http://www.theedgeproperty.com.sg/co...flats-worth-it

Are top-dollar HDB flats worth it?
By Lin Zhiqin / The Edge Property | November 27, 2015 3:00 PM MYT
Tags: HDBcondoPinnacle@DuxtonStrathmore GreenToa Payoh Sapphire
The number of HDB resale transactions that crossed the $900,000 mark surged from 16 last year to 72 between January and October this year. The average transacted price rose from $913,500 last year to $944,966 this year, even as the HDB resale price index fell 9.9% from its peak in 2Q2013 to 3Q2015. Disregarding the transactions at Pinnacle@Duxton, which have accounted for 48 of such transactions thus far this year and one last year, transactions still grew by nine units since last year to 24, while the average price rose from $914,400 to $921,542.

Are these HDB flats that bucked the downtrend worth the top dollar paid? A closer look at the priciest HDB resale flat in three different locations shows that these buyers might be getting a bigger bang for their buck in terms of space and location.



Limited supply

One factor contributing to the price uptrend in the top segment of the resale HDB market could be low availability. For instance, no five-room flats at Toa Payoh Sapphire and Strathmore Green are currently listed for sale on TheEdgeProperty.com although there are33 flats listed for sale at Pinnacle@Duxton.

In general, the supply of resale HDB flats with good locations in mature towns is very low as evidenced by the 17 listings for five-room flats within 1km of Toa Payoh MRT. Thesis likely due to the reluctance of the owners to part with their homes. In comparison, there were 105 five-room flats listed for sale within 1km of Punggol MRT and 218 within1km of Sengkang MRT, both of which are non-mature towns.

On the other hand, the supply of resale condominiums and apartments is relatively abundant, with 197 listings within 1km of Toa Payoh MRT, 154 listings in the vicinity of Pinnacle@Duxton and 75 listings near Strathmore Green.



Limited substitutes

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