SINGAPORE - ANOTHER fresh record has been set for the most expensive HUDC apartment - again at the popular Shunfu Road enclave.

Record $1.33m for HUDC flat at Shunfu Road Click on thumbnail to view

A 1,660 sq ft maisonette, located at the heart of the yet-to-be privatised estate, was sold for $1.33 million last month, according to data-crunching firm Singapore Real Estate Exchange. This tops the $1.28 million mark reported in September for the same type of flat at the same estate.

The news extends the trend of record-breaking prices for premium Housing and Urban Development Company (HUDC) and Housing Board resale apartments.

A new record was also set in September for the most expensive HDB flat when a buyer paid $1 million for an executive flat in Queenstown.

HUDC units were introduced in the 1970s for aspiring middle-income families, and were phased out about a decade later as interest in them dwindled. Out of 18 such projects, 12 have been legally privatised, while the rest are pending legal privatisation.

Analysts say records in the HUDC market will continue to tumble as long as sellers hold out for higher prices under the current exuberant market conditions, and buyers are lured by choice locations and hopes of a collective sale windfall after privatisation.

The Straits Times understands that the seller of the Shunfu flat is an engineer who had bought it 16 years ago at a "good price". Back then, such apartments sold for less than $400,000.

"He is tired of waiting for the privatisation to go through and wanted to cash out to do other property investments," said Huttons agent Jerry Phoey, who brokered the deal.

The buyers are a young Singaporean couple. "They have done their homework and feel this is the best place to bring up their children," said Mr Phoey.

The mid-level unit at Block 316 has a view of the green lawn just in front of it. Nestled at the centre of the estate, it is insulated from traffic noise by the other blocks, yet still within walking distance of nearby amenities.

The 358-unit Shunfu Ville has been popular with home buyers because it is near a market, eateries, Marymount MRT station and brand-name schools like Raffles Institution, Marymount Convent School and Catholic High School.

Work has already begun on the privatisation of Shunfu Ville. A carpark entrance barrier and a guard house are being added, and the estate is being fenced up.

Unusually, no cash premium was paid above the flat's valuation, as the property was valued by a bank at $1.38 million.

PropNex chief executive Mohamed Ismail said: "Even at that price, the buyer is paying about $800 per sq ft for a spacious apartment, which is cheaper than surrounding condo units in that area." But he cautioned buyers against busting their budgets purely on hopes of a collective sale, which might not happen.

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