Price gap between 4- and 5-room flats in Singapore down to 15% in Q3 | Real Estate Asia
, Singapore
253 views

Price gap between 4- and 5-room flats in Singapore down to 15% in Q3

This is the narrowest price differential on record.

 

The price disparity between 4- and 5-room flats has been rapidly diminishing. During the pre-pandemic years, the average price of 5-room flats stood at S$538,133 in Q1 2018, representing a 22.6% premium over 4-room flats, priced at S$438,892. 

 

 

 

Subsequent to the onset of the pandemic, this margin contracted to 20.2% in Q3 2020 and further reduced to 16.9% in Q3 2023. In the third quarter of this year, the price differential narrowed to 15%, which is the narrowest price gap on record, smaller than the previous low of 16.7% in Q4 2023. 

 

The closing price gap could be attributed to a faster pace of price growth for 4-room flats. Prices of 4-room flats jumped by 43.3% from S$445,472 in Q3 2020 to S$638,566 in Q3 2024. Comparatively, the price of 5-room flats rose at a slower pace of 37.1% from S$535,462 to S$734,126 over the same period. 

 

Compared to a year ago, prices of 4-room flats rose by 8.2% from S$590,299 in Q3 2023 from Q3 2024, whereas 5-room flats climbed by 6.4% from S$689,904 over the same period.

 

Moreover, there has been a noticeable increase in 4-room flats commanding higher transacted prices. Surprisingly, 687 resale flats were transacted for at least $900,000 in the first three quarters of 2024, surpassing the number of 5-room flats sold at this price tag, which stood at 591 units, and executive flats at 477 units (Chart 3). 

 

Only 44 4-room flats were sold at this price point in the full year of pre-pandemic 2019, as opposed to 153 5-room flats and 45 executive flats.

 

The price appreciation observed in 4-room flats can also be attributed to an increasing number of units reaching MOP, and newer flats tend to command higher prices. In contrast, 5-room MOP flats have declined since fewer large flats have been launched for sale over the past decade. 

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!