Buyers drawn by sea view
NEWSPAPER vendor Goh Wee Kiat, 48, refused to budge on his price when he put his four-room Housing Board (HDB) flat up for sale six months ago despite the softening property market.
His persistence reaped dividends when the flat, in Marine Parade, was sold for a staggering $495,000 in late October.
That is $65,000 above valuation.
It was a record price paid for such a four-room flat in the area, and it came as a surprise to industry watchers, considering the quiet property market and bleak economic climate.
In September, another four-room flat in that same ‘lucky’ block located at Marine Terrace was sold for a then-high of $490,000.
Both flats are about 33 years old.
Transacted prices for four-room flats in the area have never been more than $445,000 in the last six years, property agent Samuel Lew of ERA, who brokered the deal, said.
Costlier than bigger flats
At such prices, the two flats are more expensive than some of the newer executive flats in the market.
For example, a 1,571-sq-ft executive flat in Yishun was sold for $375,000 last month, information from HDB’s website showed. That unit was about 20 years old.
In Mr Goh’s case, he bought the Marine Parade 947-sq-ft flat in 1999 for about $328,000.
He is married with two children, a daughter, 16, and a son, 13. His wife, 50, is a homemaker.
He is pocketing at least a cool $167,000 gross profit from the sale of his flat. It is not the first time he has profited from the sale of his flats. (See report, above right).
In about two months’ time, he will be saying goodbye to the superb sea view from his unit. The view was why the buyer paid such a premium for the place.
Mr Goh said in Mandarin: ‘We will be sad to leave this flat because we really love the sea view here. During the National Day celebrations, we could even see the fireworks from our unit.
‘I know that flat prices here are good because of the view and location. That was why I was quite stubborn about my price. And I dared to ask for a high price because my unit is also on a high floor.’
From his living room, you get a stunning unblocked 180-degree-view of East Coast Park, the upcoming Marina Bay Sands integrated resort and even parts of the Central Business District.
And the city centre is just a quick drive away.
Mr Goh said that the buyers, a couple in their 40s, spent most of their time looking at the seaview instead of the condition of the flat.
He said: ‘Most of the potential buyers who came to see the unit asked many questions about the place and the condition. But this couple spent more time looking at the sea than the unit.
‘The sea view was also what attracted me to this place nine years ago. I paid a premium too for the flat, about $20,000 above valuation then.’
His agent, Mr Lew, said that it was quite a quick deal.
Deal within 30 minutes
The buyers saw the place, liked the view and offered an irresistible price - all within 30 minutes, he said.
The New Paper was not able to get in touch with the buyers.
Mr Goh and his family will be moving to Melville Park, a condominium in Simei. They paid about $610,000 for the 1,160-sq-ft unit.
He said: ‘We were not in a hurry to sell the flat. But I wanted to move so that my son would be closer to his secondary school in Tampines.
‘It takes him about an hour to get to school, and I’ve received complaints from his teacher about his being late. So I thought we should move closer to his school instead.’
The executive director of HSR Property Group, Mr Eric Cheng, said that such record prices are uncommon in today’s market.
‘We usually see record prices in good markets, where buyers try to outbid each other and are willing to pay higher for some units,’ he added.
But Mr Cheng explained that Marine Parade is a niche and popular estate because some people appreciate the value and potential of that area.
He added: ‘Some of these flats have that strong X-factor because of the location, potential MRT station coming up and the sea view.
‘These buyers are willing to pay a forward price, where they pay a premium, because they think the price of the flat will appreciate in the future.’
Mr Goh’s upgrading profits
Bought three-room flat in Marine Parade in 1979
Price then: $45,000
Sold in 1999: $215,000
Gross profit: $170,000
Bought four-room flat in Marine Parade in 1999
Price then: $328,000
Sold this year: $495,000
Gross profit: $167,000
Source : The New Paper - 12 Dec 2008
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