Small flats in Upper Cross Street, Marine Parade sold for record prices
A THREE-ROOM flat in Upper Cross Street was sold for $382,000 - some $100,000 above valuation.
Prices of three-room flats rarely exceed $300,000, so the record-breaking prices of Ms Stella Chien's (above) flat and the Upper Cross Street flat (below) are anomalies, says an industry expert. -- Picture: KUA CHEE SIONG
The sale of the 27-year-old flat took place last month.
That same month, a 31-year-old unit at Marine Drive was sold for $350,000 - some $75,000 above valuation.
They are believed to have set a record for three-room HDB prices here, industry watchers said.
And at these prices, they're more expensive than many five-room flats in the market. As a rough comparison, a five-room flat - about 31 years old - in centralised Toa Payoh was sold for $337,000 in November.
PropNex's chief executive Mohamed Ismail believes these prices are even higher than those sold during the property peak in the mid-1990s.
He said: 'Some five-room and three-room flats are making headlines with their record prices these days, even higher than during the peak years.'Back then, Bishan flats were the most expensive, but those were mostly executive flats.
'Generally, prices of three-room flats rarely exceed $300,000. But these record-breaking prices are not a benchmark of the entire area and are an anomaly.'
Last month, two five-room flats in Marine Parade were sold at record-breaking prices of $750,888 and $730,000.
Mr Ismail said these premium flats are usually well-renovated, situated in a good location and has that X-factor such as a good sea-view.
He warned that sellers shouldn't be greedy and expect that their unit can command that premium price too.
He said that the pool of buyers willing to pay more than $50,000 cash upfront is small.
'Not many buyers have that much cash. These people are cash-rich and usually, they've benefited from an en-bloc sale or they're retirees who've sold their existing place at a high price.
'Some are also downgrading from their private property.
'These people like to have a small asset for their basic needs. And they are willing to pay that kind of price.'
One such buyer paid $75,000 cash above valuation for the three-room Marine Drive flat as her retirement home.
She was downgrading from a private property.
The buyer, who declined to be interviewed, said through her agent that she bought the place for the location, renovation work and the sea-view.
The three-room flat is a corridor unit, and picks up traffic noise from the nearby East Coast Parkway.
It's located on the ninth floor of a 13-storey block.
The seller, ship chandler Stella Chien, bought the unit for about $250,000 some five years ago, and pumped in another $70,000 or so for renovation.
She thinks the buyer got a fairly good price, considering the amount she spent on renovation.
CLOSE TO SEA
Her initial asking price was $380,000, but she decided to let it go at $350,000.
Ms Chien, 45, said: 'I really love this place but I'm usually overseas for work and I've no time to enjoy my home.
'I love its proximity to the sea and Parkway Parade.
'I bought it as a retirement home, but I don't have the time to upkeep it either.'
She intends to move back to her parent's semi-detached home in MacPherson to take care of them.
Her agent, Mr Samuel Lew of ERA, said he was surprised that the parties managed to seal the deal at such a high price.
The flat was on the market for two weeks before the buyer saw the place, fell in love with it and made an offer the very next day.
Mr Lew said: 'I thought the asking price was unrealistic at first. And I was expecting to sell it for a bit above $300,000.
'So, it was really a surprise when the offer of $350,000 came in.
'I think the buyer really likes the renovation and the sea-view.'
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