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Resale HDB selling at record $1 Million

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Where are the resale HDB selling over $1 million?

There have been an increasing number of resale HDB selling over the 1 million mark. Located next to the business district, the Pinnacle@Duxton was completed in late 2009. Being the first 50-storey public housing project in Singapore, it garnered significant attention due to its unique features such as the sky bridges (connecting the towers through the 26th and 50th floors). 

In addition, residents find it convenient with basic amenities such as Outram Park and Tanjong Pajar Plaza a short walking distance away. It does not come as a surprise that the highest number of resale HDB units transacted at 1 million is located there with the astonishing views and convenience that residents can enjoy.

 

[Photo from The Straits Time]

Furthermore, it was noteworthy that when the pandemic first started in March, one of the unit in Pinnacle @Duxton was sold at a record breaking price for $1.232 million, which is a 5-room(1,151 square feet) flat, edging out the previous $1.205 million record set in July 2019 for a flat in Boon Keng. The seller even profited an $800k profit, which is 187% more than its original price.

That aside, we have seen quite a few resale HDB selling over the $1 million mark as well. In 2020 alone, 82 resale HDB units were sold at above $1 million. 

[Data from Dollars and Sense]

Fast-forward to February 2021, a new record of 23 HDB resale units was sold for more than S$1 million with 36 HDB resale flats transacted above S$1 million in the first 2 months. The highest transacted price for a resale flat last month was worth S$1.21 million which is an executive maisonette located at Toh Yi Drive. 

 

What are the trends for selling HDB at $1 million ?

  1. It is noted that HDB with shorter leases tend to have lower resale prices. The contrasts can be seen in those flats selling for million dollars where their lease still has a long time to go (roughly 80 years).
  2. Size of flat matters since people are constantly looking for spacious units especially where working from home is becoming a norm. 
  3. Million dollar flats are usually on the higher floors since it comes with unblocked views.

Yet, the trends may not be always constant. An example is the mansionette unit sold in Toh Yi Drive in February had 66 years worth of lease remaining only. Furthermore, a unit on the Mei Ling Street and Dawson Road broke 1 million dollar last month while located on the fourth to sixth floor. 

 

Possible to sell your HDB for $1 million or close?

However, do not be disheartened that  premium flats such as DBSS tends to be getting premium prices as they resemble condos more than a HDB. There are countless things you can do that increases your resale HDB value while making profitable sum from the resale. Just remember, buyers are always willing to fork out a handsome sum of money to obtain a house with spaciousness and good ventilation! According to a survey conducted by Propertyguru, as Singaporeans spend more time nowadays due to the pandemic, ventilation and lighting has become a priority when it comes to choosing a new home.

Therefore, you might want to consider the steps below before selling your house:

  1. Declutter your home
  2. Spruce up our kitchen and bathroom
  3. Fix the defects
  4. Stage your home 

For a more complete guide on spicing up your house, read our blog post on How to increase property value!

 

Bluenest selling a resale HDB worth $1 million!

Speaking of $1 million, did you know that Bluenest sold a resale HDB unit at more than $1 million! Moreover, we sold in only 3 days!

You might be thinking, how did we even accomplish that? Being a tech-based real estate agency, we are equipped with the latest technology with the best property agents. Our personalized marketing strategies have reaped extremely favourable results for those selling their HDB! We even cater professional photography services taken to showcase the spaciousness of your lovely home!

 

Hit us up to us at https://www.bluenest.sg/ now to sell at the best price through your HDB resale process! Choose the right blue. Choose Bluenest. We are your trusted real estate advisor.

Read also our success story at: https://blog.bluenest.sg/how-we-sold-a-resale-hdb-flat-in-just-2-days/

 

Success Story: HDB Sold In 6 Days Despite Ethnic Quota

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Uniquely in Singapore, when buying a HDB resale flat, you have to ensure that you are within the Ethnic Integration Policy (EIP) proportion for both the block and neighbourhood that you are interested in. The EIP was first introduced in parliament on 16 February 1989 to ensure a cohesive community by having a mix of races in each HDB estates. You can refer to the HDB portal to check on ethnic quota, and do note that the quota is updated on the first day of every month.

If you are a SPR, do note that the SPR quota is also applicable to you.

