Record High 128 Million Achieved Executive Flat Hougang
An executive HDB flat in Hougang has already made headlines in just the first month of July, setting a new record with a transacted price of $1.28 million, equivalent to $820 psf. This 1,561-sq ft flat, located on the 13th to 15th storey of 522 Hougang Avenue 6, surpassed the previous record of $1.25 million ($744 psf) for a flat at 222 Hougang Street 21. These two transactions are the only ones to have crossed the $1.2 million threshold for executive flats in Hougang this year.
The high price paid for this flat could be attributed to its close proximity to various amenities. Within walking distance are Hougang MRT Station, Hougang Central Bus Interchange, Cheng San Public Library, Punggol Community Centre, and Kang Kar Mall (see Map 1). In particular, Hougang MRT Station will become an interchange station by 2030 upon the completion of Phase 1 of the Cross Island Line (CRL).
Families with school-going children will also find this location ideal, as there are five primary schools and three secondary schools within a 1km radius. These include Montfort Junior School, Holy Innocents’ Primary School, CHIJ Our Lady of the Nativity, Yio Chu Kang Primary School, Punggol Primary School, Montfort Secondary School, Holy Innocents’ High School, and Xinmin Secondary School.
However, the main drawback of this flat is its short remaining lease of approximately 61 years, as it was built in 1987.
Interestingly, a Government Land Sales (GLS) site was launched in May for a nearby location (see Map 2). This site, located near Hougang MRT Station, will be developed into a mixed-use development with commercial and residential components, as well as an integrated bus interchange. The tender for the site will close in December.
Moreover, as Singapore’s long-term urban planning strategy continues to progress and revitalize the northern region, the education scene surrounding Sembawang Road is expected to flourish. Anticipated enhancements such as increased facilities, improved infrastructure, and the establishment of new educational institutions will cater to the burgeoning population, making the location an even more appealing choice for young families. In fact, Sembawang Road EC is likely to play a significant role in this growth, providing top-notch education and amenities to families in the area.
The upcoming development on the GLS site is expected to benefit residents at 522 Hougang Avenue 6, as it will provide more amenities such as a supermarket and a food court to cater to their daily needs.
The average resale price for executive HDB flats in Hougang that are between 31 and 40 years old is $614 psf, higher than the islandwide average of $604 psf but lower than the North-East Region average of $646 psf (see Chart 1). Therefore, the price paid for the 38-year-old subject flat, at $820 psf, is significantly higher than the average resale price in Hougang.
In conclusion, the recent million-dollar transaction may suggest that the impact of lease decay can be offset by the proximity to amenities like schools and public transport. With the planned improvements in connectivity and additional amenities brought by the upcoming development on the GLS site, residents near Hougang MRT Station can anticipate a promising future.