Most expensive 3-room flat: Rare HDB terrace unit in Whampoa sold for $1.33m

Following the recent buzz around million-dollar HDB resales, we have another record-breaking sale to report. This time, an HDB terrace in Jalan Ma'mor has set a new benchmark, becoming Singapore's most expensive HDB terrace to date.

The current most expensive HDB terrace sits right opposite the former champ

This news might sound familiar if you've been following the trends in the Singapore housing market. In February, a 3-room HDB terrace at Jalan Ma'mor made headlines by selling for S$1.28 million, setting a new record as Singapore's most expensive HDB terrace.

Spanning 2,239 sq ft, it sold at S$572 per square foot (psf). Now, merely five months later, another HDB terrace sale in Jalan Ma'mor has broken this record by fetching S$1.33 million, topping the previous sale by S$50,000.

Surprisingly, the S$1.33 million HDB terrace is smaller than the previous record-holder

The new record-setting HDB terrace, closed by Sherry Tang, a 99.co agent, is a 52-year-old property at Block 59, Jalan Ma'mor. It is 1,949 sq ft and spread across two storeys.

With a selling price of S$1.33M, the psf comes to S$682.40, setting a new benchmark in the HDB terrace market. Despite being 290 sq ft smaller than the previous record holder, this property has a higher psf by S$110.40, representing a 16.2 per cent increase.

This transaction has made it the most expensive 3-room HDB unit, the priciest HDB terrace sold to date, and the oldest million-dollar home at the time of the transaction, with a lease of only 47 years remaining.

What's around Jalan Ma'Mor?

Previously, discussions about the S$1.28 million sale focused mainly on nearby schools, but there's much more around this property.

For public transportation, the area is serviced by several MRT stations: Boon Keng (NE19) at 1.04 km, Toa Payoh (NS19) at 1.25 km, and Novena (NS20) at 1.69 km. Additionally, multiple bus stops are conveniently located within walking distance, including Opp Blk 65 (0.11 km), Bet Blks 33/34 (0.17 km), and Opp Blk 195 (0.39 km), offering various bus services to cater to the residents' commuting needs.

Residents have access to several grocery stores and markets for daily conveniences. HAO Mart (24hrs, Whampoa) is just 0.28 km away, providing a wide range of products around the clock. NTUC Fairprice (Lor Limau) is 0.51 km away, and Whampoa Drive Blk 91/92 is 0.6 km away.

These are known for the Whampoa Drive Makan Place and Whampoa Market, offering fresh produce and local delicacies. NTUC FairPrice Finest at Zhongshan Mall is 1.07 km away for more premium shopping.

Other nearby amenities include Safra Toa Payoh (0.38 km), a recreational club offering various sports and leisure activities, and the Whampoa Park Connector (0.39 km), which provides a scenic route for jogging, cycling, and other outdoor activities.

Inside the S$1.33 million HDB terrace

The S$1.33 million HDB terrace at Jalan Ma'Mor offers modern living and classic charm. This northeast-facing property ensures a quiet and peaceful living environment tucked away from the hustle and bustle of traffic.

The property underwent a significant renovation six years ago, with designer decorations costing an estimated S$300,000. This renovation has enhanced the overall aesthetics and functionality of the house, showcasing high-quality craftsmanship and design.

The open-plan living, dining, and kitchen areas are perfect for entertaining guests and fostering family life.

The living area is spacious and features sliding doors that overlook the beautifully landscaped garden, providing a seamless indoor-outdoor living experience.

The kitchen is a chef's dream, equipped with high-end appliances, custom cabinetry, and premium countertops, making meal preparation a delight.

The bedrooms are generously sized, with the master suite being particularly luxurious. It includes an en-suite bathroom and ample closet space, offering a private retreat for homeowners.

"Despite officially having three bedrooms and three bathrooms, the property only has one functional room, which made the sale challenging as larger families usually prefer such terraces", said Tang.

The property was marketed towards singles and couples to attract potential buyers, leading to its closure within two months of being on the market.

Additional features of this HDB terrace include a corner lot for extra privacy and space, integrated smart home technology for modern living, high-end lighting, luxury brand toilet fittings, and a superb quality digital water heater.

Smaller, fewer bedrooms… higher price tag?

So, how can a smaller property with fewer bedrooms fetch a higher price than its predecessor? Several factors might be at play:

• Landed property aspiration at a fraction of the cost: HDB terraces offer a unique opportunity to experience a sense of landed property ownership at a significantly lower price point. While this S$1.33 million unit might seem expensive, landed properties in Kallang as of 2024 average around S$2.75 million - a staggering S$1.42 million more, representing a 106.77 per cent increase. In simpler terms, that's more than double the price of this record-breaking HDB terrace.
• Potential SERS windfall: As the property's lease approaches its end, there's also the possibility of future SERS (Selective En bloc Redevelopment Scheme). While SERS windfalls shouldn't be a primary buying factor as they're never guaranteed, they can be a factor some consider.
• High-end renovations and unique features: Unlike the previous record holder, this unit features significant renovations and high-end finishes. Modern amenities like smart home technology, luxury appliances, and an open-plan layout that maximises space could be a major draw for some buyers.
• Buyer motivations: Ultimately, the buyer's motivations play a significant role in this record-setting purchase. There could be various personal reasons behind their decision. For instance, they might prioritise features that cater to their current lifestyle needs, such as a modern layout or high-end finishes. A long-remaining lease might not be a major concern for them, suggesting they could be planning for a shorter-term stay. Alternatively, they may have their reasons for prioritising immediate enjoyment and convenience over future considerations.

Will the prices for these HDB terraces continue to rise?

According to Bala's Curve, the value of a leasehold property declines as the remaining lease duration decreases. As HDB terraces age and have fewer years left on their 99-year leases, their prices should generally trend downwards over time.

However, this decline is not linear.

The value depreciates slowly in the early years (60+ years remaining). In the middle years (30-60 years remaining), the depreciation rate increases and the value drops much faster in the later years (less than 30 years remaining).

So, shouldn't the price of an ageing HDB terrace decrease rather than set a record?

Despite the declining value trend, HDB terrace houses in desirable locations, like Whampoa and Queenstown, can maintain higher prices due to strong demand and their scarcity. There are only about 284 such units in existence.

Also, while the value of HDB terrace houses generally declines with the remaining lease duration, the rate of decline may be slower compared to high-rise HDB flats, as landed properties are seen as more valuable.

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This article was first published in 99.co.