HDB resale prices rise 0.3 per cent, volume climbs 5.3 per cent

An estimated 2,513 HDB units changed hands in May – an increase from the 2,387 units resold in April, flash data showed. ST PHOTO: LIM YAOHUI

SINGAPORE – Prices of Housing Board resale flats rose for the eighth consecutive month in May, with prices inching up by 0.3 per cent and more units sold.

The increase was at a slower pace than the 0.9 per cent rise in April, according to flash data released by real estate portals Singapore Real Estate Exchange (SRX) and 99.co on June 5. Year on year, prices rose by 6 per cent.

An estimated 2,513 HDB units changed hands in May – a 5.3 per cent increase from the 2,387 units resold in April, the data showed.

Seventy-four flats were sold for at least $1 million each in May, equal to the record set in January and up from the 68 lodged in April.

Property analysts attributed the resilience in the public housing resale market to potential home buyers who were unsuccessful in February’s Build-To-Order (BTO) exercise turning to alternatives, as well as home owners putting up flats for sale because of a spike in prices.

Mr Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors, said the results of February’s BTO exercise and Sale of Balance Flats (SBF) launch were announced in the first week of April and towards the end of the month, respectively.

SBF launches give applicants a chance to apply for balance flats from earlier BTO sale exercises.

Mr Sandrasegeran said home buyers seeking immediate housing and who failed to secure a flat in either exercise would turn to resale options, possibly contributing to an increase in resale volume and prices.

Huttons Asia chief executive Mark Yip said more units were resold owing to a lack of BTO launches and to an increase in supply.

Analysts said greater demand for larger units could be a contributing factor.

Mr Eugene Lim, key executive officer of ERA Realty Network, noted that 176 executive flats were resold in May, the highest number since September 2022 when the 15-month waiting period for private home owners buying HDB resale flats was rolled out.

Mr Sandrasegeran said that 40.1 per cent of the 327 million-dollar resale transactions from January to May 2024 involved five-room flats, which highlighted a strong demand for larger flats.

Of the 74 million-dollar resale flats sold in May, 33 were five-room units, 22 were executive flats, 18 were four-room flats, and one was a three-room terraced flat, said PropNex head of research and content Wong Siew Ying.

She said a majority of these flats were in mature estates such as Kallang/Whampoa, Bukit Merah, Toa Payoh and Queenstown, while six were in non-mature towns Jurong East, Bukit Batok, Yishun and Hougang.

The 74 resale flats sold accounted for 2.9 per cent of the total number of resale transactions in May – on a par with that of April, added Ms Wong.

Mr Yip attributed the higher number of flats sold for at least $1 million to the possibility of buyers looking for homes that may be in demand in the future and do not come with resale restrictions.

A five-room, 106 sq m flat between the 37th and 39th storeys at Pinnacle@Duxton in Cantonment Road changed hands for $1,515,000, making it the most expensive HDB resale flat in May.

Ms Wong said she expects the demand for resale flats to remain stable, as it will be supported by former private home owners turning to the resale market and buyers with more pressing housing needs.

She added that those who prefer more centralised locations but do not wish to be subject to the stricter conditions of the new classification system will also contribute to the demand for resale flats.

All BTO flats launched from the second half of 2024 will be classified into three categories – Prime, Plus or Standard – according to the attractiveness of their location. Prime flats, which are in the choicest locations close to the city centre, will have the tightest restrictions.

But Mr Sandrasegeran is anticipating a moderation in the HDB resale market in June as the BTO exercise then will be the final one before the roll-out of the new classification system, and because of the school holidays.

He said some potential home buyers may be interested in exploring BTO flat options launched in June, as they may want to take advantage of the current classification structure before October’s BTO exercise.

“Source:[HDB resale prices rise 0.3 per cent, volume climbs 5.3 per cent] © Singapore Press Holdings Limited. Permission required for reproduction”