ANALYSIS: HDB towns with the highest number of million-dollar deals
By Elizabeth Choong
/ EdgeProp Singapore |
This year, 124 HDB flats in Bukit Merah have been sold for at least $1 million. (Photo: Albert Chua/EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – The number of resale HDB flats fetching at least $1 million has been on the rise. From 2014 to 2020, the number of such transactions remained well under 100 but has since surged to 951 in the first 11 months of this year (see Chart 1).
Bukit Merah (239 transactions), Kallang/Whampoa (232 transactions), and Toa Payoh (210 transactions) are the only HDB towns with a combined total of over 200 million-dollar transactions per town since 2022 (see Chart 2). These three towns are also the only ones with more than 100 million-dollar transactions this year. Several factors could explain their popularity among buyers.
Firstly, all three towns are in the central region. Their proximity to the CBD and Orchard Road likely gave a boost to demand for flats in these towns. Additionally, they are well-established residential towns with numerous amenities, including public transport, schools, and shops.
Read also: ANALYSIS: BTO or Resale?
The recent reclassification of build-to-order (BTO) flats could have diverted some buyers to the resale market, as they seek to avoid the stricter restrictions and longer minimum occupation period (MOP). Resale prices for flats in towns where BTO flats were launched under the Prime or Plus categories may have been given a boost. Of the 938 flats in Kallang/Whampoa made available during the most recent BTO exercise in October, 626 were launched as Plus flats, while the remaining 312 were under the Prime category. Furthermore, all 2,063 flats in Kallang/Whampoa during the June BTO exercise were launched under the Prime category. Similarly, during the December BTO exercise last year, all 904 BTO flats in Bukit Merah were launched under the Prime category.
Thus far, Choa Chu Kang, Jurong West, Sembawang, and Tengah are the only towns without any million-dollar transactions. The absence of such transactions in Tengah could be due to it being a new town where the flats have yet to reach MOP. Meanwhile, Choa Chu Kang, Jurong West, and Sembawang are located farther from the city centre, which could have affected their demand and resale prices. Prospective buyers with more modest housing budgets could consider the flats in these towns.
Possible reasons for the increase
There are several factors that could have contributed to the increase in million-dollar transactions. Since September 2022, sellers of private residential properties have to wait 15 months before purchasing a resale HDB flat, unless they are seniors (aged 55 years and above) buying a four-room or smaller resale HDB flat.
The wait-out period would have expired early this year for buyers who sold their private residential properties shortly after the ruling was introduced. Flush with cash from these sales, such buyers would have the means to pay top dollar for resale HDB flats. This could have contributed to the surge in million-dollar transactions, from 488 last year to 915 this year.
Additionally, the overall rise in resale HDB flat prices over the years has led to an increase in million-dollar transactions. Since 2020, the average resale price for HDB flats islandwide has risen by 39.2%, reaching $600 psf (see Chart 3).
Source: EdgeProp Market Trends (as at 29 November 2024)
Furthermore, the price difference between resale HDB flats and 99-year leasehold resale condos has widened in recent years, making resale HDB flats comparatively more affordable. The price gap between the two types of residential properties has increased from $623 psf in 2014 and $817 psf in 2020 to $1,039 psf this year (see Chart 4). Consequently, more households can afford to pay top dollar for a resale HDB flat but may struggle to afford a comparable condo unit.
Source: EdgeProp Market Trends (as at 29 November 2024)
Bukit Merah: the chart topper
Bukit Merah recorded a total of 124 million-dollar transactions for resale HDB flats in the first 11 months of this year, up from 62 last year and 53 in 2022. The well-established residential town has a combined total of 239 million-dollar transactions from 2022 to this year, the highest among all HDB towns. Bukit Merah’s popularity can be attributed to its numerous amenities and proximity to the CBD and Orchard Road.
Bukit Merah is exceptionally well-connected, with eight MRT stations serving the town. Tiong Bahru and Redhill MRT Stations connect residents to the East-West Line, while Telok Blangah and Labrador Park MRT Stations provide access to the Circle Line. Residents are also connected to the Thomson-East Coast Line via Havelock MRT Station. Lastly, HarbourFront MRT Station serves as an interchange station for the Circle and North-East Lines.
Other amenities in Bukit Merah include Tiong Bahru Plaza, VivoCity, Tiong Bahru Market and Food Centre, Alexandra Village Food Centre, The Southern Ridges, Labrador Nature Reserve, Tiong Bahru Park, Marina at Keppel Bay, the Central Expressway, and the Ayer Rajah Expressway. Additionally, there are seven primary schools in the neighbourhood, including Alexandra Primary School, CHIJ (Kellock), and Radin Mas Primary School.
