HDB resale prices up 2.8% in Q1

Victor Kang1 Apr 2021

HDB flats in Ghim Moh

HDB resale prices have continued to increase for the fourth consecutive quarter, according to the Q1 2021 Resale Price Index flash estimates. 

Resale prices of Housing and Development Board (HDB) flats rose 2.8% in the first quarter of 2021 – or its fourth consecutive quarterly increase, showed the Q1 2021 HDB flash estimates on Thursday (1 April).

HDB resale prices increased 3.1% in Q4 2020, 1.5% in Q3 2020 and 0.3% in Q2 2020.

Suggested read: URA Flash Estimate 101: What Is It?

Lee Sze Teck, Director of Research at Huttons Asia, said the price hike was slower compared to the previous quarter because HDB resale volume slowed in the first two months of 2021 due to the “increased resistance amongst buyers to pay higher prices and more cash downpayment”.

OrangeTee & Tie’s Senior Vice President of Research and Analytics Christine Sun observed that prices are now inching closer to the peak in Q2 2013.

“At the current pace of price growth, a new peak may be formed by the second half of this year,” she said.

She noted that vaccine roll-out and efficacy turned out better-than-expected, with many countries witnessing a property boom in recent months.

“HDB resale prices rose higher last quarter in tandem with the rising home values observed around the world.”

With this, Sun expects to “see a new record number of million-dollar flat sales” this year.

She revealed that a total of 53 resale flats were sold for at least $1 million in Q4 2020.

“The total number of million-dollar transactions this year will likely surpass the record sales inked in 2020 (82 units),” she said.

According to her, buyers are inclined to pay higher prices for resale flats in desirable locations, such as those situated within mature estates or near MRT stations, popular primary schools and shopping malls.

These buyers could be downsizing from private properties or former en bloc homeowners who are currently still on the lookout for large, affordable replacement homes,” she said.

“Others could be HDB dwellers looking to upgrade to a bigger space as their family size has expanded.”

Suggested read: Battle of the Big Flats: Maisonette, Jumbo Flat, Executive Flat, 3Gen Flat, 5-Room Flat

Looking ahead, Sun expects seller expectations to continue to rise over the coming months, with some asking for higher prices.

Meanwhile, HDB said it will release the final resale price index for the full quarter, along with more detailed housing data, on 23 April.

HDB also announced that it will offer around 3,800 Build-To-Order (BTO) flats in Geylang, Bukit Merah, Tengah and Woodlands in May.

Another 4,900 BTO flats in Jurong East, Hougang, Queenstown, Kallang Whampoa and Tampines will be offered in August.

“Given the economic uncertainty due to COVID-19, HDB is monitoring the housing market closely and will calibrate the supply if required,” it said.

Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: victorkang@propertyguru.com.sg


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