HDB flat in Ang Mo Kio rented out for record-high $6,500

HDB flats rented out for outrageous prices are hardly a surprise these days, especially those located at central areas or near MRT stations. 

But over in Ang Mo Kio? 

Just last month, a five-room unit at Block 549 Ang Mo Kio Avenue 10 was rented out for a record high of $6,500. 

This beats the previous record set by a four-room flat in central Tiong Bahru, which was rented out for $6,200 in January.

At $6,500, the rental for the Ang Mo Kio unit is also significantly higher than other similar-sized units in the same area.  

According to the market rental rates on HDB's website, the rental rates for other five-room flats in Ang Mo Kio Avenue 10 range from $2,000 to $4,000. 

Block 549 was completed in 1980, and currently has 56 years left on its lease.

While the location doesn't seem exceptionally premium – it's not near an MRT station or a well-known primary school – there might just be  reasons why the unit was able to fetch such a high rental price. 

The five-room unit is actually two three-room flats combined into one, reported Shin Min Daily News on Monday (March 21), meaning it has four bedrooms in one unit. 

At 1,463 sq ft, this unit is also larger than a typical five-room unit, which is about 1,184 sq ft. 

Sharing some insights about the unit with Shin Min, Nelson Lim, director of Altitude Real Estate said that although that unit is not located near any MRT station, there are three industrial areas near that block — meaning that there could be a demand for rental properties in the neighbourhood. 

"In addition, we are also seeing more tenants come together to share rental costs. It could be two families or several individuals. Under such circumstances, they would have a higher budget to rent a home." 

$6,500 asking rental for Queenstown flat 

In October last year, an opportunistic homeowner put up a listing for his Queenstown flat at Strathmore Avenue — with an asking rental price of $6,500. 

According to the listing on PropertyGuru, the five-room HDB unit situated on a high floor is described as "simple" and "tastefully renovated", with unblocked views of the area. 

The flat is also a five-minute walk to Queenstown MRT station, with a 24-hour supermarket conveniently located nearby. 

ALSO READ: Want to rent a HDB flat? Here's how much they are going for these days

claudiatan@asiaone.com