A Housing and Development Board (HDB) executive flat at Block 46 Bendemeer Road in the Kallang-Whampoa estate was sold for a record-breaking S$1.318 million in August 2024. The flat, located on one of the upper floors of the 21-storey HDB block, spans 1,572 sq ft, making it approximately twice the size of a typical three-room HDB flat. The unit was sold for S$838 per sq ft and has around 69 years and four months left on its lease, as the block was completed in 1994.
Background
The record-setting price of this HDB flat can be attributed to its “spacious layout” and “high-floor position,” as well as the amenities surrounding the block. Located between Boon Keng MRT station and Geylang Bahru MRT station, residents have access to both the Downtown Line and the North East Line. The proximity to two hawker centres, Geylang Bahru Market and Food Centre and Bendemeer Market and Food Centre, adds to the convenience. Families with young children benefit from nearby schools and childcare centres, including Bendemeer Primary School, which is only 170m away. Outdoor enthusiasts can easily access the Kallang Park Connector, situated right opposite the block. According to 99.co, there are only five projects in the area that offer executive flats.
HDB flats with very high resale prices ‘a minority’
At a media briefing on Aug. 20, Minister for National Development Desmond Lee highlighted that while record HDB resale prices have frequently made headlines, flats with very high resale prices constitute “a very small proportion of all transactions.” Lee stated that such transactions make up only 0.5 per cent of all four-room or smaller flats transacted in the last two years. These flats are typically very central, well-served by transport connectivity, and comprehensive amenities. More than half are located on very high floors, above 30 storeys, and offer good views.
However, Lee acknowledged the concerns among Singaporeans regarding the affordability of resale flats: “Flat sellers who are reading such news raise their expectations about how much the flat could bring, while flat buyers become anxious to secure flats before prices get higher. If we are not careful, such market dynamics can cause the resale market to run out of line with economic fundamentals and cause a bubble.” He also noted that flats crossing the million-dollar mark make up about 2 per cent of all resale transactions over the last 1.5 years.
Implications for the housing market
The sale of the Bendemeer Road flat for S$1.318 million underscores the growing trend of high-value transactions in the HDB resale market. While such sales are still a minority, they have significant implications for market dynamics and public perception. The government is closely monitoring these trends to ensure that the resale market remains aligned with economic fundamentals and does not lead to a housing bubble. Future policy measures may be introduced to address these concerns and maintain the affordability of HDB flats for the general population.
