Singapore’s HDB resale flat prices rose 9.1% from Jan-Sep

November saw a total of 2,586 HDB resale flats change hands with the highest monthly growth 

Site constraints and tall building heights are reasons for the long build time for these projects. Fandistico/Shutterstock

Flash data reveals that the Housing Board (HDB) resale flat prices surged for the 17th month in a row, increasing rapidly at a pace of 1.3 percent in November compared to the previous month, reported The Straits Times. 

November’s resale prices had surpassed the highest monthly growth of 1.4 percent back in February and were 13.8 percent higher than in November last year. 

Price rises were seen in mature and non-mature estates and across all flat types. 

Moreover, the past month saw 29 HDB resale flats changing hands for at least SGD1 million (USD732,573), smashing the record of 26 such units in August. 

November also saw a total of 2,586 HDB resale flats changed hands, an increase of 3.2 percent from October. 

This record-high number of million-dollar resale flats sold arrives with the launch of the first Build-To-Order (BTO) project under a new prime location public housing (PLH) model. The model puts buyers through stricter home ownership criteria. 

Property analysts expect this booming HDB market performance to carry on into 2022, due to fears of further construction delays in BTO projects from the Omicron variant. 

Senior vice-president of research and analytics at OrangeTee & Tie, Christine Sun, said buyers shifted their focus to the HDB resale market as the completion periods of some new BTO launches can be “quite long”, especially those in the mature estates. 

Site constraints and tall building heights are reasons for the longer build time for these projects. 

Sun also added that the construction time of ongoing BTO projects can also be impacted by the latest regulations on new applications for workers holding S Passes or work permits via the vaccinated travel lanes, turning more buyers to the HDB resale market. 

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She predicts HDB resale flat prices to hike by 10 to 12 percent this year, with prices continuing to increase but at a slower pace of around eight to 11 percent next year. 

According to official HDB data, resale prices jumped by 9.1 percent for the first nine months of 2021. 

The Property Report editors wrote this article. For more information, email: [email protected].