Pasir Ris HDB flat offered at eye-popping price tag
The red-hot HDB market is showing no signs of cooling despite public housing affordability being a key issue in the recently concluded general elections, and the implementation of various cooling measures by the Singapore government since 2010.
Fresh from the Design, Build and Sell Scheme (DBSS) fiasco, where developer Sim Lian Group stirred controversy when it announced that the indicative price of its most expensive 5-room flat would cost $880,000, the Housing and Development Board (HDB) is under the spotlight again after an eye-popping ad listing was posted on local property website PropertyGuru.
The ad shows a 1,528 sq ft HDB executive flat at Block 780 Pasir Ris Street 71 with an asking price of $900,000.
Considering that it is a public housing project located in a non-prime area and with no facilities, the unit's asking price is well above the average transacted level in the area.
Caveat data shows that the average per sq ft pricing of similar properties transacted in the area for 2011 is between $400 to $500 per sq ft.
The executive flat's asking price translates to $589.01 per sq ft, which is well above the market price.
The flat faces a park and is located just next to Tampines Expressway.
Amenities nearby include Meridian Junior College.
It is not even within walking distance to Pasir Ris MRT station and White Sands mall.
Flat is overpriced
When contacted, an industry leader said the flat was overpriced.
"The asking price of $900,000 is definitely way beyond the market price. It is certainly a one-off case which, if the agent is able to get, it will be a record price for Pasir Ris," said Roza Sure Bagus, managing director of Sure Bagus (Asia) Pte Ltd.
According to Roza, she sold a flat in Pasir Ris recently for $696,000, which is $96,000 above valuation.
"The $96,000 in above valuation is still okay, provided the house has a good view, high floor and good interior. Nevertheless, if they are buying at $96,000 above valuation, the buyer's taste in the décor may not be the same. They may renovate everything," said Roza.
She added that, in June, an executive flat in the area had transacted for $750,000.
"We thought it was a record price in Pasir Ris. Now, at $900,000, it is really ridiculous. We are likening the price to a private property. An executive condominium would not cost that much either. For a $900,000 HDB flat, it is way too high," said Roza.
However, she reckons there might still be a willing buyer.
"For a person who buys such flat, he might buy it for sentimental value. Perhaps, it has a breathtaking view which he may not be able to get elsewhere. The buyers are likely to be from the private property market who have already sold their properties or who were enbloc owners who made a huge profit. It is unlikely they will take any loan. They would buy this unit in cash, full settlement," said Roza.
Roza also believes that this is not a normal trend.
"In view of the cooling measures, this is a one-off case . This is not a normal trend. This is not a market price," said Roza.
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