5 Room (5I) HDB for Sale in 642 Ang Mo Kio Avenue 5

The valuation of the HDB 5-room unit located in Ang Mo Kio, with a remaining lease of 53 years, stands at an estimated value of $531,622, translating to a price per square foot (PSF) of $408. This figure is indicative of a property that is currently priced above the market average, reflecting a significant 50.5% premium over the baseline value derived from recent transactions in the area. Such a notable deviation raises essential considerations for potential buyers and investors regarding the sustainability of this valuation in the context of broader market trends.

Despite the apparent attractiveness of this valuation, it is crucial to note the model confidence level categorized as low. This uncertainty stems from the limited dataset of only four recent HDB resale transactions in the vicinity, which may not fully capture the market dynamics. As leasehold properties inherently depreciate over time, the 53-year remaining lease could pose risks to future appreciation potential, especially in a market that is sensitive to shifts in buyer sentiment and economic conditions. Therefore, while the current valuation signifies a robust interest in the Ang Mo Kio area, stakeholders should proceed with a discerning approach, weighing both the benefits and the potential pitfalls of investing in a property with a finite lease term.