HDB resale prices up 1.3% MoM in November
Thanks to the long period for new BTO launches.
HDB resale prices experienced a jump by 1.3% month-on-month (MoM) in November 2021, 99.co reported.
Mature and non-mature estates also saw price increases by 1.2% and 1.4% MoM, respectively. Prices for 3 Room, (1.8% increase) 4 Room (0.6%), 5 Room (1.4%), and Executive (1.5%) echoed the same sentiment.
When compared on a year-on-year (YoY) basis, an overall price increase of 13.8% can be observed. All room types experienced double-digit increases on a YoY basis as well, with 3 Room by 15.6%; 4 Room, 13.6%; 5 Room, 14%; and Executive, 13.6%. The same can also be seen with mature and non-mature estates having increases of 12% and 15.3%, respectively.
OrangeTee’s Christina Sun expects this growth to rise 10-12% this year. According to her, prices could climb higher but at a slower pace of between 8-11% next year due to higher selling prices and price resistance in specific locations.
A 3.2% MoM increase of HDB resale transactions for November was also recorded. YoY, resale volumes in November 2021 was 10.9% higher than the previous year. 42% of the volume came from HDB 4 Room; 26.5% from 5 Room; 21.5%, 3 Room; and 8.5%, Executive. 2 Room and Multi-generation, meanwhile, make up the remaining transactions.
Sun points to buyers’ demand as the reason for this uptick, as new build-to-order (BTO) launches can have a long completion time. Another factor, Sun says, is the delay for projects due to employers not being allowed to have new applications for workers holding S passes or work permits to enter Singapore via the Vaccinated Travel Lanes. This is due to the detection of the Omicron variant.
November also saw a resale flat sell for around $1.27m, which involved a 5 Room DBSS unit at City View @ Boon Keng. For non-mature estates, the highest transaction price peak at $970,000 for a 5 Room Premium Apartment Loft unit at Treelodge @ Punggol.
Sun predicts that more million-dollar flat transactions are expected in the coming year, as this month saw 29 HDB resale flats sell for at least $1m last month. This is due to more flats reaching their five-year occupation period, with these flats being located in mature estates and can fetch higher resale prices.