How does the EIP and SPR work

The EIP proportion applies for any HDB resale flat. In addition, the SPR quota applies to non-Malaysian SPR households.

Credits: HDB.gov.sg

Success Story: How did we sell in 6 Days despite HDB Ethnic Quota

When it comes to selling a house, every clients’ circumstance is unique. Unfortunately, some situations make it more difficult for one to sell the property. For example, the HDB ethnic quota restrictions could hinder property sales, especially when the pool of eligible buyers become severely limited. This occurrence is not infrequent in today’s market, but we are fortunate to have helped sellers like Mrs Shoba overcome this situation.

We met Mrs Shoba on 2nd March 2020 at her HDB flat at 223 Bishan Street 23.  Prior to contacting Bluenest, we found out that she had been trying to sell her HDB flat for almost 2 years, since July 2018! The unit had many favorable traits, including having remaining lease of over 70 years, situated on a high floor, and being well renovated. Unfortunately, Mrs Shoba was facing difficulties finding the right buyer due to the ethic quota restriction: only non-Chinese buyers were eligible to purchase her HDB flat.

HDB Ethnic Quota
(Source: HDB map services)

 

How and what did we do for Mrs Shoba?

Nevertheless, we were not fazed by the challenge. Our methodological competitor analysis and research done showed that this HDB flat had tremendous potential. Coupled with our customized and targeted marketing strategy, we were very confident that we could sell this HDB flat in no time.

Like all the properties that we had sold, Mrs Shoba followed our Bluenest tips and advice closely and she also tidied up her property before our professional photographers commenced the photoshoot. Within just hours of receiving the images, our back-end support team had her advertisements posted on multiple property portals.

As Mrs Shoba’s case required a more strategic approach, we utilized highly targeted marketing through our digital channels, to ensure that the advertisements were reaching the right audience.

 

Marketing strategy proven with immediate results 

With our customized and highly effective marketing approach, we secured multiple viewings for this HDB flat within just 3 days of advertising! It all narrowed down into 3 different sets of qualified buyers and after a few days of negotiation, we managed to close the deal for Mrs Shoba. Mrs Shoba was truly excited and happy that we managed to sell her HDB flat within just 6 days of advertising as she has been selling for almost 2 years!

 

HDB Resale Flat_Ethnic Quota_Sold in 6 days

 

Do also check out more of our success stories:

  1. How we sold at highest transacted price
  2. How we sold this property in just 2 days

Just like fishing, finding the right buyer requires the proper tools and channels. With our technologies, we are able to tailor our methods to help you reach the right buyer in the quickest time. Reach out to us to find out how we can help you with your sale.

 

Want To Sell Your House Fast? Do An Open House

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You may have heard of the phrase “buyers’ market” being thrown around in conversations relating to real estate these days. A “buyers’ market” simply means there are more supply of houses than demand in the market hence market conditions favor towards buyers.  Today, buyers have plenty of options to choose from, such as resale flats, Build-To-Order (BTO) flats, new condo launches and even unsold units.

 

When it comes to selling your property, generating hype and demand is super important. In the primary market, property developers typically market their new condo launches up to 6 months before the actual launch date. Property developers invest in multiple channels and also engage real estate agencies to drive awareness. With so much hype generated among communities, it’s no surprise that some launches sold hundreds of units within the first weekend of the launch. (Wing Tai sold 70% of The M condo over launch weekend despite average price of $2,450 per square foot.)

 

The same concept can be applied to the sale of your property. Property agents do this by creating an open house for potential buyers to view. The notion of having an open house might not be receptive to some homeowners as they might fear having strange people coming into their homes. However, in reality, having an open house is one of the better ways to sell properties quickly. Here are some of the benefits of having an open house when selling your property.

 

 

1. Making your property stand out from competition

 

Your property could be located in a super hot and popular area, and to make things worse, your neighbours next door are selling their property at the same time as well. Having an open house creates the window of opportunity for you to generate more demand, while showcasing your property at its best.

You could also take this chance to give your property an uplift by doing home staging and have professional photos of your property taken. The idea is to create a statement among the competitors (or your neighbours) and at the same time, allowing your potential buyers to visualize what it is like to live in your property.  

