reporter2
04-04-22, 10:34
HDB resale prices climb at a slower pace of 2.3% in Q1: HDB flash estimates
Despite the moderated growth, 82 flats were sold for at least S$1 million
Apr 02, 2022
HOUSING Board (HDB) resale prices climbed 2.3 per cent in Q1 2022, marking the 8th consecutive quarterly growth, according to HDB's flash estimates released on Friday (Apr 1). However, the rise was not as steep as that of Q4 2021 which saw a record growth of 3.4 per cent.
The growth in resale prices last quarter was slowed by the seasonal lull leading up to the Lunar New Year, according to analysts. This is the lowest price growth since Q3 2020, when prices rose 1.5 per cent. On a year-on-year basis, prices rose by 12 per cent.
Despite the moderated growth, OrangeTee & Tie senior vice-president of research and analytics Christine Sun noted that 82 flats were sold for at least S$1 million last quarter, which was almost on par with the 85 transactions inked in Q4 2021.
Of the million-dollar transactions, 4 units sold last quarter breached the S$1.3 million mark, compared with the 2 units transacted in Q4 2021. Sun said that this "could soon be breaking the S$1.4 million level".
A 5-room HDB resale flat in Pinnacle@Duxton was sold for a record price of S$1,388,889 in March this year, beating the previous record for a 5-room Design, Build and Sell Scheme (DBSS) unit in Bishan transacted at S$1.36 million in December last year, Sun added.
Analysts also predict that the market will remain buoyant this year as over 31,000 flats are estimated to reach their minimum occupation period.
"As the construction sector manpower situation improves, we could see more HDB flat owners getting keys to their new home and subsequently putting their flat on the resale market," said Wong Siew Ying, head of research and content at PropNex Realty.
Lee Sze Teck, senior research director at Huttons Asia, added: "The upgrading demand from the HDB resale market will contribute to higher transaction volume in the private home market."
Wong expects HDB resale prices to rise by 6 to 8 per cent for the whole year 2022, while Sun estimates a 5 to 8 per cent rise.
Sun said: "Middle and lower-income Singaporeans, who form the bulk of HDB flat purchasers, may be more affected by the higher cost of living. Should inflation worsen, more people may opt for smaller flats or flats in non-mature estates, which tend to be lower priced."
HDB will release full figures for the quarter on Apr 22.
HDB will also offer about 5,300 Build-To-Order (BTO) flats spread across Bukit Merah, Jurong West, Queenstown, Toa Payoh and Yishun in May. Meanwhile in August, HDB will offer about 6,300 to 6,800 BTO flats in Ang Mo Kio, Bukit Merah, Choa Chu Kang, Jurong East, Queenstown and Woodlands.
Despite the moderated growth, 82 flats were sold for at least S$1 million
Apr 02, 2022
HOUSING Board (HDB) resale prices climbed 2.3 per cent in Q1 2022, marking the 8th consecutive quarterly growth, according to HDB's flash estimates released on Friday (Apr 1). However, the rise was not as steep as that of Q4 2021 which saw a record growth of 3.4 per cent.
The growth in resale prices last quarter was slowed by the seasonal lull leading up to the Lunar New Year, according to analysts. This is the lowest price growth since Q3 2020, when prices rose 1.5 per cent. On a year-on-year basis, prices rose by 12 per cent.
Despite the moderated growth, OrangeTee & Tie senior vice-president of research and analytics Christine Sun noted that 82 flats were sold for at least S$1 million last quarter, which was almost on par with the 85 transactions inked in Q4 2021.
Of the million-dollar transactions, 4 units sold last quarter breached the S$1.3 million mark, compared with the 2 units transacted in Q4 2021. Sun said that this "could soon be breaking the S$1.4 million level".
A 5-room HDB resale flat in Pinnacle@Duxton was sold for a record price of S$1,388,889 in March this year, beating the previous record for a 5-room Design, Build and Sell Scheme (DBSS) unit in Bishan transacted at S$1.36 million in December last year, Sun added.
Analysts also predict that the market will remain buoyant this year as over 31,000 flats are estimated to reach their minimum occupation period.
"As the construction sector manpower situation improves, we could see more HDB flat owners getting keys to their new home and subsequently putting their flat on the resale market," said Wong Siew Ying, head of research and content at PropNex Realty.
Lee Sze Teck, senior research director at Huttons Asia, added: "The upgrading demand from the HDB resale market will contribute to higher transaction volume in the private home market."
Wong expects HDB resale prices to rise by 6 to 8 per cent for the whole year 2022, while Sun estimates a 5 to 8 per cent rise.
Sun said: "Middle and lower-income Singaporeans, who form the bulk of HDB flat purchasers, may be more affected by the higher cost of living. Should inflation worsen, more people may opt for smaller flats or flats in non-mature estates, which tend to be lower priced."
HDB will release full figures for the quarter on Apr 22.
HDB will also offer about 5,300 Build-To-Order (BTO) flats spread across Bukit Merah, Jurong West, Queenstown, Toa Payoh and Yishun in May. Meanwhile in August, HDB will offer about 6,300 to 6,800 BTO flats in Ang Mo Kio, Bukit Merah, Choa Chu Kang, Jurong East, Queenstown and Woodlands.