It Good Deal 108 Million Four Room Hdb Flat Ang Mo Kio
Satellite HDB towns could ease crowding, allow residents to move with easePlease rewrite the attached article.
The upcoming project, Norwood Grand, is expected to have a starting selling price of under $2,000 per square foot (psf), a significant increase from the current median resale price of $1,301 psf at Parc Rosewood. This could potentially establish a new price standard for newly developed properties in the Woodlands region, with an anticipated average selling price of over $1,900 psf.
Earlier this month, a four-bedroom HDB flat located at 590B Ang Mo Kio Street 51 made headlines when it was sold for a record-breaking $1.08 million, setting a new record for the highest transacted price for a four-room flat in the Ang Mo Kio Planning Area. The 1,001-sq ft flat, situated on the 28th to 30th storey and completed in 2019, was bought at an impressive rate of $1,079 per square foot.
Using our analytics tool, ‘Is it a Good Deal?’, we aimed to determine whether the buyer of this HDB flat managed to secure a good deal for themselves.
The location of this flat is highly convenient and well-connected, making it an attractive choice for potential buyers. Residents in this area can enjoy the convenience of having Ang Mo Kio MRT Station within walking distance, as well as other amenities such as 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, all within a 500m radius (see Map 1).
Furthermore, our 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, despite these appealing features, the transacted price for this flat is almost 60% above the average price for the district (see Screenshot 2), indicating that the buyer may have paid a premium for the convenience and connectivity of the location.
This year alone, 232 four-room flats in Singapore have been transacted for at least $1 million, a significant increase 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). It’s worth noting that four-room flats in Ang Mo Kio did not fetch more than $1 million until last year.
Out of the nine million-dollar transactions for four-room flats in Ang Mo Kio this year, three were from blocks 590A Ang Mo Kio Street 51, 590B Ang Mo Kio Street 51, and 591A Ang Mo Kio Street 51, which are all located within walking distance from each other (see Map 1). The second-highest price for a four-room flat in Ang Mo Kio this year was transacted in June, with a 1,001-sq ft flat at 591A Ang Mo Kio Street 51 fetching almost $1.039 million ($1,038 psf). This flat, which is located on a high floor and completed in 2019, was followed by another flat at 590B Ang Mo Kio Street 51, which was transacted in May for almost $1.03 million ($1,029 psf).
Since 2014, the average resale price for four-room HDB flats in Ang Mo Kio has grown by 35.5%, which is higher compared to three-room flats (23.1%) and five-room flats (32.1%). However, the average price for four-room flats in Ang Mo Kio has trended above that of four-room flats in the North-East Region ($614 psf) and islandwide ($609 psf) since 2021 (see Chart 3).
Despite the high price of $649 psf for four-room flats in Ang Mo Kio, it is still significantly lower than the $1,079 psf paid for the aforementioned 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). This price difference has been increasing over the years, from $432 psf in 2014 to $657 psf in 2020 and $939 psf this year. However, the gap is not expected to widen further as the average prices for both types of residential properties have grown at a similar pace of 42.7% and 42.3%, respectively, since 2020.
In conclusion, the recent transaction of $1.08 million for a four-room HDB flat at 590B Ang Mo Kio Street 51 is the highest ever recorded for the planning area. While the transacted price may seem high compared to the average price for four-room flats in Ang Mo Kio and islandwide, the rising number of million-dollar four-room flats in Singapore is not surprising, given the 40% surge in average resale prices since 2014. The long remaining lease and convenience of the location could have contributed to the above-average transacted price. However, the buyer may have paid a premium for these factors.
To learn more about this transaction and whether it is a good deal, click here. To check out the latest HDB property listings, click here.