3-Room HDB for Room Rent: 28 Kelantan Road

The valuation of the HDB 3-room unit located in the Central Area, with a remaining lease of 50 years, stands at an estimated value of $15,164, translating to a price per square foot (PSF) of $505. This valuation reflects a market price that shows no deviation from the baseline, indicating a stable yet cautious sentiment among potential buyers and investors. Such stability can be attributed to the property’s prime location, offering access to a plethora of amenities and transportation links that are characteristic of the Central Area.

However, it is essential to note the model confidence associated with this valuation is categorized as low. This suggests that the current market conditions are influenced by various external factors, including economic uncertainties and shifts in buyer preferences, which may impact future resale values. The analysis is based on five recent HDB resale transactions in the vicinity, highlighting the need for potential buyers to approach this investment with a discerning eye. As the lease term diminishes, the leasehold nature of the property should also be a critical consideration for investors, as it may influence long-term holding strategies and exit opportunities.