$1.101m Toa Payoh HDB is the most expensive 4-room resale flat in town (for now)

Since the introduction of the BTO system, only three projects in Toa Payoh, namely The Peak @ Toa Payoh, Toa Payoh Crest, and Toa Payoh Apex, have completed their five-year Minimum Occupation Period (MOP) and are now available for resale.

Among them, Toa Payoh Crest stands tall, housing what is now the most expensive 4-room resale flat in the town.

The priciest 4-room HDB in Toa Payoh

Located in Block 130B of Toa Payoh Crest, this unit sits between the 19th to 21st floors and spans 1,001 square feet. Its selling price reached an eye-watering S$1.101 million, translating to about S$1,099.90 per square foot (psf).

Leased in 2018, the property still has a substantial 93 years and six months of remaining lease, according to HDB records.

The location of Toa Payoh Crest

Toa Payoh Crest enjoys a prime location, nestled equidistant between Braddell MRT on the North South line and Caldecott MRT station on the TEL and Circle line.

Just across the road lies the vibrant Toa Payoh West Market & Food Centre, a beloved culinary hub brimming with popular food options like Come Daily Fried Hokkien Mee.

For those seeking alternative modes of transportation, the 3.5 km cycling path encircling the Crest provides a scenic route, promoting inter-town connectivity and fostering an active lifestyle. This initiative is part of the Land Transport Authority's (LTA) Islandwide Cycling Network programme, launched in 2022 across Toa Payoh, Ang Mo Kio, and Bishan.

But what's special about this project is that the plot next to it is empty, offering unobstructed city skyline views. But even with URA earmarking it for residential purposes, residents can rest assured that the upcoming residential project (with an estimated yield of 775 units and a maximum building height of 145 metres) will complement rather than disrupt the skyline.

On the other hand, the upcoming project marks the first residential site in Toa Payoh in eight years, presenting an exciting opportunity for future homebuyers to be part of this mature estate's dynamic community.

Freshly MOP-ed with a potential capital gain of almost S$700k

Given Toa Payoh's status as the first town developed by HDB, a majority of its flats were constructed before the turn of the millennium, resulting in a shorter remaining lease for most units.

It's no wonder then that Toa Payoh Crest has garnered the attention that it has.

In terms of pricing, four-room units in the project initially ranged from S$428,000 back in 2012 when the BTO first launched. This translates to substantial potential gains for the initial owners, who could have seen their property's value soar to anywhere up to S$673,000.

Toa Payoh Crest top sales trends

In 2023, there were a total of 65 transactions within the Toa Payoh Crest project, with an average price of S$840,380 and an average price per square foot (psf) of S$978. Fast forward to March 2024, even with only four transactions in the project so far, we already see a higher average price of S$977,800 (averaging S$1,033 psf).

This works out to a 5.62 per cent increase in psf compared to 2023 — and we're only three months in 2024.

That said, considering the scarcity of new properties in the town and the ongoing sales trends within the project, it appears that the S$1.101 million unit might not hold its position as the most expensive 4-room resale flat in Toa Payoh for long.

Why are million-dollar 4-rooms HDBs steadily rising?

When comparing pricey flats like jumbo flats and executive apartments, known for their spacious layouts, it appears that size isn't the primary concern for buyers.

For instance, let's look at the priciest four-room flat in Pinnacle@Duxton, a renowned development, which sold for S$1,369 per square foot (psf). Surprisingly, this surpasses the rate of the most expensive five-room flat within the same project by S$124 psf, reaching S$1,245.60 psf.

Instead of focusing solely on size, factors such as a central location and remaining lease tenure seem to have more weight in driving up property prices. Most four-room flats are situated in Pinnacle@Duxton, nestled in the heart of Tanjong Pagar, while others are strategically positioned in popular city-fringe areas like Dawson, Tiong Bahru, Kallang, Toa Payoh, and Bishan.

This trend is also influenced by the temporary regulation targeting individuals aged over 55 who own private property. Under this rule, these individuals can bypass the 15-month waiting period by purchasing a four-room flat or smaller. With the proceeds from their private property sales, they may find themselves more inclined to invest in high-priced flats in central locations.

Moreover, HDB has stopped constructing new five-room flats in central areas such as Queenstown, Bukit Merah, Kallang, and Toa Payoh. Additionally, the Prime Location Public Housing (PLH) model has imposed stricter eligibility criteria for resale flats, including a 10-year MOP and income limits.

These factors might have driven buyers seeking relatively new HDB flats in these highly sought-after central locations to pay a premium for four-room units in these projects.

What about the larger scale of things?

Minister for National Development Desmond Lee recently commented on the housing market's imbalance in Singapore, heightened by disruptions from the Covid-19 pandemic.

While high resale prices and delayed BTO projects have posed challenges, signs of moderation offer hope for stability. Minister Lee's remarks underscore the need for a balanced approach to restoring equilibrium, acknowledging the uncertainties ahead.

Despite the current exuberance, a future where stability prevails in both public and private housing markets seems promising.

ALSO READ: URA plot ratio: A guide for homeowners, landlords and investors

This article was first published in 99.co.