Don't be alarmed over million-dollar flat sale: analyst

Although HDB resale flats in Bishan are highly sought-after, the number of units sold that have crossed the million-dollar mark are few and far between and do not fully represent the market, said Mohamed Ismail, CEO of PropNex Realty.

Responding to media queries on the recent sale of a HDB executive maisonette at Block 190 in Bishan for an eye-popping S$1.05 million which included cash-over-valuation (COV) of S$250,000, Ismail added: "There is no reason to be alarmed because it is uncommon for people to pay such high COVs island-wide. Moreover, with the numerous measures such as the reduced MSR and TDSR framework in place, it is even rarer that a buyer can afford to pay such a high price for a HDB flat."

Aside from the flat's proximity to Bishan MRT station, schools and Junction 8, Ismail noted that other factors like its location on the 20th floor and large liveable space of 150 sq m (approx. 1,615 sq ft) could have contributed to the sky-high price.

"Some extended families need the larger space to have a more comfortable living environment and so they have no choice but to purchase a HDB unit of the right size, even if they can buy a similar priced condo but with a smaller space."

But Ismail pointed out that not every flat in Bishan offers such 'advantages' that can fetch a premium.

As of this morning, the story on the million-dollar flat sale has attracted over 450 likes and many divided comments on PropertyGuru's Facebook page.

While some netizens felt it was a fair transaction involving a willing buyer and willing seller, others expressed shock and couldn't understand why the buyer would pay such a high price for a HDB flat.

Photo of Block 190 in Bishan: Google maps

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg

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