HDB terrace unit in Whampoa sold for $1.57m, breaking record for most expensive 3-room flat

Just a couple of days after covering a 3-room HDB record in Kallang and the whole of Singapore, another neighbouring HDB terrace has shattered all previous records. This recent sale has set a new high, surpassing the previous record by a significant margin.

Another record-breaking HDB Terrace sale in under a month

This is the second major HDB terrace transaction we've seen in less than a month. The sale occurred within two weeks of the previous record-breaking S$1.33M transaction, which was reported just a day before. However, what sets this transaction apart is its staggering S$1.568M price tag.

To put this into perspective, this sale is S$240,000 more and 17.89 per cent higher than the previous record, making it the highest ever seen for HDB terraces.

This sale would have been close to beating the previous national high if SkyOasis's 1.7M sale hadn't fallen through

Had the recent SkyOasis sale not occurred, this transaction would have come close to beating the previous national all-time high (ATH) for all resale HDBs in Singapore, which stood at S$1,588,000.

That record was set by a 5-room Design, Build, and Sell Scheme (DBSS) unit in Tiong Bahru View, Bukit Merah. However, the Tiong Bahru unit was not alone; another unit in City Vue @ Henderson, also in Bukit Merah, matched this record in June 2024.

Thus, the current HDB terrace sale at S$1.568M falls just S$20k short, making it the fifth most expensive HDB resale ever sold in Singapore.

This S$1.568M sale is one of the larger HDB Terraces in Singapore

Located at 53 Jalan Ma'Mor in District 12, this HDB terrace spans an impressive 3,950 square feet across two storeys. With a price per square foot (psf) of S$397, it stands out as one of the largest HDB terraces in Singapore. To give you context, most HDB terrace units range between 839 to 2,680 square feet. This particular unit is approximately 1.92 times larger than the previous S$1.33M, 1,949 square foot unit.

Interestingly, while the overall price of the unit is significantly higher, its S$397 psf is 71.89 per cent lower than the S$682.40 psf of the S$1.33M unit. For comparison, another large HDB terrace sold this year for S$1.28M, spanning 2,239 square feet, with a psf of S$572 - and even that sale is still about 30.61 per cent higher than the current S$1.568M transaction in question.

What about the remaining lease, then?

The property, dating back to 1972, has only 47 years left on its lease. There are an estimated 200 units at Jalan Bahagia (Whampoa) and 84 units along Stirling Road (Queenstown) that share a similar history. These properties were inherited by HDB when it replaced the Singapore Improvement Trust (SIT) in the 1960s. Consequently, HDB has not built any new landed properties since then, making these 284 units particularly rare.

Another consideration is the property's distance from the nearest MRT stations. Boon Keng, Toa Payoh, and Potong Pasir stations are all at least a 14-minute drive away. Despite this, the buyer may be willing to overlook these downsides due to the unique size and price of the property.

Comparing HDB Terraces to private landed properties in Kallang/Whampoa

Landed terraces in Kallang/Whampoa average at S$2.75M in 2024, with a psf of S$929. This means the psf alone is 133.75 per cent higher than the S$397 psf of the HDB terrace. The S$1.568M price tag for this HDB terrace might be a one-off due to its large size, potentially the largest of its kind built.

Comparing HDB terraces and private properties reveals several pros and cons. HDB terraces offer a unique landed property experience with features like a backyard and a sense of space not found in high-rise apartments. This can be particularly appealing for those who value community and outdoor living.

Additionally, the maintenance fees for HDB terraces are relatively low, with conservancy charges around S$55 monthly or S$165 per quarter, significantly lower than the maintenance fees of private properties.

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Another advantage is the potential for en-bloc redevelopment. HDB terraces are eligible for the Selective En-bloc Redevelopment Scheme (SERS), which can lead to significant windfalls for homebuyers if the site is redeveloped.

However, there are also some drawbacks to owning an HDB terrace. One major concern is the limited lease duration. HDB terraces come with a 99-year lease, and as the lease duration decreases, the value of the property may decline. Resale restrictions also apply, as HDB terraces are subject to HDB resale guidelines, including the Minimum Occupation Period (MOP), Ethnic Integration Policy (EIP), and Seller's Stamp Duty (SSD). Additionally, many HDB terraces lack private parking, meaning residents may need to rely on shared parking spaces or public transportation.

In contrast, private properties offer several distinct advantages. One significant benefit is the unlimited lease, which provides a sense of permanence and stability for homeowners. Private properties also allow for more customisation and renovation options, giving buyers the freedom to design their living spaces according to their preferences.

Furthermore, private properties can appreciate more rapidly in value due to higher demand and limited supply, especially in prime locations. The higher-quality amenities often found in private properties, such as swimming pools, gyms, and playgrounds, can enhance the overall living experience.

However, owning a private property also comes with its own set of challenges. Higher maintenance fees are a significant expense, which can add up over time. Additionally, private properties may lack the sense of community found in HDB estates, as they are often larger and more isolated from one another. This can result in a less communal living experience compared to HDB terraces.

This article was first published in 99.co.