$808k Tampines flat worth every cent

[Ahtong]

$808,080 HDB sale hits the roof

 

By Benson Ang

 

Just how much are people willing to pay for an HDB flat?

 

Mr Freddy Choo paid $808,080 for his executive maisonette in Tampines.

 

Worth every cent, he said.

 

The price includes a whopping $168,080 in cash over valuation (COV).

 

That's among the largest COVs paid since the financial crisis in 2008, said real estate agents.

 

One of the previous reported highs was about $200,000 for an HUDC flat in Shunfu. It was sold at $1.1 million in July, 2010.

 

Mr Choo, 46, said he was willing to pay a premium as his new home was renovated just five years ago and came fully-furnished.

 

The real estate agent had come across the unit, on the eighth storey of Block 146, Tampines Avenue 5, in April.

 

The 150 sq m flat is two bus stops away from the Tampines MRT station and Tampines Mall.

 

Mr Choo said it was valued at $640,000.

 

The median resale price of executive flats in Tampines was $640,000 as of the second quarter of 2012, according to HDB's website.

 

The father of two said the final amount - $808,080 - was also an auspicious number.

 

It is the highest price paid for an executive HDB flat in Tampines in the past year, according to HDB's website which shows transacted prices.

 

Mr Choo is married to another real estate agent, and they have a daughter, nine, and a son, 13.

 

Mr Choo said his family had previously owned a condominium penthouse in Geylang, which he sold for $1.4 million.

 

To pay for his new place, Mr Choo has taken out a 24-year loan of $560,000, saying: "You can always earn more money.

 

"But it's not easy to find a suitable flat which you can call home."

 

"I searched for a month and looked at six units before I decided on this one."

 

The block is about 600m away from St Hilda's Secondary which Mr Choo's son attends.

 

His daughter, Schermaine, attends the nearby St Hilda's Primary School.

 

She said: "I can walk to school in 10 minutes. There's also a park, shopping mall and playground nearby for me."

 

Mr Choo's family was also drawn by the extensive renovation to the unit.

 

He said the previous owner had spent $200,000 and had fittings such as a water feature in the living room, and glass banisters.

 

And Mr Choo claimed the owners left behind furniture worth $100,000.Some of the furniture they included a custom-made bed, Japanese-style tabletop and a Swarovski crystal chandelier worth $3,000.

 

They also left electrical appliances like a flat-screen TV, fridge and speakers.

 

Said Mr Choo: "They were also a Singaporean family who upgraded to a condominium. They initially wanted a COV of $240,000, but I managed to bargain down."

 

The previous owners could not be contacted as Mr Choo said he does not have their telephone number.

 

The transaction was approved in May and Mr Choo's family moved in two weeks ago.

 

He said: "All my friends who have seen my place say it is worth the amount I paid."

 

Good buy?

 

Mr Albert Lu, key executive officer of property firm C&H Properties, told TNP: "On the surface, the figure definitely looks like a lot.

 

"But if what Mr Choo says about the renovation and furnishings is true, it is actually a good buy."

 

Most flat owners, he said, spend under $100,000 on renovations.

 

"For someone to spend $200,000, the renovations would have been very 'high-class'."

 

Mr Mohamed Ismail, chief executive officer of PropNex, agreed.

 

He said: "In this case, the transaction seems value-for-money, considering the value of the renovation and furnishing the previous owner left behind."

 

COVs have exceeded $160,000 before, said Mr Ismail. For example, he encountered two such flats - one in Yishun and another in Jurong East - in 1996.

 

Indeed, it was previously reported that resale prices had hit a high in 1996, with the median COV going as high as $42,000 in the third quarter of 1996.

 

Since the economy recovered after the 2008 financial crisis, it is possible for some COVs to have returned to such "spikes", Mr Ismail added.

 

Mr Chris Koh, director of property firm Chris International, said Mr Choo's case is the largest COV transaction he has come across since 2008.

 

It was previously reported that in 2007, some home-owners were asking for COV sums of more than $150,000 in certain mature estates.

 

"But if the flat was well-renovated and well-furnished, as claimed by Mr Choo, I can understand why he agreed to pay such a large amount of COV."

