In an era where million-dollar HDB flats are starting to feel normal, it is still surprising to see older flats, almost 50 years old, commanding such a high price tag. A total of 8 5-room flats in Marine Drive have been sold, this year alone, for over $1 million. The lease for these flats commenced in 1977, which means they had at least 49 years left on the lease when they were sold. And before you assume that they were larger than usual, these were all classified as “standard” flats, which means they were 120 square metres in size – the typical size of a 5-room flat built by HDB in the late 70s.
This begs the question – how much more will you be paying for a newly MOP-ed flat compared to buying a 50-year-old flat. Why are people paying $1 million for a 50-year-old flat and is it normal?
Read Also: 4 Challenges Of Buying Old HDB Resale Flats That Are 5 Years Older Than You
To ensure a relatively fair comparison, we will only be looking at 3-room, 4-room, and 5-room HDB flats where the lease commences in 2020 (representing newly MOP-ed flats), and 1975 (representing 50-year-old flats).
3-Room Flats
| Newly MOP-ed Flats | 50-Year-Old Flats | |
| Number of transactions since September 2024 | 252 | 215 |
| Highest Price | $920,000 | $585,000 |
| Median Price | $600,000 | $410,000 |
| Lowest Price | $460,000 | $290,000 |
| Highest PSF | $1,301 | $836 |
| Median PSF | $820 | $575 |
| Lowest PSF | $619 | $457 |
The average newly MOP-ed 3-room HDB flat is 68 square metres. 50-year-old 3-room flat sizes were about 66 square metres on average. 3-room flats have fluctuated in size over the decades, but in 1975, they were about the same size as they are today.
Since size is not a factor, then it is not surprising that in terms of price, 50-year-old flats are sold for less than most newly MOP-ed flats. In terms of psf, for example, while the highest psf of a 50-year-old 3-room flat is $836, it is an outlier. The next highest psf is $793, way below the median psf of a newly MOP-ed flat.
4-Room Flats
| Newly MOP-ed Flats | 50-Year-Old Flats | |
| Number of transactions since September 2024 | 799 | 57 |
| Highest Price | $1,258,888 | $720,000 |
| Median Price | $755,000 | $539,000 |
| Lowest Price | $540,000 | $450,000 |
| Highest PSF | $1,296 | $760 |
| Median PSF | $758 | $602 |
| Lowest PSF | $539 | $479 |
On average, newly MOP-ed 4-room flats are 92 square metres in size. In comparison, the average 50-year-old 4-room flat sold in the past year is about 85 square metres.
This is perhaps the notable difference between 4-room HDB flats built in 1975 – they only started getting bigger in the 1980s before shrinking again in the 2000s to where we are today.
On the surface, it makes sense that even the most expensive 50-year-old 4-room HDB flat is still below the median price of a newly MOP-ed 4-room flat. It may appear illogical to pay more for an older, smaller flat. What is interesting is seeing how the median psf for newly MOP-ed flats is comparable to the highest psf for 50-year-old 4-room HDB flats.
The top 10 most expensive 50-year-old 4-room flats sold over the past year are all found in Marine Parade. This seems to imply that factors such as location will ensure that older flats will still be able to command comparable prices.
5-Room Flats
| Newly MOP-ed Flats | 50-Year-Old Flats | |
| Number of transactions since September 2024 | 320 | 53 |
| Highest Price | $1,146,888 | $1,190,000 |
| Median Price | $860,000 | $850,000 |
| Lowest Price | $685,000 | $638,000 |
| Highest PSF | $1,275 | $813 |
| Median PSF | $707 | $647 |
| Lowest PSF | $563 | $489 |
Newly MOP-ed flat sizes are about 113 square metres on average, smaller than the average 50-year-old 5-room flat sold in the past year, which is about 120 square metres.
Among the 50-year-old 5-room flats, 5 transactions exceeded the million-dollar mark. The top two were adjoined flats above 140 square metres, so their higher value is not surprising. The flats that went above $811 psf were high-floor units in Marine Terrace, where presumably there is a relatively unblocked view of the sea to justify their premium.
One can therefore assume that it is a combination of location and the larger flat size that attracts buyers to older 5-room flats, making them comparable to new 5-room flats.
Why Are People Paying More For A 50-Year-Old Flat – Location, Location, Location
The most expensive 50-year-old flats are in Marine Parade and Queenstown, namely, along Marine Crescent, Marine Terrace, Holland Drive, and Holland Avenue. This should not come as a surprise to anyone.
Despite being 50 years old, their neighbourhoods are even more connected than ever today, with the opening of Marine Terrace MRT station in 2024 and Holland Village MRT in 2011. The Holland Drive flats are directly across One Holland Village, which opened at the end of 2023.
All these factors undoubtedly contributed to the fact that at the higher end, prices of 50-year-old flats are being sold at the median price of newly MOP-ed flats.
Read Also: Why VERS Will Make Speculating On Older HDB Flats In Prime Location Less Enticing
