3-Room HDB for Room Rent: 123 Hougang Avenue 1

The valuation of the HDB 3 Room unit located in Hougang, with a remaining lease of 54 years, stands at an estimated value of $42,870, translating to a price per square foot (PSF) of $429. This valuation reflects a market price that shows no significant deviation from the baseline, indicating a stable pricing environment for similar properties in the area. Despite the absence of price fluctuations, the confidence in this model is classified as low, primarily due to the limited dataset upon which it is based, with only one recent HDB resale transaction available in the vicinity.

The remaining lease period of 54 years is a critical factor in assessing the property's long-term value and marketability. As HDB properties approach the tail end of their lease terms, potential buyers often exhibit caution due to the uncertainties associated with leasehold extensions and the eventuality of lease expiry. This perception may inherently influence demand and pricing dynamics in the market. Given the current market signals and the low confidence in the model, prospective buyers and investors should proceed with due diligence, considering both the implications of the lease term and the surrounding market conditions.