The Housing Board (HDB) resale market remained robust in the first quarter of this year amid Covid-19 vaccine optimism, with prices rising for the fourth consecutive quarter even as fewer flats changed hands.

The resale price index stood at 142.2, a rise of 3 per cent over that in the fourth quarter of last year, according to figures released by HDB yesterday.

Prices climbed 8.1 per cent year on year.

Last quarter's HDB resale prices were just 4.8 per cent lower than their peak in the second quarter of 2013, said Ms Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics.

At the current pace of price growth and higher demand, prices may reach the 2013 peak in the second half of this year, she added.

She noted that the roll-out of vaccines and anticipated economic recovery stoked a frenzy of property buying worldwide, which in turn lifted market sentiment in the HDB resale market.

The supply and demand imbalance has also caused prices to rise in many areas, said Ms Sun.

Prices rose in 22 of the 26 HDB towns, with the central area clocking the highest median resale price of $910,000 for a four-room flat.

At The Pinnacle @ Duxton in Cantonment Road, a handful of five-room flats on high floors have sold for more than $1 million each in recent years.

Woodlands posted the lowest median resale price of $380,000 for a four-room flat.

Demand started gaining traction in the second half of last year, after Singapore came out of a two-month circuit breaker to curb the spread of Covid-19.

However, overall resale volume dipped slightly last quarter on the back of higher prices and rising cash over valuation.

The number of transactions fell 0.8 per cent from 7,642 units in the fourth quarter of last year to 7,581.

Compared with the first quarter of last year when 5,893 units changed hands, resale volume rose 28.6 per cent.

Ms Sun said multiple offers for choice flats were common as buyers were willing to shell out extra.

PropNex head of research and content Wong Siew Ying said the pace of price growth may start to moderate as resistance sets in.

She expects a 6 per cent to 7 per cent rise this year while Huttons Asia director of research Lee Sze Teck predicts a gain of up to 8 per cent.

Demand for rental HDB flats also rose last quarter despite increasing costs, as many foreigners chose to stay put and renew their leases because of border restrictions.

The number of approved applications to rent out HDB flats rose by 26 per cent, from 8,472 cases in the fourth quarter of last year, to 10,676.

HDB will offer about 3,800 Build-To-Order (BTO) flats in Bukit Merah, Geylang, Tengah and Woodlands next month.

Another 4,900 BTO flats in Hougang, Jurong East, Kallang/Whampoa, Queenstown and Tampines will be launched in August.