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5-room DBSS flat sells for record $1.1 million

PROFIT: The 28th-floor flat at City View @ Boon Keng (pictured),


    Aug 11, 2016

    5-room DBSS flat sells for record $1.1 million

    A FIVE-ROOM flat at City View @ Boon Keng has scored a record price of $1.1 million for a Design, Build and Sell Scheme (DBSS) development.

    The coup comes despite a depressed resale market, underscoring what housing experts said is a persistent demand by some buyers for premium units in central locations.

    Units that can command such sky-high prices are "outliers", they noted.

    The 28th-floor flat at City View in Kallang comes with views of the Sports Hub and the sea.

    Its seller, who wants to be known only as Mr Tan, said: "I thought I could try my luck because the location is very convenient."

    The 35-year-old, who works in marketing, and his wife signed the option to purchase two weeks ago.

    It was a profit of at least $300,000, as they bought the flat for about $700,000 when the premium public housing was launched in 2008.

    In January, City View was the second DBSS project to hit the resale market, after The Premiere in Tampines in 2014.

    City View has been fetching higher prices due to its location, with three other units crossing the $1 million mark.

    Looking ahead, the question is whether such unusually high prices will be replicated in other DBSS projects.

    Units at Park Central in Ang Mo Kio started meeting the five-year minimum occupation period last month while those at Natura Loft in Bishan become eligible this month.

    Units from Parc Lumiere at Simei have been on the market since February, with some fetching up to $738,000.

    Despite the sluggish overall resale market, there is still demand for premium units, said industry players.

    Besides location and quality, such units also have attributes which "money can't buy", said ERA Realty agent Kavin Kuah, who represented Mr Tan in the deal, citing the unit's view.

    Added R'ST Research director Ong Kah Seng: "The majority of resale flat buyers will be cautious and work within their budget but a couple of buyers with deep pockets will hold contrarian views and see the worth of the flat beyond the current gloomy statistics and pessimistic property picture."