Check out the photos of this beautifully done up HDB flat at 289A Bukit Batok Street 25

Home Staging_HDB flat_Open house

Home staging_HDB flat_living room_Open house  

 

 

2. Creating competition among your buyers

 

In an open house, you could have different groups of buyers in your property at the same time and this helps to create some friendly tension among these buyers. Trust me, it does get super exciting when one of these buyers drops an offer during the open house which leads to the others trying to outbid each other.

It is the same for new launches. Knowing that the better units will be taken up quickly helps to build hype for the project and developers end up selling their properties like hotcakes over a weekend. 

 

 

3. Getting the most out of your marketing investments

 

From our research, we were able to observe that units with high number of viewings over a short period of time have high tendency to be sold, at a faster turnaround time too. The high viewing density also means that any investment made (online marketing and/or home-staging) is kept to a minimum.  

 

With our signature Bluenest Open Houses, we have helped many of our sellers to sell their properties within a few days after listing their property. Check out our video where we shared how we sold a property in just 2 days in an open house.

 

Feel free to reach out to us today to find out more and we would be happy to assist in helping you sell your property. 

7 Things to Know About ABSD for Your 2nd Property

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In March 2019, Singapore was announced the most expensive city in the world to live in (alongside Paris and Hong Kong). Yet property is still an asset people will invest in because of the potential it possess.

If you’re investing in your 2nd (or subsequent) property, here are 7 things to know about Additional Buyer Stamp Duty (ABSD): who is liable to pay it, the exemptions, how to beat the tax, and so on.

Also read: 2 Key things to look out for when you get your 2nd home loan

1. What is the Additional Buyer Stamp Duty?

The Additional Buyer Stamp Duty (ABSD) applies to owners who purchase their second and subsequent property. It’s an extra tax the government imposes on residential properties (e.g., condominiums, private estates, HDB flats, shophouses with live-in residences, etc.)

 

2. The Purpose of ABSD

ABSD acts as a cooling measure to curtail the booming property market. Given that real estate prices skyrocketed by 9.1% in 2018, the Singapore government needed to put in place something that would prevent housing prices from going up further.

If the increased demand had been left unchecked, the upward trend would have led to a housing bubble. In such a bubble, many are likely to commit to loans they cannot afford, which increases the risk of foreclosures. When the bubble bursts, it would’ve led to more foreclosures, an oversupply of houses, and low demand

 

3. Who has to pay the ABSD?

You have to pay ABSD if you are a…

That’s right: for PRs and foreigners, even if this is your first property purchased in Singapore, you are liable to pay for ABSD.

As long as you own a shared interest in a property (even if that’s an investment property with your siblings), you are liable to pay for ABSD. Any other property purchased will be considered as your 2nd property. If paying the ABSD is an issue, you may want to rethink keeping your stake in the shared property.

 

4. Updates in ABSD Regulation

With the new regulations in play, homeowners can expect a 12% or higher ABSD rate on the current valuation of the property or the selling price, whichever is higher.

The current ABSD rates are as follows:

 

Case Study 1:

Sam is a Singaporean citizen looking to purchase his 2nd residential property for investment purposes. The property is valued at $500,000. He agrees to buy it at $550,000.

 

 

Case Study 2:

Martha is a Malaysian PR looking to purchase her 2nd condominium to rent out. The property is valued at $1,200,000. After negotiations, she purchases it at $1,050,000.

 

 

5. How can I pay for ABSD?

ABSD can be paid via NETS, cheque, or cash order through the e-Stamping Portal. Other avenues include IRAS e-terminals or specific branches of SingPost Bureaus (Shenton Way, Novena, Chinatown, and Raffles Place).

While CPF (Ordinary Account) funds can be used to pay your ABSD, you have to pay out of your pocket first before getting reimbursed from your CPF account.

 

6. When must I pay the ABSD?

The deadline to pay is within 14 days for contracts signed in Singapore, and 30 days for contracts signed overseas. You’ll want to pay punctually to prevent paying the hefty penalty (which can be 4 times your ABSD!).

