buyer of the aforementioned HDB flat at 18B Holland Drive managed to secure a good deal.

Located in a vibrant neighbourhood

The flat at 18B Holland Drive is located in the heart of the vibrant Holland neighbourhood. One Holland Village, The Star, Holland Village Market and Food Centre, Holland Road Shopping Centre, and Ghim Moh Market and Hawker Centre are all within a 500-metre radius of the flat. The dual-line Buona Vista MRT Station is also a short walk away (see Map 1).

Read also: October 2024 BTO Part 2: Eight projects in the suburbs

---

---

No schools within a 1km radius

Our ‘Is it a Good Deal?’ analytics tool highlighted that there are no schools within a 1km radius, which could be a deterrent for parents of young children (see Screenshot 1). However, there are three primary schools within a 2km radius, namely Fairfield Methodist School (Primary), Henry Park Primary School, and New Town Primary School.

Our tool also indicated that the transacted price of $838,000 ($1,162 psf) is 80.4% above the average price for the district (see Screenshot 2). However, the flat has a long remaining tenure of 87 years.

More three-room flats transacting for at least $800,000

At the time of writing, 32 three-room flats have fetched at least $800,000 for their sellers this year, a sharp increase from four flats last year (see Chart 1). Of the 32 flats, three are located in Queenstown.

Our ‘Is It a Good Deal?’ tool indicates that two transactions for three-room flats along Holland Drive took place this month (see Table 1). Both transactions were for more than $800,000. One of the transactions is the aforementioned flat at 18B Holland Drive. The other transaction is for a flat at the neighbouring 18A Holland Drive (see Map 1), which sold for $802,000 ($1,112 psf). Both flats are on high floors, and measure 721 sq ft. They were also completed in 2012.

The other two transactions that took place in the first half of this year fetched comparatively lower prices of $680,000 ($943 psf) and $615,000 ($852 psf). Both transactions were also for flats in either 18A Holland Drive or 18B Holland Drive. A contributing factor to the lower prices could be that both flats are located on lower floors.

Average price for three-room flats in Queenstown is lower than other flat types

The average resale price for three-room HDB flats ($644 psf) in the Queenstown Planning Area is significantly lower than that of four-room ($895 psf) and five-room ($823 psf) flats (see Chart 2). It is noteworthy that the transacted price of $1,162 psf for the flat at 18B Holland Drive is significantly higher than the average price for the planning area.

Read also: Is it a Good Deal?: $1.08 million for a four-room HDB flat in Ang Mo Kio

The lower price for three-room flats in Queenstown could be due to the ample supply of such flats compared to four-room and five-room flats. According to the latest HDB Annual Report, there were 14,388 three-room flats in Queenstown as at end-March 2023. In contrast, there were 10,462 four-room and 4,338 five-room flats in the same town.

However, three-room flats have achieved the strongest price growth of 25.5% since 2020, compared to four-room (17.3%) and five-room (18.1%) flats.

It is noteworthy that the average price for flats in 18B Holland Drive consistently trends higher than that for three-room flats in the Queenstown Planning Area (see Chart 3). This could be due to the long remaining lease for flats in 18B Holland Drive. In contrast, the average age of HDB flats in the Queenstown Planning Area is 40 years.

The average resale price for three-room flats in Queenstown ($644 psf) is consistently higher than that of three-room flats in the Central Region ($641 psf) and islandwide ($594 psf) (see Chart 4).

However, the price difference between Queenstown and the Central Region has narrowed significantly in recent years, from $55 psf in 2020 to $17 psf last year and $3 psf this year. This could be due to the slowdown in price growth for three-room flats in Queenstown, which grew by 25.5% since 2020. In contrast, the average price for three-room flats in the Central Region and islandwide increased by 40% and 40.1%, respectively.

It is not surprising that the average resale price for 99-year leasehold Queenstown condo units measuring 750 sq ft or less ($2,228 psf) is significantly higher than that for three-room flats in the same area ($644 psf) (see Chart 5).

Read also: The October 2024 BTO will introduce Plus flats and Open-Concept layouts

It is noteworthy that the price difference between the two types of residential properties has widened over the years. The price gap was $807 psf in 2014, before increasing to $1,271 psf in 2020 and $1,584 psf this year. This is despite condos (24.9%) achieving a slower pace of price growth compared to HDB flats (25.5%) since 2020.

Conclusion

The transacted price of $838,000 ($1,162 psf) for a three-room flat at 18B Holland Drive is a record high for the neighbourhood. The numerous amenities surrounding the flat and a nearby MRT station could have contributed to the high transacted price. Another reason could be the long remaining lease of the flat, which is a rarity among HDB flats in Queenstown.

The transacted price for the HDB flat may seem like a steal when compared to 99-year leasehold condo units of similar size in the same neighbourhood. Moreover, the price gap between the two property types is widening. Thus, HDB flats are a more affordable choice for homebuyers who are keen to live in the area.

Furthermore, the number of three-room HDB flats has been on the rise, surging from only four transactions last year to 32 transactions during the first nine months of this year. Of these 32 transactions, three were for flats in Queenstown.

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

Check out the latest listings for HDB properties

---