Ever since the implementation of the Additional Buyer’s Stamp Duty (ABSD) in July 2018, en bloc transactions have been on a decline. Developers have been less inclined to acquire private residential land via…
A four-room HDB flat located at 590B Ang Mo Kio Street 51 was recently sold for a record-breaking price of $1.08 million, making it the highest transacted price for a four-room flat in the Ang Mo Kio Planning Area. The 1,001-sq ft flat, situated on the 28th to 30th floor and built in 2019, was the talk of the town earlier this month.
Using our analytics tool, ‘Is it a Good Deal?’, we examined whether the buyer had made a wise investment by purchasing this HDB flat in Ang Mo Kio Street 51.
Ideal Location – Convenient and Well-connected
The residents of 590B Ang Mo Kio Street 51 are fortunate enough to have easy access to various amenities within a 500m radius. These include the Ang Mo Kio MRT Station, Jing Shan Primary School, Anderson Secondary School, AMK Hub, Cheng San Market and Cooked Food Centre, Chong Boon Market and Food Centre, and Ang Mo Kio Town Garden East (see Map 1).
Not to mention, the Cross Island Line (CRL) Phase 1 is scheduled to complete in 2030, which will turn the Ang Mo Kio MRT Station into a dual-line station, making it more convenient for the residents.
Taking into account the flat’s favourable location, long remaining lease of approximately 94 years (see Screenshot 1) and the easy access to amenities, our ‘Is it a Good Deal?’ analytics tool highlighted that the buyer had made a good investment. However, the transacted price for this flat was almost 60% higher than the average price for the district (see Screenshot 2).
The Number of Million-Dollar Four-Room Flats On The Rise
The number of four-room HDB flats transacted for a million dollars or more has been on a steady rise since 2022. As of today, 232 four-room flats in Singapore have been sold for at least $1 million, which is more than double the number of transactions compared to the last year and almost seven times higher than in 2022.
In Ang Mo Kio, the number of million-dollar flats for four-room HDBs has also doubled since last year. Six four-room flats in Ang Mo Kio have been sold for over $1 million this year alone (see Chart 1). This is quite a significant increase since four-room flats in Ang Mo Kio did not fetch such high prices until last year.
The nine million-dollar transactions for four-room HDB flats in Ang Mo Kio were from three blocks located within walking distance of each other – 590A, 590B, and 591A Ang Mo Kio Street 51 (see Screenshot 3). The second-highest price for a four-room flat in Ang Mo Kio was transacted in June this year, at $1,038 psf for 591A Ang Mo Kio Street 51. The third-highest price was also in the same block at 590B Ang Mo Kio Street 51, transacted for $1,029 psf in May.
Strong Price Growth for Four-Room Flats in Ang Mo Kio
Rewritten:
When thinking about investing in a condo, it is crucial to also consider the potential rental yield. Rental yield refers to the yearly income from renting out the property, relative to its purchase price. In Singapore, rental yields for condos can vary greatly depending on factors such as location, condition of the property, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, tend to offer higher rental yields. It is important to conduct thorough market research and seek advice from real estate agents to gain insight into the rental potential of a specific condo.
The average resale price for four-room HDB flats in Ang Mo Kio ($649 psf) is higher than that of three-room ($560 psf) and five-room ($680 psf) flats, but the price growth for four-room flats is the strongest at 35.5% since 2014 (see Chart 2).
Moreover, the average price for four-room flats in Ang Mo Kio has been consistently higher than that of the North-East Region ($614 psf) and islandwide ($609 psf) since 2021 (see Chart 3). However, the price growth for Ang Mo Kio has been weaker compared to the other two areas.
The Transacted Price is Higher than Average, but Still Below 99-year Leasehold Condos
Despite the record price of $1,079 psf paid for the four-room flat at 590B Ang Mo Kio Street 51, it is still lower than the average price of $1,588 psf for 99-year leasehold condo units that are around 900 to 1,100 sq ft in size (see Chart 4). Over the years, the gap between the two property types has increased, but it is not expected to widen further as the average prices for both have grown at a similar pace since 2020.
Conclusion
The recent record-breaking transaction of $1.08 million for a four-room HDB flat at 590B Ang Mo Kio Street 51 does not come as a surprise, considering the surge in the prices of four-room HDB flats in Singapore. The price growth has resulted in a rising number of million-dollar four-room flats, with 232 units sold for at least $1 million in the first nine months of this year.
Apart from the favourable location and long remaining lease, the convenience and connectivity of the flat are also influencing factors that resulted in the above-average transacted price. Although the price paid was higher than the average for four-room HDB flats in Ang Mo Kio and islandwide, it is still lower than the average price for 99-year leasehold condos in the area.
To find out more about this transaction and others like it, you can explore our website. We also have information on HDB loans, bank loans, rental and sale transactions, and latest listings for HDB flats. So if you’re in the market for an HDB flat, do check us out!