Buyers are actively seeking HDB resale flats without resale restrictions: expert

This supported prices in the HDB resale market, which rose 0.5% MoM in October.

More buyers are looking for HDB resale flats without resale restrictions, particularly in the Central region ahead of the implementation of new categories, Huttons revealed.

Huttons said buyers are particularly looking in the Central region because only Prime and Plus BTO flats will be sold in the area from 2H24.

"They are also willing to pay slightly more for these flats," Huttons added.

Buyers' preference for HDB flats without resale restrictions may have "supported prices in the HDB resale market and the number of million dollar flats in October," said Huttons.

"This is the first time that no million dollar flat was sold in non-mature estates," Huttons added.

According to PropNex, the 41 million-dollar HDB flats resold in October were in mature towns, particularly in Bukit Merah and Bishan (7 units each), Queenstown (6 units), Kallang Whampoa and Clementi (5 units each), Ang Mo Kio (4 units), Central Area and Toa Payoh (2 units each), and one each in Serangoon, Geylang, and Bukit Timah.

Huttons, however, said the effect of buyers preferring flats in the Central region will likely be "one-off."

"The number of million-dollar flats stands at 377 as of the end of October 2023, 2.2% higher than 2022's 369 transactions. The number of million dollar flats is likely to exceed 400 in 2023," Huittons commented.

In the coming months, Huttons believe that the HDB resale market is headed towards stabilisation.

"The increase in BTO and resale flat supply may moderate prices in HDB resale flats to around 5% in 2023. HDB resale flat transactions are estimated to be 27,000 in 2023," huttons said,

PropNex shared a similar sentiment, saying the ramping up of new Build-to-Order flat supply and flats with shorter waiting times may moderate demand in the HDB resale segment. 

"Still, we expect HDB resale volume and prices to remain relatively stable in Q4 2023, supported by those with more immediate housing needs," PropNex said.