HDB reviewing ‘jumbo’ flat scheme after Telok Blangah unit listed for sale at S$2.18m
The review signals affordability concerns around unusually priced jumbo flats and may influence future resale rules, buyer caution and cash-over-valuation expectations in this niche segment.
HDB is reviewing its jumbo-flat scheme after a Telok Blangah unit was listed at S$2.18 million, over 40 per cent above two comparable flats.
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[SINGAPORE] The Housing Board is reviewing the scheme that allows three-room or smaller flats to be combined into a “jumbo” unit, after a flat of this type in Telok Blangah was put up for sale at S$2.18 million.
In response to queries from The Straits Times, HDB said it understands the concerns from the public about the flat listing, and that the authorities are committed to keeping public housing affordable and accessible.
It added that so far, it has not received a resale application for the flat. The application will have to be submitted by the seller and buyer, who will then await HDB’s approval for the transaction.
HDB said the listed price of S$2.18 million for the flat at 93B Telok Blangah Street 31 – comprising two three-room flats – was “significantly higher” than comparable transactions in the area.
Transactions for a three-room flat in the area range from about S$673,000 to S$771,000 over the past six months.
Taking the upper end of this range, the total price of two three-room flats would amount to about S$1.54 million.
HDB said: “The current listed price is more than S$600,000 or over 40 per cent above this amount.
“Should a transaction proceed at this price on a willing buyer-willing seller basis, it will likely entail a substantial cash-over-valuation, which must be paid fully in cash upfront.”
Cash over valuation is the amount a buyer has to pay in cash when a resale flat is sold above its HDB valuation.
HDB said the conversion scheme was introduced in 1993 and allows eligible owners who require more living space to combine their flat with an adjacent unit to form a larger flat.
They must also seek HDB’s assessment on the structural feasibility of combining the units before submitting their purchase application.
If approved, they can combine the two units into a single flat under one lease. The combined flat can be sold on the open market after meeting the five-year minimum occupation period.
HDB said the owners of the Telok Blangah flat bought the first three-room unit from HDB in December 2017.
They bought the next-door unit in August 2021, when their neighbour received approval to sell the flat during the minimum occupation period due to the family’s circumstances.
The property agent who put up the listing, Thomas Tong from PropNex Realty, said the 1,465 sq ft jumbo flat is near the upcoming Berlayar housing estate, which is part of the Greater Southern Waterfront.
It has 91 years left on its lease, he said.
“Some buyers are thinking about renting out one side while living on the other side,” he added.
The most expensive HDB flat transacted so far was for a five-room unit in Henderson, which sold for S$1.73 million in April.
HDB said buyers need to do “thorough research, evaluate their housing options carefully, and plan their finances prudently so they do not end up over-paying”.
It urged buyers to refer to resale transaction data on the HDB website and other housing options on the HDB Flat Portal. THE STRAITS TIMES