Pre-war flats at Tiong Bahru now cost S$1m
The days of good bargains in Tiong Bahru are over, as a 1,000 sq ft pre-war flat that cost around S$680,000 three years ago is now priced at around S$1 million.
The significant price increase is primarily attributed to the transformation of the once-sleepy neighbourhood into a popular residential and commercial enclave.
While the area comprises a combination of public and private housing, there are 27 blocks of private pre-war units with conservation status.
Unlike the neighbouring public flats developed by the Singapore Improvement Trust, owners of these pre-war units are not subject to HDB eligibility rules.
With a remaining lease of less than 60 years, most of the pre-war homes are situated in two- to five-storey blocks.
Although these flats do not come with lifts or modern facilities like pools, gyms or security guards, prospective tenants, owners and investors are not deterred.
"Around 90 percent of the calls I get about properties in the area are from investors. But two to three years ago, it was a 50-50 split between investors and buyers looking to live there," said Alvin Yeo, a property agent who deals primarily in Tiong Bahru homes.
Meanwhile, prices of newer private homes nearby have benefited a great deal from demand for the pre-war homes.
According to figures from the URA, the average price of a unit at The Regency at Tiong Bahru, a condominium in Chay Yan Street, was S$997 psf in Q2 of 2008.
In Q2 2011, the figure had gone up to S$1,486 psf.
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