CNA : S$170,000 cash premium for Bishan maisonette a unique case: analysts

Singapore News
S$170,000 cash premium for Bishan maisonette a unique case: analysts
By Liang Kaixin / Hoe Yeen Nie | Posted: 01 April 2010 0043 hrs

SINGAPORE: An executive maisonette in Bishan is on the verge of setting a new record for the most expensive HDB flat ever transacted.

The flat is set to be sold for S$900,000, including an eye-popping cash premium of S$170,000.

However, analysts say that such a sale would be an exception, rather than the norm.

MediaCorp understands the owner had originally asked for S$950,000, but this was brought down to S$900,000 by the buyer.

Chris Koh, an analyst with Dennis Wee Properties, said the valuation price of about S$750,000 is "reasonable" given the flat's location and size.

However, he noted that a cash-over-valuation of S$170,000 is a record.

Analysts said that this is likely a one-off event.

HDB data shows that similar executive maisonettes in Bishan have sold for much less, with median prices at S$615,000.

Analysts cautioned that before forking out the money, buyers should also consider the unit's resale potential.

Said David Poh, senior group district director of Propnex Realty: "You probably will want to sell much higher than any other executive maisonettes in Bishan. So that will mean your pool of buyers will shrink, you'll probably have very limited buyers to choose from, and you probably will face more challenges in reselling it than a normal maisonette in Bishan."

He said the market for resale flats remained strong, although the popularity of two recently-launched Build-to-Order projects - Sembawang RiverLodge and Fernvale Ridge in Sengkang - suggests that some buyers are turning to new HDB flats instead.

Still, he expects resale prices to go up five to eight per cent on average this year, slightly lower than the 8.2 per cent growth seen in 2009.

- CNA/yb