Tiong Bahru pre-war flat listed at $2m, lease left with just 43 years

Eyebrows were raised when a 4-room flat in Tiong Bahru was sold for a whopping $1.5 million in June.

Believed to have broken the record for the most expensive HDB resale flat sold to date, it is an impressive feat considering that the 1,894 sq ft unit in Moh Guan Terrace had only 49 years left on its lease.

Given that record-breaking price, it seems that other home-owners in that estate are hoping to achieve high prices for their units despite the short leases, reported Shin Min Daily News on Thursday (Sept 14).

One property agent, surnamed Chen, told Shin Min Daily News that the recent sale at Moh Guan Terrace has given confidence to other home owners in the vicinity that their flats can fetch a similar amount.

Many buyers also believe that pre-war flats still have investment potential, attracting buyers with abundant cash on hand, added Chen.

Just recently, a 1,033 sq ft unit in 82 Tiong Poh Road with 43 years left on its lease changed hands for $1.12 million in August.

Speaking to the Chinese evening daily, property agent Celeste Loh said that the previous owner was a single woman who had rented out the unit before deciding to put it out for sale,

Checks by AsiaOne on the PropertyGuru website showed that there are currently three other units for sale in the same block —  one of them at 1,200 sq ft big with an asking price of $2 million.

Block 82, along with five others on the same street, were built in 1937 and have 43 years left on their lease. 

Buyers not put off by short leases

Another property agent Johnson Tan told AsiaOne that potential buyers of pre-war flats are not put off by the shorter lease.

This is due to the rarity of such flats in the market, said Tan, who has listed a three-bedroom unit at block 82 Tiong Poh Road for sale for $1.68 million. The unit is 957 sq ft big.

The current occupant of the flat is a three-generation household who are looking to move out.

"The potential buyers must really like the old flats that you can't find in other places in Singapore, and have some extra money," added the senior associate district director at OrangeTee & Tie.

The location of the flat is also an appealing factor.

It is within walking distance to eateries and supermarkets, and just a 15-minute train ride away to the Central Business District.

This article's headline has been edited for clarity.

ALSO READ: Record number of million-dollar HDB flats sold in August as resale prices climb 0.6%

chingshijie@asiaone.com