Where to find the cheapest 5-room resale HDB flats in 2022

It’s been more than a year since we last looked for the cheapest 5-room flats; and given that 2021 to 2022 has seen significant changes, it’s high time for an update. While the most affordable HDB towns haven’t changed much (save for one), you may want to take note of the price differences to date:

The resale flat market in Q2 2022

It’s tough news for home buyers: resale flat prices have continued to climb, and were up 11.4 per cent from last year in June 2022.

So far, we’ve had nine consecutive quarters of price increases, but there is a glimmer of hope: prices rose a little slower in Q2 (2.6 per cent as opposed to 2.4 per cent in Q1), and price increases have stayed at around 2.5 per cent this year. This is about half a percentage point lower than in 2021.

In short, the momentum does seem to be slowing, although prices are still rising. Realtors mentioned two factors that could put downward pressure on resale prices this year:

First, buyers who cannot take HDB loans will face higher interest rates

Home loan rates are rising across the board, and many bank fixed rates have since climbed above 2.6 per cent. This is significant, because the HDB loan rate is 2.6 per cent, and HDB loans had been more expensive than bank loans for almost a decade. 

The US government is embarking on aggressive rate hikes to curb record-high inflation, so there’s a possibility that rates may be even higher by the end of the year. 

For resale flat prices who cannot use HDB loans, concerns over rising monthly repayments could prompt them to be more cautious. 

Second, a record number of HDB flats will reach their Minimum Occupancy Period (MOP) this year

This is the highest number of flats reaching MOP in a single year, since around 2007. The average number of flats that reached MOP each year, from 2013 to 2021, was just around 16,667. This could create a greater surplus of resale flats in the market, helping to cool prices. 

That said, realtors disagreed on how immediate the effect would be, or the exact impact on pricing. Some realtors also noted that five-year old flats tend to fetch higher prices, on account of their negligible lease decay – this could even push up the average price in recorded transactions. 

Before proceeding to highlight the cheapest estates, here’s a look at prices between the first half of 2021 and 2022, as well as their respective changes.

The cheapest places to find 5-room resale flats this year 

Note: You can find last year’s list in this article. 

1. Woodlands

Average price: $543,694 ($424 psf)

Change since 2021: Average price up from $482,009 (+11.3 per cent)

Woodlands	3 Room	4 Room	5 Room	Executive
Five – 10 Years Old	$403,340	$510,373	$637,954	No Data
11 – 20 Years Old	No Data	$448,462	$515,122	No Data
21 – 30 Years Old	$345,250	$447,096	$543,297	$770,202
31 – 40 Years Old	$322,425	$422,135	$505,185	$686,667
> 40 Years Old	$303,456	$353,111	$464,923	No Data
Average	$342,016	$451,184	$541,869	$765,881

Realtors told us Woodlands has seen an uptick in not just price, but rental rates. This is due to the return of Malaysian workers, as the pandemic seems to be winding down. Some agents have told us rental rates for 5-room flats in Woodlands have risen to between $2,100 and $2,400, as opposed to a range of $1,900 to $2,200 the year before. 

Owners who are considering rental income may think twice about selling, now that Woodlands is seeing improved prospects. 

A recent point of interest is the expansion of the Marsiling checkpoint, which promoted nine blocks to undergo SERS. The affected blocks were 210 to 218 (Marsiling Crescent). Unfortunate news for buyers eyeing the area, as these older and larger flats also had one of the best waterfront views in Woodlands. 

Other than this, the main draw of Woodlands is still the upcoming Woodlands North Corridor, which will complete its transformation into a regional centre. This is still, for now, one of the cheapest places to buy a 5-room flat in Singapore; but it might not stay that way for long. 

