In July, million-dollar sales and robust volumes boost HDB resale prices

Monthly resale volumes rise 39.6% to 3,049 apartments.

Aug 28, 2024

In July, 120 HDB apartments were resold for more than S$1 million, setting a new record. Market volumes also drove up resale prices.

Tuesday (Aug 6) flash estimates from SRX and 99.co revealed HDB resale prices rose 0.6% month over month.

In July, 120 HDB apartments sold for at least S$1 million, up 25% from 96 in June. Million-dollar purchases comprised 3.9% of resale volumes last month.

High-value transactions in July increased million-dollar flat sales to 543, up from 470 in 2023.

47 of the million-dollar sales were apartments in new complexes that were resold after five years. They featured Ghim Moh Edge, St George's Tower, and McNair Towers apartments.

The four-room apartments in these Build-To-Order buildings cost between S$450,000 and S$595,000, according to Nicholas Mak, chief research officer of Mogul.sg.

In Kallang/Whampoa, 23 million-dollar flats traded, followed by Bukit Merah with 21 and Queenstown with 18.

Resale prices climbed 0.5% in mature estates and 0.6% in non-mature estates last month.

On the month, three-bedroom apartments climbed 0.3%, four-bedroom flats and executive units rose 1.3% apiece. Five-room flat prices fell 0.1%.

On the month, resale volumes rose 39.6% to 3,049 apartments from 2,184 in June. Resale volumes rose 48.3% over the previous year.

Four-room units accounted for 46% of monthly volumes. Three-roomers brought in 24.9% of resale volumes, while five-roomers 23.5%. Executive apartments accounted for 5.6% of sales.

Over half (59.5%) of resale flats were from non-mature estates.

Luqman Hakim, chief data and analytics officer at 99.co, said: “While July has always been the month where resale volume picks up after the June holidays, this year saw a marked increase that can only suggest that more private property owners are downgrading to HDBs, albeit of the premium-type and/or premium-location ones, with a marked increase of million-dollar homes."

Increased million-dollar transactions

Mak of Mogul attributed the rise in high-value sales to rising family income and the October BTO categorisation scheme.

From October, flats will be designated as Standard, Plus, or Prime instead of mature and non-mature estates.

Mak said most million-dollar purchases are in Plus or Prime zones for new units. He said the new Plus or Prime apartments had a 10-year MOP, unlike resale flats' five-year MOP.

Analysts also noted that purchasers' fears of being priced out drove HDB resale demand.

Lee Sze Teck, senior director of data analytics at Huttons Asia, said fewer listings constrained purchasers' flat options. “HDB resale prices' continued rise made them feel priced out if they held back. Some consumers bought faster for these reasons, he said.

ERA Singapore's director of research and market intelligence, Wong Shanting, said first- and second-timers who couldn't get a BTO apartment had moved to the resale market. She noted that the new categorisation system, which begins in the October BTO exercise, would increase demand for resale properties by imposing stricter resale restrictions.

Overall prices rose 7.6% year-over-year. Mature estate selling prices rose 7.8%, while non-mature rose 7.5%.

At 8.7%, four-room apartments rose the most, followed by five-roomers at 7.6%, three-roomers at 6.6%, and executive flats at 6.3%.

The highest sales flat price was S$1.57 million for a five-room Bishan Street 24 property. The most expensive non-mature estate unit sold was a five-room Punggol Field flat for S$1.23 million.

Analysts expect HDB resale flat demand to stay high. Head of research and data analytics at Singapore Realtors Mohan Sandrasegeran anticipates more purchasers to resort to the resale market after the next BTO exercise in October and Sale of Balance Flats exercise in February.

He said this lengthy gap between the two procedures may lead potential homeowners, particularly those in urgent need of homes, to consider the resale market.