News: 71 HDB flats changed hands for over $1mil in 2018

Jan 28, 2019

The number of HDB resale deals has increased significantly from just two in 2014 and 46 in 2017.

A record number of HDB resale flats were sold at over $1 million for the whole of 2018, even though the island-wide prices of such units have fallen for the fifth consecutive year to a seven-year low, reported the Straits Times.

“More HDB resale flats were sold above $700,000 last year, especially non-standard ones,” said OrangeTee & Tie research head Christine Sun, adding that 71 HDB resale flats breached the $1 million price tag.

The number of such deals has increased significantly from just two in 2014 and 46 in 2017. Most of the transactions involved non-standard HDB flats such as the Pinnacle@Duxton in the central business district, DBSS projects such as The Peak in Toa Payoh, or rare terrace homes along Stirling Road or Jalan Bahagia.

However, a larger number of typical HDB flats were also sold at sky-high prices in the past two years. In fact, 2018 was the first time when “normal” four-room HDB flats surpassed the $1 million mark, with at least four such deals taking place in Tiong Bahru.

Sun said this may indicate a growing price disparity among different HDB market segments, with some units commanding high valuations, while others see a decline in prices.

“Smaller or older flats experienced greater challenges in finding a buyer as they are impacted by growing concerns about the depreciating value of ageing flats and a growing supply of newer HDB flats that are being put up for resale in the non-mature estates,” she noted.

However, ERA Realty key executive officer Eugene Lim insists that such expensive HDB transactions are not the norm, in light of the new property curbs, rising interest rates and the current price-sensitivity of home buyers. Nonetheless, he believes that resale prices of HDB flats could see an uptick of up to 1.0 percent in 2019.

On the other hand, Huttons Asia’s research head Lee Sze Teck thinks that the dip in prices may likely continue this year, with HDB resale prices remaining unchanged or dipping by 1.0 percent this year.

Nevertheless, the planned revision this year on the usage rules of CPF monies when buying older flats with shorter remaining leases could “give a fillip to the HDB resale market”, Lee noted.

On Friday (25 Jan), HDB data revealed that prices of resale flats across Singapore dipped by 0.2 percent quarter-on-quarter and 0.9 percent year-on-year in Q4 2018.

HDB also announced that it plans to launch about 15,000 new flats in 2019. The first Build-To-Order exercise will be held in February, offering around 3,100 HDB flats in Jurong West, Sengkang and Kallang-Whampoa. It will also simultaneously hold a Re-Offer of Balance Flats exercise.

Find HDB flats for sale or read our HDB guides. Can you afford a million-dollar HDB flat? Check your affordability now. 

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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