Top 5 Cheapest Transactions (2022):

Month	Flat Type	Address	Storey Range	Size (SQM)	Lease Started	Age	Price	$PSF
2022-03	5 Room	685B Choa Chu Kang Cres	01 TO 03	111	2002	20	$420,000	$352
2022-04	5 Room	684B Choa Chu Kang Cres	01 TO 03	110	2002	20	$428,000	$361
2022-01	5 Room	12 Teck Whye Lane	16 TO 18	119	1979	43	$450,000	$351
2022-02	5 Room	13 Teck Whye Lane	10 TO 12	119	1979	43	$452,000	$353
2022-01	5 Room	690D Choa Chu Kang Cres	07 TO 09	110	2003	19	$455,000	$384

2. Jurong West

Average price: $551,967 ($442 psf)

Change since 2021: Average price up from $494,684 (+10.4 per cent)

Jurong West	3 Room	4 Room	5 Room	Executive
5 – 10 Years Old	$422,579	$569,899	$692,222	No Data
11 – 20 Years Old	$368,000	$459,460	$529,204	$614,317
21 – 30 Years Old	No Data	$465,425	$551,931	$655,883
31 – 40 Years Old	$352,072	$427,827	$519,126	$663,050
> 40 Years Old	$282,411	No Data	$413,770	No Data
Average	$329,590	$466,280	$547,083	$653,326

Jurong West has moved up our list from last year, when it placed third for the cheapest 5-room flats. Like Woodlands, rental prospects are looking up for this area – Jurong West is home to several industrial parks. Realtors we spoke to said that rentability has improved, but nothing has yet moved the needle on rental rates; this is expected to change as more workers return. 

As resale flat prices climb – especially in the highly desirable Jurong East – we expect more buyers to consider this town as an alternative.

It is, after all, just four stops from Boon Lay to Jurong East. As Boon Lay MRT is only three stops from Jurong East, it’s where you’d see a spillover as buyers and tenants who want to avoid the prices in Jurong East are increasingly considering Jurong West.

Top 5 Cheapest Transactions (2022):

Month	Flat Type	Address	Storey Range	Size (SQM)	Lease Started	Age	Price	$PSF
2022-01	5 Room	204 Boon Lay Dr	04 TO 06	111	1976	46	$373,888	$313
2022-01	5 Room	199 Boon Lay Dr	01 TO 03	112	1976	46	$375,000	$311
2022-04	5 Room	200 Boon Lay Dr	04 TO 06	121	1976	46	$405,000	$311
2022-06	5 Room	199 Boon Lay Dr	01 TO 03	112	1976	46	$415,000	$344
2022-03	5 Room	198 Boon Lay Dr	01 TO 03	112	1976	46	$430,000	$357

3. Sembawang

Average price: $570,053 ($451 psf)

Change since 2021: Average price up from $464,073 (+18.6 per cent)

Sembawang	3 Room	4 Room	5 Room	Executive
Five – 10 Years Old	$380,000	$505,024	No Data	No Data
11 – 20 Years Old	No Data	$457,351	$511,376	$608,888
21 – 30 Years Old	No Data	$446,157	$517,733	$611,164
Average	$380,000	$459,838	$516,384	$611,107

Sembawang moves into Jurong West’s former spot, as prices continue to climb. As we mentioned last year, the ongoing development of Bukit Canberra will help to drive demand. In Q3 this year, Bukit Canberra will open its massive 800-seater hawker centre (there are 44 stalls), an indoor sports hall (12 badminton courts), polyclinic, 5 swimming pools, and the biggest ActiveSG gym in Singapore.

These ongoing changes, as well as private launches like The Commodore and The Watergardens at Canberra, have raised prestige and attention in the area. Realtors also suggest that buyers who were unable to secure an EC in this area (referring to Parc Canberra) may now have turned their attention to resale flat options. As such, prices here have had quite a significant increase, with an 18.5 per cent increase since 2021.

Prices here are likely to maintain their momentum, as Canberra sees further improvement. 

Top 5 Cheapest Transactions (2022):

Month	Flat Type	Address	Storey Range	Size (SQM)	Lease Started	Age	Price	$PSF
2022-01	5 Room	476 Sembawang Dr	04 TO 06	110	2000	22	$425,000	$359
2022-03	5 Room	338 Sembawang Cres	01 TO 03	115	1999	23	$445,000	$359
2022-01	5 Room	491 Admiralty Link	04 TO 06	112	2004	18	$465,000	$386
2022-01	5 Room	481 Sembawang Dr	07 TO 09	110	2000	22	$468,000	$395
2022-01	5 Room	469B Admiralty Dr	04 TO 06	118	2001	21	$470,000	$370

