A look into the factors behind Ubi's record-breaking $1.06 million HDB resale flat

Tucked away in the planning area of Geylang Estate in the Central Region, a lesser-known neighbourhood, Kampong Ubi, recently made headlines, surprising many with its unprecedented million-dollar milestone.

This article delves into the intricacies of this remarkable transaction, shedding light on the factors that contributed to this transaction and exploring what Ubi has to offer potential homebuyers.

Ubi's million-dollar HDB resale transaction

In October 2023, a two-storey HDB Executive Maisonette in Ubi, Singapore, broke barriers by selling for S$1.06 million, marking the first million-dollar transaction in the area.

With 61 years left on its leasehold, the unit at Block 326 Ubi Avenue 1 sold for S$674 per square foot (psf).

Recent transactions in Kampong Ubi

Analysing recent transactions within Ubi provides valuable insights into the surging property market. Comparable units in the same block were transacted for S$870,000 in July and S$850,000 in May.

Additionally, another maisonette in Block 334 exchanged hands for S$818,000 in July.

In 2010, the region experienced its peak, witnessing 137 transactions with an average psf of S$340. Following this peak, there was a decline in transaction volumes. However, the market made a comeback in 2016 with 89 transactions at S$401 psf.

After four years of property transactions below 83, 2021 marked another 89 transactions at a higher rate of S$433 psf.

In the current year, although there has been a slight dip in transaction volumes to 82, there's a notable surge in prices, averaging at S$506 psf.

This means the average psf in Kampong Ubi increased by 25.56 per cent from 2020 to 2023.

Behind Ubi's million-dollar breakthrough

Several factors contributed to the price tag of the maisonette.

Firstly, the unit's position on a high floor unobstructed views in all directions, enhancing its appeal.

Moreover, the previous owner had spared no expense, investing a substantial S$200,000 in renovating the unit before moving in. The renovation coupled with the fact that the property came with complete interior furnishings meant that the new buyers could move in directly, saving them considerable expenses on renovation costs.

The Ubi unit also boasts a highly convenient proximity, lying within 1 km of the esteemed Maha Bodhi School, making it an ideal choice for families seeking enrollment in this reputable educational institution.

[[nid:656929]]

According to Xu Shaocong, the real estate agent who oversaw the transaction, the new owner expressed a keen interest in sending his daughter to Maha Bodhi School. This intention prompted the buyer to willingly invest more in acquiring the unit, underscoring the significance of the property's location in the decision-making process.

Apart from its prime location and the ease it offers to families with educational preferences, Xu emphasised the scarcity of large HDB apartments in Ubi. He noted that such units, particularly the double-storey ones like this maisonette, are a rare find due to the government's discontinuation of their construction.

This scarcity has significantly driven up demand for these spacious residences, making them a prized commodity in today's market.

Additionally, the property's proximity to a commercial district, 24-hour supermarkets, and Ubi MRT Station, further bolstered its value.

Xu further highlighted a noteworthy comparison, pointing out that a condominium unit of a similar size in the vicinity would command a hefty price tag of at least S$2 million.

This price disparity underscores the competitive edge of this HDB maisonette, making it an attractive and comparatively affordable choice for discerning buyers seeking spacious and well-appointed accommodations in this thriving area.

What else does Ubi have to offer?

Whether you're considering a move to the neighbourhood or planning a visit, Ubi has an array of offerings waiting to be explored. Here are some must-visit spots and noteworthy attractions in the area:

How to get there?

Ubi enjoys excellent connectivity to other parts of Singapore via major expressways. The Pan-Island Expressway (PIE) is a mere 29-minute drive away, offering seamless travel options. The Kallang-Paya Lebar Expressway (KPE) is even closer, just a 10-minute drive from Ubi.

Moreover, residents benefit from proximity to Eunos (8-minute drive) and MacPherson MRT stations (6-minute drive), ensuring effortless access to public transportation.

Kampong Ubi Neighbourhood Centre

Situated along Ubi Avenue 1, this centre offers a diverse range of goods and services, from groceries to household necessities.

As you wander through, you'll encounter shops selling everything from electrical appliances and hardware to delectable Chinese traditional cakes. Supermarkets, banks, family restaurants, and enticing eating outlets further enhance the local experience.

Industrial hub

Ubi primarily functions as an industrial area, boasting a high concentration of automotive-related businesses.

Major dealerships showcase their showrooms and workshops here, alongside other enterprises such as body-and-paint shops and various small and medium-sized businesses, contributing to the vibrant local economy.

Local attractions

Ubi isn't just a hub of commerce - it also offers delightful attractions for residents and visitors alike. Discover exquisite Chinese temples lining Arumugam Road and Paya Lebar Road, reflecting the area's rich cultural heritage.

For beer enthusiasts, Pink Blossoms Brewing awaits, serving up frothy delights like Lean on Me, Diana and Don't Stop Believing.

Additionally, indulge in exhilarating activities at Bubble Bump Singapore, a perfect venue for team-building or just letting off steam. Explore the enchanting Dragonwick Gallery and Art Retreat, each contributing to the area's unique charm.

ALSO READ: Did home renovations go too far at this Ubi BTO block? Here's what actually happened

This article was first published in 99.co.