4-room Clementi flat sold for record S$1.28 million

A four-room Housing and Development Board (HDB) flat at Block 445B Clementi Avenue 3 was sold for S$1.28 million (S$1,279 per square foot) on Jul. 15.

According to 99.co, it is the most expensive four-room flat ever sold in Clementi to date.

This title was previously held by a flat in the same vicinity, at Block 441B Clementi Ave 3, which fetched a price of S$1.16 million in May, 99.co reported.

Located in Clementi Crest estate, the new record-breaking unit occupies 1,001 square feet, between the 34 and 36 storeys of the 40-storey block. Its lease began in 2021, and the owner had just fulfilled the minimum occupation period (MOP) of five years before selling it.

This means that the flat still has a long remaining lease of about 94 years.

During the BTO exercise for Clementi Crest in May 2015, the estate's four-room flats were priced from S$478,000 excluding grants, the Business Times reported.

That would put the seller's profit at up to S$802,000. However 99.co did note that the estimate should be viewed with "some caution" as there might be other costs that could reduce the final take-home profit.

Possible appeal of the flat

The draw of Clementi Crest has not been limited to this unit.

According to 99.co, a unit in the estate's second block was sold for S$1.207 million in July, while another sold for S$1.18 million in June.

Clementi Crest is a short four-minute walk from Clementi MRT station and Clementi Mall.

There are also a variety of schools nearby. Within a kilometre from the estate, you could also reach four primary schools, a secondary school, and NUS High.

HDB flats with very high resale prices 'a minority'

At a media briefing on Aug. 20, 2024, then National Development Minister Desmond Lee said that while record HDB resale prices have frequently made headlines, HDB flats with very high resale prices make up "a very small proportion of all transactions".

Lee added that such transactions made up only 0.5 per cent of all four-room or smaller flats transacted in the last two years, are very central, and are well served by transport connectivity and comprehensive amenities.

He noted that more than half of them are also located on very high floors, above 30 storeys, and have good views.

However, they have caused Singaporeans to be concerned about "the affordability of resale flats as a whole":

"Flat sellers who are reading such news raise their expectations about how much the flat could bring, while flat buyers become anxious to secure flats before prices get higher.

If we are not careful, such market dynamics can cause the resale market to run out of line with economic fundamentals and cause a bubble."

Lee also noted then that flats that cross the million-dollar mark make up about 2 per cent of all resale transactions over the last 1.5 years.

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