HDB Price of resales up 0.9%, volume increases 15.7 percent in April
SINGAPORE: Prices for Housing Board flats for resale were up 0.9 percent in April. There were more units sold as the market recovered after ‘s plunge in the month before.
HDB resale flat prices grew at a quicker pace during April compared to the 0.3 per cent rise in March, the flash data from real estate websites Singapore Real Estate Exchange (SRX) and 99.co reported on May 6.
Year after year, prices climbed by 9 per cent.
In April, the number of resale apartments sold increased by 15.7 percent to 2,387 units. This is compared with a decline of 3.3% the previous month.
Comparing April 2023 to April 2019, the resale volumes were up 6 percent.
Property analysts said the rebound in resales flats’ demand that helped prop up prices can be explained by the less frequent Build-To-Order (BTO) and Sale of Balance Flats exercises.
BTO flats will be sold in three phases from 2024, namely the months of February, June, and then October. This is a decrease from four launches per year.
Mark Yip is the chief executive of Huttons Asia and said that home buyers who failed to find a home in the first Sale of Balance Flats in 2024, which was held in February, could have opted to take a chance on the resales market instead of staying until 2025.
These sales, during which applicants could apply for any flats left from the previous BTO sales, were formerly scheduled twice per year.
On the supply end, the healthy resale market could have resulted in more home owners putting up their flats for sale, according to Christine Sun, chief researcher and strategist of property firm OrangeTee Group.
She said “some sellers might be enticed to sell their homes because of the prospect of making a significant profits, while others may wish to upgrade to a larger house.”
In April, 68 flats were sold for more than $1 million. This is more than the 61 transactions that took place in March.
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Of the million-dollar HDB flats for resales sold in April 24 units are four-room ones, 22 five-room flats as well as 22 executive apartment.
Most of them are located in established estates like Toa Payoh, Bukit Merah and Kallang/Whampoa. Seven are located in towns that aren’t as mature, such as Jurong East and Sengkang.
In April this month, these transactions accounted for about 2.8 percent of the total transactions.
The most expensive resale unit was a five-room, 1,259 sqft apartment that was located between the 22nd and 24th floors of The Peak@ToaPayoh. It was sold at $1.438m.
The top deal in April was a 1,393 sq ft Executive flat on Toh Guan Road, Jurong East. It sold for $1.088m.
The non-mature town of Sengkang has recorded its first million-dollar flat deal in April, according to Mr. Mohan Sandrasegeran, head of data and research at Singapore Realtors.
Compassvale Lane, a 1,539 sq ft executive maisonette, traded hands for $1 million.
Sandrasegeran, however is not expecting any major changes in the resale price in the Sengkang region.
“Million-dollar resale transactions are generally exceptional and not indicative of broader market trends,” he said.
Analysts also reported that Kallang/Whampoa had 15 million dollars of transaction during April. This was a record for an entire city.
Mr Yip stated that 11 of the transactions occurred located at the St George’s Towers project, which recently reached its five-year minimum occupation period.
Eight of the 11 transactions that took place at St George’s Towers were located in the 19th and upper storeys. “They will therefore have unobstructed views,” said he.
The project that is at 34 stories is situated next to the Whampoa River. It is also about five minutes walk away from the Boon Keng MRT Station.
Ms Wong Siew Ying, head of content and research at real estate firm PropNex Realty, said there were a total of 253 million-dollar flat transactions in the initial four months of 2024.
“(Such transactions are) likely to surpass the record of 469 units sold in the entire year 2023,” she added.
Ms. Sun stated: “It appears that the global economic outlook has improved, which gives prospective buyers the confidence to get into the market for real estate.”
