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Earlier in April, there was widespread media attention put on a . In contrast to the rising number of million-dollar properties in Singapore, this definitely felt like a curious case. A quick check on the HDB Resale Flat Prices showed that at least 5 other similar 4-room flats nearby had sold for $558,888 to $645,000 in the past 6 months. They also shared a similar size and lease expiry to the 111 sqm (1,195 sqft) 4-room flat with a remaining lease of about 62 years. The price of these flats are also in line with the – which stood at $600,000. Contrary to the low selling price, it’s not hard to explain why this location in Tampines may actually be sought-after. Located opposite Our Tampines Hub, Singapore largest Integrated community and lifestyle hub, the new buyer can enjoy a range of amenities such as sport facilities, a regional library, a hawker centre, retail shops and a community club. Moreover, the flat is also within a 13-minute walk to two MRT stations in Tampines – DT32 and EW2. The new homeowners will also be living in a vibrant shopping and F&B haven with 3 malls – Tampines Mall, Tampines 1 and Century Square – in walking distance. There are several schools in close proximity as well, including Poi Ching School, Tampines Primary School, Junyuan Primary and Secondary School, St Hilda’s Primary School and others. Temasek Polytechnic and United World College are also close by. There’s nothing to stop the homeowner from selling the flat at any price he or she wishes to. Of course, a logical question would be why the person wishes to sell their home for such a low price. One reason might be that is flat falls under a Resale of Part-Share – which means that it is only a part share of the home being sold, and not the whole flat. HDB flats can be held in . If held under a Tenancy-in-Common, the $100,000 value could be representative of a respective owner’s part-share. While the sale could be to a family member, it may not be sold to a direct family member as HDB does have a scheme for a . In such an instance, eligible examples on the HDB website include the removal of a co-owner or replacement of a co-owner. The buyer does not have to pay a Buyer’s Stamp Duty (BSD) in this case. The sale of a part-share cannot be transacted between a married couple. This is likely to stop couples from transferring the ownership of the HDB to one spouse, enabling the other spouse to buy a private property without incurring ABSD. Home buyers have to pay a Buyer’s Stamp Duty (BSD) when they buy or acquire an interest in properties, whether HDB flat or private property, located in Singapore. According to , BSD is calculated to be the higher of the purchase price or market value of the property. This caters to the instance where a property is given away as a gift, and the transferee (i.e. the person that receives the ownership of the property) has to pay the BSD. This should very likely cover the instance of anyone seeking to sell a property for less than its market value just for a lower BSD. If the $100,000 sale price is found to be unreasonably lower than the market value, IRAS will levy a BSD based on the market value of the property and not the sale price. When we sell our property, we must refund the amounts that we used as principal (i.e. the downpayment and monthly home loan repayments), plus accrued interest back to our CPF Ordinary Account. However, the CPF website states that we do not need to top-up any shortfall in cash if our selling price after paying our home loan is not enough to fully cover our CPF refund. As expected, this is not easily circumvented. The CPF website also clearly states that this provision is . Given this, and the fact that the $100,000 4-room flat in Tampines in question is about 37 years old, the seller may have bought it early on and may not need to make a hefty CPF Refund despite selling for a low price. Or, the seller may only be selling a part-share, and may not have a huge CPF Refund to cater for. Regardless of how much the seller of the home is willing to let his property go for, they would still need to pay down their home loan. Again, the same logic as above applies. As the property is 37 years old, the seller may have bought the property a long time ago and may not have a hefty home loan to repay. If there is an outstanding home loan amount, the seller would need to cover this in cash before the transaction goes through. Another reason the buyer and seller, even if they are family members or close relatives, may consider a token transaction is that the buyer may receive CPF Housing Grants to defray the purchase price. Even in a scenario where the seller may want to gift the property to a loved one, they may be within  their rights to financially benefit from the CPF Housing Grants, if eligible. The short answer is most likely not. For a start, we do not know the exact details of the transaction. As discussed, it could be a sale of a part-share or a homeowner selling to a relative for a discounted price. Unless other flats in the area start to experience a drag in selling price, this $100,000 4-room resale HDB flat in Tampines should be viewed as a one-off. In any case, resale HDB flat prices – collated by HDB – is generally on the uptick since 3Q2020 rather than a slowdown. In the 1st Quarter of 2024, the HDB Resale Price Index (RPI) has risen 1.8% – the highest since 2022. Source: