The $2m HDB listing in The Peak@Toa Payoh - ambitious or inevitable?

In Singapore's bustling property market, million-dollar HDB listings have become increasingly common, with estates across the city-state witnessing these transactions. Even neighbourhoods that have traditionally resisted such high price tags have seen themselves succumb to this trend.

Amidst this backdrop, recent attention has turned to a significant listing at The Peak@Toa Payoh, with a staggering price tag of S$2 million. With the current nationwide resale record hovering around 1.59 million, the question arises: Is this S$2 million listing too ambitious, or is it merely a matter of time before it becomes a reality?

This isn't the first time The Peak@Toa Payoh has made headlines

The Peak@Toa Payoh stands out as one of the more well-known HDB flats in Singapore, with DBSS units and a prime location with proximity to three MRT stations. As one of only thirteen projects in Singapore offering DBSS units, a type of flat no longer constructed by HDB, its allure is undeniable.

Moreover, units on the higher floors present panoramic views of the skyline, making them highly desirable among buyers seeking a blend of amenities, spaciousness, and scenic vistas.

Following its Minimum Occupation Period (MOP) in 2017, The Peak@Toa Payoh has consistently made headlines for setting new records and achieving million-dollar sales. Over the past year, several noteworthy transactions have garnered attention:

In July 2023, a five-room unit at The Peak@Toa Payoh fetched S$1.42 million, setting a new benchmark as the most expensive five-room HDB resale flat in Singapore's history. Subsequently, in November 2023, another unit shattered records by selling for S$1,568,888, marking it as the priciest resale flat not just in Toa Payoh but across the entire country.

With prices on a steady ascent, should we be surprised that a seller at The Peak@Toa Payoh listed their DBSS unit for a staggering S$2 million? This move sparked speculation and debate, especially in a market still adjusting to the notion of million-dollar price tags.

However, despite recent reports of an investigation into the S$2 million listing, initiated due to suspicions of it being put up without the intention to sell being communicated to HDB, the lingering question remains: Can the Peak@Toa Payoh actually fetch a jaw-dropping 2 million dollars in a sale?

Is a S$2 million price tag too much, too soon?

Let's crunch some numbers to get a clearer picture.

Looking at recent transactions, The Peak@Toa Payoh has indeed seen its fair share of high-value deals.

Two transactions in January of this year breached the S$1.5M mark, both involving DBSS units. There have been four transactions at the S$1.4 million price point and a total of twelve transactions at S$1.3 million. Seventeen other sales fall within the 1.2 million category, with sixty-five others within S$1 million.These figures underscore the increasing propensity for million-dollar sales in The Peak@Toa Payoh, with a total of 100 such transactions recorded.

Here is a list of the most expensive transactions at The Peak@Toa Payoh, up to the S$1.3 million mark:

Since 2017, there's been a steady climb in the average psf, reaching an 8.14 per cent increase from 2023 to 2024, hitting S$1,069 psf. This upward trend shows how property values in the project have been going up, driven by factors like demand and limited new resale flat availability in Toa Payoh.

Yet, despite these positive signs, the leap from 1.59 million to 2 million raises some questions. With HDB flats just recently hitting the 1.59 million mark and the highest sale at The Peak@Toa Payoh being S$1.57 million, jumping straight to S$2 million seems a bit early, at least for now.

Consider the timeline: the S$1.57 million sale occurred back in November, while the current island-wide record of S$1.59 million was set in April this year. That leaves us with about five months for a S$20,000 increase. Buyers these days are quite careful in making their decisions, so a sudden jump like this might make them think twice - especially when there are other options like new launch condos with competitive prices available.

But in Singapore's dynamic property market, where surprises are the norm, one can never say never.

So, if a S$2 million sale were to happen, when might we expect it? Considering the ongoing trends, like the significant rise in property values and the growing number of million-dollar sales, we might see a S$2 million transaction in the next few years, maybe by 2025 or 2026.

However, it's essential to remember that market conditions can change. Economic shifts, policy adjustments, and global events can all affect property prices, making predictions uncertain. So, while a S$2M sale at The Peak@Toa Payoh could be possible, it's wise to approach such forecasts carefully, knowing that the real estate world can be quite unpredictable.

If not The Peak@Toa Payoh, which project might break the S$2 million barrier?

While The Peak@Toa Payoh has been a consistent headline-maker for its high price point, it's not the sole contender in the race to reach the S$2 million mark. Let's explore some other projects that might be on the brink of breaking this barrier.

Looking at recent sales trends, several projects stand out as potential contenders:

A maisonette in Bishan St 24 has garnered attention for achieving not just one but two executive and estate records.

Pinnacle@Duxton units have also made significant strides, setting numerous nationwide records in late 2023.

Natura Loft DBSS flats have consistently fetched prices exceeding one million, with one unit even selling for S$1.43 million in July of the previous year.

Additionally, it's worth keeping an eye on all DBSS flats across Singapore, as well as jumbo or maisonette units, as they hold the potential to reach the coveted S$2 million mark.

ALSO READ: 8 HDB BTO flats reaching MOP in 2024/25

This article was first published in 99.co.