'Deluded or what?' 5-room HDB flat in Toa Payoh listed for $2m leaves netizens baffled

Could this flat in a mature estate break the record for most expensive sold?

A five-room Design, Build and Sell Scheme (DBSS) flat at block 138B Lorong 1A Toa Payoh has been listed for a eye-watering $2 million on property listing site PropertyGuru on April 16.

According to the agent, the 1,258 sq ft unit, located at The Peak, is on a "super" high floor which promises an unblocked view of the city.

It is also within walking distance to amenities such as shopping malls, supermarkets, and Toa Payoh MRT station.

Built in 2012, the partially furnished flat has 87 years on its lease.

HDB records show there were about 20 flats on Lorong 1A Toa Payoh that changed hands for more than a million-dollars in the past year.

One of them, a five-room DBSS flat in Block 139A, was sold for a record $1.56 million in January. It remains the most expensive resale flat in Singapore.

The Peak consists of 1,203 units that range from three to five rooms. The project was launched in 2009.

DBSS projects - a total of 13 in Singapore - are built by private developers, with each development characterised by unique external features, although owners are subjected to the same regulations as HDB owners.

These units are sought-after due to their rarity and larger living spaces. The DBSS was later suspended in 2011.

After the listing was shared on HardwareZone Forum, several netizens were baffled by the high asking price.

"Buy condo better," one of them said, while another labelled the price as "crazy".

"Deluded or what?" A netizen said.

The agent who posted the advertisement did not respond to AsiaOne's request for comment.

Asking price not the final transaction value

While the asking price of this flat may be steep, it will not deter some Singaporeans, real estate consultant Damien Tan from PropNex told AsiaOne. 

Noting that the asking price is just the starting point and not the final transaction value, Tan said that prices in a mature estate such as Toa Payoh tends to be high. 

"Many of them (buyers) are also willing to pay, rather than wait for the 10-year Minimum Occupancy Period if they were to buy flats under the Prime Location Public Housing model." 

Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc, however told AsiaOne that any amount that exceeds the official valuation of the resale flat has to be paid in cash. 

That is the difference between the sale price and the valuation price. 

Sandrasegeran cited information provided on the HDB website, which states that the amount of the purchase price not covered by CPF funds or a housing loan is required to be paid in cash. 

On this, Tan said that some Singaporeans can afford to top up the difference through cash and CPF savings. 

HDB resale prices are stabilising: Desmond Lee

Speaking at the Huttons Gala Awards on April 8, Second Minister for National Development Development Indranee Rajah said that flats that have gone for more than $1 million remain a minority of HDB resale transactions.

There are 61 flats that have changed hands for at least a million-dollars in March, which represents three per cent of the total resale transactions in that month.

Rajah said that the Government is committed to ensure that HDB remain affordable and accessible.

"More than 8 in 10 first-time homebuyers are able to service their HDB loans using their CPF with little or no cash payments," she added.

And in the OrangeTee annual convention on April 12, Minister National Development Desmond Lee said that the three rounds of property cooling measures since December 2021 has led to stabilisation in resale prices.

HDB resale prices rose 4.9 per cent in 2023. However, this is less than half of the 10.4 per cent in 2022 and 12.7 per cent in 2021, he added.

"We will continue to keep a close watch on the situation," Lee said.

"The Government will not hesitate to move decisively but carefully, to ensure our property market remains stable and sustainable for Singaporeans, especially in light of the global macroeconomic conditions and the geopolitical situation around us."

ALSO READ: HDB resale prices up for 6th straight month - are million-dollar flats to blame? Analysts weigh in

chingshijie@asiaone.com