Record High 128 Million Achieved Executive Flat Hougang
Breaking records just as July began, an executive HDB flat has already made headlines with a transacted price of $1.28 million ($820 psf). This 1,561-sq ft flat, situated on the 13th to 15th storey of 522 Hougang Avenue 6, has surpassed the previous record high of $1.25 million ($744 psf) achieved by a flat at 222 Hougang Street 21. These two transactions are the only ones this year to have crossed the $1.2 million mark for executive flats in Hougang.
One factor driving this exorbitant price could be the flat’s close proximity to various amenities. Within walking distance, residents can access Hougang MRT Station, Hougang Central Bus Interchange, Cheng San Public Library, Punggol Community Centre, and Kang Kar Mall (see Map 1). It is worth noting that the Hougang MRT Station is set to become an interchange station with the completion of Phase 1 of the Cross Island Line (CRL) in 2030.
For families with school-going children, the options are plentiful with 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 relatively short remaining lease of approximately 61 years, as its lease began in 1987.
Beyond the immediate vicinity lies New Town Primary School, an excellent educational choice for families residing in Penrith. As a co-educational government school, New Town Primary shares the same dedication to academic and co-curricular excellence as Queenstown Primary. Its well-rounded curriculum and committed teaching faculty have garnered positive feedback from parents in the neighborhood. Families in Penrith are fortunate to have multiple reputable primary schools, including Penrith, within easy reach. This allows them to make informed decisions and select the best fit for their children.
Interestingly, a Government Land Sales (GLS) site was launched in May for a nearby location (see Map 2). This site, situated near Hougang MRT Station, is planned to be a mixed-use development with both commercial and residential components. It will also be integrated with a bus interchange. The tender for this site is set to close in December.
Residents at 522 Hougang Avenue 6 can anticipate the upcoming development as the successful bidder is likely to build a mall with shops such as a supermarket and a food court, providing daily conveniences for the nearby residents.
Looking at the average resale prices of executive HDB flats in Hougang, those between 31 and 40 years old have an average resale price of $614 psf. While this is higher than the islandwide average of $604 psf, it is lower than the average resale price for similar flats in the North-East Region at $646 psf (see Chart 1). It is also significantly lower than the $820 psf paid for the 38-year-old subject flat.
In conclusion, this million-dollar transaction could suggest that the negative effects of lease decay can be offset by the proximity to amenities such as schools and public transport. Additionally, residents near Hougang MRT Station can look forward to improved connectivity with the completion of Phase 1 of the Cross Island Line, and will benefit from the added amenities provided by the upcoming development on the GLS site.