Thursday, April 16, 2009

$658,000 For Tiong Bahru Flat

Source : My Paper, Mon, Apr 13, 2009

A FIVE-ROOM flat at Block 131B, Kim Tian Road, fetched a princely $658,000 on the resale market recently - more than what it may cost to get a private apartment in Loyang.

Over at Queenstown and Ghim Moh, the HDB resale market is similarly smoking hot: A five-room flat in Queenstown commanded $600,000 while another in Ghim Moh cost $650,000.

These flats are not short on amenities either: they are near food haunts, schools, MRT stations, swimming and sports complexes and a short ride from town.

As the price differentials between HDB flats and condominium apartments narrow, property companies told my paper that this is the best time for flat dwellers dreaming of an upgrade, or flat sellers hoping to make a tidy profit, to get in on the act.

While prices for private homes have plunged by 13.8 per cent in the first quarter this year, the price tags of resale HDB units have remained largely unaffected.

PropNex's corporate communications manager, Mr Adam Tan, said this was due to strong demand for resale flats.

He explained: 'The overall continued strong demand for resale flats stems from the fact that there are no more surplus flats with HDB and resale flats present a viable option for people who are unable to wait for projects under construction.'

So does this slump in the economy present an opportune moment to switch to private properties? The answer is a resounding yes.

'For people with the means, now is an excellent time...given that the gap between the price indices of the two is at its narrowest,' Mr Tan explained.

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