Three executive HDB flats in Pasir Ris and Woodlands were sold for over a million dollars last month, marking a first for the two estates.
According to a flash report by 99.co and SRX on the HDB resale market in May 2022, an executive maisonette at Pasir Ris Street 13 was sold for S$1,138,888. Spanning 2,034 sq ft, this translates to a price psf of S$560.
In the same month, two executive flats in Woodlands have breached the million-dollar mark. Given the size of the flats (both have a floor area of 2,034 sq ft), they are most likely jumbo flats.
One of the flats, located along Woodlands Street 83, was sold at S$1.04 million (S$511 psf). The other flat, located along Woodlands Street 81, was sold at a slightly lower price of S$1.03 million (S$506 psf). With these transactions, Woodlands has become the third non-mature estate to see a resale flat sold for at least a million dollars, following Hougang in 2018 and Yishun earlier in February this year.
Notable month for million-dollar flats
The million-dollar executive flats in Pasir Ris and Woodlands were not the only record-breaking HDB flats last month.
Three weeks ago, a 5-room resale flat at City Vue @ Henderson grabbed headlines for its record-breaking transacted price of S$1.4 million. Notably, the development is a SERS replacement site, whose lease only started in 2019.
Given that the owners were affected by SERS, their seven-year Minimum Occupation Period (MOP) had started from the flat selection. This meant that their MOP has ended, allowing them to sell the flat in the secondary market.
In general, 30 million-dollar flats were sold last month, representing 1.4% of the total number of resale flat transactions last month. This is slightly higher than the proportion in April, in which million-dollar flats made up 1.0% of the total number of transactions.
We also note that among the million-dollar flats sold last month, 10 of the units are executive (33%) while 18 are 5-room flats (60%) and two are 4-room flats (7%).
With 30 million-dollar flats sold, this marks the second-highest number of million-dollar flats transacted in a month. The all-time record was in December 2021 when 36 of such flats were sold.
Compared to May 2021, the number of flats sold for at least a million dollars has increased by 130.8% from 13 to 30 in May 2022. For the first five months of the year, 135 million-dollar flats have been transacted, which is 55.2% higher than the same period last year.
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0.5% increase in HDB resale prices, 5.1% drop in volume in May 2022
Overall, HDB resale prices have climbed for the 23rd consecutive month, rising by 0.5% in May. Year-on-year, the price increase is 11.0%.
Breaking down by the flat types, 4-room flats have seen the highest increase by 11.9%. This is followed by executive and 3-room flats at 11.5%.
On the other hand, there was a 5.1% drop in resale volume, as 2,156 flats were transacted. Year-on-year, resale volume is 9.7% higher.
We believe the rise in price and decrease in transactions suggest that the supply in the market is drying up. At the same time, the year-on-year increase in volume may be due to the high number of MOP units entering the market this year. Despite this, we expect demand to remain high and prices to hold or increase slightly over the next few months.
Given factors such as BTO delays and supply chain disruptions, as well as consumers’ preference for more space, homebuyers may prefer to turn to resale flats instead, which have a shorter waiting time.
Christine Sun, Senior Vice President of Research and Analytics at OrangeTee and Tie, attributes the drop in resale volume to more people turning to BTO flats.
“The number of units released for BTO flats in the first six months of this year hit 8,536 units, which is 22.5% higher than the 6,966 average BTO units released in the first half of each year from 2016 to 2021.”
Sun elaborates that more people were keen to buy flats directly from HDB due to increasing resale flat prices, with prices in many locations rising in double digits and hitting new highs. On top of that, buyers have more options in choice locations, such as the new PLH flats.
What do you think of the million-dollar transactions in Pasir Ris and Woodlands? Let us know in the comments section below or on our Facebook post.
If you found this article helpful, 99.co recommends How much should you pay for a resale HDB flat in 2022? and ECs nearing 5-year MOP or 10-year privatisation: eligibility, price and should you buy?
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