HDB resale volumes dip in February, prices continue to climb: SRX, 99.co

DEMAND for Housing and Development Board (HDB) resale flats dropped in February as prices maintained their upward trajectory, albeit at a slower pace compared to January’s growth.

Based on flash data by SRX and 99.co released Monday (Mar 4), HDB resale prices grew 0.5 per cent in February from January levels, after rising 1.5 per cent in January. 

Prices for four-roomers rose by 0.6 per cent, while five-room resale prices fell by 0.4 per cent. Three-room unit prices grew by 0.9 per cent, and executive prices were up by 0.7 per cent. Prices in mature estates rose 0.5 per cent, while prices were 0.3 per cent higher in non-mature estates.

Year on year, resale prices were up 6.4 per cent in February, with prices rising for all room types. Mature estate prices increased by 6.1 per cent from the year-ago period, and non-mature estate prices rose 5.9 per cent.

Five-room flats booked the largest year-on-year price increase at 7 per cent, followed by four-room flats at 6.3 per cent, executive units at 6.2 per cent and three-room flats at 5.4 per cent. 

OrangeTee Group’s chief researcher and strategist Christine Sun said prices of HDB units “may face some upward pressure” in the coming months amid increased demand from first-time applicants, as well as more private homeowners fulfilling their 15-month wait-out period as they downgrade to HDB flats.

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

“As the upcoming build-to-order (BTO) sales launch will take place four months later instead of three months, we anticipate that more first-timers, especially those in need of immediate housing, to turn to the resale market,” she said.

Likewise, Huttons Asia’s chief executive Mark Yip also foresees more transactions in the resale market going forward given the months-long wait for the next BTO sales launch, and the absence of sale of balance flats exercises this year.

He estimates volumes to come in at around 25,000 to 27,000 units over 2024, with prices likely to stabilise in the range of 3 to 5 per cent.

There were 2,134 resale units transacted in February, down 18.8 per cent from January but 15.4 per cent higher than February 2023 levels.

Hakim of 99.co said the overall volume decline from the prior month was partially due to the Chinese New Year period, as well as BTO launches that took place in the same month.

By room type, the majority or 42.5 per cent of resale volumes were four-room flats. This was followed by three-room flats at 24.9 per cent, five-room flats at 23.1 per cent and executive units at 6.4 per cent.

Most or 64.3 per cent of the month’s volumes came from non-mature estates, while the remaining 35.7 per cent were from mature estates.

A total of 50 HDB resale flats changed hands for at least S$1 million in February, representing a decline from January, where 74 of such units were transacted.

“While last month’s spike was mostly attributed to condo downgraders completing their wait-out period, we think that condo downgraders, especially the seniors, would subsequently reconsider downgrading to HDBs now that the government has introduced an ABSD (Additional Buyer’s Stamp Duty) refund for a replacement home, which can be a private property, of lesser value,” noted Hakim.

This would translate to a stabilisation of prices for “highly sought after HDBs, which typically see these million-dollar price tags”, he added.

The latest number of million-dollar resale flats comprised 2.3 per cent of resale volumes for the month.

Queenstown recorded nine units of million-dollar flats transacted in February, while six of such units were sold in Toa Payoh. The rest of the million-dollar flats came from Serangoon, Woodlands and Geylang, among others. Within non-mature estates, the highest price was S$1 million for an executive apartment at Hougang Central.

Eugene Lim, key executive officer of ERA Singapore, foresees some resale flats in mature estates could eventually cross the S$1.5 million mark.

Based on his observations, owners of executive HDB flats are increasingly asking for higher prices given the scarcity of such flat types: “For instance, an executive flat in Bishan is asking for S$1.8 million while another executive flat at Toh Yi is asking for S$1.6 million.”