According to Shin Min Daily News, the five-room unit located at Block 1C Cantonment Road was sold in May for S$1.515 million, surpassing the previous record of S$1.48 million set in August last year. This unit is the ninth million-dollar HDB flat sold at Pinnacle@Duxton this year, according to the Housing & Development Board (HDB) data. Although this transaction didn't break the national record for HDB flats, it set a new benchmark for the development.
The record-breaking flat spans 106 square meters and is situated between the 37th and 39th floors, with a remaining lease of 85 years and 9 months. The high floor and expansive views significantly contribute to its appeal. Sun Yanqing, Chief Research and Strategy Director at a real estate company, noted that Pinnacle@Duxton's prime downtown location offers convenience in both living and transportation, making it highly desirable to buyers. The elevated floors provide better views and ventilation, further driving the high sale price.
Sun also highlighted that new Build-To-Order (BTO) projects in the area are classified as Prime Location Public Housing (PLH) flats and come with stricter resale restrictions, such as a 10-year minimum occupancy period. This adds to the attractiveness of existing units at Pinnacle@Duxton, as buyers are reluctant to endure the long wait associated with new flats.
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Senior Data Analyst Lee Sze Teck from a real estate agency pointed out that five-room flats in mature estates and central areas are becoming increasingly rare. New BTO projects rarely offer five-room flats, reducing the supply while demand continues to rise. As a result, some buyers are willing to pay a premium for quality five-room flats.
The high resale prices at Pinnacle@Duxton also relate to the cost of nearby condominiums. Lee explained that the prices of nearby condos are typically double that of HDB flats. For professionals working in the Central Business District (CBD), Pinnacle@Duxton remains a relatively affordable option. Current online listings show that at least ten five-room flats at Pinnacle@Duxton are listed for S$1.5 million or more.
Analysts believe the occurrence of high-priced transactions is partly driven by a "herd effect." Lee noted that once a seller successfully closes a deal above S$1 million, other sellers are likely to follow suit and attempt to push prices higher. However, these record-breaking transactions are still considered exceptional cases.
Presently, the average resale price for four-room HDB flats across Singapore is around S$600,000, while five-room flats average about S$700,000. With the changing market demand, prices for HDB flats in prime locations like Pinnacle@Duxton may continue to rise, although the overall market remains relatively stable.
Pinnacle@Duxton's success not only underscores its unique market value but also highlights the strong demand for centrally located and scarce five-room flats. As more buyers enter the market, prices for such premium units are likely to continue their upward trend.
