top of page
Nicholas Mak

Property Herald: New Record Broken in HDB Resale Market but Don’t Expect Any Olympic Medal


New record broken in HDB resale market

Summary


New Record Broken HDB Resale Market 


(1) In July 2024, 120 HDB resale flats exchanged hands at $1 million or more each. This is the highest number of million-dollar flats sold in a single month in the history of Singapore public housing.

 

(2) July 2024 also marks the first time that the number of HDB 4-room million-dollar flats sold in a month significantly outnumbered the number of HDB 5-room million-dollar flats.

 

(3) We can expect the number of million-dollar HDB resale flats to increase in the near future due to rising prices of family-size condominium units, better quality of new HDB flats, new classification of BTO flats and growing household income.

 

Introduction

 

Another record was broken in July. No, it is not in sports, but in the Singapore public housing resale market.

 

A record number of million-dollar HDB resale flats was transacted last month. A total of 120 HDB resale flats exchanged hands at $1 million or more each. This is the highest number of such high value flats sold in a single month in the history of Singapore public housing.

 

Locations

 

The biggest cluster of transacted million-dollar HDB resale flats, consisting of 13 flats, is from the HDB project named Saint George’s Towers, located at Saint George’s Lane. All 13 flats are 4-room flats and they just reached the end of their MOP (Minimum Occupation Period).

 

The second biggest group of million-dollar HDB resale flats are in the HDB project Ghim Moh Edge at Ghim Moh Link, comprising nine 4-room flats. The lease of these nine million-dollar HDB resale flats start in 2018, indicating that they are also very new flats.

 

Another new record

 

July 2024 also marks the first time that the number of transacted 4-room million-dollar HDB resale flats outnumbered the number of transacted 5-room million-dollar HDB resale flats significantly in a single month. Last month, fifty-six 4-room HDB resale flats were sold at $1 million or more each, compared to forty 5-room million-dollar flats.

 

Number of Million-dollar HDB Resale Flats Sold

Source: HDB, Mogul.sg Research


Table 1: Number of million-dollar HDB resale flats sold in June and July 2024

 

Type of HDB flats

No. of $million flats in July 2024

No. of $million flats in June 2024

Terrace house

1

0

4-room flat

56

35

5-room flat

40

42

Executive flat

23

17

Multi-generation

0

1

TOTAL

120

95

Source: HDB, Mogul.sg Research

 

Reasons for rising number of million-dollar HDB resale flats

 

Some of the key reasons for the growing number of transacted million-dollar HDB resale flats are as follows:

 

(1) Rising prices of suburban family-size resale condominium units, which usually costs more than $2 million each. As the prices of entry level 3-bedroom condominium units increase, there is room for the prices of 3-bedroom HDB resale flats to rise as well.

 

(2) Rising household income increases the purchasing power of homebuyers, which contribute to rising housing prices.

 

(3) The new HDB classification of HDB BTO flats that stated in 2H 2024. Most of the million-dollar HDB resale flats are located in areas where the new HDB flats would be classified as Plus or Prime. The new Plus or Prime flats come with 10-year MOP, while the MOP of resale flats is still 5 years. Some homebuyers find the 10-year MOP too onerous and prefer to purchase their flats in the resale market.

 

(4) The high quality of new HDB flats in high-rise buildings. The interior layout and design of the new HDB flats are comparable to those of suburban condominiums. Furthermore, the height of some of the newer HDB buildings are taller than those of condominiums in the vicinities. Housing units on higher floors usually command higher prices that those on lower floors.

 

Outlook

 

Going forward, we can expect the number of million-dollar HDB resale flats to increase. The four reasons stated above will continue to affect the HDB resale market in the near future and contribute to the rise in the number of million-dollar HDB resale flats. Therefore, it is likely that there will be other monthly record number of million-dollar resale flats that will exceed the current record of 120 units.

 

However, don’t expect any Olympic medals when such records are broken.

 

Looking to sell or buy a new home? Find out more at Mogul.sg.

Comments


bottom of page