[Photo: Mr Adrian Wee (28, left) of OrangeTee was the agent who handled the transaction for the former home owner, Mr Tan (43, right).]

A two-room flat in Chinatown was sold for $245,000 recently, creating a new record for the re-sale price of HDB two-room flats.

Located at Jalan Kukoh, the flat is on a higher floor of block 10, and is about 40 years old.

Photo: Courtesy of Mr Adrian Wee

Home owner Mr Tan, a 43-year-old advertising executive, bought the unit with his wife two years ago at about $145,000. They decided to sell as they want to move to a larger flat.

"We bought this unit because we wanted to live in Tiong Bahru, but could not afford a four-room flat in this area. Now, we want to upgrade to a larger flat. We also find it too noisy as it is near the highway," he told Shin Min Daily.

According to OrangeTee property agent Mr Adrian Wee, 28, the new flat owners are a young couple with one child. Besides the central location, the flat is also near to where their parents stay. As they also like the simple, open layout of the flat, they did not object to the noise from nearby traffic.

The flat's floor area of 53 square metres includes a living room and one bedroom; an additional storeroom was added by the former home owners. The price of $245,000 is about $45,000 above valuation.

Mr Tan says that although he made a tidy profit from the sale, the price over valuation of his new four-room flat is also quite substantial, so it is just enough to cover his costs of buying a new home.

According to HDB figures, the average price of a two-room flat in Tiong Bahru was about $190,000 to $220,000.

ECG Property CEO Mr Eric Cheng says that the price is high, but still reasonable for the prime location.

"Some couples prefer flats in mature estates as they are near the city and they can save time and transport costs," he told Shin Min.

PropNex CEO Mr Mohd Ismail said that many of the home owners are elderly, and most of them have no intention of selling their flats, so it can be hard to find one on the market.

"For this price, a young couple can get a new four-room flat in Punggol," he said.