Rare HDB terrace flat in Whampoa sold for record $1.268m

2021 has been a record year for million-dollar flats.

A 49-year-old Housing Board terrace house in Whampoa tops the list after being sold for $1.268 million this month, making it the most expensive HDB resale property to switch ownership, according to The Straits Times.

It surpassed the previous high of $1.258 million which was a five-room flat in The Pinnacle @ Duxton last September.

The 210 square metre unit is located at Block 39 Jalan Bahagia and is a two-storey landed corner terrace, a unique feature in public housing.

The HDB lists it as a three-room maisonette, despite the fact that the sellers renovated the property 10 years ago to create four bedrooms and two toilets, costing around $250,000.

According to the publication, the unit was on the market for two weeks in May and had gained plenty of interest from potential buyers. PropertyLimBrothers, a property agent group under PropNex Realty, sealed the deal.

The unit's 99-year lease started in 1972 and had 50 years and one month balance when it was sold. The new homeowners will pay a $55 HDB service and conservation levy each month.

Although the house does not have a private parking place, the estate does have a designated HDB carpark.

99 HDB resale flats have been sold for at least $1 million as of Monday (June 11) – the highest number of million-dollar flats ever sold in a year. Among these, 12 were transacted this month which brings the total number of million-dollar flats to 401 since the first transaction occurred in 2012.

The Singapore Improvement Trust (SIT) – the forerunner of the HDB and founded in 1960 – constructed these HDB landed terraces in the 1950s. When the HDB took over from SIT in the late 1960s and early 1970s, the owners of these properties were given a new 99-year lease.

Currently, there are only 285 HDB landed terraces in Singapore, primarily in the Whampoa and Queenstown estates.

In Whampoa, the HDB terrace cluster can be found on three streets: Jalan Ma'mor, Jalan Bahagia, and Jalan Tenteram. So far, only seven units have changed hands within the cluster this year.

The estate has larger units ranging from 215 square metres to 307 square metres, while the 210 square metre corner terrace is the largest unit in Block 39.

The largest unit is 307 square metres at Block 52 Jalan Bahagia, followed by 297 square metres unit at Block 58 Jalan Ma'mor and 280 square metres unit at Block 53 Jalan Ma'mor.

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While it may be shocking to pay $1.268 million for a HDB terrace flat with a 50-year remaining lease, an expert believes it is acceptable to compare such HDB terrace units to 99-year leasehold private landed terraces.

According to chief executive of real estate agency Singapore Realtors Inc, Mr Tony Koe, 99-year leasehold landed properties are gaining traction among the middle class, as the entry level for freehold landed properties may be a stretch.

He also told the publication that the average price of 99-year leasehold private properties has risen dramatically this year, from $1.774 million in 2020 to roughly $1.980 million this year, suggesting that HDB terrace homes could be a more reasonably priced option.

Koe said: "For a certain group of buyers, age of the property is no longer crucial in their decision-making. Those cashing out from their current property of higher value are definitely the potential buyers of such HDB terrace units.

"In short, maintaining their lifestyle with a million or two for retirement. Why not?"

mardhiahhaslan@asiaone.com