Following HDB’s announcement in June that Tanglin Halt will be redeveloped under the Selective En bloc Redevelopment Scheme (SERS), several flats in the estate have entered the market commanding premium prices, according to media reports.
For instance, PropNex agent Andy Azaly Suboh has been marketing a three-room unit in Tanglin Halt since February for $310,000 to $315,000. “There were no takers initially” but it was sold last week for $355,000, about $35,000 above its valuation, he said.
The flats became sought-after after the SERS announcement because the owners will eventually get brand new flats in five sites at the nearby Dawson estate in Queenstown, a prime location where resale units are expensive, while Build-To-Order (BTO) projects are rare, property agents explained.
As such, at least two units had been sold since June, and over 30 were listed on property portals.
According to Nicholas Mak, Research Head at SLP International, some homeowners in Tanglin Halt might want to sell so that they can switch to private property.
Another reason is the replacement units are pricey, added owners and agents. Although the replacement flats are subsidised, the estimated prices for a three-roomer ranges from $284,000 to $386,000, HDB revealed.
In Q2 2014, the median price of a three-room flat in Queenstown stood at $357,000, while a similar unit in Yishun, in comparison, could go for as low as $311,000.
Notably, the majority of the 3,480 HDB flats in Tanglin Halt Road and Commonwealth Drive come with two or three rooms, while the replacements in Dawson estate are two- to five-room units.
Image (by HDB): Tanglin Halt residents will be rehoused in Dawson estate
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg