HDB resale price growth slows; fewer flats sold

The price of Housing Board’s resale properties grew slowly in February 2024 because fewer flats had been sold.

According to flash statistics released by 99.co SRX on the 4th of March, resale rates rose a mere 0.5 percent, compared against the 1.5 per cent increase seen in January.

Three-room flats were the most expensive in January. They increased by 9.1%, followed closely by executive flats (0.7%) and four-rooms (0.6%). Prices for five-rooms fell by only 0.4%.

Five-room resale properties saw the greatest price increases of 7 percent, followed by flats with four rooms at 6.3 percent, executive units on 6.2 percent, and flats with three rooms at 5.4 cents.

Analysts expect that resale rates will continue to rise, and the demand in the coming month.

It is anticipated that demand will partly be driven by the fact that more home-owners have now completed the 15 month wait period to purchase an apartment.

Private home owners have until Sept 30, 2022 to wait 15 from the date of sale before they are able to purchase a HDB Resale Flat. The rule is not applicable to those who are 55 years old and above, who are moving into a four-room HDB flat.

Resale Prices rose for the 5th consecutive month in Febraury, although at a slightly slower pace than January.

We expect that as BTO (Build To Order) launches four months rather than three months from now, more first-timers will seek out resale homes, especially for those in immediate need of housing.

In February there were 2,134 flats sold. That’s an 18.8% drop from the January sales. However, resale transactions are still 15.4% higher than a year earlier.

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Analysts blamed the lower volume on the Chinese New Year and BTO launches that month.

Punggol West Jurong and Woodlands led the sales of non-mature estates.

She also highlighted that HDB offered 4,126 brand new flats under seven BTO developments for sale in Feburary, with more than 80 per cent having a lessened waiting time.

These smaller waiting times have probably made BTO flats more appealing for some buyers. They are interested in a brand new apartment, but they do not want to be forced to wait a long time to get the keys.

A total of 50 units or 2.3% of the flats that were resold last month sold for at least $1,000,000, which is down from a record breaking 74 apartments in January.

Ms Wong says that the majority of the 50 million-dollar apartments sold in the month of February have a floor area of 1,292 sq.ft.

The most expensive flat sold in Bishan was an executive flat, which fetched a staggering $1.48m.

Toa Payoh and Queenstown both sold six million dollar flats in February.

The rest were from Kallang/Whampoa. Ang Mo Kio. Bukit Tiah. Clementi. Bishan. Central Area. Serangoon. Woodlands. Geylang. Hougang.

Hougang’s central estate, which is not matured, had the highest price at $1 million.

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