HDB resale prices rise for 12th straight month

With BTO delays, resale prices are expected to keep rising.

Zi Shan Kow | July 10, 2021, 12:09 PM

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According to flash data from real estate portal SRX on July 8, Housing and Development Board (HDB) flat resale prices rose by 0.9 per cent in June when compared to May, according to flash data from real estate portal SRX on July 8.

This is the 12th month in a row that HDB resale prices are rising.

Year on year, resale prices have increased 13.2 per cent.

Prices for all room types increased year on year as well: 3 Room by 14.8 per cent, 4 Room by 12 per cent, 5 Room by 11.6 per cent and Executive by 12.3 per cent.

According to SRX, current resale prices are only 1.7 per cent lower than its peak in April 2013.

Transactions in June

2,311 resale flats were bought in June, 17.5 per cent higher than the month before.

Flats purchased for over a million dollars increased from 13 in May to 19 in June.

One such flat was a HDB terraced house in Whampoa, which was bought for S$1.268 million, making it the most expensive HDB resale unit of all time.

In the first half of this year, 106 of such flats were sold, as compared to 24 units in 2020.

These million dollar transactions were located in mature estates, according to PropNex's Head of Research and Content Wong Siew Ying.

She shared with The Straits Times that 30 such deals were made at The Pinnacle @ Duxton, followed by Queenstown and Bishan, with 16 each.

Greater demand for resale flats

As Build-To-Order (BTO) flats face construction delays due to the pandemic, analysts expect resale prices to continue to rise.

For those affected by BTO delays, the Ministry of National Development (MND) is looking into providing more temporary housing. HDB will also consider waiving the forfeit fee for BTO buyers who cancel their bookings on a case-by-case basis.

More house buyers are considering resale flats, as BTOs are heavily oversubscribed, driving up its prices.

Stay home measures in the past year have increased the desire for a bigger living space, while enhanced CPF housing grants from 2019 made resale flats more attractive, OrangeTee’s Senior Associate District Director Ryan Tan told CNA.

Minister for National Development Desmond Lee intends to restrict resale transactions of hotly-demanded units so as to moderate their prices.

Top image via Getty Images