HDB resale prices rise for 24th straight month in June; ground floor Yishun flat sold for $1m

An executive apartment on the ground floor in Block 608 Yishun Street 61 changed hands for $1 million. PHOTO: SCREENGRAB FROM GOOGLEMAPS

SINGAPORE - Prices for Housing Board resale flats rose for the 24th straight month in June even as fewer units were sold, with the proportion of flats sold in non-mature estates climbing.

HDB resale flat prices rose 1.2 per cent last month, a quicker pace compared with May's 0.5 per cent, according to flash data from real estate portals 99.co and SRX on Thursday (July 7).

Compared with June last year, prices are up by 11.4 per cent, data showed.

Price hikes were seen across all flat types in both mature and non-mature estates, with prices of five-room units climbing the most at 1.4 per cent.

Last month, 31 HDB resale flats changed hands for at least $1 million, up from 30 in May. Of these, there were six each in Bishan and Bukit Merah, five in the central area, and four each in Ang Mo Kio and Kallang/Whampoa.

The most expensive resale flat last month was a five-room Design, Build and Sell Scheme unit at Natura Loft in Bishan, which sold for $1,310,000.

In non-mature estates, the highest price was fetched by a 1,765 sq ft executive apartment on the ground floor in Block 608 Yishun Street 61 that changed hands for $1 million - the third such transaction in the estate so far.

The 31 million-dollar flats make up 1.4 per cent of last month's total resale transactions.

Meanwhile, resale volume dipped by 0.8 per cent, with an estimated 2,139 units changing hands last month, down from 2,156 units the month before.

Property analysts said this was due to fewer buyers during the June holiday season, limited stock, and the setting-in of price resistance.

OrangeTee & Tie senior vice-president of research and analytics Christine Sun noted that the proportion of flats sold in non-mature estates has been climbing steadily from 56 per cent in February to 58.9 per cent in June.

"As prices of resale flats continue to rise, more buyers seem to be turning to the non-mature estates where prices of flats tend to be lower than those in the mature estates," she said.

Due to stronger demand, prices of resale flats in non-mature estates rose by 12.3 per cent compared with June last year.

In comparison, resale flat prices in mature estates grew at a slower pace of 10.2 per cent over the same period, Ms Sun said.

Huttons Asia chief executive Mark Yip added: "Some price-sensitive buyers may have also adjusted their budget and bought a flat in non-mature estates to account for the higher interest rate."

Mr Yip noted that eight four-room flats changed hands for at least $1 million last month, compared with two each in May and April.

More million-dollar transactions in non-mature estates may take place as buyers chase after limited supply, he said.

PropNex Realty head of research and content Wong Siew Ying said there were 168 million-dollar resale flat deals this year, including two units - in Marine Crescent and Bishan Street 22 - that changed hands in July.

"We expect the number of such transactions to surpass the 259 transactions recorded in 2021, possibly even hitting the 300 mark in 2022," she said.

"A flat's generous size and convenient location, panoramic or pleasing view from the unit, and the buyer's lifestyle preference continue to be key factors driving million-dollar sales transactions."

Eight resale flats changed hands for more than $1.3 million this year, compared with two last year, said Ms Sun.

There were no such transactions before 2021, she added.

Ms Wong expects HDB resale prices to grow by between 7 per cent and 9 per cent over the rest of the year.

She noted that the Ministry of Trade and Industry's recent announcement that Singapore's economy is not expected to slip into a recession or stagflation next year could help to further prop up market confidence.

Mr Yip expects the HDB resale market to adjust towards more stability in the second half of the year, and prices to increase by up to 10 per cent.

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