Record number of million-dollar HDB flats sold in August; resale volume jumps 20.3%

In August 2023, the number of million-dollar HDB resale flat transactions hit a record high, as overall Housing & Development Board (HDB) resale volumes surged by 20.3%.

According to data, 54 HDB flats changed hands for S$1 million or more during the month, up from 32 units in July 2023.

A previous record high of 45 such transactions was recorded in September 2022, before property cooling measures were implemented.

The majority of these million-dollar HDB transactions were located in Bukit Merah, which logged nine transactions, followed by the Central Area with eight transactions, and Ang Mo Kio and Kallang/Whampoa with six transactions each.

Compared to several years ago, million-dollar HDB flats are increasingly accepted by buyers and have become the new normal in the resale market.

Such homes typically boast unique attributes and attractive locations, offering a compelling value proposition for buyers who can afford them.

Demand from seniors aged 55 and above may have driven the increase in million-dollar transactions, as approximately 30% of these deals involved 4-room flats.

Seniors who have sold their private residential properties can still purchase 4-room or smaller resale flats without having to serve the 15-month wait-out period implemented in September 2022.

Million-dollar flat transactions accounted for 2.2% of total resale volume in August, which rose to 2,473 units from 2,056 units the previous month. Year-on-year, resale volume grew by 6.4%.

Property analysts attributed this surge to buyers bringing forward their purchases ahead of the Hungry Ghost Festival, alongside buyers returning to the market after the June school holidays.

Recent announcements regarding changes to the HDB housing framework at the National Day Rally may have also prompted more buyers to take action and secure units, keen to avoid any impact from policy shifts.

With supply holding steady, buyers looking to reside in more central locations felt greater urgency to secure a home.

More than half of HDB resale transactions (59.7%) came from non-mature estates, with the remaining 40.3% from mature estates.

Broken down by flat type, 44.6% of resale volume comprised 4-room flats, followed by 3-room flats at 26.3%, 5-room flats at 22.8%, and executive flats at 6.3%.

Meanwhile, resale prices climbed 0.6% in August, doubling the 0.3% increase recorded in July. On a year-on-year basis, resale prices rose by 7.2%.

Compared to the same period in 2022 and 2021, price growth has moderated.

From January to August 2023, prices rose 4.8%, a slower pace compared to the 6.4% increase recorded in the first eight months of 2022 and 9.2% in the first eight months of 2021.

Prices in mature estates rose 1.3%, while those in non-mature estates inched up 0.5%. Year-on-year, prices increased by 7.2% and 7.3% respectively.

Larger flats also posted the highest price gains. Executive flat prices rose 1.6%, while 5-room flats gained 1.5%. Prices of 4-room flats increased by 0.9%, whereas 3-room flat prices dipped 0.4%.

Resale prices across all flat types registered year-on-year gains. 4-room flats posted the highest growth at 8.2%, followed by executive flats (8.0%), 5-room flats (7.2%), and 3-room flats (6.3%).

A 5-room unit at The Pinnacle@Duxton fetched the highest resale price at S$1.48 million. In non-mature estates, an executive flat in Woodlands commanded the top transacted price of S$1.08 million.