The average resale price for HDB flats in Bukit Merah ($769 psf) is higher than the average for the central region ($732 psf) and islandwide ($600 psf) (see Chart 5). This is despite flats in Bukit Merah (29.7%) experiencing the weakest price growth since 2020, compared to those in the central region (35.3%) and islandwide (39.2%).
Source: EdgeProp Market Trends (as at 29 November 2024)
Two five-room Bukit Merah flats fetched $1.588 million
In June, two five-room flats in Bukit Merah were sold at a record-high price of $1.588 million. Both flats are located within a 1km radius of each other, with one at 96A Henderson Road and the other at 9B Boon Tiong Road (see Map 1). They also have long remaining leases of at least 90 years, which is a rarity in Bukit Merah, where the average remaining lease for HDB flats is 62 years.
Source: EdgeProp LandLens (as at 26 November 2024)
The flat at 96A Henderson Road fetched $1.588 million ($1,306 psf) and is located between the 46th and 48th storeys. The record-high price for the 1,216-sq ft flat can be attributed to its long remaining lease of 94 years. Another factor could be its close proximity to Redhill Market and Food Centre, Bukit Merah View Market and Hawker Centre, and Tiong Bahru Park. Additionally, the flat is within a 1km radius of Alexandra Primary School, Gan Eng Seng Primary School, and Zhangde Primary School.
The other flat, located between the 34th and 36th storeys at 9B Boon Tiong Road, has a remaining lease of 90 years. Despite being slightly smaller at 1,206 sq ft, it attracted the same price of $1.588 million ($1,317 psf). However, this flat arguably has a better location, as it is a short walk from Tiong Bahru MRT Station. In contrast, the flat at 96A Henderson Road is located between Tiong Bahru and Redhill MRT Stations but is not within walking distance of either.
Furthermore, the flat at Boon Tiong Road is a short walk from Tiong Bahru Plaza, Beo Crescent Market and Food Centre, and Havelock Road Cooked Food Centre. It is also within a 1km radius of Alexandra Primary School and Zhangde Primary School.
Notably, both flats fetched prices above the average resale price for five-room flats aged 10 years or less in Bukit Merah ($1,164 psf), the central region ($1,090 psf), and islandwide ($645 psf) (see Chart 6). Since 2020, average prices for such flats in Bukit Merah (30.2%) and islandwide (30.8%) have grown at similar rates but have outpaced the growth of their counterparts in the central region (19.6%).
Source: EdgeProp Market Trends (as at 29 November 2024)
Kallang/Whampoa: a close second
From 2022 to this year, 232 million-dollar transactions were recorded for HDB flats in Kallang/Whampoa. Of these, 147 transactions occurred this year, an increase from 56 last year and 29 in 2022. The central location and proximity to amenities likely contributed to the town’s popularity. Amenities in Kallang/Whampoa include Geylang Bahru Market and Food Centre, Bendemeer Market and Food Centre, Upper Boon Keng Market and Food Centre, and Kallang River. The town is also home to Bendemeer Primary School, Farrer Park Primary School, and Hong Wen School.
Kallang/Whampoa is also very well-connected, with nine MRT stations providing access to multiple train lines. These include the East-West Line (Kallang and Lavender MRT Stations), the North-East Line (Boon Keng MRT Station), the Downtown Line (Bendemeer and Geylang Bahru MRT Stations), the Circle Line (Nicoll Highway and Stadium MRT Stations), and the Thomson-East Coast Line (Tanjong Rhu MRT Station). Little India MRT Station, which serves as an interchange station for the Downtown and North-East Lines, is also located in Kallang/Whampoa.
The average resale price for HDB flats in Kallang/Whampoa ($741 psf) has surpassed that of the central region ($732 psf) since 2022 and has consistently remained above the islandwide average ($600 psf) (see Chart 7). This could be attributed to stronger price growth for flats in Kallang/Whampoa (49.7%) since 2020 compared to their counterparts in the central region (35.3%) and islandwide (39.2%).
Source: EdgeProp Market Trends (as at 2 December 2024)
Top price of $1.45 million paid for five-room flat in Kallang/Whampoa
The three flats that transacted at the highest prices in Kallang/Whampoa this year are all five-room flats located at either 7 Boon Keng Road or 9 Boon Keng Road. The flats were sold for at least $1.35 million and are approximately 14 years old, with remaining leases of 85 years. All three flats are located on high floors and were sold either earlier this month or last month (see Table 1).
Source: EdgeProp Buddy (as at 28 November 2024)
The three flats are located within City View @ Boon Keng and are a short walk from each other (see Map 2). They are also a short walk from Bendemeer Market and Food Centre, as well as Bendemeer and Boon Keng MRT Stations. Additionally, there are two primary schools within a 1km radius, namely Bendemeer Primary School and Hong Wen School.
