In the first nine months of 2022, a greater number of HDB resale apartments were sold for at least $1 million than in the year of 2021

Sep 25, 2022

SINGAPORE - As a result of ongoing increases in general property values, a greater number of Housing Board resale apartments have been sold for a price of at least $1 million during the first nine months of 2022 than throughout the entirety of 2021.

According to data provided by HDB, there have been 266 million-dollar transactions involving HDB resale flats as of Sunday. This number exceeds the 259 units that were registered in 2021.

This comes as a result of a healthy HDB resale market, which has seen prices continue to rise for the past 26 months in a row, despite the fact that interest rates have been climbing.

It is not surprising, according to Professor Sing Tien Foo, director of the Institute of Real Estate and Urban Studies at the National University of Singapore, that more HDB resale flats have surpassed the $1 million threshold. This is because of the rising price momentum seen in the HDB resale market.

"If HDB resale prices continue to be robust, it is possible that there will be more sales of a million dollars or more," he added.

The number of non-mature estates registering million-dollar HDB sales will be significantly higher in 2022 than it was in prior years, which will be a significant difference.

12 of the 266 sales took place in non-mature estates, including Woodlands, Yishun, Hougang, Bukit Batok, and Punggol. These non-mature estates all contained executive flats or maisonettes.

In years past, one could only find offers of this nature in established estates like Bishan, Toa Payoh, Queenstown, and the central region, which is where The Pinnacle@Duxton is situated.

The one and only exception to this rule was a 177 square metre maisonette in Hougang's immature estate that sold for $1 million in 2018.

There have been five deals for one million dollars or more in Woodlands in 2022, three such transactions in Yishun, two such transactions in Hougang, and one such transaction in both Bukit Batok and Punggol.

The most costly was a 149 square metre, five-room loft unit in Block 268C Punggol Field that was sold in September for $1.198 million. The unit is located in the Punggol Field development.

In September, a transaction took place involving a 149 square metre, five-room loft apartment located in Block 268C Punggol Field. The unit sold for $1.198 million. PHOTO: NOW HOMES

Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, stated that while prices of million-dollar apartments in mature estates have increased over the course of the previous nine months, more individuals may be looking to non-mature estates for "cheaper alternatives."

She went on to say that this particular set of purchasers could be prepared to pay a premium price for a property that possessed desirable attributes, such as a large floor space with a nice view or close access to MRT stations.

"Those who have flexible work arrangements or who do not need to go to the Central Business District often may not mind living farther away in the suburban areas where units are larger and more affordably priced," she said. "Those who have flexible work arrangements also may not mind living farther away in the suburban areas."

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However, these arrangements aren't simply happening in immature estates; more mature estates are now joining the increasing list of estates that are eligible for them.

In the year 2022, Pasir Ris, Tampines, and Marine Parade all had a total of two agreements of this kind, while Bedok had only submitted its initial proposal.

According to property agents Lee Jun Wei, 26, and Kevin Lim, 41, who jointly closed the deal on a 173 sq m executive apartment at Block 629 Bedok Reservoir Road for $1,048,888, the demand was overwhelming despite the initial listing price of $1.15 million. They said that the deal was closed for $1,048,888.

"More than five different prospective buyer groups would visit the property each and every week to look at it. It was a three-room and a four-room unit combined, which is what people refer to as a jumbo flat. These kind of flats are often located in the northern districts of Singapore, which was one of the reasons why it was such a hot commodity "explained Mr Lee. Both agents work for the independent real estate firm PLB Realty.

The most expensive resale apartment ever purchased was a 122 square metre loft unit with five rooms that was located at Block 92 Dawson Road at SkyTerrace@Dawson. The home was purchased for $1.418 million in July 2022.

According to a survey that was published in August by OrangeTee & Tie, the demand for HDB apartments that cost one million dollars may be being fueled by a growing price disparity as a result of the increasing cost of new condominium units in the suburbs.

For example, during the first eight months of 2022, the typical price of a four-room HDB resale flat that sells for more than $1 million is around $1.13 million, while the median price of a new condo in the area is $1.73 million. Both of these prices are in Singapore dollars.

Despite the fact that 2022 is expected to establish yet another record for the number of million-dollar HDB purchases, the future is not completely certain.

According to Professor Sing of the National University of Singapore (NUS), the most recent rate hike by the United States Federal Reserve on September 21 – the highest in 14 years – could dampen buyers' sentiment. However, it may take some time for the effect to filter down to the property market, he added.

"Home purchasers will feel the consequences, which might in turn have a negative influence on property values," he said. "As more banks are likely to modify their housing mortgage rates upwards with this newest rise in rates," he added. "This most recent hike in rates"