HDB resale prices rise for 4th month amid sales volume dip

October was the fifth consecutive month when sales volume stayed above 2,400 units, after rebounding from weak sales during the circuit breaker period.
October was the fifth consecutive month when sales volume stayed above 2,400 units, after rebounding from weak sales during the circuit breaker period.ST PHOTO: LIM YAOHUI

While the Housing Board resale flat volume dipped last month from September, prices continued to rise for the fourth consecutive month, indicating that demand remained relatively robust amid the pandemic.

There were a total of 2,436 HDB resale transactions last month, down by 2.1 per cent from September, according to flash estimates released by real estate portal SRX yesterday.

Thirteen of these HDB resale flats went for more than $1 million, making up 0.5 per cent of the total resale transactions.

This is the highest-ever number of such transactions in a single month. The previous high was in June 2018 when 11 million-dollar flats changed hands.

A total of 59 HDB resale flats have been sold for more than $1 million in the first 10 months of this year.

Ms Wong Siew Ying, PropNex head of research and content, said this year's figure looks set to surpass the 64 million-dollar deals recorded last year.

October was the fifth consecutive month when sales volume stayed above 2,400 units, after rebounding from the weak market during the circuit breaker.

Overall prices for HDB resale flats rose by 1.2 per cent last month over September, for the fourth successive month.

Ms Christine Sun, head of Orange Tee & Tie's research and consultancy, said large resale flats, especially those in good locations, were in demand over the past few months.

"This is not surprising as some families prefer to buy resale flats during a crisis, since people tend to be more prudent. For the same price, they can purchase a much bigger flat as compared with a private home," she said.

She noted that singles moving out of their family homes to live on their own may have also contributed to the demand, as the work-from-home arrangement looks likely to continue into phase three for some companies.

Ms Wong, noting that the asking prices of HDB resale flats have risen in recent months due to strong demand and higher sales volume, said: "In many cases, the agreed selling price is higher than the market valuation of the unit and the buyers have had to pay the difference in cash."

Last month, a five-room Design, Build and Sell Scheme flat at Natura Loft in Bishan fetched the highest transacted price at $1,208,000, while an executive maisonette flat in Jurong East was sold for $820,000, in what was the highest resale price for non-mature estates.

ERA Realty head of research and consultancy Nicholas Mak projected that the HDB resale volume for this year could vary between 23,500 and 24,800 flats, surpassing the 23,714 transactions last year.

"With a more active resale market, the HDB resale price index could also edge upwards to end the year with a 2.5 to 3.5 per cent year-on-year increase," he said.

  • 2,436

    Total number of HDB resale transactions last month, down by 2.1 per cent from September, according to flash estimates released by real estate portal SRX.

  • >$1m

    How much 13 of these HDB resale flats went for. They made up 0.5 per cent of the total resale transactions.

A version of this article appeared in the print edition of The Straits Times on November 06, 2020, with the headline 'HDB resale prices rise for 4th month amid sales volume dip'. Print Edition | Subscribe