AsiaOne : $100,000 difference for flats in the same estate

$100,000 difference for flats in the same estate

Property experts have their say on why this could happen. -AsiaOne

Thu, Jan 14, 2010
AsiaOne

They are in the same estate, but the price range for similar sized HDB flats in some estates could vary by about $80,000 to $100,000.

In HDB's annual report for 2008/2009, published figures show that the price range of new four-room flats offered in Punggol was $223,000 to $327,000. The difference of $104,000 meant that flats in the highest price range was 46 per cent more than the price of the lowest priced units.

In Sengkang, the difference was $85,000 or 44 per cent, with flats ranging from $190,000 to $275,000.

These two areas show the largest difference in prices, according to the table published by HDB.

HDB states in its annual report that the price differential may not be directly comparable as "it may be affected by different attributes of flats offered such as location, design, storey-height, orientation, etc".

Mr Tan Kin Lian, president of the Financial Services Consumers Association of Singapore (FiSCA), told Shin Min Daily that he finds the price difference hard to understand. He felt that the price difference for flats in the same area should be about 10 to 15 per cent.

HSR Property director Mr Jeffrey Hong feels that part of the reason lies in fluctuations in last year's property market, when the beginning of the year saw much lower prices compared to the latter half of the year.




HSR Property Executive Director, Mr Jeffrey Hong.


For example, $20,000 to $23,000 was the average price of a four-room flat in Punggol at the beginning of 2009, but by the end of the year, it had risen to about $280,000 on average.




Mr Lim Yong Hock


Mr Lim Yong Hock, senior vice president of PropNex told Shin Min that as Punggol and Sengkang are big housing estates, and some parts are not fully developed, thus resulting in large price premiums for areas which are near the MRT stations and town centres.