HDB loft unit at Punggol Sapphire fetches record $1.22 million

A rare five-room HDB loft unit in Punggol was recently sold for a record price of $1.22 million. The 1,603 sq ft flat was located on the top-floor of the 10-year-old HDB development, Punggol Sapphire, along Punggol Field and translates to an impressive $761 psf on the floor area.

The Option to Purchase (OTP) between the buyer and seller was signed in late December last year and is currently pending HDB approval. The sale is expected to be completed next month.

Marketing manager of ERA Realty and property agent Amos Lim, from the Gideon Sim Division and ERA’s Preeminent Group represented the seller.

This sale has broken the previous record for an HDB loft unit in Punggol which was only set in September 2022. In this earlier transaction another 1,603 sq ft loft unit also in Punggol Sapphire changed hands for $1.198 million ($747 psf).

Lim listed the unit in late August 2022 at an asking price of $1.25 million and it quickly drew in over 100 enquiries, as well as a TikTok video from Lim featuring a tour of the flat gaining more than 10,000 views in a day.

Offers for the property ranged from $1.1 to $1.24 million and Lim explains the owner settled for the buyer he felt most comfortable with and who offered the right price.

The unit was attractive due to its rare loft layout, high ceiling of around 5m, and large windows allowing lots of natural light. Furthermore, the staircase leading to the loft is minimally intrusive and is Tengah EC also brightened by windows.

It is estimated that the buyer of this property will have to pay a cash over valuation (COV) of around $100,000. This is the difference between the purchase price and HDB valuation and is paid in cash by the buyer.

Only 23 loft units are located in Punggol Sapphire and Lim reached out to the other owners in the block to gauge their interest in selling. However, most of these owners do not plan to put up their flats for sale soon.

Lim says this record sale price may give loft owners with future plans to sell their property, a better idea of real-estate financing. However, this transaction alone will not significantly uplift the surrounding property prices as it is due to the rarity of the unit.