HDB resale prices slowing, Fewer flats being sold

The prices of Housing Board flats for resale grew at a slower rate in February 2024 due to fewer flats being sold.

The resale price rose by a marginal 0.5 percent, compared to 1.5 growth in January. This is according to data flashed out by 99.co on March 4, and SRX.

The price of a three-room apartment increased the most by 0.9% in comparison to January. Executive flats followed with 0.7.%, and then four-rooms flats by 0.6.%. Five-rooms flats saw a 0.4.0% decrease.

Compare the prices of five-room resale units with those of the previous year. Four-room apartments saw a price increase at 6.3%, followed by executive units at 6.2% and three-room apartments at 5.4%.

Analysts anticipate that the resale market will continue to grow and that the demand for used cars will increase in coming months.

The demand for flats is expected to increase partly because more home owners have fulfilled the waiting period of 15 months to purchase a property, said they.

From Sept 30, 2020, private homeowners must wait for 15 months to buy a HDB resale unit after selling their homes. The rule does apply to people aged 55 or above who move from a private property into a resale four-room flat or smaller.

The resale prices increased for the fifth straight month in February.

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The upcoming BTO sales launch, which will be four months instead of three, is expected to attract more first time buyers, especially those who are in urgent need of housing.

In February, 2134 flats were traded, which is a 18.8 % drop from January. Although the number of resale apartments transacted is higher by 15.4 per cent than the same period last year, it still represents a drop in sales from January.

Analysts attributed this lower volume to Chinese New Year celebrations, and the BTO launch during that month.

Punggol West and Woodlands were the most popular sales areas.

She also noted that HDB released 4,126 new flats for sale across seven BTO Projects in February. More than 80 percent of the BTO Flats available had a shorter wait time, less than three and a half years as compared to four or five years before.

These shorter waiting time might have made BTOs more appealing to some buyers. They want a brand new flat but don’t wish to wait for too long before getting the keys to their home.

On the total number resold flats in February, 2.3%, or 50 units were transacted at a minimum of $1 million. That compares to 74 units which set a new record in January.

Ms Wong stated that 44 percent of the 50 apartments resold last month were on the 19th floor or higher.

One of the most expensive resale apartments sold was a Bishan executive apartment, which brought in $1.48million.

Toa Payoh followed Queenstown with six units.

The rest of these million-dollar flats are located in Kallang/Whampoa.

The highest price for a non-matured estate was $1,000,000 for a Hougang central executive flat.

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