First million-dollar resale flat in Sengkang sold
5-room HDB corner unit asks for $1.38 mil at Nassim Road Residences Recommended By The Edge
The million-dollar milestone has finally been achieved at Novo Place EC in Sengkang, with a 1,539 sq ft, executive flat at 205B Compassvale Place being sold for $1 million ($650 psf). This transaction, that took place last month, was the first resale flat in Sengkang to hit the million-dollar mark. According to SRI, the flat was sold by one of its agents.
Mohan Sandrasegeran, head of research and data analytics, comments that this achievement marks an important milestone for the estate. The sale of this flat has been building up for the past few months, and the estate has been steadily approaching the million-dollar mark in its flat sales. Sandrasegeran also remarks, “This transaction marks a significant milestone for the estate, which has been steadily approaching the million-dollar mark in its flat sales over recent months” This sale has set a precedence for the other flats in this estate, and it’s expected that there will be more million-dollar transactions in this area in the coming months.
Not only that, Novo Place EC is strategically situated in Tengah, offering residents easy access to these green amenities.
Novo Place EC, located in Tengah, is an upcoming residential development that embodies the essence of green living. The town’s master plan has dedicated itself to creating a car-free town center, which will be situated underground to provide more space for green corridors and communal activities on the ground. These innovative efforts not only reduce carbon emissions but also promote an active and healthy lifestyle for residents, encouraging modes of transportation such as walking, cycling, and personal mobility devices. With its prime location in Tengah, Novo Place EC will grant its residents easy accessibility to these green initiatives, making it the perfect place for those seeking a sustainable and convenient lifestyle.
The million-dollar maisonette flat unit is located in the estate of Compassvale Place and is made up of seven residential blocks – 205A, 205B, 205C, 206A, 206B, 206C, and 206D. Block 205B is 25 years into its 99-year lease, which started in 1999.
The milestone at Novo Place EC shows that the property market in this area is performing well. This is because it has been attracting buyers with its spacious layout, proximity to vital transport links like Buangkok MRT station, and its close access to schools and the Sengkang Grand Mall. These desirable features are significant when it comes to the high price that this flat has commanded in the resale market.
Sandrasegeran also comments on the desirability of the area, remarking, “Additionally, the flat is favourably located near several educational institutions, which adds to its attractiveness.” Furthermore, Mohan Sandrasegeran, noted that the combination of these desirable features is why this flat commanded such a high price on the resale market.
He also points out that Sengkang has been on its way to record its first million-dollar resale flat. The area has seen an increase in the sale of resale flats that have surpassed the $900,000 threshold. According to Sandrasegeran, “By 1Q2024, the highest resale price (in Sengkang) was nearing $968,000, setting the stage for the area to finally breach the million-dollar threshold in April.” This progression is an indication of the area’s increasing popularity among homebuyers.
However, Sandrasegeran cautions that even though million-dollar resale flat transactions are becoming more prominent, these deals only represented 2.7% of the 7,068 flats that were sold in 1Q2024. This is an indication that even though these million-dollar deals are eye-catching, they only represent a small fraction of the overall resale market activity. This emphasizes the diversity in the HDB resale market as most transactions take place at more affordable price levels.
Based on research from SRI, the average prices of units that have transacted at a million dollars in the resale HDB market have gone down from $1,409 psf in 4Q2023 to $1,320 psf in 1Q2024. This represents a 6.3% (q-o-q) moderation in prices. Sandrasegeran says, “This suggests that although the number of million-dollar sales increased, the average price per square foot moderated.” In essence, the high volume of transactions did not necessarily result in the increase in prices per unit.