HDB Resale Prices Crept Up In March 2024 Despite Dip In Sales

The average HDB resale price picked up slightly in March 2024, following a dip in February where the Lunar New Year holidays and the HDB’s build-to-order (BTO) sales exercise likely affected market activity. The price growth in March came despite a slight easing in the HDB resale volume.

Transaction data showed that HDB resale volume dipped by 3.2% month-on-month to 2,061 units in March from 2,130 units in the previous month (see Chart 1). When compared with March 2023, the resale volume was up down by 9.5%. In spite of the softer sales, the average resale price rose by 1.8% month-on-month to more than $596,000. On a year-on-year basis, the overall HDB average resale price was up by 5.2% from March 2023. 

With private home prices likely to find more stability this year, PropNex anticipates that it could encourage some HDB flat owners to consider upgrading to a private property. Some of these would-be upgraders may contemplate selling their flat first before purchasing the replacement private home to avoid having to pay the hefty additional buyer’s stamp duty (ABSD) upfront.

 Chart 1: HDB resale volume and average transacted price by month

Source: PropNex Research, Data.gov.sg

Table 1: Average transacted HDB resale flat prices by Flat Type in last six months

Source: PropNex Research, Data.gov.sg

By flat type, the average resale price of several room types rose MOM, with 4-room and 5-room flats leading the price increase. The average resale price of 5-room flats climbed by 2.1% MOM to $706,400 in March, while that of 4-room flats went up by 1.8% MOM to around $610,400. Meanwhile, the average resale price of executive flats inched up by 0.9% MOM to more than $851,100 in March (see Table 1). In contrast, 3-room resale flats saw the average price slipped by 0.6% MOM to more than $422,600.

Evaluating the sales data by towns and flat types, 5-room flats in mature towns saw a faster rate of price growth, rising by 1.8% MOM to about $833,500 in March. This was followed by 4-room flats in mature estates where the average price rose by 1.7% MOM to $693,745, and executive flats in non-mature towns where the average price climbed 1.2% MOM to more than $813,600 (see Table 2). Meanwhile, the segment that saw the largest price decline in March was executive flats in mature towns, where the average resale price fell by 3.1% MOM to more than $921,000.

Table 2: Average transacted HDB resale flat prices in Mature and Non-mature towns

Source: PropNex Research, Data.gov.sg

In March 2024, mature towns made up the top 3 lists of estates in PropNex’s ranking of average transacted resale prices on a per square foot basis ($PSF) by flat types (see Table 3). The highest average PSF price for 4-room flats in March was $872 psf in Central Area, while the Central Area and Bishan achieved the highest average unit resale price for 5-room flats and executive flats in during the month at $969 psf and $739 psf, respectively.

Table 3: Top 3 towns by Average $PSF transacted price by flat type in March 2024 (and corresponding price in previous month)

Source: PropNex Research, data.gov.sg

Chart 2: Proportion of HDB Resale Transactions by Price Range

Source: PropNex Research, Data.gov.sg

Based on the transaction data, 31% of resale flats sold in March were priced at below $500,000, compared to 33.3% in the previous month. Meanwhile, about 66% of the flats resold in March were priced at between $500,000 and just under $1 mil – up from 64.4% in February. The proportion of resale flats sold for at least $1 million accounted for 3% of March’s sales – ticking up from 2.3% in the previous month (See Chart 2).

The number of resale flats sold for at least $1 million, or million-dollar resale flats as they are commonly known, remained elevated in March with 61 such deals done (see Chart 3) – rising by 22% from 50 transactions in the previous month. Of the 61 flats, nine units are located in non-mature towns– one each in Bukit Panjang, Yishun and Jurong East, and six executive flats in Hougang. Notably, this is the highest number of million-dollar HDB flats to be resold in Hougang in a single month.  

Over in mature towns, Toa Payoh led the million-dollar resale flat transactions with 9 units fetching at least $1 million, it is followed by Kallang Whampoa, Bukit Merah and Clementi with 7 units each. The remaining million-dollar resale flats are in Queenstown, Bishan, Central Area, Serangoon, Bedok, Ang Mo Kio, Bukit Timah, and Tampines. By flat types, 24 of the units are 5-room flats, 19 are 4-room units, 16 are executive flats, and two are multi-generation flats.

Chart 3: Number of “Million-dollar” HDB Resale Flats sold By Month

Source: PropNex Research, Data.gov.sg

The priciest HDB resale flat sold in March was a 112-sq m (1,206 sq ft) 5-room flat in Boon Tiong Road which fetched $1.45 million (see Table 4). The unit is located on a floor ranging between 19^th and 21^st floor and had a remaining lease of 90 years and 11 months as at March. The 61 units of million-dollar flats resold in March took the transaction number of such flats to 185 units in Q1 2024 – a new quarterly high since 133 such flats were resold in Q4 2023 (see Chart 4).

Table 4: Top 10 HDB resale flats sold in March 2024 by Transacted Price

Source: PropNex Research, Data.gov.sg

Chart 4: Number of “Million-dollar” HDB Resale Flats sold By Quarter

Source: PropNex Research, Data.gov.sg

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