HDB resale prices up 0.9 percent in April. the volume rises 15.7 percent
Singapore: The prices of Housing Board flats for resale were up 0.9 percent in April. The more units were sold as the market recovered following ‘s plunge in the month prior to.
HDB flat-priced resales grew more quickly in April than the 0.3 per cent rise in March, the flash data from real estate websites Singapore Real Estate Exchange (SRX) and 99.co revealed on May 6.
Every year, the cost of living climbed by 9 per cent.
The number of flats resold that were sold in April grew by 15.7 per cent to a total of 2,387 units, in contrast with the 3.3 per cent decline the month before.
In comparison to April 2023 the resales volume was 6 percent higher.
Analysts at the property industry believe that the increase in demand for resale apartments which have helped prop up prices, could be explained by the less frequent Build-to-Order and Sale of Balance Flats activities.
In 2024, BTO flats will be sold across three sales exercises – in the months of February, June and October – down from the previous four launches per year.
Mark Yip is the chief executive of Huttons Asia and said that those who did not get a flat during the initial Sale of Balance Flats in 2024, held in February, might have taken a shot at the resale markets rather than waiting until 2025.
These launches, in which applicants could apply for any remaining flats that were left from previous BTO sales, were previously held twice a year.
On the supply end, the healthy resale market could be a reason for homeowners putting up their homes for sale, according to Christine Sun, chief researcher and strategist for property company OrangeTee Group.
“Some sellers could be enticed by the possibility of making a significant income, whereas others might desire to buy an even bigger house,” she added.
Sixty-eight flats were sold for a minimum of $1 million each in April, which was more than the 61 transactions that occurred in March.
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Of the one million-dollar HDB flats for resales sold in April 24 units are four-room ones 22, 22 five-room flats, and 22 executive apartments.
Most of them are in mature estates like Kallang/Whampoa Toa Payoh and Bukit Merah and seven are in towns that are not mature, such as Jurong East, Sengkang, Bukit Panjang, and Hougang.
The transactions accounted for around 2.8 percent of all transactions in April.
The most expensive flat resales was a five-room 1,259 sq ft apartment between the 22nd and 24th floors at the Peak@Toa Payoh that sold for $1.438 million.
A 1,539 sq ft executive apartment in Toh Guan Road in Jurong East fetched $1.088 million, which is the most expensive deal in a non-mature estate April.
Mohan Sandrasegeran of Singapore Realtors as the director of research and data analytics Mohan Sandrasegeran of Singapore Realtors, the head of data analytics and research, Sengkang which is a non-mature city has recorded its first million-dollar flat transaction in the month of April.
The 1,539 square feet executive maisonette house in Compassvale Lane changed hands for $1 million.
However, Mr Sandrasegeran doesn’t expect any major shifts in the resales prices in the Sengkang region.
“Million-dollar resales are typically unusual and are not indicative of broader market trends,” he said.
The analysts also noted that in April, Kallang/Whampoa registered 15 million dollars of flat transactions, which is a record high for a town.
Mr Yip said that 11 of fifteen transactions occurred in the St George’s Towers Project, which has recently completed its minimum five-year occupancy period.
Eight of the eleven transactions at St George’s Towers were located in the 19th and upper floors. Hence, they are likely to have unblocked views,” he said.
He said that the 34-storey development is located near the Whampoa River and is about five minutes’ walk from Boon Keng MRT station.
Ms Wong Siew Ying, head of research and content at real estate firm PropNex Realty, said there were a total of 253 million-dollar flat transactions in the initial four months of 2024.
“(Such deals are) on track to possibly surpass the record of 469 units sold in the entire year 2023,” she added.
Ms Sun declared: “It appears that the global economic environment has improved, giving potential buyers of homes the confidence they need to be able to enter the market for real estate.”
