Deals of $700,000 and above are still being done this year, after 'record deals' of more than $700,000 first surfaced during last year's boom, though these are few and far between.

The good news for sellers is that prices continue to rise, pushing up valuations.

Volume is seen remaining healthy as home seekers continue to check out resale flats, largely oblivious to the credit crisis consuming the world, market watchers said.

Demand for HDB resale flats comes mostly from newly formed families and new permanent residents (PRs), they said.

Mr Leong Sze Hian, president of the Society of Financial Service Professionals, thinks that HDB prices are still rising because there is not enough supply to meet demand.

Read the full story in tomorrow's edition of The Sunday Times.