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Why Are Home Buyers Willing To Pay More Than a Million Dollar Price Tag For a Resale HDB Flat?
Pinnacle@Duxton has been around for 10 years, as of 2020. 16 years ago, in 2004, it was launched as an HDB BTO project. In 2010, home owners begin to move into their property. After the owners have hit the Minimum Occupation Period of 5 years (2014 – 2015), units at the property have been undergoing several transactions. Out of all the resale transactions, 40 units were resold at $1 million or more.
You must be thinking that those who spend more than $1 million to purchase resale HDB flat has either lost their mind or have too much cash to spare. However, this might not be the case. There are several reasons as to why home buyers are willing to spend such as large amount on a resale HDB flat.
The newer HDB flats are known to be smaller in size compared to older ones, despite both being term ‘4-room HDB flat’ for instance. For those who prioritize in having space in the flat, spending more to live more comfortably will be logical to them. Thus, they would not mind spending more than $1 million in order to get the desired amount of space that they are seeking for.
A good location will definitely fetch a high price. Ease of access to bus interchange, MRT station, shopping malls, schools, and town area is something that most would want, so as to save on travelling time (time = money).
Taking Pinnacle@Duxton as an example, it is located in the central area with 2 MRT stations and a hospital nearby. Mature estate located in the central with close proximity two stations are not that commonly seen. This is why people are willing to pay for the resale flat.
Properties with a longer lease period are more popular than those with shorter lease period. This is largely attributed by the mindset of people who are not confident in selling off the property should they want to move to another location.
Pinnacle@Duxton is an example of a resale HDB with long lease period remaining. Currently, it has a remaining lease period of 89 years. The $1.1 million Queenstown unit that was sold a few years back now has a remaining lease period of 91 years.
Unblocked views of the horizon are something that most are willing to pay a higher price for. Even if two units are of the same size and have the same layout, the one with the views blocked by high rise buildings would fetch a lower price than the other one. Units that are located at a higher level also tend to fetch a higher price as the noise pollution from the ground is much lesser and the views would not be blocked by any buildings or trees.
$1 million resale HDB flats are becoming more common in Singapore’s HDB resale market. Despite that, it is nothing much to worry about as most of HDB resale flats are still relatively affordable for most of us.
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