2023 to be a record-breaking year for million-dollar flat transactions – expert

As of 27 October, 369 million-dollar HDB flats have exchanged hands.

The HDB resale market is likely to break its 2022 record for million-dollar flat transactions.

According to PropertyGuru, there have been 369 million-dollar HDB flat transactions as of 27 October, which is already the total number of flats transacted in 2022.

In 3Q23, Huttons said the number of million-dollar flats is estimated to be 128, 21.9% more than 2Q23.

“It is highly likely that the number of million-dollar flats will exceed 400 and account for around 1.6% of total transactions in 2023,” Huttons said.

Huttons also reported that more than half of the million-dollar flat transactions in 3Q23 were in the price range of $1m to $1.1m.

“However, with more demand for resale flats in mature estates without the PLH restrictions, the number of transactions above $1.1m  appears to be trending up,” said Huttons.

The end of 3Q23 marks exactly one year from when the September 2022 property cooling measures were implemented.

Whilst the measures have deterred private property owners from ‘right-sizing’ to HDB flats, other buyers, like HDB upgraders with a preference for larger living spaces, continued to seek out larger HDB flat types and are willing to pay price premiums for a larger space, said PropertyGuru.

“As the year wraps, we could continue seeing more million-dollar flat transactions, especially in non-mature estates. In late September, a 1,367 sq ft Bukit Panjang flat transacted at $1.02 million, making it the first seven-figure transaction for the area,” PropertyGuru said.

“Nonetheless, million-dollar flats continue to make up a small percentage of overall transactions, transacting at a similar pace to previous quarters,” PropertyGuru added.