A five-room Housing and Development Board (HDB) flat in the Bidadari estate has sold for S$1.2 million. This sale, which took place in September 2024, is the highest recorded in the estate so far, according to property website 99.co.
Background
The flat is located at Block 106A Bidadari Park Drive, part of the Alkaff Vista project. Classified as an “improved” flat model, the unit is situated on a mid-level floor of the 17-storey building. Covering 1,216 sq ft, the cost per square foot (psf) comes to S$986. Launched in 2010 and completed in 2019, the flat recently met its Minimum Occupation Period (MOP) after its lease began in 2020.
Previous transactions in other blocks
This S$1.2 million sale is the highest resale price for a flat in the entire Bidadari estate. Its prime location, less than a 15-minute drive from town and with nearly 95 years left on its 99-year lease, contributes to its high price tag.
There have been three previous transactions in the Alkaff Vista project. A unit at Block 106B, closer to the top floors, sold for S$1.17 million. Another unit at Block 105A, located within the first three floors, fetched S$937,500. A unit at Block 106B, between the 10th and 12th floors, was sold for S$1.08 million.
According to 99.co, the build-to-order (BTO) units in Alkaff Vista were initially launched with starting prices at S$433,000 for four-room units. The capital gain for these units amounts to more than S$760,000, an increase of 63.92 per cent, although this figure does not include HDB grants or miscellaneous costs such as agent commissions and legal fees. Alkaff Vista is a five-minute walk from Potong Pasir MRT Station and a 13-minute walk from Woodleigh MRT.
HDB flats with very high resale prices ‘a minority’
Minister for National Development Desmond Lee stated on August 20 that while record HDB resale prices frequently make headlines, units with very high resale prices constitute “a very small proportion of all transactions.” These transactions account for only 0.5 per cent of all four-room or smaller flats transacted in the last two years. They are typically very central and well-served by transport connectivity and comprehensive amenities.
Lee noted that more than half of these high-priced units are located on very high floors, above 30 storeys, and offer good views. However, these high prices have caused concern among Singaporeans about the overall 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,” Lee warned.
Flats that cross the million-dollar mark make up about 2 per cent of all resale transactions over the last 1.5 years.
Future implications
The recent sale of the Bidadari flat for S$1.2 million highlights the growing trend of high resale prices in Singapore’s HDB market. As more flats in newly developed estates like Bidadari reach their MOP, similar high-value transactions may become more common. This could further influence market dynamics, potentially driving up expectations and prices for both sellers and buyers. Policymakers and market watchers will need to monitor these developments closely to ensure that the resale market remains aligned with economic fundamentals and does not lead to unsustainable price increases.
