Larger flats bolster HDB resale prices in March; but volumes down again: SRX, 99.co

DEMAND for larger public housing flats supported resale prices in March, which rose for the sixth consecutive month while volumes continued to decline.

Based on flash data by SRX and 99.co released on Monday (Apr 8), resale prices were up 0.3 per cent month on month. Gains were recorded in both mature and non-mature estates, which rose 0.5 per cent and 0.6 per cent, respectively.

Compared with the same period last year, overall resale prices were up 6.2 per cent. Both mature and non-mature resale prices rose 6 per cent. 

The proportion of resale flats transacted in mature estates also rose to a six-month high of 40.1 per cent, although deals for flats in non-mature estates continued to make up the majority of total resale volumes (59.9 per cent).

OrangeTee Group chief researcher and strategist Christine Sun said these trends suggest an increased demand for pricier Housing and Development Board (HDB) resale flats.

“This may be due to more private homeowners who are looking to downgrade to HDB resale flats,” she added, noting that these buyers typically have the financial means to pay more for these flats.

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Notably, the largest gain in resale prices was from five-room flats, up 1 per cent on the month. This was followed by four-room flats, which rose 0.5 per cent. Meanwhile, three-room and executive flats recorded a drop in resale prices, down 0.1 per cent and 0.5 per cent, respectively. 

Year on year, resale prices for five-room flats climbed 6.8 per cent, followed by four-room flats, which rose 6.3 per cent. Three-room flats were up 5.6 per cent on the year, while executive flats recorded a resale price gain of 4.4 per cent. 

Huttons Asia chief executive Mark Yip attributed the rise in resale transactions of five-room and larger flats to the increase in former private property owners entering the market after meeting their 15-month wait-out period requirements.

Wong Siew Ying, head of research and content at PropNex, citing transaction data, noted that the proportion of flats resold with a remaining lease of 90 years or more was 26.8 per cent higher in March compared with February.

“As newer flats tend to fetch higher prices, it is possible that they have helped to support overall resale prices,” she said, adding that there were “quite a few” transactions at HDB projects which recently passed their minimum occupation period.

These include those at St George Tower in Kallang Whampoa, West Edge @ Bukit Batok and Tampines GreenRidges. 

The number of HDB flats that changed hands in March fell 3.3 per cent on the month to 2,063 units from 2,134 units. Year on year, volumes were 9.8 per cent lower.

Nicholas Mak, chief research officer at Mogul.sg, attributed weaker resale volumes to buyers waiting for more details on upcoming Build-To-Order (BTO) projects.

This includes regulations for flats classified under the Plus category – part of a new classification system that differentiates BTO projects by their locational attributes.

He noted that the government has launched only 21 per cent of the 19,600 BTO flats for 2024.

“Some of the more attractively located BTO projects would be launched in the two upcoming BTO exercises,” he said. 

A majority of resale transactions came from four-room flats, which comprised 43.6 per cent of total volumes, followed by five-room flats, which contributed 25.2 per cent. Three-room flats accounted for 24.8 per cent of transactions and 6.4 per cent came from executive flats.

Deals for flats in non-mature estates made up 59.9 per cent of total resale volumes, while mature estate flats comprised the remaining 40.1 per cent.

Jump in million-dollar deals

The number of HDB flats resold for at least S$1 million climbed 22 per cent to 61 deals in March, compared with 50 such deals in February 2024. These transactions made up 3 per cent of total resale volumes in March.

ERA key executive officer Eugene Lim said: “More than half of these transactions involved resale flats that are 15 years old or less, indicating buyers’ stronger preference for newer flats.” 

Toa Payoh drew the most million-dollar deals, recording nine such transactions during the month. This was followed by Kallang, Whampoa, Bukit Merah, and Clementi, which registered seven deals.

The rest of the million-dollar resale flat transactions took place in Hougang, Bishan, Central Area, Queenstown, Serangoon, Bedok, Ang Mo Kio, Tampines, Jurong East, Bukit Timah, Bukit Panjang and Yishun, SRX and 99.co said.

The highest transacted price for a resale flat in March was S$1.45 million for a five-room flat at Boon Tiong Road. The most expensive flat resold among non-mature estate flats, meanwhile, was S$1.2 million for an executive apartment at Yishun Ave 4.