 

Half of all flats sold are renovated, he estimated, but only about 20 per cent have good furniture for buyers to use, he said.

 

"Most owners tend to bring their furniture along with them when they move out."

 

Only about 5 per cent of all flats can command such high COVs, he added.

 

All three did not think this case was reflective of housing prices in general.

 

Mr Koh said: "This is a resale flat, which is more expensive than a Build-to-Order (BTO) one.

 

"The BTO flats are still affordable, and there are many schemes to help young couples get these flats quickly."

 

For example, a four-room flat in Tampines Alcoves and Tampines Green Terrace - BTO projects launched earlier this year - was reported to cost $292,000.

 

Mr Ismail warned that the transactions like Mr Choo's are "one-off" and are not reflective of general prices.

 

He said: "It would not make sense to pay such large COVs for flats which do not have comparable furnishings and renovations."

 

COVs have fallen to an average of $25,000 island-wide, he noted, so buyers should exercise caution before paying large amounts over valuation.

 

"They should also remember that if the property market corrects itself, like during an economic downturn, whatever COV you pay will mean nothing."

[Jman888]

shunfu and queenstown one selling at $1 million, also worth every penny

 

the EA opposite my block selling at $850K, and the next one going to beat it soon

Edited September 5, 2012 by Jman888

[Mustank]

rich people

[Latka]

Seller very lucky to meet buyer with good budget.

 

But the nbr of 'ai pngee ai chee ai tua liap ni' buyers far outnumber buyers wif good budget and willing to spend.

[Latka]

rich people

 

as long as they happy servicing loan can oready lor.

[Mustank]

as long as they happy servicing loan can oready lor.

 

got people say car loan go up from 1.88% to 2.28%, housing % donno got go up or not

[Acemundo]

shunfu and queenstown one selling at $1 million, also worth every penny

 

the EA opposite my block selling at $850K, and the next one going to beat it soon

 

 

when are you buying to contribute to the record breaking spree ?

[Enye]

after paying so much COV,

 

sure must tell everyone worth it

 

if not, everyone thinks 2 real estate agents also kena carrot

 

bad for reputation

 

anyway after selling condo penthouse still must take loan? not pay in full?

 

[Jman888]

when are you buying to contribute to the record breaking spree ?

 

 

why not i try to sell at a record breaking price first :D

[Joseph22]

why not i try to sell at a record breaking price first :D

easy ah. you sell to me at record breaking low price can liao

[Acemundo]

why not i try to sell at a record breaking price first :D

[laugh] then you can set two records at one go

[Observer]

if service finish the loan, he is 70 years old?

 

slave.

[Rockaphonics]

of course say worth every cent la. Money put in alr, must trick himself its a good investment.

[Rncw]

well some people are humble, spending millions on houses, cars, whatnots, still keep low profile and many rich people just drive BB cars, stay in cheaper HDBs, or private apartments, low profile....

 

some like to show off that they can buy conti cars, stay HDB exec mansionettes...but every month eat giam chai puay roti

[MX5NC2]

Very sad to see how pricey public housing can and have become.

 

It justifies my move away as a quitter. My home is just 700m from the big wide ocean and I paid less than what the fella paid for that Tampines maisonette.

[Wyfitms]

If the reno + furniture are so nice, then perhaps the COV is worth it, even if taking into account a 5 yr dep.

 

I've seen some flats that are in such bad state or super ugly reno also asking for 20k to 40k. Given their condition, they should be negative COV instead!

[Wyfitms]

To me, spending 800k on a 150sqm flat (mostly useable), being near to kids sch, amenities etc is way better than 1mil on 1,000 sqft condo that i still have to spend $$ renovating or furnishing, and assuming condo location not as good as the HDB.

 

i'm looking at perspective of an owner-occupied property. Not from investment perspective.

Edited September 5, 2012 by Wyfitms

[Jman888]

Mr Choo, 46, said he was willing to pay a premium as his new home was renovated just five years ago and came fully-furnished.

 

that is not very new -_-

 

only downgrader willing to pay $168K cov