The apartment is sold even before a valuation has been done on it.
I did a check on the recent resale transactions in Jalan Membina for 5-room flats and found that there have been only 4 transactions in the past 3 months. The transacted prices range from $528k to $550k.
This is probably why a property agent mentioned in the TNP article said the flat is worth an estimated $550k.
If indeed the valuation of the flat (when it’s done) comes to $550k, this means the flat is sold at an amazing $125k above valuation!
So how do you know if your flat can fetch a good price? According to property agents (as mentioned in the TNP article), these are the factors:
- Location. A central location will be good, e.g. Tiong Bahru, Queenstown and Toa Payoh. Jalan Membina is right in Tiong Bahru and “minutes away from Orchard Road.”
- Size of flat. Bigger flats are in greater demand, e.g. 5-room, executive flat, maisonette.
- Near to MRT station. The Jalan Membina flat is just a stone’s throw from the Tiong Bahru MRT train station. Need we say more?
- Have good view. Generally, the higher floor, the better view. If your flat offers a view of the sea, or the Central Business District landscape, you’re in luck.
- Not too old. Apparently, estates in the central region are generally quite old. However, that doesn’t mean there are no new apartment blocks being built in these estates. The Jalan Membina flat is one example – its lease commenced in 2003.
Why are such flats in high demand now?
“Private property owners dislodged by recent enbloc sales see such flats as a relatively cheaper replacements for condominium units… can fetch $50,000 onwards in cash above their value, agents say.”