5-room Pinnacle@Duxton unit sold for $1.38m, buyer paid about $120k cash over valuation

A five-bedroom unit at Pinnacle@Duxton has been sold for $1.38 million with a cash over valuation (COV) of up to $120,000, according to a report by Shin Min Daily News.

Property experts said it's rare to see a COV amount this high in the current market.

According to data.gov.sg, this is not the highest resale price of HDB flats in history.

However, industry experts also said that property transactions usually take around eight weeks before they are reflected in HDB's system. Thus, there's a possibility that this transaction could be the highest sale since the cooling measures implemented in September last year.

The unit is in Block 1E and is located between the 22nd and 24th floor, with an area of 1,151 square feet and a remaining lease of 87 years.

Shin Min reported that the flat belonged to a married couple in their 60s who purchased the unit for nearly $1 million about seven years ago and lived there with their daughter. However, their daughter got married a year ago and moved out, so they decided to sell their home and downsize to a three-room flat close to her new home.

The female homeowner, surnamed Zhang, told Shin Min: "The biggest considerations in buying a house back then and selling the house now are the location and floor area. We were living in Yishun before this and paid a high price for this unit because it's close to my mother's place and it's more convenient for my daughter and I [to get home] after work.

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"Now that it's just two retired people, aside from wanting to live closer to my daughter, a smaller house is also easier for us to clean."

Liu Zongan, a real estate agent of Orangetee & Tie who is in charge of the transaction, told the Chinese daily that the house went on sale before Christmas last year and attracted a lot of interest.

As none of the offers were close to the desired price of $1.39 million, they were rejected.

“The house is well maintained and the view outside the window is unobstructed, so it is worth the high price. This also means that the buyer has to be prepared to bear a COV of more than $100,000 so it's not easy to find,” Liu added.

He revealed to Shin Min that the buyers are a couple working in the finance industry. The couple holds a Permanent Residence status, has three kids and a domestic helper, and has been living in a rental for the last three years.

Liu said: "As rent is soaring, renting a place is a sunk cost, which led to the buyers considering purchasing a house. As other suitable apartments for them were either too expensive or in less ideal locations, they eventually chose this unit."

Most recently, Deputy Prime Minister and Finance Minister Lawrence Wong announced measures to help support housing aspirations of young Singaporeans during the Budget 2023 speech on Feb 14.

First-time buyers for Housing Board resale flats will receive more help with a housing grant increased by $30,000 for families purchasing four-room or smaller units and by $10,000 for those buying five-room or larger units.

Mr Wong noted that some Singaporeans are prepared to buy resale flats for their first home but find resale prices today too expensive.

syarifahsn@asiaone.com

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