The first [email protected] flat to be sold on the resale market has gone for a princely price, less than a month after most home owners of the iconic Housing Board project were allowed to put their units up for sale.
The four-room flat, located somewhere from the 34th to 36th floors, was sold on Monday for a hefty $900,000.
Savills property agent Ron Chong, who handled the transaction, said the corner unit’s price was not surprising, given its central location, high floor and well-designed interior.
“It has superb views. You can see Sentosa from the balcony, and Orchard from the corner bedroom,” he said. “A lot of potential buyers said it looks like a show-flat.”
Older, same-size HDB units in the area, such as those on lower floors in neighbouring Cantonment Close, are already fetching about $750,000, he added.
The [email protected] unit’s original owners, a Singaporean couple who wanted to be known only as Mr and Mrs Ng, bought the 95 sq m flat for about $340,000 at its launch in 2004.
Their five-year minimum occupation period ended on Dec 16 last year, meaning they were finally able to sell the flat.
“Of course, it’s a pity to let this flat go, but my wife and I are very happy with the price. We were expecting only about $850,000 to $880,000,” said Mr Ng, 38, a health-care professional. They are looking for a new place in the west to be closer to work.
The buyers are a married couple in their mid-30s who live in Aljunied. The husband, who gave his name only as Mr Lee, said they chose the flat for its unblocked views and convenient location near the Central Business District, where he works.
This $900,000 deal sets a precedent for the [email protected]’s other four-room units, and paves the way for its five-roomers to fetch over $1 million, said experts.
But they do not expect any impact on the wider resale market.
The benchmark it sets is for Duxton only, said SLP International Property Consultants head of research Nicholas Mak.
OrangeTee managing director Steven Tan said: “We have to take this project as a unique development. In terms of location, the design, even the view, it’s something you don’t get elsewhere.”
He expects its five-room units to be sold for just over $1 million.
As these range from 105 to 108 sq m – or 1,130 to 1,162 sq ft – such a selling price would still be far from the psychologically significant $1,000 per sq ft mark.
Resale prices will vary by floor, said Mr Mak. On low floors, four-roomers might sell for less than $850,000, and five-roomers for under $900,000, he added.
But Century21 chief executive Ku Swee Yong thinks the $1,000 psf figure is not impossible.
The small pool of buyers for these premium units will have the money to spare, he said. And even at $1,000 psf, a [email protected] unit will be worth it, he added.
“For over $1 million, in the private market, you can get only half the space and you may not even get a view.”