The number of million-dollar HDB flats sold is expected to increase further, as the number of sales for such apartments in 2021 so far have already exceeded the number of transactions in 2020.
Singapore saw demand for million-dollar Housing and Development Board (HDB) flats increase as buyers were undeterred by the COVID-19 pandemic.
In fact, 87 HDB flats were sold for at least $1 million during the first five months of 2021, exceeding the 82 units shifted for at least $1 million throughout the whole of 2020, reported The Straits Times (ST).
The figure is the highest on record since 2012, when the first HDB flat was transacted for more than $1 million. Notably, only two HDB units were sold for at least that amount during that year.
As of 31 May this year, a total of 389 HDB resale units changed hands for over $1 million.
ST noted that a five-room HDB flat located at Block 18C Holland Drive was transacted for $1.21 million last month, “tying with two others for seventh-most expensive HDB resale flat to be sold in Singapore so far”. The other two units were in Bishan Street 24 and Block 2 Toh Yi Drive in Bukit Timah and were sold in January and February this year, respectively.
In April, a five-room Design, Build and Sell Scheme (DBSS) flat at Natura Loft has been sold for $1.25 million. With a remaining lease of 89 years and five months, the 120 sq m flat is now the second-most expensive HDB resale flat. A five-room flat at Pinnacle @ Duxton holds the top spot and was snapped up for $1.258 million last September.
OrangeTee & Tie Senior Vice-President of Research and Analytics Christine Sun expects demand for million-dollar flats to remain strong, supplied new mass-market condos remain limited and private home prices continue to increase.
“Some buyers may deem these million-dollar flats relatively more affordable, compared to new or resale condos as the prices have been rising,” she said as quoted by ST.
“Other buyers may not mind paying top dollar for these flats as they are centrally located and come with attractive views.”
The private housing resale market saw condo prices climb 1.5% month-on-month in April, while the private home price index increased 3.3% in Q1 2021—marking its fourth consecutive quarterly increase and the steepest hike since Q2 2018.
Million-dollar transactions account for just 0.05% of the 845,100 HDB resale transactions registered since 1990.
And while this figure increased to 0.8% during the first five months of 2021, Sun described the growth as “marginal” since it is spread out over the last 30 years.
Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: firstname.lastname@example.org