4. Choa Chu Kang

Average price: $571,125 ($455 psf)

Change since 2021: 

Average price up from $508,409 (+11per cent)

Choa Chu Kang	3 Room	4 Room	5 Room	Executive
Five – 10 Years Old	$408,319	$511,287	$612,254	No Data
11 – 20 Years Old	No Data	$427,844	$491,318	No Data
21 – 30 Years Old	No Data	$458,597	$566,325	$695,327
31 – 40 Years Old	$344,846	$456,392	$536,914	$704,883
> 40 Years Old	$328,600	$386,000	$472,800	No Data
Average	$378,276	$476,804	$569,855	$697,820

Choa Chu Kang maintains its same place as last year. Realtors said that transactions are slowing down though – there were 150 transactions and 170 transactions in July and August respectively, in 2021. As of February this year, however, there hasn’t been a single month that has reached 150 sales. 

Nonetheless, Choa Chu Kang is home to many older flats, that are more sizeable than their newer counterparts. Realtors expect that this will be a key selling point for the neighbourhood; especially for right-sizers who don’t want to compromise on living space. 

And like what we’ve explored in our tour of uniquely designed HDB’s with unusual layouts, many of such are located in Choa Chua Kang.

Top 5 Cheapest Transactions (2022):

Month	Flat Type	Address	Storey Range	Size (SQM)	Lease Started	Age	Price	$PSF
2022-01	5 Room	312B Anchorvale Lane	01 TO 03	111	2002	20	$450,000	$377
2022-03	5 Room	122A Sengkang East Way	01 TO 03	108	2000	22	$455,000	$391
2022-06	5 Room	122E Rivervale Dr	01 TO 03	108	2000	22	$459,000	$395
2022-03	5 Room	183C Rivervale Cres	04 TO 06	110	2003	19	$465,000	$393
2022-03	5 Room	311A Anchorvale Lane	01 TO 03	111	2002	20	$466,000	$390

5. Sengkang

Average price: $597,828 ($458 psf)

Change since 2021: 

Average price up from $526,950 (+11.9per cent)

Sengkang	3 Room	4 Room	5 Room	Executive
Five – 10 Years Old	$416,341	$535,196	$677,973	No Data
11 – 20 Years Old	$423,818	$506,452	$535,573	$668,157
21 – 30 Years Old	No Data	$456,969	$540,835	$680,743
Average	$417,155	$515,809	$594,840	$678,756

Sengkang is the newcomer to our list, replacing Bukit Batok from last year. In terms of age demographics, Sengkang is the town with the youngest Singaporeans; a fact that was even cited as the reason for the political opposition’s win here. 

Part of the reason is the lower home prices here: for first-time buyers, who don’t have sale proceeds from a previous flat or condo, Sengkang is one of the few reasonable options right now. 

The other key attraction in Sengkang is that many of the flats are new (10 years old or younger). As we mentioned above, a large number of flats are going to reach MOP this year – and many of these will likely be in the Sengkang area (with Yishun and Punggol close behind). 

Realtors disagreed on whether this new supply will lower prices, or will cause a price increase due to the demand for young flats. 

Top 5 Cheapest Transactions (2022):

Month	Flat Type	Address	Storey Range	Size (SQM)	Lease Started	Age	Price	$PSF
2022-03	5 Room	9 Marsiling Dr	07 TO 09	117	1976	46	$400,000	$318
2022-07	5 Room	720 Woodlands Ave 6	07 TO 09	120	1997	25	$400,000	$310
2022-01	5 Room	11 Marsiling Dr	16 TO 18	126	1976	46	$420,000	$310
2022-02	5 Room	10 Marsiling Dr	07 TO 09	123	1976	46	$425,000	$321
2022-06	5 Room	36 Marsiling Dr	01 TO 03	124	1978	44	$425,000	$318

Overall, we can see that average (resale) 5-room flat prices below $500,000 are, for now, a thing of the past. It’s quite likely that many new home buyers will have to opt for smaller units, if they absolutely must buy a resale flat. 5-room flats below $500,000 is still a possibility as shown from the cheapest transactions – but they are among the oldest or least convenient of places.

For those who can wait, we hope the increased number of BTO launches provides a way out.

This article was first published in Stackedhomes.