Rent for Choa Chu Kang flat hits record $6,600, more expensive than condo

Just three months after the record for HDB flat rental rates was broken, a new number one has emerged.

This time, it's in Choa Chu Kang - a non-mature estate.

HDB records showed that one of the eight executive-type units in Block 641 Choa Chu Kang Street 64 was rented out for a whopping $6,600 a month in May. 

This beats the previous record set by a five-room flat in Ang Mo Kio, which was rented out for $6,500 in February.

According to EdgeProp, some of the executive flats in that Choa Chu Kang block are about 2,314 sq ft big.

The monthly rent for a similar-type flat in Choa Chu Kang Street 64 went for $3,500 last December, according to market rates on HDB's website.

AsiaOne found that prospective tenants can rent condos in the same estate for a much cheaper rate - though the four-bedroom condo units are smaller than the Choa Chu Kang flat at around 1,300 sq ft to 1,600 sq ft big.

For example, a four-bedroom condo unit listed on Property Guru was asking for $5,500 a month, and it comes with full condo facilities.

Speaking to Shin Min Daily News, several analysts have cited possible reasons for the flat's high rental rate.

This HDB unit is a double-storey premium maisonette that is considered "rare" in the market, said the director of Altitude Real estate Nelson Lim.

"The other reason could be due to the furnishing," Lim said. "Some tenants are willing to pay for a flat with good quality furniture and fittings, and this will bump the rental price up."

Christine Sun, senior vice president of research and analytics at OrangeTee, said that those who are willing to pay higher rental rates tend to be three-generation families.

Since there is a 15-month waiting period for home owners looking to buy a HDB flat after selling their private property, renting such premium maisonettes can fit their needs.

HDB units of over 2,000 sq ft usually have at least four rooms, three toilets and a balcony.

Another reason could be due to the unit's location, said Sun.

Yew Tee MRT station is just an eight-minute walk away, with two shopping centres nearby. 

ALSO READ: Want to rent a HDB flat? Here's how much they are going for these days

chingshijie@asiaone.com