HDB resale price growth slows, fewer flats sold

Prices for Housing Board resale apartment prices grew less in February 2020 as fewer apartments were sold.

Flash data from 99.co, SRX and other real estate portals released on 4 March showed that resale values rose only by 0.5 %, compared with ‘s 1.5 % growth in January.

Comparing January to February, the price increase for three-roomed flats was 0.9 percent, followed by 0.7 percent for executive flats, and 0.6 cents for four-roomed flats. However, prices for five-roomed flats dropped by 0.4 cents.

In comparison with the previous years, five-roomed resale apartment saw the biggest price rise of 7%, followed closely by four-roomed flats, which increased by 6.3%. Executive units, at 6.23%, and three-roomed flats, at 5.43%.

Analysts are expecting resale values to continue rising and the demand to pick-up in the next months.

According to them, the increase in demand will be partly due to more private homeowners having completed their 15-month-waiting period before buying an apartment.

As of Sept 30 2022, home sellers must wait 15 month before buying an HDB flat. The rule doesn’t apply to anyone aged 55 or older moving from their own private property to a smaller, four-room resale unit.

Prices for resale rose in February at a slower than usual pace, but it was the fifth consecutive monthly increase.

We anticipate that more people, especially first-time buyers and those who require immediate housing will look to the secondary market.

In February 2,134 apartments were sold. This represents a decrease of 18.8 percent from January. But the number resale unit transactions is still 15,4 per cent more than in the same time last year.

Analysts attributed lower volumes to Chinese New Year festivities, as well as the BTO’s launch in the month.

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Punggol West & Woodlands, Jurong West & Punggol accounted for 64 per cent of all transactions in July.

She also mentioned that HDB has launched 4,126 flats within seven BTO projects in February. Over 80% of the BTO apartments have a shorter waiting period, of less than three-and-a-half years, as opposed to waiting times of four to five year.

These short waiting times made BTO flats attractive to buyers who wanted a brand-new apartment but did not want to have to wait too much to get their keys.

The total number of flats sold in February was 2,3% or 50 units. This compares with the record-breaking figure of 74 in January.

According to Ms Wong, half of the apartments sold in February are 1,292 sq. ft. or bigger, and 44 per cent are on the 19th or higher floor.

The highest-priced resale property was a Bishan executive home, which sold for $1.48 million.

Toa Payoh was second with six million-dollar apartments sold in February.

The other million-dollar condos were in Kallang/Whampoa. Ang Mo Kio. Bukit Merah. Bukit Timah. Clementi. Bishan. Central Area. Serangoon. Woodlands. Geylang. Hougang.

Hougang’s Central was the estate with the highest price, $1 million.

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