HDB resale price growth slows, fewer flats sold

In February 2024, the prices of Housing Board resale apartments grew slower as fewer flats sold.

According to the flash data released on March 4 by 99.co and SRX, resale prices increased by 0.5 percent, compared to the growth of 1.5 percent in January.

Prices of three-room apartments increased by 0.9% compared to January. This was followed by executive flats at 0.7% and four-room apartments at 0.69%. Prices of five-room apartment fell by 0.4%.

Comparing the price of resale apartments with those from the previous year, the five-room flats saw the largest increase (7%), followed by the four-room units (6%) and the executive units (6.2%). The three-room apartment prices also increased by 5.4 percent.

Analysts predict that resale price will continue to increase and that demand will pick up over the next few months.

They said that the demand is likely to be driven in part by private home owners who have completed the 15-month waiting period for buying a flat.

Starting Sept 30, 2022 private home owners will have to wait 15 months following the sale of their house before they can purchase an HDB resale apartment. This rule does not affect those 55 years and older who are moving to a four room or smaller HDB resale apartment from their private home.

In February, the resale price rose for the fifth month in a row. However, it was at a slower rate than in January.

We expect more first-time buyers, particularly those who need immediate housing, will turn to the resale marketplace as the BTO (Build to Order) sales launch is four months after the current three-month period.

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In February, 2134 flats were sold, a drop of 18.8 percent from the previous month. The number of resale flats transacted in February is 15.4 percent higher than the same month last year.

Analysts attribute the lower volume of sales to the Chinese New Year celebrations and BTO launch in that month.

Punggol West, Woodlands and Jurong West were the top three selling estates in the month.

She pointed out that HDB had launched 4,126 new apartments in seven BTO project for sale in the month of February. Over 80 per cent of these BTO flats were available with a wait time of under 3 1/2 years, compared to a previous waiting period of 4 or 5 years.

These shorter wait times may have made BTO apartments more appealing to buyers who are looking for a new flat, but don’t want to wait long to receive the keys.

In February, 50 flats, or 2.3 percent, sold for more than $1 million. This is compared to a record-breaking number of 74 units that were sold in January.

Ms Wong said that half of the flats sold for more than $1 million in February were 1,292 square feet or larger. In addition, 44 percent of these 50 flats were located on floors 19 or higher.

A Bishan executive flat that sold for $1.48m was the most expensive resale apartment.

In February, Queenstown sold nine million-dollar flats, while Toa Payoh sold six.

The remaining million-dollar apartments were located in Kallang/Whampoa and Ang Mo Kio. They also came from Bukit Merah/Bukit Timah/Clementi, Clementi/Bishan, Central Area (Serangoon), Woodlands (Geylang), Hougang, Bedok, Woodlands (Central Area) and Serangoon.

In Hougang Central, the executive flat that sold for $1 million was the most expensive in non-mature estates.

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