In March, the prices of Housing Board (HDB) resale flats continued their upward trend for the sixth consecutive month. Analysts attribute this increase to the strong demand for larger units and the growing number of million-dollar flat transactions.
Based on flash data from real estate portals Singapore Real Estate Exchange (SRX) and 99. co, prices in March rose by 0.3 percent. Although the pace of increase was slower compared to the 0.5 percent rise in February, prices climbed by 6.2 percent year on year.
Ms. Christine Sun, Chief Researcher and Strategist at OrangeTee Group, noted that despite the reduced price growth, the overall growth rate has accelerated over the past six months. She highlighted that HDB resale prices rose by 3.8 percent between September 2023 and March 2024, surpassing the 2.3 percent increase in the preceding six months from March to September 2023.
The SRX and 99.co data revealed that fewer resale flats were sold in March, with transactions decreasing by 3.3 percent to an estimated 2,063 units. Compared to March 2023, the resale volume was 9.8 percent lower.
According to Ms. Sun, the demand may have shifted to the Housing Development Board’s (HDB) sales exercise held in February, during which more than 4,100 Build-To-Order flats and 1,500 sale-of-balance Flats were available.
There was an increase in the number of million-dollar flat transactions in March, with 61 flats changing hands for at least $1 million, compared to 50 in February. These transactions included 19 four-room units, 24 five-room flats, 16 executive apartments, and two multi-generation flats. Most of these million-dollar transactions were concentrated in mature estates such as Toa Payoh, Kallang/Whampoa, Bukit Merah, and Clementi. However, nine transactions occurred in non-mature towns, including Bukit Panjang, Yishun, Jurong East, and Hougang. In March, these transactions accounted for about 3 percent of the total, higher than the 2.3 percent recorded in February.
The highest-priced resale flat in March was a 1,202 sq ft five-room unit located between the 19th and 21st floor at Block 9A Boon Tiong Road in Tiong Bahru, which sold for $1.45 million. In a non-mature estate, a multi-generation flat on Yishun Avenue 4, with a size of 1,765 sq ft, fetched $1.2 million, which was the top transaction.
Ms. Wong Siew Ying, Head of Research and Content at PropNex Realty, noted that in Hougang, six executive flats were sold for at least $1 million each, making it the non-mature town with the most million-dollar transactions in a month.
Mr. Mark Yip, Chief Executive of Huttons Asia, highlighted an increased demand for five-room and larger flats. He attributed this to private homeowners who completed their 15-month wait-out period after selling their homes and entering the HDB resale market. The wait-out period was introduced as a temporary measure in September 2022 to cool the resale market. In February, five-room flats recorded the highest price increase of 1 percent, while three-room flats saw a slight decrease of 0.1 percent, and executive units were down by 0.5 percent.
Mr. Yip also mentioned that seven of the nine million-dollar flat transactions in Toa Payoh were from the Toa Payoh Crest project, which recently reached its five-year minimum occupation period. He anticipates the possibility of more transactions in the coming months, stating that Toa Payoh Crest’s excellent location near MRT stations, schools, and amenities contributes to its desirability.
Flats with a remaining lease of 90 years and above accounted for a higher proportion of overall transactions in March, at 26.8 percent, slightly higher than the 26.4 percent reported in February. Ms. Wong further suggested that newer flats, which generally command higher prices, have likely contributed to supporting overall resale prices.
According to Ms. Wong, she expects the number of million-dollar flat transactions to remain high in April. As of April 8, 16 resale flats have already been exchanged for at least $1 million each this month.
