Is it a Good Deal?: $1.08 million for a four-room HDB flat in Ang Mo Kio
By Elizabeth Choong
/ EdgeProp Singapore |
The million-dollar transactions for four-room flats in Ang Mo Kio are all located within walking distance of AMK Hub. (Photo: Samuel Issac Chua/EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – Earlier this month, a four-room HDB flat at 590B Ang Mo Kio Street 51 was sold for a record-breaking $1.08 million ($1,079 psf), the highest transacted price for a four-room flat in Ang Mo Kio Planning Area. The 1,001-sq ft flat, located on the 28th to 30th storey, was completed in 2019.
We used our analytics tool, 'Is it a Good Deal?', to determine whether the buyer of the aforementioned HDB flat along Ang Mo Kio Street 51 managed to secure a good deal.
Well-connected and convenient location
Residents of 590B Ang Mo Kio Street 51 can enjoy the convenience of having Ang Mo Kio MRT Station within walking distance (see Map 1). Other amenities within a 500m radius include Jing Shan Primary School, Anderson Secondary School, AMK Hub, Cheng San Market and Cooked Food Centre, Chong Boon Market and Food Centre, and Ang Mo Kio Town Garden East.
Source: EdgeProp LandLens (as at 17 September 2024)
Numerous nearby amenities and a long remaining tenure
Our 'Is it a Good Deal?' analytics tool highlighted that the flat is surrounded by numerous amenities and has a long remaining lease of approximately 94 years (see Screenshot 1). Additionally, Ang Mo Kio MRT Station is set to become a dual-line station upon the completion of Phase 1 of the Cross Island Line (CRL) in 2030.
However, the transacted price for the flat is almost 60% above the average price for the district (see Screenshot 2).
Source: EdgeProp Is it a Good Deal (as at 17 September 2024)
Number of million-dollar four-room flats on a rise
At the time of writing, 232 four-room flats in Singapore have been transacted for at least $1 million this year, up from 116 transactions last year and 33 transactions in 2022. Six four-room flats in Ang Mo Kio have been transacted for at least $1 million this year, double the number of million-dollar flats in the area last year (see Chart 1). Four-room flats in Ang Mo Kio did not fetch more than $1 million until last year.
The nine million-dollar transactions for four-room flats in Ang Mo Kio were from three blocks, namely 590A Ang Mo Kio Street 51, 590B Ang Mo Kio Street 51, and 591A Ang Mo Kio Street 51 (see Screenshot 3). The three blocks are located a short walk from each other (see Map 1).
Source: EdgeProp Latest Transactions (as at 18 September 2024)
The second-highest price for a four-room flat in Ang Mo Kio was transacted in June. The 1,001-sq ft flat, located at 591A Ang Mo Kio Street 51, fetched almost $1.039 million ($1,038 psf). The flat is on a high floor and was completed in 2019. The third-highest price was for another flat at 590B Ang Mo Kio Street 51, which was transacted in May for almost $1.03 million ($1,029 psf).
Strongest price growth for four-room flats in Ang Mo Kio
The average resale price for four-room HDB flats ($649 psf) in Ang Mo Kio is between that of their three-room ($560 psf) and five-room ($680 psf) counterparts (see Chart 2). However, four-room flats (35.5%) have achieved the strongest price growth since 2014, compared to three-room (23.1%) and five-room flats (32.1%).
Source: EdgeProp Market Trends (as at 17 September 2024)
The average price for four-room flats in Ang Mo Kio ($649 psf) has trended above that of four-room flats in the North-East Region ($614 psf) and islandwide ($609 psf) since 2021 (see Chart 3). However, the price growth for Ang Mo Kio has been weaker than the other two areas. Since 2014, the average price for four-room flats in Ang Mo Kio grew by 35.5%, while those in the North-East Region and islandwide grew by 37.4% and 40%, respectively.
Source: EdgeProp Market Trends (as at 17 September 2024)
It is notable that the average price of $649 psf for four-room flats in Ang Mo Kio is $430 psf lower than the $1,079 psf paid for the four-room flat at 590B Ang Mo Kio Street 51. The transacted price is also higher than the average prices for four-room flats in the North-East Region and islandwide by $465 psf and $470 psf, respectively.
However, the transacted price of $1,079 psf is below the average price of $1,588 psf for 99-year leasehold condo units in Ang Mo Kio that measure between 900 sq ft and 1,100 sq ft (see Chart 4). The price gap between the two types of residential properties has increased over the years, from $432 psf in 2014 to $657 psf in 2020 and $939 psf this year. However, the price gap is not expected to widen further because the average prices for these condos and HDB flats have grown at a similar pace of 42.7% and 42.3%, respectively, since 2020.
Source: EdgeProp Market Trends (as at 17 September 2024)
Conclusion
The recent transaction of $1.08 million ($1,079 psf) for a four-room HDB flat at 590B Ang Mo Kio Street 51 is a record high for the planning area. The transacted price is also significantly higher than the average price of $649 psf for four-room flats in Ang Mo Kio and the average price of $609 psf for four-room flats islandwide.
However, the record-high transaction for the aforementioned flat is unsurprising because the average resale price of four-room flats in Singapore has surged by 40% since 2014, resulting in a rising number of million-dollar four-room flats. In the first nine months of this year, 232 four-room flats fetched at least $1 million. Of these 232 transactions, six were for flats in Ang Mo Kio.
The long remaining tenure of the flat could have contributed to the above-average transacted price. Furthermore, the flat is located within walking distance of Ang Mo Kio MRT Station, AMK Hub, two schools, and two markets and food centres. The owner could have paid the above-average price to enjoy the convenience and connectivity.
To learn more about this transaction, and whether it is a good deal, click here.
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