Record 74 HDB resale flats sold for over $1 million each in January

SINGAPORE — The Housing Board resale market gathered pace in January from the year-end lull, with a record 74 flats changing hands for at least $1 million each.

Prices were up 1.5 per cent in January, rising at a faster clip than the 0.6 per cent rise in December, flash data from real estate portals Singapore Real Estate Exchange (SRX) and 99.co showed on Feb 6. Year on year, prices climbed 5.7 per cent.

It is the first time prices rose more than one per cent since April 2023, said Christine Sun, chief researcher and strategist at property firm OrangeTee Group.

More resale flats were also sold in January, with transactions climbing 30.8 per cent to an estimated 2,629 units after a 6.2 per cent dip in December, the data showed.

Property analysts attributed the price growth to stronger demand for larger resale flats and the record number of million-dollar transactions.

While resale prices increased across all flat types in mature and non-mature estates, prices of five-room flats climbed the most, by 2.1 per cent.

Sun said the number of five-room flats transacted increased 33.3 per cent from 456 units in December to 608 units in January, which is the highest since September 2022.

Based on SRX and 99.co data, five-room resale units formed 23.8 per cent of total transactions in January, up slightly from from 23.5 per cent in December. Four-room flats formed the bulk of transactions in January, at 45.6 per cent.

Analysts noted that the first batch of private home owners who served their 15-month wait-out period after selling their homes would be able to buy HDB resale flats from January. The wait-out period is a temporary measure rolled out in September 2022 to cool the resale market.

Sun said: "Some of these private home downgraders may have the means to purchase a bigger flat, while others could find it more worthwhile to buy a large unit for the rental expenses incurred or effort spent in fulfilling the wait-out period."

Wong Siew Ying, research and content head at real estate firm PropNex Realty, said this group of buyers could have also contributed to the record number of million-dollar resale flat transactions in January.

January's million-dollar transactions topped the previous record of 54 such sales in August 2023, and were also higher than the 48 lodged in December.

Of the 74 million-dollar HDB resale flats sold in January, 19 were four-room units, 31 were five-room flats and 24 were executive apartments.

Most of them were in mature estates such as Bishan, Bukit Merah, Kallang/Whampoa, Toa Payoh, Queenstown and Ang Mo Kio, while four were in non-mature towns Hougang, Punggol and Woodlands.

A five-room, 117 sq m unit between the 40th and 42nd storeys at The Peak@Toa Payoh changed hands for $1,568,888, making it the highest transacted price on record for a resale flat.

Another 117 sq m five-room flat between the 31st and 33rd storeys in another block at the same development was sold for $1.54 million.

The two transactions beat the previous record of $1.5 million for a 176 sq m adjoined flat at Moh Guan Terrace in Tiong Bahru, which was sold in June 2023 despite having about 48 years left on its 99-year lease.

A 149 sq m executive apartment in Punggol Field fetched $1.1 million, the top transaction in a non-mature estate in January.

"While the number of million-dollar resale flats sold has increased, these flats are still outliers, owing to their unique attributes and attractive locations," Ms Wong said, noting that such flats accounted for 2.8 per cent of HDB resale transactions in January.

Property agency Huttons Asia's chief executive Mark Yip said million-dollar flat transactions in 2024 could surpass the record of 470 such deals in 2023.

"Many sellers are pushing the boundary by asking more for their HDB resale flat," he said, adding that some executive maisonette apartments in Bishan are being priced from $1.9 million.

Wong said she expects transactions to be muted in February because of the Chinese New Year holiday and the BTO sales launch, in which about 4,100 flats in six towns such as Bedok and Queenstown will be offered.

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This article was first published in The Straits Times. Permission required for reproduction.