Is it a Good Deal?: $1.568 million for a HDB in Bishan

By Elizabeth Choong

/ EdgeProp Singapore |

July 18, 2024 11:15 AM SGT

This year, a total of 14 five-room flats in Bishan transacted for at least $1 million. (Photo: Albert Chua/EdgeProp Singapore)

SINGAPORE (EDGEPROP) – Earlier this month, a five-room HDB flat at 257A Bishan Street 24 was sold for $1.568 million ($1,214 psf). The 1,292-sq ft flat is on the 37th to 39th storey and was completed in 2011. We used our analytics tool, "Is it a Good Deal?", to determine whether the buyer of the aforementioned HDB flat in Bishan secured a bargain.

Located within an established housing estate

The HDB flat at 257A Bishan Street 24 is located within Bishan, a well-established housing estate with numerous nearby amenities (see Map 1). There are four schools within a 1 km radius of the block, namely Catholic High School (Primary), Catholic High School (Secondary), Whitley Secondary School, and Eunoia Junior College.

Amenities within walking distance include Bishan Active Park and Bishan North Shopping Mall. The nearest MRT station is Bishan MRT Station, but the dual-line station is not within walking distance as it is more than 800m away. Other amenities within a 1 km radius include Shufu Mart Market and Hawker Centre, Junction 8, Bishan Stadium, Sports Hall and Swimming Complex, and Bishan-Ang Mo Kio Park.

Source: EdgeProp LandLens (as at 16 July 2024)

Cons outweigh the pros for buyer

Our "Is it a Good Deal?" analytics tool indicates that the transacted price for the five-room flat is significantly above the average price for the district. Another drawback is the lack of any MRT stations within walking distance. However, the flat has a long remaining lease and is located near a primary school.

Source: EdgeProp Is it a Good Deal (as at 16 July 2024)

Four million-dollar transactions have taken place for the block

At the time of writing, there have been 54 transactions for five-room flats in Bishan this year. The transacted prices ranged from $720,000 to $1.568 million, or $553 psf to $1,214 psf. This means that the flat that transacted for $1.568 million earlier this month fetched the highest price compared to all other transactions for five-room flats in Bishan.

At the time of writing, there have been only four transactions for five-room flats from 257A Bishan Street 24 this year. All of them have fetched at least $1.3 million for their sellers, with the aforementioned flat transacting at the highest price (see Table 1). The eye-watering price could be attributed to the subject flat being on a higher storey than the other three flats.

Of the 54 transactions for five-room flats in Bishan, 12 are for flats along Bishan Street 24, with transacted prices ranging from $900,000 to $1.568 million, or $680 psf to $1,214 psf. Only three of the flats failed to fetch at least $1 million for their sellers. These three flats are located at either Block 290 or Block 291 and both blocks are across the road from Block 257A (see Map 2). Their lower transacted prices could be attributed to their age, as the two blocks were completed in 1998, making them 13 years older than Block 257A.

Average price for five-room HDB flats in Bishan lower than Central Region

The average price for five-room HDB flats ($757 psf) in Bishan has consistently outperformed that of three-room ($681 psf) and four-room ($692 psf) flats in the same town (see Chart 1). Furthermore, five-room flats in Bishan have achieved the strongest price growth of 43.4% since 2014, compared to their three-room (31.2%) and four-room (37%) counterparts.

However, three-room flats in Bishan have overtaken five-room flats in terms of the strongest price growth since the pandemic. The average price for three-room flats in Bishan has grown by 40.1% since 2020, while the average prices for four-room and five-room flats have increased by 33.1% and 33.5%, respectively.

Source: EdgeProp Market Trends (as at 16 July 2024)

The average price for five-room flats in Bishan trended lower than that for the Central Region from 2014 to last year. At the time of writing, the average price for five-room flats in Bishan ($757 psf) surpassed its counterparts in the Central Region ($752 psf) by $5 psf (see Chart 2). The average price for five-room flats islandwide is significantly lower at $567 psf.

However, the average price for five-room flats in Bishan has achieved the strongest price growth of 33.5% since 2020. In comparison, the average prices for five-room flats in the Central Region and islandwide increased by 26.8% and 32.2%, respectively.

Source: EdgeProp Market Trends (as at 16 July 2024)

Conclusion

The number of million-dollar transactions for HDB flats in Singapore has been increasing steadily from 95 transactions in 2020 to 488 transactions last year. At the time of writing, 476 HDB flats have fetched at least $1 million for their sellers this year.

Bishan is a well-established town with numerous amenities, including reputable schools. This could have contributed to the 14 million-dollar transactions of five-room flats in Bishan that have taken place this year.

The $1.568 million ($1,214 psf) price tag for the five-room flat at 257A Bishan Street 24 is the highest transacted price for five-room flats in Bishan thus far this year. Its transaction price of $1,214 psf is also $38 psf higher than the prevailing average price of $1,176 psf for flats in the same block (see Chart 3).

Source: EdgeProp Is it a Good Deal (as at 16 July 2024)

However, there could be non-monetary reasons that explain the buyer’s decision. The flat is on a high floor, which would give the buyer excellent views of Bishan Active Park and Bishan-Ang Mo Kio Park. Furthermore, the popular Catholic High School (Primary) is just a stone’s throw away, which will appeal to parents with young sons.

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

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