 

7. Exemptions from ABSD in Singapore

You won’t have to pay the ABSD if:

  • You sign the agreement to sell your current property before getting the Option to Purchase (OTP) on your new property
  • You’re downgrading from private property to a resale flat. However, the private property must be sold within six months – though you can extend this to one year if you get approval from the relevant authorities.
  • Your properties are located outside of Singapore (subject to the laws of the respective country)

 

Moving Forward:

ABSD can eat into your finances. One of the most common ways to avoid the tax is decoupling – essentially, transferring your share of the property to your spouse. Afterwards, you’ll be free to purchase your 2nd property as though it’s your first.

Your spouse will have to pay the Buyer Stamp Duty and all the associated legal fees when they take over your share, but this is generally far cheaper than the ABSD. (Read also: Can I Transfer My Share of the House to My Spouse/Child to Avoid ABSD?)

 

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Success Story: Sold HDB Resale Flat At Record Price

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Every homeowner’s dream is to sell their property (be it a HDB resale flat or private property) at a high price. Of course, not everyone gets to achieve the price that they want as it requires much greater effort, skills and expertise. At Bluenest, we always do our best to help our clients achieve their goals and here’s the success story for one of our customer.

If you are looking to sell your property, we have prepared the following articles for you:

  1.  How to price and value your property
  2. Step by step guide on selling your HDB resale flat / Condominium
  3. What are the costs involved when you sell your property

 

Mr Nazir wrote in to us earlier this year on the 2nd of January..

Our operations team called up Mr Nazir to find out about his selling motivations and got to know that he was looking to upgrade to a condominium unit and needed to sell his HDB resale flat at 466 Segar Road. We knew that we were up for a challenge, but it didn’t deter us!  Without any delays, we assigned our top real estate agent for a free consultation with Mr Nazir at his HDB flat. 

When our agent arrived at his place, he was immediately astounded by the condition of the house. Mr Nazir was a serious seller and he had taken really good care of his home. We also found out that Mr Nazir already had an eye on a condo unit, and needed to sell his HDB flat at a certain price in order to move into his next dream home.

 

and guess what..

the selling price he was looking at was higher than the highest transacted price in his area at that point of time! We prepared a comprehensive selling strategy for Mr Nazir using our technology tools.The selling strategy was customized for Mr Nazir and that includes the following

  1. Bluenest price modelling
  2. Competitor analysis
  3. Latest real estate market trends
  4. Custom marketing plan

With all these well-planned for Mr Nazir, he was nothing but impressed and signed an exclusive agreement with Bluenest to sell his HDB resale flat!  

 

The Bluenest team started working on this deal..

Mr Nazir’s resale flat did not require any home-styling as it was already beautifully renovated and well-kept. We posted the advertisements onto the major listing portals (Propertyguru, 99.co and Carousell) as soon as our photographers were done with the photo shoot.

We executed our marketing plan for Mr Nazir and he reaped excellent results as inquiries and viewing requests started flooding in. Buyers were also super impressed with our signature open house. After our skillful negotiation with both buyers and co-broke agents, we managed to seal the deal on that very same day itself. In fact, Mr Nazir was over the roof as the closing price was exactly what he needed and had asked for!

 

We set a new HDB resale record price for that area! 

  • Previous highest transacted price was at $393,000
  • Bluenest sold it at $400,000! 

HDB Map Services_Highest Transacted Resale Price_04 May 2020

Image:  1 year transaction data record (May 2019 to May 2020) from HDB Map Services. You can use this portal to find out about the past transacted HDB resale prices of any neighborhood. 

 

and also received high commendations from Mr Nazir!

 

Selling at a high price is a challenge and not an easy task that any real estate agents can achieve. A combination of our proprietary technology and agents’ expertise is our winning strategy. We have also sold at highest transacted prices with more sellers, so stay tune for more success stories!  (Read also: Success story on how we sold a HDB resale flat in just 2 days)

Want to sell at a high price too? Do reach out to us today and find out how we can help you achieve your dream price!

Should I DIY or Engage A Property Agent To Sell My House?

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Selling a home today has never been easier. With the rise of Do-It-Yourself platforms like Carousell and 99.co, homeowners now have more means to market their unit themselves, without the need for an agent. Of course, this means that you can save on the agent commission, but is DIY the best way for you to sell your home? Let’s find out.

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