5-room HDB loft unit in Punggol sells for $970,000, Latest Singapore News - The New Paper

5-room HDB loft unit in Punggol sells for $970,000

A five-room Housing Board loft unit in Treelodge @ Punggol changed hands for $970,000 last month, the sixth flat in Punggol that has fetched more than $900,000 since 2019.

However, while million-dollar HDB resale deals now regularly make headlines, these flats are in mature estates, and analysts say it may take some time before a similar transaction surfaces in a non-mature estate.

High floor, good views, location and the unit's renovations are some factors that typically characterise a million-dollar HDB resale flat, said ERA Realty head of research and consultancy Nicholas Mak.

"There is also the question of whether there is a buyer who is willing to pay $1 million. If you do have that money to spend, there are plenty of locations to choose from, so outlying non-mature areas like Punggol may not be the first choice," he said.

"Eventually, in many years to come, there will be $1 million flats in all parts of Singapore, simply because of inflation. But in the shorter term, at least for the next one year, I don't think we'll see any million-dollar flats in outlying areas," added Mr Mak.

Ms Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, shared similar sentiments, noting that so far, only six units in Punggol have sold for more than $900,000.

"The numbers are not big. We may see one (resale unit) in non-mature areas crossing the $1 million mark but it may still take a while," she said.

Till now, there has been only one million-dollar transaction in a non-mature estate.

In January 2018, a 177 sq m maisonette unit at Block 851 Hougang Central changed hands for $1 million. The flat, on one of the highest floors in the 15-storey block, had 78 years left in the 99-year lease.

HDB loft units are a type of premium apartments that are highly sought-after for their bigger space and double-storey height, which are rare attributes for public housing.

The Punggol loft unit that sold for $970,000 has a floor area of 147 sq m and around 89 years left in the 99-year lease.