Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie, said 53 resale flats were sold for at least $1 million in Q1 2021 – the highest quarterly sales on record.
The number of million-dollar Housing and Development Board (HDB) flats will likely hit a new record as more flats are expected to reach the Minimum Occupation Period (MOP) this year, said OrangeTee & Tie in its latest report.
HDB data showed that 25,530 flats will reach their five-year MOP in 2021, up from 24,163 units last year. Yishun, Sengkang, Choa Chu Kang and Kallang are expected to register the highest number of flats achieving MOP this year.
In fact, the number of flats hitting MOP is expected to increase further to 31,325 units next year.
More flats will be achieving MOP within mature estates such as Kallang with 2,827 units, Clementi and Ang Mo Kio with 962 units and 859 units, respectively. About 852 units are also expected to reach MOP in Tampines, 852 units in Geylang, 570 units in Bukit Merah, 465 in Toa Payoh and 408 units in Bishan.
Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie, said 53 resale flats were sold for at least $1 million in Q1 2021 – the highest quarterly sales on record.
“This number has already surpassed the total number of million-dollar flats transacted in the full years before 2018,” she said.
For this year, Sun believes the total number of million-dollar transactions will likely exceed the record sales registered last year (82 units).
She noted that the number of flats sold at higher prices hit a new high, with 825 flats transacted above $700,000 in Q1 2021 – the highest number of flats recorded.
Of this, 393 units were sold above $800,000.
Based on HDB data, HDB resale flat prices rose 3% quarter-on-quarter and 8.1% year-on-year in Q1 2021.
Prices of HDB resale flats are now “inching closer” to the peak price registered in the second quarter of 2013. In Q1 2021, prices were just 4.8% lower than the highest price posted in Q2 2013.
“Rising flat prices bode well for sellers as it is now more favourable for flats owners to ascend the property ladder,” said Sun.
“Some buyers are more inclined to pay top-dollar for resale flats in desirable locations especially those in mature estates or near popular primary schools, MRT stations, shopping malls and other amenities.”
These buyers may be “downsizing from private properties or former en bloc homeowners who are still on the lookout for large, affordable replacement homes”, she said.
Others could be HDB homeowners who want to upgrade to a larger space as their family size has expanded.
Looking ahead, Sun expects resale flat prices to increase by 5% to 9% for the whole of 2021.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: victorkang@propertyguru.com.sg
