Bukit Merah Four-Room HDB Flat With Just 45 Years Left Sells for Record S$1.53 Million

Block 50 at Moh Guan Terrace was built by the former Singapore Improvement Trust, the predecessor of HDB. These SIT-era flats are characterised by their generous proportions, with living and dining spaces considerably larger than modern equivalents and the potential for more than four bedrooms. The adjoining unit layout allows for spacious multi-generational living, making them attractive to larger families or those who value heritage character.

The block is located in the heart of Tiong Bahru, close to cafes, bakeries, and Japanese-style coffee shops in a charming, heritage-rich neighbourhood. Analysts say the combination of a prime central location, generous floor area, and the quaint character of the estate are the main reasons buyers are willing to pay a premium despite the short remaining lease.

This is the second unit in the same block to exceed S$1.5 million. Back in June 2023, a 176 sq m adjoining unit on the top floor sold for S$1.5 million, which at the time set the four-room resale record. Earlier this month, a five-room unit at City Vue @ Henderson on Henderson Road, Block 96A, sold for S$1.728 million, setting the overall five-room resale record.

With only about 45 years remaining on the lease, the unit raises important questions about value retention for ageing HDB flats. Mogul.sg chief research officer Mai Jun Rong noted that nearby private developments are priced at S$2,200 psf and above, so buyers likely see the unit as offering good value at S$947 psf relative to the neighbourhood. He estimated the buyers are likely middle-aged or older individuals with financial means who prioritise space and location over lease longevity.

He also pointed out that there are few remaining SIT-era flats in Singapore, and Block 50 at Moh Guan Terrace may have heritage retention value. The government’s proposed Voluntary Early Redevelopment Scheme could also influence long-term values, as authorities may offer lease extension options or buyback arrangements when the lease nears expiry. However, the specific VERS framework has only about 45 years of lease remaining to work with, and details have yet to be finalised.

The record sale underscores a growing bifurcation in the million-dollar HDB market. On one hand, newer flats in prime locations command high prices based on modern fittings, longer leases, and proximity to MRT stations. On the other, heritage-era flats with outsized floor areas in mature estates continue to attract buyers who value space and character, even with significantly shorter leases.

Whether this unit can be resold at an even higher price in the future, or whether similar units will continue to set records, will depend heavily on government policy. Mai noted that the VERS framework, once finalised, will have a major impact on the resale value of older flats. For now, the Tiong Bahru corridor remains one of the most sought-after HDB estates in Singapore, with its unique blend of heritage architecture, central location, and vibrant neighbourhood amenities continuing to support premium pricing.