images from sglivingpod


Pinnacle@Duxton flat fetches resale price of $900,000 

"The first Pinnacle@Duxton flat to be sold on the resale market has gone for a princely price, less than a month after most home owners of the iconic Housing Board project were allowed to put their units up for sale. The four-room flat, located somewhere from the 34th to 36th floors, was sold on Monday for a hefty $900,000. Savills property agent Ron Chong, who handled the transaction, said the corner unit's price was not surprising, given its central location, high floor and well-designed interior. "It has superb views. You can see Sentosa from the balcony, and Orchard from the corner bedroom," he said. "A lot of potential buyers said it looks like a show-flat." Older, same-size HDB units in the area, such as those on lower floors in neighbouring Cantonment Close, are already fetching about $750,000, he added. The Pinnacle@Duxton unit's original owners, a Singaporean couple who wanted to be known only as Mr and Mrs Ng, bought the 95 sq m flat for about $340,000 at its launch in 2004. Their five-year minimum occupation period ended on Dec 16 last year, meaning they were finally able to sell the flat. "Of course, it's a pity to let this flat go, but my wife and I are very happy with the price. We were expecting only about $850,000 to $880,000," said Mr Ng, 38, a health-care professional. They are looking for a new place in the west to be closer to work. The buyers are a married couple in their mid-30s who live in Aljunied. The husband, who gave his name only as Mr Lee, said they chose the flat for its unblocked views and convenient location near the Central Business District, where he works. This $900,000 deal sets a precedent for the Pinnacle@Duxton's other four-room units, and paves the way for its five-roomers to fetch over $1 million, said experts...."
Published on Jan 3, 2015. Read the rest here.


It has been less than 2 weeks since I blogged about my thoughts on Million dollar HDB: Bishan Executive maisonette sold for $1.09 million. In my last post, I predicted that centrally located HDB with unique layout and "award winning" facade will probably fetch the million dollar price. The Punnacle @ Duxton is in my million dollar HDB list.

More  million dollar HDB units to come?
Aside from The Pinnacle Duxton, SkyTerrace and Skyville at Dawson is next in my list. I also believe that DBSS projects such as Natural Loft, The Peak in popular locations such as Bishan and Toa Payoh should be next. 

Town nameProject name
Launch

date
Completion

date
Number of flats
2-rm3-rm4-rm5-rmTotal
2006-2009
6 DBSS projects – 3951 flats
Estimated average flat size: 103.16 sqm
TampinesThe PremiereOct 2006Jan 2009436576616
KallangCity ViewJan 2008Apr 201172168474714
Ang Mo KioPark CentralOct 2008Oct 2011172406578
BishanNatura LoftNov 2008Feb 2012160320480
SimeiParc LumiereApr 2009Jul 2011120240360
Toa PayohThe PeakApr 2009Jul 2012953068021203
2011-2012
7 DBSS projects – 4698 flats
Estimated average flat size: 89.77 sqm
YishunAdora GreenFeb 2011Q4 2013168510128806
TampinesCentrale 8Jun 2011?182348178708
BedokBelviaOct 20112014102209177488
HougangParkland ResidencesJan 2012?136272272680
Jurong WestLake VistaOct 20112015145279258682
ClementiTrivelisOct 20112015222518148888
Pasir RisPasir Ris OneApr 2012?103237107447
TOTAL13 launches41225333440868649
Source from teoalida

Nonetheless, *assuming that the purchasers of such million dollar units are taking bank loans* in such high liquidity environment (it is widely believed that FED  will only start to raise the interest rates from mid 2015 onward), it is not surprising that such transactions still take place. Anyway, the value of our money has since been distorted and eroded massively due to the money printing by the banks. Oh well, that's another story.

Cooling Measures 
However to put things in perspective, if the property cooling measures have not been in place, the prices transacted would have been much higher. Case in point?
Sim Lian Group, a contractor turned private developer, has priced up to a whopping $880.000 for a 5 room for their Centrale 8 project in Tampines back in 2011. When HDB stepped in and asked the developer to review their prices, they only reduced to $778,000. 

Fast forward to today, the asking price of $900,000 for a centrally located HDB project with awesome view in 2014 seems... slightly more reasonable? 

Hummm....your thoughts?



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