A five-room HDB flat in the Redhill area of Singapore recently sold for SGD 1.588 million, setting a new record for resale HDB flats in Singapore. This transaction price reflects the sustained heat in the Singapore real estate market and the strong demand from buyers for quality properties.

According to data from the Housing and Development Board (HDB) of Singapore, this unit, which changed hands in June, is located between the 46th and 48th floors of Block 96A along Henderson Road, with a floor area of 113 square meters (1,216 square feet) and a remaining lease of 94 years. The unit is part of the City Vue @ Henderson project, which comprises a 48-storey tower. The transaction price matches the record of SGD 1.588 million set by another five-room HDB flat in Middle Road in April this year.

Lim Yong Foo, CEO of the relevant property agency responsible for this sale, explained that both record-breaking units in the Redhill area were handled by the agency's real estate brokers. He noted that the Redhill unit sold this time is situated on a high floor with unobstructed views, has just met the 5-year minimum occupancy period, and is close to the MRT station, which attracted buyers willing to pay a premium.

Data shows that since the launch of the City Vue @ Henderson project, there have been 29 million-dollar transactions for HDB flats, with 13 in Block 96A alone. Among these million-dollar transactions, 6 have been sold for at least SGD 1.4 million.

Lim Yong Foo learned from the brokers in charge of sales that due to the high unit prices, there weren't many potential buyers visiting, but most of them were financially affluent. Some had sold their private homes and completed the 15-month waiting period, holding sufficient cash and intending to reside long-term. Others were permanent residents who had lived in Singapore for at least 3 years, with a budget to settle down here. For these buyers, purchasing an apartment of equivalent size in the same area would cost at least SGD 2.5 million. Therefore, buying an HDB flat unit for slightly over SGD 1.5 million seemed more economical.

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To protect the buyers' privacy, Lim Yong Foo did not disclose the identities of the final buyers.

Upon inquiry, it was found that several units in Block 96A along Henderson Road are currently being offered for sale at million-dollar prices, with the highest asking price being SGD 1.599 million. Amanda Woon, a real estate agent with Bonvests Realty, stated that the success of the transaction at SGD 1.588 million inspired homeowners to list a five-room unit located between the 20th and 26th floors for sale at SGD 1.599 million. Despite being on lower floors, the unit still boasts unobstructed views, faces east without direct sunlight from the west, and remains cool even without air conditioning. Additionally, with furnishings akin to show units, the homeowners decided to set this price.

Amanda Woon revealed that they have received multiple inquiries about viewing the property. She expects that these inquiries mostly come from financially capable potential buyers, mostly middle-aged or older individuals with ample funds.

Last October, a broker from another real estate group sold another five-room unit in the same block for SGD 1.45 million. Lee Sze Teck, Senior Director of Research at another real estate group, pointed out that several prime projects have been launched recently in the Redhill area. Some buyers interested in purchasing in this area prefer existing units due to concerns about potential restrictions, such as the 10-year minimum occupation period, in the future.

Lee Sze Teck cited data showing that there have been at least 349 resale transactions of HDB flats completed at million-dollar prices or higher so far this year. At this rate, the total number of million-dollar HDB transactions for the entire year could exceed 700.

The high-priced transaction of the five-room HDB flat in Block 96A along Henderson Road not only demonstrates the strong demand in the Singapore real estate market but also reflects the significant appeal of prime locations and excellent conditions to buyers. In such a market environment, high-quality HDB units can still attract buyers willing to pay premium prices, demonstrating the market's potential and buyers' pursuit of quality properties.