Why some Bidadari homeowners are holding on to their 3-room flats despite potential $600k profit

Located between Serangoon and Kallang, Bidadari is a relatively new estate in Singapore.

Over 70 per cent of its Build-To-Order (BTO) flats have been completed in the past five years, with the remaining units expected to be ready by the end of this year.

However, some residents who have completed their Minimum Occupation Period have already moved out of the estate - envisioned by Housing Board as a "tranquil urban oasis" - after making a tidy profit.

HDB data in Sept 2024 showed that the first flats in Bidadari - the four-room types - were resold for between $937,500 and $1.17 million, and one home owner made a $500,000 profit after selling his five-roomer for $1.2 million.

But this estate once again turned heads after a three-room HDB unit there changed hands for $900,000 last month.

Bought for around $300,000, that home owner looks set to reap in around $600,000 in gross profit from the sale. That unit, located between the 13th and 15th floor of block 115C Alkaff Crescent, is reportedly the most expensive three-room flat in Singapore.

Three-room flats in the 531-unit Alkaff LakeView were priced between $297,000 and $385,000 during the November 2015 BTO exercise, while four-room and five room units went for up to $550,000 and $625,000 respectively. 

'Not worth selling for a quick profit now'

Four residents whom AsiaOne spoke to on Friday (Jan 10) were surprised that a modest 731 sq ft unit in the new Bidadari estate could fetch such an eye-raising sum.

They are, however, not interested in the potential $600,000 profit, citing the inconvenience it would bring to their young children if they were to relocate just after five years.

"There are so many good schools like Cedar Girls' [Secondary School] and St Andrew's [Junior College] nearby when they are older," said a resident who only wanted to be known as Chua. "It's not worth selling for a quick profit now."

Another resident, who declined to be named, said his family is also saying no to selling for now.

"We will only sell if there is a chance to upgrade, but resale flats in other estates like Toa Payoh are getting more expensive too," the 42-year-old said.

Too steep for a three-room flat? 

Besides its proximity to "good" schools, real estate consultant Heikal Shafrudin from Herohomes.sg told AsiaOne that the BTO project Alkaff LakeView is near the newly-opened Bidadari Park.

Spanning more than 18 football fields, the Hundred Acre Wood-inspired park has a lake and 5.2km network of trails running through greenery.

Alkaff LakeView is also located across Woodleigh Mall and is a 30-minute train ride away from the Central Business District.

"These amenities raise the livability of Bidadari estate and attract buyers willing to pay a premium," he said.

The previous record sale for a three-room flat was in Tiong Bahru at $860,000 last August.

According to data by ERA Singapore, out of the 314 three-room flat transactions in the fourth quarter of 2024, eight were sold for more than $800,000.

The median resale price for three-room flats has also seen a steady increase - from $370,000 in 2022 to $390,000 in 2023, followed by $410,000 this year.

HDB data show that the media resale prices for three-room flats range from $378,000 in Jurong West to $520,000 in Bishan for the third quarter of 2024.

"For those prioritising location and newness over space, the price may be acceptable, but $900,000 is undeniably steep for a three-room flat," said Shafruddin. "Buyers often expect four or five room flats for that price."

Eugene Lim, key executive officer of ERA Singapore, said that the rising prices of three-room flats in the resale market is due to buyers aged above 55 who "downgraded' from private property.

"They are only able to buy a smaller flat, which may have placed inflationary pressure on three-room flats and caused prices to inadvertently increase," he added.

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The record-breaking sale in Bidadari comes after the prices of resale flats rose 9.6 per cent in 2024 - almost doubling the 4.9 per cent increase in 2023.

Speaking to local media in November 2024, Prime Minister Lawrence Wong said that cost of living, which includes housing prices, is a concern among Singaporeans that will be addressed in this year's Budget.

He cited several measures to address these worries, including the new Housing Board flat categorisation framework and increased subsidies for first-time public housing applicants.

Bidadari resident Chua, a father to a four-year-old toddler, welcomes more efforts to ensure that public housing remains affordable for Singaporeans.

"I hope my son doesn't have to pay more than $900,000 for a three-room flat when he's older," he said.

Shafrudin said that record-breaking prices in the resale market are expected to continue, with more flats in estates such as Queenstown and Dawson reaching the minimum occupancy period.

"I believe we are on the path to see three-room units eventually surpass $1 million in these highly-coveted locations," he added. "If affordability remains an issue, the authorities may introduce cooling measures targeting the resale market."

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chingshijie@asiaone.com