5-room flat in Serangoon joins million-dollar club with a record sale of $1.03m

Remember back in June when we covered the sale of a $1.23 million 35-year-old maisonette in Block 418 Serangoon? Well, a 5-room unit right across that maisonette has set another milestone. Selling at $1.03 million, this is Serangoon's first million-dollar sale for this unit type.

5-room HDB ATH in Serangoon at $1.03m

This sale took place at Block 420 on Serangoon Central, where a 5-room unit between the 10th and 12th floors sold for $1.03 million.

While this floor range may not sound particularly high, it's important to note that this is a low-rise project, so being on these floors places the unit among the higher levels available. The apartment spans 1,324 sq ft, with a price per square foot (psf) of $778.

Similar to the Block 418 transaction, Block 420 started its lease in 1989, meaning there are only 64 years and three months remaining on the 99-year lease. Despite this limited lease period, the property managed to set a new all-time high (ATH) for 5-room HDB resale units in Serangoon, thanks to its size and strategic location.

Serangoon's gradual rise to breaking the 5-room million dollar barrier

This million-dollar sale in Serangoon might seem expected given the trend of rising 5-room and 4-room HDB resale prices, but Serangoon has actually been slow to join the ranks of estates with million-dollar transactions.

This could be due the age of the larger properties in this area. Many other 5-room units that have reached or exceeded $1 million in different estates still have over 80 years remaining on their lease, compared to the 64 years left on the Serangoon units in this area.

Still, it was only a matter of time before Serangoon hit the million-dollar mark. Transactions earlier this year showed a steady rise in prices for 5-room flats.

Here's a look at all the Serangoon transactions that reached or exceeded $900,000:

As you can see, five out of these eleven transactions came from Serangoon Central. The others were in Serangoon Central Drive and Serangoon Avenue 1.

In April, two units — one from Serangoon Central Drive and another from Serangoon Central — sold for $990,000, coming close to the million-dollar mark. The key difference? Serangoon Central units tend to be larger, averaging around 1,300 sq ft, while those at Central Drive are closer to 1,200 sq ft. This extra space likely gave Serangoon Central the edge in crossing the million-dollar threshold first.

Higher floors also play a role in boosting prices. Out of all the $900,000+ sales in Serangoon, only two were from units on the 10th to 12th floors — the record-breaking unit, and another sold in August 2023. Even so, mid-level units also attracted strong prices, showing steady demand across the board.

Why are these 5-room units commanding such high prices, especially with only 64 years left on their leases?

The answer to this question lies largely in their prime location. Block 420 is situated directly opposite the NEX shopping mall and is within a four to five minute walk to the Serangoon MRT stations, (CC13) along the Circle Line and the (NE12) on the North East Line. Its proximity to these amenities, combined with its size, makes it a highly attractive property.

Not only is the project close to the MRT station and NEX, but it's also conveniently located near the city centre and the CBD area, which adds to its appeal.

If you're interested in learning more about why this area is drawing such attention, we recommend checking out our previous article on the $1.23 million maisonette, where we delve deeper into the location's benefits.

Serangoon isn't the only estate late to the 5-room million-dollar club

While condos still remain a valuable choice for many buyers who can afford them, recent years have seen some turning to 5-room HDB units instead.

The larger size and relatively lower price point of these units have made them an appealing alternative. This shift has driven an increase in 5-room million-dollar sales, particularly in popular estates like Bukit Merah, where 187 transactions have been recorded — the highest across all estates.

Other estates such as Toa Payoh, Central Area, Queenstown, and Kallang/Whampoa have also reached triple-digit records in 5-room million-dollar transactions. However, there are still several estates where this milestone has yet to be achieved.

Here's a breakdown of total 5-room million-dollar transactions by estate:

While estates like Sengkang, Tampines, Bukit Batok, and Serangoon have recorded at least one million-dollar 5-room transaction, others — such as Sembawang, Jurong West, Pasir Ris, Bukit Panjang, Choa Chu Kang, Woodlands, Jurong East, and Yishun — have yet to reach that milestone.

In fact, Choa Chu Kang, Sembawang, and Jurong West have yet to break the million-dollar barrier for any type of HDB resale, let alone 5-room units. If you're seeking more affordable options, these estates could offer good value. But if they seem too 'ulu' for you, other estates with fewer million-dollar transactions may provide more accessible price points.

How does this sale compare to the average 5-room HDB price in Serangoon?

Currently, the average price for 5-room HDB resale units in Serangoon stands at $785,627. That means the buyer of this $1.03 million unit paid roughly 31.1 per cent more than the estate average. But, as we've discussed, this premium can largely be attributed to its proximity to key amenities like the MRT stations and NEX mall.

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This article was first published in 99.co.