HDB resale prices up 1.1% MoM in January 2022

At least 27 HDB resale flats were transacted for around $1m.

HDB resale prices saw a uptick of 1.1% in January 2022. 

The report released by 99.co and SRX also saw similar increases in mature and non-mature estates, at 0.6% and 1.5%, respectively. This was also seen in the different room types, with 3 Room, 4 Room, 5 Room, and Executive prices going up by 1.3%, 1.8%, 0.9%, and 0.9%, respectively. 

Year on year (YoY), an overall price increase of 12.9% was observed. Following this growth were mature and non-mature estates recording prices increases of 11.5% and 14%, respectively. All room types increased as well, with 3 Room types leading with a 14.7% increase. Following this were 4 Room (+13.1%), 5 Room (+13.2%), and Executive Room (14.1%).

2,442 HDB resale transactions were recorded in the month, which represents a 0.6% increase from December 2021. YoY, the resale volume was 2.4% lower, with majority of resales coming from HDB 4 Room units at 42%. This was followed by 5 Room, 3 Room, and Executive, at 25.8%, 23.9% and 6.8%, respectively. 

Meanwhile, the highest transacted price for a resale flat reached $1.34m for a 5 Room DBSS unit at Natura Loft. In non-mature estates, the highest transacted price was at $910,000 for an Executive apartment unit at Woodlands Street 41. 

Overall, 27 HDB resale flats were transacted for at least $1m in January 2022.

Christine Sun, Senior Vice President of Research and Analytics, expects this upward trend to continue throughout the year. This is due to the 31,325 flats reaching MOP within the year, resulting in more owners putting up their units for sale.

Meanwhile, Wong Siew Ying, Head of Research and Content, Propnex Realty, attributed this performance to home buyers not being affected by the new property curbs. 

“The reduction in loan-to-value (LTV) limit for HDB loans to 85% is not expected to significantly impact buying demand as many Singaporean households have ample savings. In addition, some buyers have also been opting to finance their property purchase with private bank loans where interest rates are currently lower than that of HDB loans. That said, the tightened LTV limit for HDB loans may encourage buyers to be more prudent and right-size their flat purchase, while HDB resale price growth will likely be more measured, with sellers mindful of price sensitive buyers,” said Ying.