3-Room HDB for Room Rent: 813 Tampines Street 81

In the competitive landscape of Singapore's HDB market, the valuation of this 3-room unit in Tampines, with a remaining lease of 56 years, presents a notable case study. The estimated value stands at $153,938, translating to $513 per square foot (PSF). This valuation reflects a market price that shows no deviation from the baseline, indicating a stable demand in the vicinity. The absence of a price differential suggests that the property is accurately priced according to current market conditions, yet it may also imply a lack of upward momentum in the local real estate market.

However, it is crucial to consider the model confidence level, which is rated as low. This is primarily due to the reliance on a singular recent HDB resale transaction in the area, limiting the robustness of the analytical framework. The 56-year lease remaining on the property plays a significant role in its valuation, as properties with shorter leases often encounter diminished buyer interest and can be perceived as less appealing in terms of long-term investment. Thus, while the current valuation may seem attractive in the short term, potential buyers should remain cognizant of the lease duration and the associated implications for future resale opportunities.