A HUDC flat at Shunfu Road has been sold for $1.1 million, a record high in Bishan for this phased-out type of HDB project.
At least two other similar-sized HUDC flats have sold for slightly higher prices, but they featured condominium-like facilities.
The 1,668 sq ft apartment on a high floor of Block 315 sold at $659 psf. It won HDB resale approval last month but was sold in before government cooling measures took effect.
ERA senior marketing director Sandy Lim, the agent who brokered the deal, said the home was valued at about $900,000, which means an impressive $200,000 COV.
She said the buyers liked the flat’s location and spaciousness. The unit was close to its ‘original condition’. The buyers also agreed to pay the $30,000 in privatisation costs.
The estate is set to be privatised by the end of the year.
Shunfu HUDC estate has seen a premium in prices over neighbouring HDB flats, even though the latter might be closer to Marymount MRT station. For example, a slightly larger 1,701 sq ft HDB maisonette at nearby Block 301 sold for only $760,000.
Experts are surprised at the $1.1 million price, but say the city-fringe location, its imminent privatisation and collective sale potential could be key to the result.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said $1.1 million was a high price to pay for an older flat that had only about 75 years left on its lease.
‘The buyer is probably paying for the en bloc potential of the estate and also the generous space of HUDC flats that you can’t find anywhere else these days,’ he said.
Mr Eugene Lim, ERA Asia Pacific associate director, agreed the rarity of such large format units was a key reason for the bumper price. He added that the value of an HUDC estate would probably rise by at least 8 per cent to 10 per cent once privatised.
‘The increase will probably come after the estate is gated up or, if possible, when a swimming pool, gym or clubhouse is built…This work to enhance the property will definitely make the estate more appealing,’ he said.