4-room HDB resale flat in Kallang sold for record $1.069m

A 4-room HDB resale flat in Kallang has just been sold for $1,068,888, breaking the previous record set for the flat type in Kallang/ Whampoa. Spanning 1,023 sq ft, this works out to $1,045 psf.

Previously, the highest transacted price for a 4-room HDB resale flat in the estate was S$1 million. Two units from Bendemeer Light BTO had been sold at this price, with the first unit changing hands in June last year, and the second unit in January this year.

Unit is from a SERS replacement project

As for this $1.069m unit, it's located at the 22nd to 24th floor range of Blk 8A Upper Boon Keng Road. It's one of the three blocks of Kallang Trivista.

Kallang Trivista is perhaps best known for being the SERS replacement site for residents of the four iconic blocks at Rochor Road. Back in 2011, the blocks were acquired to make way for the North-South Corridor.

Residents were offered relocation benefits under SERS, including a new unit with a 99-year lease at Kallang Trivista.

The 808-unit project was completed in May 2016, with more than 500 households from Rochor Centre moving in. Meanwhile, Rochor Centre was demolished in 2018, which reportedly began in heavy rain.

But the unit was probably bought through SBF

According to a press release in January 2017 by HDB, the surplus of Kallang Trivista was offered for sale through the Sale of Balance Flats (SBF) scheme. The press release added that as of early January 2017, 721 households have collected the keys to their units.

This might explain the lease starting date for this particular 4-room unit, which started in 2017. It also means that the unit has recently completed its five-year Minimum Occupation Period (MOP), allowing the owners to sell the flat on the resale market.

In contrast, residents from Rochor Centre were subjected to a different MOP. As they bought the unit through SERS, their MOP was seven years from the flat selection date or five years from the key collection date, whichever came first. As their MOP started earlier, they were able to sell the unit two to three years after living in it.

(However, for SERS replacement flat owners starting with the Ang Mo Kio SERS in 2022, the MOP will now be five years from the key collection date. So they won't be able to sell the flats a couple of years after the project's completion.)

Potential capital gain of $505k to $587k?

Based on our understanding, prices of 4-room flats at Kallang Trivista were offered between S$482,000 and S$564,100 during the November 2015 Sale of Balance Flats exercise.

Now, we want to be clear that we don't have any info on the mode of purchase for this unit, whether the owners had bought it through SERS or SBF.

But if this unit were bought through the November 2015 SBF, a sale price of S$1,068,888 would translate to a capital gain ranging between S$504,788 and S$586,888 for the owners!

Kallang Trivista is next to a PLH project

With Kallang Trivista located next to Kallang River, around 45 per cent of the units boast river views. In fact, according to HDB, its 4-room and 5-room units come with balconies. Along with the 3-room flats there, these units also feature full-length windows in the living rooms.

The project is just a six-minute walk from Kallang MRT.

Currently, two HDB projects are located along the river in the area: Kallang Trivista and Boon Keng Ville.

Come 2028, another project will be completed in the area. Kallang Horizon is a PLH project launched in the November 2022 BTO exercise. It's located between Kallang Trivista and Kallang MRT.

Perhaps more importantly for Kallang Trivista owners to note, Kallang Horizon comes with a 10-year MOP and stricter eligibility requirements for resale buyers.

ALSO READ: SERS: What is it, where has it happened, and what are your odds?

This means these PLH flats will only enter the resale market from 2038 onwards. Moreover, resale buyers will be subject to an income ceiling (currently at S$14,000). PR households are also prohibited from buying these flats from the resale market.

These restrictions may draw more buyers to Kallang Trivista, especially those who won't qualify to buy a resale PLH flat or wish to move to the area sooner.

This article was first published in 99.co.