Singapore’s HDB hits new high with 72 flats worth $749.7 thousand sold in 2020

Housing & Development Board resale flats sold for SGD1 million (USD749,760) each has reached new high this year

Typical colourful public housing (HDB flats) in the Yishun neighbourhood of Singapore. kandlstock/Shutterstock

According to The Straits Times, The Housing & Development Board (HDB) has reached a new high in the number of SGD1 million resale flats, with 13 recent transactions in November. In 2019, only 64 million-dollar units were sold, whereas 72 HDB flats were sold in the first 11 months of 2020. Resale prices also increased five times back-to-back, despite transaction volumes decreasing.

Coming first on the HDB resale market is a five-room apartment at The Pinnacle @ Duxton, which was priced at SGD1,248,000, the highest transacted price listed for November’s resale flats.
Meanwhile, Parkland Residences in Hougang sold a five-room Design, Build, and Sell Scheme (DBSS) flat for SGD810,000, which is the highest resale price in non-mature estates.

A real estate company mentioned that buyers of such units were willing to pay generous amounts due to its central location, the amenities available, and the convenience of being near the city centre.

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They also added that buyers have shifted towards HDB resale markets for flats that accommodate their housing needs and budget, as prices of private condos have remained elastic throughout the pandemic.

“A family-sized private condo in the suburbs could cost SGD1.5 million, but for SGD1 million or so, the buyer can get a relatively smaller sized HDB resale unit on a high floor and in a prime spot near the city,” explained a representative.

Christine Sun, Orange Tee & Tie head of research and consultancy, commented that the fewer number of transactions could be due to sellers raising prices from excitement of market recovery and the outstanding sales made over the past couple of months.

“We estimate that around 23,000 to 24,000 HDB resale flats could be transacted this year, which is quite similar to the 23,714 resale transactions inked in 2019,” she added.