Investors hungry for HDB resales during hungry ghost month

A record-breaking 26 HDB flats were resold for more than $1m.

The traditional lull from the hungry ghost month did not deter investors and homebuyers from snapping up HDB resales in August.

More than 26 HDB flats were sold for at least $1m, the highest number of million-dollar flats sold in a month.

Resale prices increased for the 14th straight month, by 1.1% month-on-month (MoM) and 13.7% year-on-year (YoY).

Prices for all room types increased, by 0.9% for 3-room, 1.2% for 4-room and 5-room, and 1.5% for executive MoM. YoY, prices for all room types increased by 15.04% for 3-room, 13.3% for 4-room, 13.4% for 5-room, and 12.4% for executive.

Prices for mature and non-mature estates rose by 1.4% and 1%, respectively, MoM, and by 12.4% and 14.7%, respectively, year-on-year.

This translated to 2,748 resale transactions in August, a 3.2% increase MoM and 12.9% increase YoY. Most transactions were for HDB 4-room, at 42.9%, followed by 5-room at 27.4%

The most expensive resale price was for a 5-room DBS unit at Natura Loft, which sold for $1.28m.

“Demand for resale flats strengthened further as more couples turned to the resale market after it was announced last month that more BTO projects could be facing construction delays while others may see possible holds-up since some main contractors were unable to continue operation due to financial difficulties,” said OrangeTee senior vice president of research and analytics, Christine Sun.

“Some of the affected buyers may have chosen to pay slightly more for resale flats, even if the units are older or are situated in a slightly less ideal location since resale flats are already completed. With a completed home, they have more certainty and can proceed with their wedding or family plannings. Demand may also be spurred by more HDB flat owners upgrading to bigger flats or families downgrading from private properties,” she added.