Clarifications on Unrealistic $2 Million HDB Flat Listings
Clarifications on Unrealistic $2 Million HDB Flat Listings
min read Published on 16 May 2024

There have been recent HDB flat listings of a “jumbo flat” in Sengkang and a 5-room Design, Build and Sell Scheme (DBSS) HDB flat in Toa Payoh for $2 million.

Misleading Flat Listing in Sengkang

The advertisement for the $2 million "jumbo flat" in Sengkang was misleading as there are no jumbo flats in the area (Blk 314C Anchorvale Link). The unit listed was two adjacent 5-room flats, which are not eligible to be converted into and sold as a single unit.

Additionally, the listing price for the flat is well above the recent transacted prices in the area. Over the last six months, 5-room flats in the area transacted for around $580,000. 

The agent has since taken down the listing after the Council for Estate Agencies (CEA) pointed out the misleading advertisement. CEA is also investigating the matter and will take firm action if any breaches are found. 

Unrealistic Flat Listing Price in Toa Payoh

The 5-room DBSS listed for $2 million was nearly $500k above the highest transacted price in the area. Many property market experts said that this is an unrealistic asking price, even for a DBSS flat with attractive attributes.

At the current listed prices, the DBSS flat and the two 5-room flats in Sengkang will come with significant Cash-Over-Valuation (COV), which has to be fully paid in cash upfront.

Code of Conduct for Property Agents

Property agents must uphold the integrity and professionalism of the industry, and avoid disrupting the market and fanning consumer sentiment. To protect the interests of the public and promote information transparency to facilitate informed decisions by prospective buyers, CEA will look into the information presented by property agents when they market HDB flats.

Ensuring affordable homes for Singaporeans

In 2023, more than eight in 10 first-timer families who collected keys to their new flats or bought resale flats had a mortgage servicing ratio (MSR) of 25% or less upon key collection. This means that they can service the

ir monthly HDB loan instalments with their CPF contributions, with little to no cash outlay.

While the HDB resale market transacts on a ‘willing buyer-willing seller’ basis, prospective buyers are advised to exercise prudence in their housing purchases, especially in the current economic and geopolitical climate. The Government remains committed to ensuring that public housing remains affordable to Singaporeans and maintaining a stable and sustainable property market.

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