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A Housing and Development Board (HDB) flat in Marine Parade has been sold for S$1.01 million, setting the record for the highest price for an HDB resale transaction in the estate.

The five-room flat is on the 24th floor and has an unblocked view of East Coast Park from every window in the house.

The unit

According to The Straits Times (ST), the flat has a good size of 126sqm, a panoramic view of East Coast Park and is a five-minute walk away from Tao Nan School.

Because of these factors, the sellers told ST that they were confident that the unit would fetch a good price.

The unit also has a recess area, which is an additional free space outside the unit, that was bought by the unit's first owners.

Also, under an upgrading programme for the estate in 1997, the unit has an additional utility room which was constructed by HBD, according to ST.

Final price of $1,010,888

According to ST, the sellers of the home, a Singaporean couple with three kids, were willing to let go of their home if they were offered a price above the S$1 million mark.

This is the first flat in the Marine Parade area sold for that price.

The sale was handled by PropNex property agents Colin Wong and Brian Ying, who told ST that it was the view from the unit that attracted buyers and helped with the deal.

The unit was initially listed at S$999,000, but three interested buyers offered prices above $1 million.

The sellers are the second owners of the unit. They bought it at approximately S$870,000 about 11 years ago.

Despite having 51 years and nine months left on its 99-year lease, the property agents managed to close the deal a week after the unit was listed.

The agents said that most interested buyers were older, living in private properties and looking to downgrade and settle in their last home.

So, the age of the flat was not a concern.

The price was finalised at $1,010,888 after four to five rounds of negotiation.

Paid COV of under S$100,000

One of the agents, Ying, said the buyers paid a Cash Over Valuation (COV) that was a little under S$100,000.

According to Property Guru, COV is the difference between the agreed sale price of the flat between seller and buyer and its actual valuation by HDB. The amount must be paid in cash.

COV is used to negotiate the price of the unit and is described by the site as "overpaying" for the resale unit since it tends to be above its valuation by HDB.

In a case where the resale price is equal to the valuation of the flat, the buyers wouldn't need to pay COV.

HBD resale prices on the rise

On Jun. 9, real estate portal SRX reported that HDB resale prices have been on the rise for the 23rd straight month in May 2022.

In late June 2022, a four-room HDB flat in Tiong Bahru was sold for S$1.158 million.

Three executive HDB resale flats in Pasir Ris and Woodlands were sold for over a million dollars in May 2022, a first for both estates.

Top images from Visit Singapore/FB and Ai Ling Chang.