Demand for million-dollar HDB resale flats in Singapore remains elevated

A total of 74 flats were resold for at least $1m in January.

It appears that buyers are starting to awake from the year-end market slumber, according to Wong Siew Ying, Head of Research and Content at PropNex. In January, the resale flat volume rose by 30.8% month-on-month to 2,629 units, from 2,010 units in the previous month, as per the SRX flash report. 

When compared with January 2023, resale transactions were up by 2.1% from 2,575 units a year ago. Non-mature towns accounted for about 63% of the HDB resale transactions in January, with Sengkang, Woodlands, and Yishun leading sales in the month, based on transaction data.

Here’s more from PropNex:

Fresh from a year of record-smashing number of HDB resale flats sold for at least $1 million in 2023 – 470 units to be exact – the enthusiasm for such a breed of resale public housing flats has not waned, heading into 2024. There were 74 HDB flats resold for at least $1 million in January, the highest monthly tally since 54 such units changed hands in August 2023 (see Chart1). In addition, two 5-room units in Toa Payoh fetched more than $1.5 million, rewriting the record price for the most expensive resale flat ever sold.

The 74 units of million-dollar flats resold in January represents a 54% jump from the 48 units transacted in December. Among them, four units are located in non-mature towns (Hougang 2 units, Punggol 1 unit, Woodlands 1 unit). The remaining flats are in Ang Mo Kio (7), Bedok (1), Bishan (13), Bukit Merah (10), Bukit Timah (3), Central Area (1), Clementi (4), Geylang (1), Kallang Whampoa (9), Pasir Ris (1), Queenstown (7), Serangoon (3), Tampines (1), and Toa Payoh (9). By flat type, 31 of the million-dollar resale flats are 5-room units, 19 units are 4-room flats, and 24 units are executive flats.

The record price for HDB resale flats was also shattered in January, when two units were resold for more than $1.5 million – a record held by an adjoined flat in Moh Guan Terrace which was transacted for $1.5 million in June 2023. Both units are 117-sq m 5-room flats located at The Peak @ Toa Payoh. The unit situated between the 31^st and 33^rd floor fetched $1.54 million, while another unit on the floor ranging between 40^th and 42^nd storey changed hands for nearly $1.57 million (see Table 1).

We think the pick-up in the number of such transactions in January could have been contributed by some former private home owners who have returned to the HDB resale market after serving the 15-month wait-out period – a measure that was introduced in September 2022. 

PropNex expects that the sales volume for million-dollar resale flats could remain elevated in 2024 as such flats continue to present good value proposition to some buyers. To be sure, while the number of million-dollar resale flats has increased, these flats are still outliers, owing to their unique attributes and attractive locations.