HDB Reviews Jumbo Flat Conversion Scheme After S$2.18 Million Telok Blangah Listing

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. Any application would have to be submitted by the seller and buyer, who would then await HDB’s approval.

HDB said the listed price of S$2.18 million for the flat at 93B Telok Blangah Street 31, comprising two three-room flats, is significantly higher than prices for comparable transactions in the area. Transactions for a three-room flat in the area have ranged from about S$673,000 to S$771,000 over the past six months. Taking the upper end of that range, the total price of two three-room flats would amount to about S$1.54 million.

“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 up front,” HDB said. 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 owners bought the first three-room unit in December 2017 and the next-door unit in August 2021. 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, part of the Greater Southern Waterfront, and has 91 years left on its lease.

For context, the most expensive HDB flat transacted so far has been a five-room unit in Henderson sold for S$1.73 million in April.

HDB urged buyers to do thorough research, evaluate their housing options carefully and plan their finances prudently so they do not end up overpaying, and to refer to resale transaction data on the HDB website and the HDB Flat Portal.

In the 1980s, there were three and four-room flats left unsold after completion due to low demand. To deal with the oversupply, HDB in 1989 combined the flats into larger ones by knocking down the wall between them. Woodlands was the first town to have such flats. The others are in towns like Yishun, Jurong East, Bedok and Tampines. These units can range from 1,400 sq ft to over 2,000 sq ft.

There are an estimated 2,900 jumbo flats in Singapore, out of about 1.1 million HDB flats.

The conversion scheme was introduced in 1993 and allows eligible owners who require more living space to combine their flat with a next-door unit to form a larger flat.

Owners must get HDB to assess 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 owner must engage a registered renovation contractor to create at least one opening of at least 1m by 2m between the units. A licensed contractor also needs to be hired to remove the PUB meters for electricity, water and gas supply for one of the two units.

Eligibility. The household must comprise a married couple, or a family of parents and children, to form a family nucleus. Singles and joint singles are not eligible.

Minimum occupation period. Owners can sell a jumbo flat only after fulfilling the five-year MOP from the date of the second flat’s purchase. This means that even if they have lived in their HDB flat for 10 years before buying the neighbouring unit, they must live in the combined unit for another five years before they can sell.

Reversibility. None. Once HDB has given approval to combine the flats, the unit must remain as one converted flat.