Source: EdgeProp LandLens (as at 28 November 2024)
The transacted prices for the three flats along Boon Keng Road ($1,104 to $1,151 psf) are significantly higher than the average resale prices for five-room flats aged 11 to 20 years in Kallang/Whampoa ($883 psf), the central region ($959 psf), and islandwide ($690 psf) (see Chart 8). It is also notable that the average resale price for such flats in Kallang/Whampoa (26.7%) has grown at a slower pace since 2020 compared to their counterparts in the central region (32.5%) and islandwide (28.7%).
Source: EdgeProp Market Trends (as at 2 December 2024)
Toa Payoh: secured the bronze medal
Toa Payoh is a popular HDB town despite having older flats that have an average age of 39 years. Toa Payoh attracted 104 million-dollar transactions this year, up from 58 last year and 48 in 2022. From 2022 to this year, a total of 210 flats in Toa Payoh sold for at least $1 million.
The mature town offers numerous amenities, including HDB Hub, Woodleigh Mall, Toa Payoh West Market and Food Centre, Toa Payoh Vista Market, Kim Keat Palm Market and Food Centre, Toa Payoh Stadium, Swimming Complex and Sports Centre, and SAFRA Clubhouse (Toa Payoh). There are also eight primary schools in Toa Payoh, including CHIJ Primary (Toa Payoh), Maris Stella High School (Primary Section), Marymount Convent School, and St. Andrew’s Junior School.
The town is well-connected to the rest of the island with six MRT stations, namely Braddell and Toa Payoh MRT Stations on the North-South Line, Potong Pasir and Woodleigh MRT Stations on the North-East Line, and Tai Seng MRT Station on the Circle Line. Caldecott MRT station is an interchange station for the Circle and Thomson-East Coast Lines. Additionally, the Pan Island Expressway and Central Expressway run through the town.
Unlike Bukit Merah and Kallang/Whampoa, the average resale price for flats in Toa Payoh ($694 psf) is below that for flats in the central region ($732 psf) but above the islandwide average ($600 psf) (see Chart 9). However, the average price for flats in Toa Payoh (50.9%) has grown at a stronger pace since 2020 compared to those in the central region (35.3%) and islandwide (39.2%).
Source: EdgeProp Market Trends (as at 2 December 2024)
Flats along Lorong 1A Toa Payoh snapped up at record-high prices
This year, five flats along Lorong 1A Toa Payoh were snapped up for at least $1.5 million (see Table 2). These were five-room flats with remaining leases of approximately 87 years, making the flats 12 years old.
Source: EdgeProp Buddy (as at 28 November 2024)
All five flats are part of The Peak @ Toa Payoh and are located a short walk from each other (see Map 3). The flats are also located across the road from Toa Payoh West Market and Food Centre and are within a 500m radius of Toa Payoh and Braddell MRT Stations, and Toa Payoh Bus Interchange. CHIJ Primary (Toa Payoh), Marymount Convent School, and Kheng Cheng School are within a 1km radius.
Source: EdgeProp LandLens (as at 28 November 2024)
All five flats sold for prices ($1,222 to $1,246 psf) above the average resale price for five-room flats in Toa Payoh that are between 11 to 20 years old ($1,020 psf). Notably, the average resale price for such flats in Toa Payoh surpassed the $1,000 psf threshold this year. The average price for their counterparts in the central region and islandwide remains below the threshold, at $959 psf and $690 psf, respectively (see Chart 10). The higher price for flats in Toa Payoh (41.7%) could be attributed to its stronger price growth since 2020, compared to that for the central region (32.5%) and islandwide (28.7%).
Source: EdgeProp Market Trends (as at 2 December 2024)
Conclusion
The number of million-dollar transactions for HDB flats is on the rise, which is unsurprising given the overall growth in prices for HDB flats. The surge in million-dollar transactions this year can also be attributed to the expiry of the 15-month wait period for owners who sold their private residential properties when the ruling was first introduced. Furthermore, the growing price difference between HDB flats and 99-year leasehold condos could have encouraged more prospective buyers to turn to the resale HDB market, rather than the resale condo market, to meet their housing needs.
Bukit Merah, Kallang/Whampoa, and Toa Payoh have the highest number of flats that sold for at least $1 million, based on transactions since 2022. The popularity of these towns could be due to their proximity to the CBD and Orchard Road, as well as the numerous amenities in the towns. We also observed that the flats that achieved record-high prices within each town tend to be under 15 years old and are conveniently located within walking distance of amenities, such as public transport, shops, and schools.
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