A 50-storey residential development next to Singapore’s business district, these 7 connected towers are the world’s tallest public residential housing. Sky bridges on the 26th and 50th floors give a breathtaking view of the Singapore skyline, a hotspot for watching the fireworks at the Marine Bay area.
A worldwide design competition was held that attracted over 200 entries with winning entry winning numerous international awards.
This was done to commemorate the historical significance of the site where the first HDB blocks were built. HDB released the flats under the BTO scheme in 2004, with the tagline “The Peak of City Living”. Consisting of 4rm and 5rm flats. My client bought the 105sqm 5rm flat on a mid floor of Pinnacle @ Duxton for about $380,000. Securing a unit at BTO launch was no simple feat as the response was overwhelming, receiving applications close to 10 times the available units.
Completed in 2009, the family enjoy the convenience for close to 10 years before growing out of the flat. It was rented out for about $3000 which paid for the rental of a big old condominium in the East that better served their needs. In 2021, a quick valuation check of the unit came out to be about $1.1+m for their 5rm flat. Having about $200,000 in outstanding loan, there is about $900,000 of capital stuck in this property.
| Unit | Value | Loan | Rent |
|---|---|---|---|
| Pinnacle@Duxton 5-rm | $1.1m | $200k | $3000 |
Why did they sell?
This unique HDB was their first home so they spent a fortune in those days (a common amount these days due to increasing costs) to create this Japanese Scandinavian theme interior. All the flooring was replaced with wood and tons carpentry was done for storage to keep it as minimal as possible. There was definitely sentimental value when I proposed that they should consider selling it. Mainly the considerations are;
- News were heavily reporting on record number of Million dollar HDB flats and suggestions on keeping HDB affordable. There was fear that HDB might release a new policy that would have a negative effect on the valuation. (Shortly after the sale, Prime Location Public Housing (PLH) model was announce in Oct 2021)
- HDB policies have an invisible ceiling on price growth as policy mandates prices be kept affordable for the masses.
- Most important factor was the underutilisation of the $900k that cannot be accessed without selling
- This amount could be used as down payment to purchase a landed property that could better serve the needs of the family and have better appreciation.
sale process
Once they decided to sell, I arranged a professional to capture a virtual 360 tour of the unit and took these pictures at the same time. I arrived 30mins earlier to tidy the house as I knew that there wasn’t much clutter visible for a single tenant. The whole process took about 90mins followed by editing and post back home.
As soon as this unit was put on the market, interest came pouring in with offers made without even viewing the unit. It wasn’t easy because the unit was tenanted and I wanted to reduce the inconvenience for the tenant while trying to get the highest offer. Viewings were arranged once a week, on a weekday afternoon.
The inconvenient viewing time meant that they were mostly serious buyers. After 3 viewings the unit was sold above the owners expected price and with cash over valuation (COV).
BTO Lottery Winners
Apart from Pinnacle @ Duxton, the new BTOs at Dawson are similarly tall with roof gardens. They include
- SkyTerrace @ Dawson (TOP 2016)
- SkyVille @ Dawson (TOP 2016)
- SkyParc @ Dawson (TOP 2021)
- SkyResidence @ Dawson (est TOP 2022)
- SkyOasis @ Dawson (est TOP 2022)
Do you have a HDB that has appreciated in value and you are thinking of upgrading? With numerous types on homes in Singapore, new launch or resale, how do we make a suitable choice? Should you buy first or sell first?
Feel free to reach out for a discussion to know options are open to you and the best choice for you.
